Bottom line
- Total investment $155K – $265K including a $40K franchise fee, 5.5% ongoing royalty.
- Average unit revenue of $812K/year. Estimated payback in 0.7 years.
- Rated STRONG with a risk score of 50/100.
- Auditor disclosed a going-concern note — flagged doubt about the franchisor's ability to continue operations. Verify against the latest FDD.
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 Mochiholic unit return on the cash you put in?
Unlevered ROIC · per unit
36%
In Yale's "attractive" band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Mochiholic units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$569K
on $2.8M purchase
Total debt
$2.3M
SBA $1.4M + senior + seller note
Overview
About
Franchisees operate a mochi-based beverage and dessert retail concept, likely focusing on point-of-sale customer service, product preparation (mochi balls, drinks), inventory management, and day-to-day store operations in a protected territory. Daily operations involve handling specialty ingredients, managing foot traffic, training staff, and executing the brand's menu and customer experience standards.
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 12 · 1 state 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.
1
states with franchisees (per FDD Item 12)
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
Mochiholic presents caution-level risk due to a pre-scaling single-unit system with unverified financials and insufficient franchisee references.
Score breakdown · what drove the 50 / 100 rating
- 01MEDOnly 1 unit in system with unknown growth trajectory — extremely limited proof of concept and inability to validate multi-unit success
- 02MEDNo Item 19 financial performance representations disclosed — cannot independently verify the $812k avg revenue and $300k net income claims
- 03MINORHigh initial investment range ($155k-$265k) relative to single-unit performance creates elevated risk if that one location underperforms
- 04MED5-year term is shorter than industry standard (typically 10 years) — suggests either franchisor caution or limited confidence in long-term model
- 05MEDExtremely limited franchisee network (1 unit) makes authentic due diligence and peer validation nearly impossible
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
3 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Mochiholic · FDD (2025) PDF