Bottom line
- Total investment $234K – $486K including a $35K 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 62/100. SBA loan default rate of 0.0% across 6 loans (below the industry average).
- System growing at 180.8% CAGR over 3 years with 146 total units — strong expansion trajectory.
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 Mochinut unit return on the cash you put in?
Unlevered ROIC · per unit
29%
Below typical band (30–60%)
Overview
About
Mochinut franchisees operate quick-service bakery-café locations specializing in Japanese-style mochi donuts, bubble tea, and complementary beverages. Daily operations involve production/baking, counter service, inventory management, and customer-facing sales in high-traffic retail locations, typically requiring 2-3 staff members per shift.
Item 7 · what it costs
The Vitals
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
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).
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.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Mochinut presents elevated risk due to multi-state regulatory violations, absent financial transparency (no Item 19), unprotected territories amid rapid expansion, and high initial investment with unproven unit economics.
Score breakdown · what drove the 62 / 100 rating
- 01MINORMulti-state regulatory enforcement actions for unregistered franchise sales indicate systemic compliance failures and potential legal exposure for franchisees
- 02MEDNo disclosed average revenue or net income data (missing Item 19) prevents validation of ROI claims and suggests franchisor may be hiding underperforming units
- 03MINORUnprotected territory creates direct competition risk, especially concerning given 24.8% YoY unit growth may saturate local markets with cannibalization
- 04MINORHigh investment range ($234K-$486K) with no financial performance disclosure creates asymmetric risk for franchisees
- 05MINOR5-year term is relatively short, limiting franchisee ability to recoup investment, particularly if turnaround time is needed
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
85 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Mochinut · FDD (2024) PDF