Onigilly Japanese Kitchen
Bottom line
- Total investment $265K – $832K including a $35K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $1.6M/year. Estimated payback in 2.1 years.
- Rated MODERATE with a risk score of 60/100.
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 Onigilly Japanese Kitchen unit return on the cash you put in?
Unlevered ROIC · per unit
40%
In Yale's "attractive" band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Onigilly Japanese Kitchen units return on equity?
Equity IRR · 5-yr
42.1%
5.80× MOIC
Year-1 DSCR
2.05×
EBITDA ÷ debt service
Equity required
$3.1M
on $11.5M purchase
Total debt
$8.5M
SBA $5.0M + senior + seller note
Overview
About
Franchisees operate Japanese quick-service restaurants specializing in onigiri (rice balls) and complementary Japanese cuisine. Day-to-day responsibilities include food preparation, inventory management, customer service, staffing, and maintaining brand standards across a protected territory.
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
Onigilly presents moderate-to-high risk: a financially distressed franchisor with only 5 units, unverified financial claims, and thin profit margins that may not support the stated investment thesis.
Score breakdown · what drove the 60 / 100 rating
- 01HIGHGoing Concern status indicates financial distress at franchisor level despite positive unit economics
- 02MEDOnly 5 units with unknown growth trajectory suggests stalled expansion and limited proof of scalability
- 03MINORWide investment range ($265K-$832K) indicates inconsistent unit economics or unclear cost breakdowns
- 04MEDNo Item 19 (financial performance representations) disclosed — unable to validate stated average revenue/net income claims
- 05MINOR6% royalty on $1.65M average revenue = $99K annual royalty plus 6% on food costs represents significant margin pressure
- 06MEDModest net income ($258.5K) on $1.65M revenue = only 15.7% net margin, leaving limited buffer for underperformance
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
5 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Onigilly Japanese Kitchen · FDD (2025) PDF