Madurai Kitchen
Bottom line
- Total investment $222K – $703K including a $50K franchise fee, 5.0% ongoing royalty.
- Average unit revenue of $959K/year.
- Rated CAUTION with a risk score of 70/100.
- Emerging franchise — only 1 year of franchising with 2 units. Early-stage systems carry higher risk but may offer better territory availability.
Item 1 · who you're contracting with
The Franchisor
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 Madurai Kitchen unit return on the cash you put in?
Unlevered ROIC · per unit
32%
In Yale's "attractive" band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Madurai Kitchen units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$1.9M
on $9.6M purchase
Total debt
$7.7M
SBA $4.8M + senior + seller note
Overview
About
Franchisees operate quick-service or casual South Indian/Tamil cuisine restaurants under the Madurai Kitchen brand, handling day-to-day kitchen operations, food preparation, customer service, inventory management, and local marketing. With only 2 existing units, there is minimal operational support infrastructure or proven systems documentation.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
Item 20 · unit dynamics
The Growth Chart
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).
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
Madurai Kitchen presents HIGH RISK due to Going Concern status, microscopic 2-unit system, undisclosed net income, and unclear unit economics—hallmarks of a financially distressed or pre-revenue franchise with unproven model replication.
Score breakdown · what drove the 70 / 100 rating
- 01HIGHGoing Concern status is FALSE — indicates financial distress or viability questions at franchisor level
- 02MEDOnly 2 units in system with unknown growth trajectory — extremely limited scale and no proven replication model
- 03MEDNet income not disclosed in Item 19 — unable to validate actual profitability claims; only gross revenue ($959k avg) provided
- 04MINORHigh investment range ($221.5k–$702.5k) with opaque unit economics — wide variance suggests inconsistent costs or financial performance
- 05MINOR7-year term with 5% royalty on only 2 units suggests early-stage/struggling franchise system
- 06HIGHNo litigation disclosed is neutral, but combined with 'Going Concern' status raises credibility concerns about franchisor transparency
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
Item 11
Training & Operations
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
One-time purchase · CSV download · Validation questions included
FDD download
Madurai Kitchen · FDD (2025) PDF