MochinutFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Mochinut franchise requires a total initial investment of $234K – $486K, including a $48K franchise fee and an ongoing 5.0% royalty[2]. The 2024 FDD does not disclose unit-level revenue (no Item 19). Verdict grade: B. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2024 FDD issuance
Overview
- Investment
- $234K – $486K
- 13th pct Service Resta…
- Avg gross sales
- N/A
- 28th pct Service Resta…
- Royalty
- 5.0%
- 7th pct Service Resta…
- Units
- 146
- 44th pct Service Resta…
- SBA default
- 0.0%
- system-wide median varies by category
Quick verdict · Full-Service Restaurants · color = vs category peers
Green = >15% above Full-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
The system grew 25% year-over-year. Fast growth means demand, but can strain support.
Bottom line
- Total investment $234K – $486K including a $48K franchise fee, 5.0% ongoing royalty.
- No Item 19 financial performance data disclosed. The franchisor chose not to publish revenue figures.
- Verdict B (Above Average) with a risk score of 59/100.
- 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
- Legal entity
- Mochinut Franchise, Inc.
- Incorporated in
- CA
- HQ
- 4141 West Pico Blvd., Suite 101, Los Angeles, CA 90019
- Auditor
- HAN & Associates CPAs
- Audited financials
- Franchisor revenue
- $6.6M
- vs $8.1M prior year
Affiliated brands
- Mochinut
Other brands the franchisor or its parent operates (Item 1).
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.
- CEO
- Jae Wook Ha
- Headquarters
- CA
- Founded
- 2020
- FDD year
- 2024
- States available
- 26
FDD Item 7 · 2024 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $48K | $48K |
| Working capital (3–6 mo) | $45K | $120K |
| Equipment, build-out, other | $142K | $319K |
| Total initial investment | $234K | $486K |
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 – $486K
- Better than avg vs category
- Liquid capital req'd
- $45K – $120K
- Better than avg vs category
- Franchise fee
- $48K – $55K
- Better than avg vs category
- Royalty
- 5.0%
- Gross Sales · typical 6–8%
- Ad fund
- 1.0%
- typical 3–5%
- Total fee load
- 6.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 5.0% of gross sales |
| Marketing / ad fund | 1.0% of gross sales |
| Transfer fee | $5K |
| Renewal fee | $15K |
| Inventory (initial) | $13K – $20K |
| Total fee load | 6.0% of rev |
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
vs Full-Service Restaurants averages
How Mochinut Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 146
- Opened
- 45
- Last reporting year
- Closed
- 16
- Turnover rate
- 11.0%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (yr3)
- +24.8%
- Net unit change last year
- 3-yr CAGR
- +180.8%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 45
- Closed (3yr)
- 16
- Terminated (3yr)
- 0
- 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
- 0.0%
- rates vary by category · see methodology
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
- 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
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)
0 case reference(s): 0 pending, 2 settled.
Largest disclosed settlement: $50,000
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · HAN & Associates CPAs
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: No
Score breakdown · what drove the 59 / 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
| Initial term | 5 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 1 |
| Territory type | Radius |
| Protected territory | No |
| 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 |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | California |
| Litigation count | 6 |
View Item 3 litigation summary
0 case reference(s): 0 pending, 2 settled.
Items 10, 11
Training & Operations
- Classroom training
- 11 hrs
- On-the-job training
- 29 hrs
- Training location
- On-site at Restaurant
- Site selection
- franchisor
- POS system
- Restmesh
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Restmesh
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 – $486K, with an initial franchise fee of $48K. 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 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 9 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 risk score of 59 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.
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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.