MilkyFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
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). Verdict grade: D. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $208K – $400K
- 34th pct Service Resta…
- Avg gross sales
- N/A
- 59th pct Service Resta…
- Royalty
- 6.0%
- 44th pct Service Resta…
- Units
- 0
- 0th pct Service Resta…
- SBA default
- N/A
Quick verdict · Quick-Service Restaurants · color = vs category peers
Green = >15% above Quick-Service Restaurants avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Started franchising in 2025. Newer systems carry more uncertainty but may offer better territories.
Bottom line
- Total investment $208K – $400K including a $35K franchise fee, 6.0% ongoing royalty.
- No Item 19 financial performance data disclosed. The franchisor chose not to publish revenue figures.
- Verdict D (Below Average) with a risk score of 75/100.
- 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
- Milky Franchise, Inc.
- Parent company
- Levain Co., Ltd.
- CEO title
- Chief Executive Officer
- Jin Hwan Lee
- Incorporated in
- CA
- HQ
- 6960 Beach Blvd., J-202, Buena Park, CA 90621
- Auditor
- KIM YOO JANG 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
Milky appears to be a dairy or milk-based beverage/product concept where franchisees operate retail locations. Day-to-day operations likely involve product preparation, customer service, inventory management, and point-of-sale transactions, though specific operational details are unavailable due to the brand's early stage.
- CEO
- Jin Hwan Lee
- Headquarters
- CA
- Founded
- 2024
- FDD year
- 2025
- States available
- 0
FDD Item 7 · 2025 filing · 12 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
- Better than avg vs category
- Liquid capital req'd
- $30K – $42K
- Below avg, review vs category
- Franchise fee
- $35K – $35K
- Near category avg vs category
- Royalty
- 6.0%
- Gross Sales · 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 |
| Training fee | $100 |
| Transfer fee | $18K |
| Renewal fee | $30K |
| Total fee load | 7.0% of rev |
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
vs Quick-Service Restaurants averages
How Milky Compares
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)
- 1
- Transfers (3yr)
- 0
- Projected new
- 1
- Franchisor's next-year forecast
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 4 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 contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
Available to sell in · Item 12
- New York
States where the franchisor is registered to sell new franchises (FDD registration filings).
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA loan disclosures. This brand has only 7 7(a) loans on file; statistical reliability is limited below 10 loans.
- Total loans
- 7
- Loan volume
- N/A
- Amount data pending
- Median loan
- N/A
- Charge-off rate
- N/A
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- N/A
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 0
- Defaults
- 0
Explore lender portfolios on Bank Reports or regional data on State Reports.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
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
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Kickbacks from required suppliers: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 75 / 100 rating
- 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
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 5 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 1 |
| Territory type | Radius |
| Protected territory | No |
| Exclusive territoryℹ | No |
| Territory radius | 0.5 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 | Yes |
| Governing law | California |
| 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
- On-site and corporate
- Ongoing training
- Required
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
Milky · FDD (2025) PDF
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 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 D-grade franchise with a risk score of 75 out of 100, 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
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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.