FranchiseVerdict
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FV-01615·MODERATEExcellent81

Mensho

Food & Beverage - Full ServiceFranchising since 2022Website
Investment
$578K – $3.5M
73rd pct Full Service
Avg revenue
57th pct Full Service
Royalty
5.0%
15th pct Full Service
Units
10
41st pct Full Service
SBA default

Bottom line

  • Total investment $578K – $3.5M including a $30K 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.
  • No Item 19 financial performance representation. Without franchisor-disclosed revenue data, you'll need to gather unit economics directly from existing franchisees.

Item 1 · who you're contracting with

The Franchisor

Legal entity
Mensho Franchise, Inc.
Parent company
MENSHO, Inc.
Incorporated in
California
HQ
672 Geary Street, San Francisco, CA 94102
Auditor
SKY ACCOUNTANCY CORPORATION
Audited financials
Franchisor revenue
$406K
vs $922K prior year

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 Mensho 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: generic
COGS
%
Labor
%
Rent / occupancy
%
Other operating
%
Total invested capital · what you actually put in
Initial investment
$
FDD Item 7: $578K–$3.5M
Working capital
$
FDD reports $35K–$55K

Unlevered ROIC · per unit

6%

Below typical band (30–60%)

0%30–60% Yale band80%

Store EBITDA · annual
$128K
EBITDA margin
17.0%
Total invested
$2.1M
Payback
194 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

Mensho franchisees operate ramen restaurants, likely focused on tonkotsu (pork bone broth) or specialty ramen concepts based on brand positioning. Day-to-day operations include managing kitchen staff for broth preparation and noodle production, front-of-house service, inventory management for specialty ingredients, and maintaining Japanese culinary standards. Franchisees are responsible for local marketing, hiring, scheduling, and food cost management in what is typically a high-volume, labor-intensive QSR format.

CEO
Tomoharu Shono
Founded
2021
FDD year
2026
States available
2

Item 7 · what it costs

The Vitals

Total investment
$578K – $3.5M
All-in to open one unit
Liquid capital
$35K – $55K
Cash you must have on hand
Franchise fee
$30K
Royalty
5.0%
Gross Sales · typical 6–8%
Ad fund
1.0%
typical 3–5%
Total fee load
6.0%
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
10
Opened
5
Last reporting year
Closed
0
Turnover rate
0.0%
Company-owned
4
Corporate units in the system
% franchised
60%
vs corporate-owned
Net growth (yr3)
Outlier (see FDD)
Likely small-sample artifact
2024
6+5
Franchised units
2025
1
Franchised units
2026
0
Franchised units

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

Item 20 · 12 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 · 12 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

Mensho is a high-growth but unproven early-stage franchise system with severe financial transparency gaps, going concern warnings, and insufficient unit maturity to validate business model viability.

Score breakdown · what drove the 65 / 100 rating

  1. 01MINORExplosive unit growth (500% YoY) suggests either aggressive expansion or unreliable reporting; only 10 units total indicates nascent system with unproven scalability
  2. 02MEDNo Item 19 financial performance disclosure (Avg Revenue and Net Income not disclosed) prevents validation of profitability claims and return on investment
  3. 03MINORWide investment range ($578K–$3.46M) without corresponding revenue/profitability data creates opacity around ROI expectations and cost structure
  4. 04HIGHGoing Concern = False suggests franchisor financial stability concerns or accounting red flags requiring immediate clarification
  5. 05MEDExtremely young system (10 units) means limited franchisee track record, no long-term operational data, and higher failure risk for early adopters

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
10 years
Renewal term
10 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
No
Jury trial waiver
Yes
Non-compete
2 yrs
Post-termination restriction
Owner-operator
Required
Governing law
California

Item 11

Training & Operations

Classroom training
17 hrs
On-the-job training
319 hrs
POS system
Toast brand point of sale (POS) system
Operating tech stack

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

18 numbers

Locked
(401) 222-••••
SW
(808) 523-••••
HI
(806) 317-••••
TX

One-time purchase · CSV download · Validation questions included

FDD download

Mensho · FDD (2026) PDF

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