Machi MachiFranchise Cost, Revenue & Review 2026
Data from FDD filing
FranchiseVerdict summary · 2026
A Machi Machi franchise requires a total initial investment of $350K – $1.1M, including a $200K franchise fee and an ongoing 5.0% royalty[2]. The 2024 FDD does not disclose unit-level revenue (no Item 19). Verdict grade: D. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2024 FDD issuance
Overview
- Investment
- $350K – $1.1M
- 67th pct Service Resta…
- Avg gross sales
- N/A
- 59th pct Service Resta…
- Royalty
- 5.0%
- 13th pct Service Resta…
- Units
- 4
- 17th pct Service Resta…
- SBA default
- N/A
Quick verdict · Quick-Service Restaurants · color = vs category peers
Green = >15% above Quick-Service Restaurants avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
The franchisor's auditor raised doubt about continued operations. This is a serious risk signal.
Bottom line
- Total investment $350K – $1.1M including a $200K franchise fee, 5.0% ongoing royalty.
- No Item 19 financial performance data disclosed. The franchisor chose not to publish revenue figures.
- Verdict D (Below Average) with a risk score of 70/100.
- Auditor disclosed a going-concern note, which flagged doubt about the franchisor's ability to continue operations. Verify against the latest FDD.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Machi Machi US, Inc.
- Parent company
- Machi Machi Co., Ltd.
- Incorporated in
- WY
- HQ
- 2015 E 24th Street, Minneapolis, Minnesota 55404
- Auditor
- Almanzar & Yanes, P.A.
- Audited financials
- Franchisor revenue
- $288K
- vs $24K prior year
- ⚠ Going-concern note
- Disclosed in FDD 2024
- Status as of 2024; may have been resolved in a later filing we don't yet have.
Overview
About
Machi Machi franchisees operate fast-casual or quick-service restaurants (likely Asian cuisine based on brand name), managing daily food preparation, customer service, POS operations, inventory management, and staff scheduling across a protected territory. Daily responsibilities include food safety compliance, vendor ordering, staff training, and local marketing to drive traffic to a single or multi-unit location.
- CEO
- Jason Fan
- Headquarters
- MN
- Founded
- 2018
- FDD year
- 2024
- States available
- 3
FDD Item 7 · 2024 filing · 18 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Fee | $50K | $200K | |
| Background / Credit Check | $150 | $300 | |
| Real Estate and Leasehold Improvements | $150K | $400K | |
| Location Selection Services | $5K | $35K | |
| Furniture and Fixtures | $20K | $40K | |
| Equipment | $53K | $100K | |
| Architectural and Engineering Fees | $7K | $15K | |
| Signage | $5K | $20K | |
| Computer/Tablet System | $7K | $13K | |
| On-Site NSO Support | $5K | $5K | |
| Insurance | $5K | $20K | |
| Smallwares | $5K | $10K | |
| Opening Inventory | $5K | $100K | |
| Grand Opening Advertising | $2K | $10K | |
| Training | $6K | $35K | |
| Miscellaneous Costs to Begin Operations | $9K | $16K | |
| Rent for the first 3 months | $6K | $45K | |
| Additional Funds (3 Months) | $10K | $30K | |
| Total initial investment | $350K | $1.1M |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $350K – $1.1M
- Near category avg vs category
- Liquid capital req'd
- $10K – $30K
- Better than avg vs category
- Franchise fee
- $50K – $200K
- Below avg, review vs category
- Royalty
- 5.0%
- Gross Sales · typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 7.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 5.0% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
| Transfer fee | $50 |
| Renewal fee | $10 |
| Total fee load | 7.0% of rev |
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
vs Quick-Service Restaurants averages
How Machi Machi Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 4
- Opened
- 2
- Last reporting year
- Closed
- 0
- Turnover rate
- 0.0%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Multi-unit owners
- 3.4%
- Net growth (yr3)
- +100.0%
- Net unit change last year
- 3-yr CAGR
- Outlier (see FDD)
- Likely small-sample artifact
3-year detail · Item 20
- Transfers (3yr)
- 0
- Continuity rate
- 100.0%
- Units that stayed open
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 12 · 3 states reported
The Territory Map
FDD Item 12 reports the state count, but the specific list isn't in our current data. The map will appear once we re-extract from the FDD or enough franchisee contacts are available.
3
states with franchisees (per FDD Item 12)
Fast growth in a small system. Newer franchisors expanding quickly may not yet have the support infrastructure of larger systems.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
No SBA loan data available for this brand.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Early-stage concept with insufficient unit density to validate business model, combined with aggressive fee structure and complete absence of financial performance data, creates substantial downside risk despite lack of litigation.
Litigation (Item 3)
No litigation is required to be disclosed in this Item.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Almanzar & Yanes, P.A.⚠ Going-concern note flagged
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Score breakdown · what drove the 70 / 100 rating
- 01MINOROnly 4 units systemwide indicates extremely early-stage/unproven concept with minimal track record
- 02MINORHigh franchise fee ($200,000) relative to system size creates pressure on franchisor to recruit rather than support
- 03MEDNo average revenue or net income disclosed (missing Item 19) prevents ROI validation and suggests weak unit economics
- 04MINORWide investment range ($350K-$1.1M) suggests inconsistent unit performance or undefined build-out standards
- 05MINOR100% YoY unit growth from 2 to 4 units is mathematically meaningless for assessing viability
- 06MED5% royalty on undisclosed sales means franchisor revenue model unclear and franchisee profitability unverifiable
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 7 years |
|---|---|
| Renewal term | 7 years |
| Allowed renewalsℹ | 1 |
| Territory type | Radius |
| Protected territory | Yes |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 1 year |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | Minnesota |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation is required to be disclosed in this Item.
Items 10, 11
Training & Operations
- Classroom training
- 32 hrs
- On-the-job training
- 136 hrs
- Training location
- On-site and corporate
Items 5 & 11
Franchisor Support
Item 20 · call current owners
Franchisee Contacts
4 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Machi Machi · FDD (2024) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Machi Machi franchise?
The total investment to open a Machi Machi franchise ranges from $350K – $1.1M, with an initial franchise fee of $200K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Machi Machi franchise owners earn?
Machi Machi does not disclose average franchise owner earnings in their FDD Item 19. Not all franchisors are required to make financial performance representations. We recommend asking existing franchisees directly about their financial experience.
What is Machi Machi's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Machi Machi (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
How many Machi Machi franchise locations are there?
As of their most recent FDD filing, Machi Machi has 4 total units in the United States, including 1 franchised units and 0 company-owned units. 2 new units were opened in the latest reporting year.
Is Machi Machi a good franchise to buy?
FranchiseVerdict rates Machi Machi as a D-grade franchise with a risk score of 70 out of 100, based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
For franchisors
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.