Milky Franchise Cost, Revenue & Review 2026
Data from FDD filing
Analysis by FranchiseVerdict Research · Methodology
Milky is a dessert and beverage franchise serving milk-based drinks and treats. Franchisees run the shops, managing drink and dessert prep, inventory, and counter service.
FranchiseVerdict summary · 2026
A Milky franchise requires a total initial investment of $208K – $400K, including a $35K franchise fee and an ongoing 6.0% royalty[2]. The 2025 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 2025 FDD issuance
Overview
- Investment
- $208K – $400K
- 27th pct Service Resta…
- Avg gross sales
- N/A
- 0 outlets
- Royalty
- 6.0%
- 46th pct Service Resta…
- Units
- 0
- 0th 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 $208K – $400K including a $35K franchise fee, 6.0% ongoing royalty.
- RETURNSFigures from the audited financial statements of Milky Franchise, Inc. (single franchisor entity; no parent/guarantor), in whole US dollars (statements not scaled). The statements cover the initial period from inception (October 23, 2024) to December 31, 2024 — the first and only fiscal period, so there is no prior year (yr2 = null). Statement of Operations shows Total Income $0 (Franchise fees $0, Others $0) and Net loss $(30) consisting solely of a $30 bank service fee. Balance sheet reconciles: Total Assets $299,970 = Total Liabilities $0 + Total Stockholders' Equity $299,970.
- RISKVerdict C (Average), verdict score 41/100 (higher is better).
- DATANo 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
Corporate structure & franchisor financials
- Legal entity
- Milky Franchise, Inc.
- Parent company
- Levain Co., Ltd.
- CEO title
- Chief Executive Officer, Chief Financial Officer & Secretary
- Jin Hwan Lee
- Incorporated in
- CA
- HQ
- 6960 Beach Blvd., J-202, Buena Park, CA 90621
- Auditor
- Kim Yoo Jang LLP (KYJ, LLP)
- Audited financials
- Franchisor revenue
- $0
- Most recent fiscal year
Independent franchisee associations
- Franchise Advisory Council (FAC)
Franchisee-led councils or alliances disclosed in Item 20. Indicates operator voice.
Affiliated brands
- Shiroi
Other brands the franchisor or its parent operates (Item 1).
Overview
About
- CEO
- Jin Hwan Lee
- Headquarters
- CA
- Founded
- 2024
- FDD year
- 2025
- States available
- 0
Can you afford it, and what does the money buy?
Entry cost runs 54% below the typical quick-service restaurants franchise.
Source: FDD 2025 · Items 5–7
Full Item 7 breakdown12 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Feenot refundable | $35K | $35K | |
| Real Estate Security/Deposits and Initial Rentnot refundable | $8K | $20K | |
| Construction and Leasehold Improvementsnot refundable | $80K | $200K | |
| Design and Architecturenot refundable | $6K | $8K | |
| Equipment, Furniture and Fixturesnot refundable | $30K | $50K | |
| Opening Inventorynot refundable | $5K | $10K | |
| Insurancenot refundable | $2K | $4K | |
| Opening Promotion and Grand Openingnot refundable | $3K | $10K | |
| Cash Registers/Other Office Equipmentnot refundable | $2K | $3K | |
| Initial Training Expensesnot refundable | $5K | $8K | |
| Business Licenses, Utility Deposits, Prepaid Feesnot refundable | $2K | $10K | |
| Additional Funds - 3 monthsnot refundable | $30K | $42K | |
| Total initial investment | $208K | $400K |
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
- $208K – $400K
- Top 40% of category vs category
- Liquid capital req'd
- $30K – $42K
- Middle of category vs category
- Franchise fee
- $35K – $35K
- Middle of category vs category
- Royalty
- 6.0%
- percentage · typical 6–8%
- Ad fund
- 1.0%
- typical 3–5%
- Total fee load
- 7.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.0% of gross sales |
| Marketing / ad fund | 1.0% of gross sales |
| Technology fee | $250 |
| Transfer fee | $18K |
| Renewal fee | $30K |
| Inventory (initial) | $5K – $10K |
| Total fee load | 7.0% of rev |
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
Milky 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 Milky unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
33%
Within 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: 2025 FDD
Financial Performance
Figures from the audited financial statements of Milky Franchise, Inc. (single franchisor entity; no parent/guarantor), in whole US dollars (statements not scaled). The statements cover the initial period from inception (October 23, 2024) to December 31, 2024 — the first and only fiscal period, so there is no prior year (yr2 = null). Statement of Operations shows Total Income $0 (Franchise fees $0, Others $0) and Net loss $(30) consisting solely of a $30 bank service fee. Balance sheet reconciles: Total Assets $299,970 = Total Liabilities $0 + Total Stockholders' Equity $299,970.
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.
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 Milky Compares
Is the system healthy?
Source: FDD 2025 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 0
- Opened
- 0
- Last reporting year
- Closed
- 0
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Company-owned
- 0
- Corporate units in the system
3-year detail · Item 20
- Opened (3yr)
- 0
- Closed (3yr)
- 0
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 0
- Reacquired (3yr)
- 0
- Franchisor bought back
- Projected new
- 1
- Franchisor's next-year forecast
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
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?
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
This is a pre-revenue franchise system with going concern issues, zero operating units, undisclosed unit economics, and unproven business model—representing extreme risk unsuitable for most investors.
Litigation (Item 3)
No litigation required to be disclosed
Largest disclosed settlement: $40,000
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Kim Yoo Jang LLP (KYJ, LLP)
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 41 / 100 verdict
- 01HIGHGoing concern warning indicates material doubt about franchisor's ability to continue operations
- 02MINORZero existing franchise units means no proven system, no reference franchisees, and unvalidated business model
- 03MEDNo disclosed average revenue or net income prevents ROI analysis and suggests franchisor cannot demonstrate unit economics
- 04MINORUnprotected territory creates direct competition risk between franchisees in same market
- 05MINORHigh initial investment ($207,500–$399,500) combined with 6% royalty creates significant break-even pressure with unknown profitability
- 06MINOR5-year term is shorter than industry standard (typically 10 years), limiting ability to recoup investment
- 07MINORFranchise fee ($35,000) appears low relative to total investment, suggesting thin franchisor capitalization
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 2025 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 5 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 1 |
| Territory type | protected |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory radius | 5 mi |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 10 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Curable defaultsℹ | 4 |
| Mandatory arbitration | Yes |
| Arbitration location | California |
| Jury trial waiver | No |
| Governing law | CA |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation required to be disclosed
Items 10, 11
Training & Operations
- Classroom training
- 33 hrs
- On-the-job training
- 54 hrs
- Training location
- Franchisor headquarters in Buena Park, CA or another designated location
- Ongoing training
- Required
- Time to open
- 6 mo
- From signing to launch
- Site selection
- Franchisee with franchisor approval
- Franchisor financing
- Not offered
- Item 10
Items 5 & 11
Franchisor Support
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Milky franchise?
The total investment to open a Milky franchise ranges from $208K – $400K, with an initial franchise fee of $35K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Milky franchise owners earn?
Milky 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 Milky 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 Milky FDD and qualifies whose outlets they describe.
What is Milky's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Milky (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.
Is Milky a good franchise to buy?
FranchiseVerdict rates Milky as a C-grade franchise with a verdict score of 41 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 Milky, 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.