Mochinut Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Mochinut is a dessert-and-snack franchise serving chewy mochi donuts and Korean-style corn dogs. Franchisees run compact shops managing made-fresh production and counter service.
FranchiseVerdict summary · 2026
A Mochinut franchise requires a total initial investment of $234K – $459K, including a $35K franchise fee and an ongoing 5.0% royalty[2]. The 2024 FDD does not disclose unit-level revenue (no Item 19). FranchiseVerdict grade: B (Above average), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2024 FDD issuance
Overview
- Investment
- $234K – $459K
- 9th pct Service Resta…
- Avg gross sales
- N/A
- Royalty
- 5.0%
- 7th pct Service Resta…
- Units
- 146
- 33rd pct Service Resta…
- SBA charge-off
- N/A
Quick verdict · Full-Service Restaurants · color = vs category peers
Green = favorable by >10% vs Full-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 $234K – $459K including a $35K franchise fee, 5.0% ongoing royalty.
- RETURNSFranchisor revenue of $1,031,896 (FY2025) derives 100% from required purchases/leases by franchisees (product/supply sales), not franchise fee/royalty revenue.
- RISKVerdict B (Above average), verdict score 56/100 (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
- Mochinut Holding Corp.
- Parent company
- None
- Predecessor
- Mochinut Franchise, Inc.
- Prior franchisor entity
- CEO title
- CEO, CFO and Secretary
- Yu Tang
- Incorporated in
- WA
- HQ
- 7241 185th Ave NE #3043, Redmond, WA 98073
- Auditor
- HAN & Associates CPAs
- Audited financials
- Franchisor revenue
- $1.0M
- vs $8.1M prior year
Affiliated brands
- Mochinut
Other brands the franchisor or its parent operates (Item 1).
Overview
About
- CEO
- Yu Tang
- Headquarters
- WA
- FDD year
- 2024
- States available
- 30
Can you afford it, and what does the money buy?
Entry cost runs 70% below the typical full-service restaurants franchise.
Source: FDD 2024 · Items 5–7
FDD Item 7 · 2024 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $35K | $35K |
| Working capital (3–6 mo) | $45K | $120K |
| Equipment, build-out, other | $154K | $304K |
| Total initial investment | $234K | $459K |
Source: Mochinut 2024 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $234K – $459K
- Top 40% of category vs category
- Liquid capital req'd
- $45K – $120K
- Top 40% of category vs category
- Franchise fee
- $35K – $35K
- Top 40% of category vs category
- Royalty
- 5.0%
- percentage · typical 6–8%
- Ad fund
- 1.0%
- typical 3–5%
- Total fee load
- 0.1%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 5.0% of gross sales |
| Marketing / ad fund | 1.0% of gross sales |
| Technology fee | $250 |
| Training fee | $2K |
| Transfer fee | $15K |
| Renewal fee | $15K |
| Inventory (initial) | $13K – $20K |
| Total fee load | 0.1% of rev |
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
Mochinut 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 Mochinut unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
21%
Below 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: 2024 FDD
Financial Performance
Franchisor revenue of $1,031,896 (FY2025) derives 100% from required purchases/leases by franchisees (product/supply sales), not franchise fee/royalty revenue.
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 0.1% — below the Full-Service Restaurants average of 7.6%.
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 Full-Service Restaurants averages
How Mochinut Compares
Is the system healthy?
Source: FDD 2024 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 146
- Opened
- 45
- Last reporting year
- Closed
- 15
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 11.0%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 96%
- vs corporate-owned
3-year detail · Item 20
- Opened (3yr)
- 45
- Closed (3yr)
- 15
- Terminated (3yr)
- 1
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 0
- Reacquired (3yr)
- 0
- Franchisor bought back
- Projected new
- 36
- Franchisor's next-year forecast
- Ceased ops
- 11.0%
- Units that stopped operating
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 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.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA loan disclosures. This brand has only 3 7(a) loans on file; statistical reliability is limited below 10 loans.
- Total loans
- 3
- Loan volume
- $1.4M
- Median loan
- $452K
- average
- Charge-off rate
- N/A
- limited sample (3 loans) — rate not shown below 10
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
- 2
- Defaults
- N/A
Explore lender portfolios on Bank Reports or regional data on State Reports.
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
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.
Litigation (Item 3)
Franchisor's affiliate Salt & Light/CEO Tang entered a WA DFI consent order for unregistered franchise sales. Predecessor entities (MFI, MI) and their principal Jaewook Ha faced 6 franchisee-initiated lawsuits (mostly in CA and WA) alleging unregistered franchise sales, breach of contract, and misrepresentation; several were settled ($160,000, $75,000, $68,000) and two remain pending. Separately, MI/MFI entered into 6 state administrative consent orders/settlements (CA, IL, MD, MN, VA, WA) for offering/selling franchises without registration, paying penalties ranging from $1,000 to $50,000.
Largest disclosed settlement: $160,000
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · HAN & Associates CPAs
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
ⓘ These are the parent company's consolidated financials (the parent guarantees the franchisor), not this brand's standalone results — the figure reflects the whole corporate group, not this brand alone.
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 56 / 100 verdict
- 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
- 04MINOR5-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
What are you signing up for?
Ongoing fees run about 0.1% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2024 · 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 rightsℹ | 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 |
| Mandatory arbitration | Yes |
| Arbitration location | Washington |
| Jury trial waiver | Yes |
| Governing law | WA |
| Litigation count | 6 |
View Item 3 litigation summary
Franchisor's affiliate Salt & Light/CEO Tang entered a WA DFI consent order for unregistered franchise sales. Predecessor entities (MFI, MI) and their principal Jaewook Ha faced 6 franchisee-initiated lawsuits (mostly in CA and WA) alleging unregistered franchise sales, breach of contract, and misrepresentation; several were settled ($160,000, $75,000, $68,000) and two remain pending. Separately, MI/MFI entered into 6 state administrative consent orders/settlements (CA, IL, MD, MN, VA, WA) for offering/selling franchises without registration, paying penalties ranging from $1,000 to $50,000.
Items 10, 11
Training & Operations
- Classroom training
- 1 hrs
- On-the-job training
- 39 hrs
- Training location
- Franchisee's Restaurant or another location designated by Franchisor
- Ongoing training
- Required
- Time to open
- 9 mo
- From signing to launch
- Site selection
- franchisee
- Franchisor financing
- Not offered
- Item 10
- POS system
- Restmesh Technologies (recommended, not designated)
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Restmesh Technologies (recommended, not designated)
Item 20 · call current owners
Franchisee Contacts
85 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Mochinut · FDD (2024) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Mochinut franchise?
The total investment to open a Mochinut franchise ranges from $234K – $459K, 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 Mochinut franchise owners earn?
Mochinut 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 Mochinut 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 Mochinut FDD and qualifies whose outlets they describe.
What is Mochinut's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Mochinut (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.
How many Mochinut franchise locations are there?
As of their most recent FDD filing, Mochinut has 146 total units in the United States, including 146 franchised units and 0 company-owned units. 45 new units were opened in the latest reporting year.
Is Mochinut a good franchise to buy?
FranchiseVerdict rates Mochinut as a B-grade franchise with a verdict score of 56 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 Mochinut, you can request corrections or provide updated information.
Other Full-Service Restaurants franchises
Compare similar franchise opportunities in the Full-Service Restaurants category
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.