Machi Machi Franchise Cost, Revenue & Review 2026
Data from FDD filing
Analysis by FranchiseVerdict Research · Methodology
Machi Machi is a bubble tea franchise serving fresh, made-to-order Taiwanese-style dessert drinks and specialty beverages. Franchisees run the shops, managing drink prep, ingredient inventory, and counter service.
FranchiseVerdict summary · 2026
A Machi Machi franchise requires a total initial investment of $350K – $1.1M, including a $50K – $200K franchise fee and an ongoing 5.0% royalty[2]. The 2024 FDD does not disclose unit-level revenue (no Item 19). FranchiseVerdict grade: C (Average), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2024 FDD issuance
Overview
- Investment
- $350K – $1.1M
- 59th pct Service Resta…
- Avg gross sales
- N/A
- Royalty
- 5.0%
- 11th pct Service Resta…
- Units
- 4
- 19th pct Service Resta…
- SBA charge-off
- N/A
Quick verdict · Quick-Service Restaurants · color = vs category peers
Green = favorable by >10% vs Quick-Service Restaurants avg · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $350K – $1.1M including a $50K franchise fee, 5.0% ongoing royalty.
- RETURNS2022 consolidated product revenue from a corporate store closed March 2022; other income of $80,695 is an ERC (Employee Retention Credit) receivable. Auditor issued going-concern emphasis-of-matter (recurring losses, net capital deficiency). Prior-year (2021) product revenue was $288,076.
- RISKVerdict C (Average), verdict score 44/100 (higher is better).
- FLAGAuditor 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
Corporate structure & franchisor financials
- Legal entity
- Machi Machi US, Inc.
- Parent company
- Machi Machi Co., Ltd. (Machi Machi Taiwan)
- Ultimate parent
- Machi Machi Co., Ltd. (Taiwan)
- Predecessor
- Machi Machi Co., Ltd. (Taiwan)
- Prior franchisor entity
- CEO title
- President
- Jason Fan
- Incorporated in
- Wyoming
- HQ
- 2015 E 24th Street, Minneapolis, Minnesota 55404
- Auditor
- Almanzar & Yanes
- Audited financials
- Franchisor revenue
- $65K
- vs $288K 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
- CEO
- Jason Fan
- Headquarters
- Minnesota
- Founded
- 2018
- FDD year
- 2024
- States available
- 3
Can you afford it, and what does the money buy?
Entry cost runs 10% above the typical quick-service restaurants franchise.
Source: FDD 2024 · Items 5–7
Full Item 7 breakdown18 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
- Middle of category vs category
- Liquid capital req'd
- $10K – $30K
- Top 40% of category vs category
- Franchise fee
- $50K – $200K
- Bottom third — review vs category
- Royalty
- 5.0%
- percentage · typical 6–8%
- Ad fund
- 0.0%
- 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 | 0.0% of gross sales |
| Training fee | $500 |
| Transfer fee | $0 |
| Renewal fee | $0 |
| Inventory (initial) | $5K – $100K |
| Total fee load | 7.0% of rev |
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
Machi Machi did not disclose financial performance in FDD Item 19. The ROIC and return models require Item 19 revenue. Without it all inputs are estimates. You can still run the calculator with your own assumptions by entering an expected revenue figure.
Returns model · single-unit ROIC
What would one Machi Machi unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
17%
Below the 30–60% attractive-franchise band
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2024 FDD
Financial Performance
2022 consolidated product revenue from a corporate store closed March 2022; other income of $80,695 is an ERC (Employee Retention Credit) receivable. Auditor issued going-concern emphasis-of-matter (recurring losses, net capital deficiency). Prior-year (2021) product revenue was $288,076.
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Fee burden
Total ongoing fee load of 7.0% (near the Quick-Service Restaurants average).
Disclosure
Franchisor chose not to disclose financial performance representations. You will need to gather unit economics directly from existing franchisees.
Operator retention
Net unit growth of +300.0% over 3 years (3 opened, 0 closed).
Multi-unit rate
Only 3% of franchisees own multiple units. Could indicate challenging economics or a young system where operators haven't had time to expand.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Quick-Service Restaurants averages
How Machi Machi Compares
Is the system healthy?
Source: FDD 2024 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 4
- Opened
- 3
- Last reporting year
- Closed
- 0
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 0.0%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Multi-unit owners
- 3.4%
- Net growth (3-yr)
- Outlier (see FDD)
- Likely small-sample artifact
- 3-yr CAGR
- Outlier (see FDD)
- Likely small-sample artifact
3-year detail · Item 20
- Opened (3yr)
- 2
- Closed (3yr)
- 0
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 0
- Reacquired (3yr)
- 0
- Franchisor bought back
- 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.
What could kill this investment?
The auditor flagged going-concern doubt (Item 21) — the single biggest risk here.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
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ⓘ Going-concern language present, but this is an early-stage franchisor with limited operating history — common for new systems and not necessarily a sign of distress.
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
ⓘ These are the parent company's consolidated financials (the parent guarantees the franchisor), not this brand's standalone results — the figure reflects the whole corporate group, not this brand alone.
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 44 / 100 verdict
- 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
What are you signing up for?
Ongoing fees run about 7.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2024 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 7 years |
|---|---|
| Renewal term | 7 years |
| Allowed renewalsℹ | 1 |
| Territory type | protected |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory radius | 1 mi |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 1 year |
| Non-compete (miles)ℹ | 3 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Termination groundsℹ | 13 |
| Curable defaultsℹ | 14 |
| Mandatory arbitration | Yes |
| Arbitration location | Minneapolis, Minnesota |
| Jury trial waiver | No |
| 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
- Certified Training Store
- Ongoing training
- Required
- Time to open
- 5 mo
- From signing to launch
- Site selection
- franchisee
- Franchisor financing
- Not offered
- Item 10
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 $50K. 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 Item 19 in the Machi Machi FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the Machi Machi FDD and qualifies whose outlets they describe.
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 4 franchised units and 0 company-owned units. 3 new units were opened in the latest reporting year.
Is Machi Machi a good franchise to buy?
FranchiseVerdict rates Machi Machi as a C-grade franchise with a verdict score of 44 out of 100 (higher is better), 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
Are you the franchisor?
If you represent Machi Machi, you can request corrections or provide updated information.
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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.