FranchiseVerdict
Machi Machi logo
FV-01536·MODERATEExcellent81

Machi Machi

Food & Beverage - Ice Cream & DessertsFranchising since 2021Website
Investment
$350K – $1.1M
81st pct Ice Cream & D…
Avg revenue
59th pct Ice Cream & D…
Royalty
5.0%
10th pct Ice Cream & D…
Units
4
19th pct Ice Cream & D…
SBA default

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.
  • Rated MODERATE with a risk score of 65/100.
  • Auditor disclosed a going-concern note — 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
Wyoming
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.

Yale framework · single-unit ROIC

Returns Analysis

Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.

The model · Yale framework

What would one Machi Machi unit return on the cash you put in?

Revenue · per unit, per year
$
Item 19 not disclosed — typing your own estimate
Franchisor take · royalty + ad fund
Royaltytyp 68%
%
Ad fundtyp 35%
%
Operating costs · category default: restaurant
COGS
%
Labor
%
Rent / occupancy
%
Other operating
%
Total invested capital · what you actually put in
Initial investment
$
FDD Item 7: $350K–$1.1M
Working capital
$
FDD reports $10K–$30K

Unlevered ROIC · per unit

11%

Below typical band (30–60%)

0%30–60% Yale band80%

Store EBITDA · annual
$83K
EBITDA margin
11.0%
Total invested
$742K
Payback
108 mo
Unit-level only. A multi-unit portfolio gives up roughly 5–15% of this to shared services (corporate G&A) before reaching the ~10-unit break-even Yale describes.

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
Founded
2018
FDD year
2024
States available
3

Item 7 · what it costs

The Vitals

Total investment
$350K – $1.1M
All-in to open one unit
Liquid capital
$10K – $30K
Cash you must have on hand
Franchise fee
$200K
Royalty
5.0%
Gross Sales · typical 6–8%
Ad fund
2.0%
typical 3–5%
Total fee load
7.0%
vs 9–13% typical

Item 19

Financial Performance

This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.

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
2022
4+2
Franchised units
2023
2
Franchised units
2024
1
Franchised units

Year-over-year franchised unit counts and net change. Source: FDD Item 20.

Item 20 · 6 states with active franchisees

The Territory Map

Derived from franchisee contact records. Shows states with at least one current operator — not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).

AK
ME
VT
NH
MA
RI
CT
NY
NJ
PA
DE
MD
DC
WA
OR
CA
NV
ID
MT
WY
UT
CO
AZ
NM
ND
SD
NE
KS
OK
TX
MN
IA
MO
AR
LA
WI
IL
MS
TN
MI
IN
KY
AL
OH
WV
GA
VA
NC
SC
FL
HI
Registered · 6 states
Not registered

States derived from franchisee phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.

Government records

SBA Loan Data

Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.

No SBA loan data available for this brand.

FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17

Risk & Legal

65
Risk · 0-100
MODERATE65 / 100

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.

Score breakdown · what drove the 65 / 100 rating

  1. 01MINOROnly 4 units systemwide indicates extremely early-stage/unproven concept with minimal track record
  2. 02MINORHigh franchise fee ($200,000) relative to system size creates pressure on franchisor to recruit rather than support
  3. 03MEDNo average revenue or net income disclosed (missing Item 19) prevents ROI validation and suggests weak unit economics
  4. 04MINORWide investment range ($350K-$1.1M) suggests inconsistent unit performance or undefined build-out standards
  5. 05MINOR100% YoY unit growth from 2 to 4 units is mathematically meaningless for assessing viability
  6. 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

Territory
Radius
Protected territory
Yes
Initial term
7 years
Renewal term
7 years
Online sales rights
Restricted
Franchisor can compete
Yes
Hire a manager?
Allowed
Litigation count
0
Right of first refusal
Yes
Franchisor can buy back on resale
Mandatory arbitration
Yes
Jury trial waiver
Yes
Non-compete
1 yrs
Post-termination restriction
Owner-operator
Optional
Governing law
Minnesota

Item 11

Training & Operations

Classroom training
32 hrs
On-the-job training
136 hrs

Item 20

Franchisee Contacts

Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.

Franchisee contacts

7 numbers

Locked
(334) 242-••••
AL
(651) 539-••••
MN
(781) 308-••••
MA

One-time purchase · CSV download · Validation questions included

FDD download

Machi Machi · FDD (2024) PDF

Single-page checkout · instant download · CSV export of contacts available separately above