Rachel’s Kitchen Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Rachel's Kitchen is a fast-casual franchise serving fresh bistro fare including salads, sandwiches, and coffee. Franchisees run the cafes, managing food prep, staffing, and counter service.
FranchiseVerdict summary · 2026
A Rachel’s Kitchen franchise requires a total initial investment of $298K – $816K, including a $40K franchise fee and an ongoing 6.0% royalty[2]. The 2024 FDD does not disclose unit-level revenue (no Item 19). FranchiseVerdict grade: A (Strongest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2024 FDD issuance
Overview
- Investment
- $298K – $816K
- 49th pct Service Resta…
- Avg gross sales
- N/A
- Outlet subset
- Royalty
- 6.0%
- 46th pct Service Resta…
- Units
- 7
- 30th pct Service Resta…
- SBA charge-off
- N/A
Quick verdict · Quick-Service Restaurants · color = vs category peers
Green = favorable by >10% vs Quick-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 $298K – $816K including a $40K franchise fee, 6.0% ongoing royalty.
- RETURNSItem 19 reports historical gross sales of identified franchised outlets (Restaurant-by-Restaurant list) rather than annual gross sales, so unit revenue is not directly comparable.
- RISKVerdict A (Strongest tier), verdict score 69/100 (higher is better).
- DATAItem 19 reports historical gross sales of identified franchised outlets (Restaurant-by-Restaurant list) rather than annual gross sales, so unit revenue is not directly comparable. Ask franchisees directly for full unit-level revenue.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- RDR Inc.
- Ultimate parent
- None
- CEO title
- Founder & CEO
- Debbie Roxarzade
- Founder active
- Yes
- Original founder still leading the business
- Incorporated in
- Nevada
- HQ
- 9640 West Tropicana Ave. #117, Las Vegas, Nevada 89147
- Auditor
- Reese CPA LLC
- Audited financials
- Franchisor revenue
- $1.2M
- vs $1.3M prior year
Overview
About
- CEO
- Debbie Roxarzade
- Headquarters
- NV
- Founded
- 2008
- FDD year
- 2024
- States available
- 1
Can you afford it, and what does the money buy?
Entry cost runs 15% below the typical quick-service restaurants franchise.
Source: FDD 2024 · Items 5–7
Full Item 7 breakdown16 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Feenot refundable | $40K | $40K | |
| Leasehold Improvementsnot refundable | $75K | $350K | |
| Lease, Utility and Security Deposits | $9K | $18K | |
| Linens, Uniforms and Smallwaresnot refundable | $10K | $30K | |
| Equipmentnot refundable | $55K | $150K | |
| Furniture, Fixtures and Security Systemnot refundable | $20K | $35K | |
| Signagenot refundable | $6K | $18K | |
| Initial Inventorynot refundable | $10K | $18K | |
| Architectural/Engineeringnot refundable | $5K | $25K | |
| Computer System, POS System, Office Equipment and Suppliesnot refundable | $6K | $8K | |
| Living and Travel Expenses While Trainingnot refundable | $1K | $4K | |
| Business Licenses and Permitsnot refundable | $1K | $10K | |
| Insurance - 3 Monthsnot refundable | $3K | $4K | |
| Grand Opening Advertisingnot refundable | $4K | $8K | |
| Professional Feesnot refundable | $3K | $8K | |
| Additional Fundsnot refundable | $50K | $90K | |
| Total initial investment | $298K | $816K |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $298K – $816K
- Middle of category vs category
- Liquid capital req'd
- $50K – $90K
- Bottom third — review vs category
- Franchise fee
- $40K – $40K
- Middle of category vs category
- Royalty
- 6.0%
- Gross Sales · typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 8.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.0% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
| Technology fee | $630 |
| Training fee | $2K |
| Transfer fee | $9K |
| Renewal fee | $5K |
| Total fee load | 8.0% of rev |
What do units actually make?
Source: FDD 2024 · Item 19
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
Rachel’s Kitchen 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 Rachel’s Kitchen unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
17%
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
Reported for a subset of outlets rather than the whole system
- Item 19 type
- historical gross sales of identified franchised outlets (Restaurant-by-Restaurant list)
- Sample size
- 6
- vs category median 20 · small
- Range (low → high)
- $1.1M→$2.8M
- Cohort dispersion (min → max)
- Reporting year
- 2023
- Fiscal year the figures cover
- Source filing
- FDD 2024
- Disclosed in the 2024 filing, covering 2023
- Transparency
- 4 / 10
- vs category median 4 / 10 · typical
Compared against 782 Quick-Service Restaurants brands
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 8.0% (near the Quick-Service Restaurants average).
Disclosure
Item 19 reports historical gross sales of identified franchised outlets (Restaurant-by-Restaurant list) rather than annual gross sales, so unit revenue is not directly comparable.
Operator retention
Net unit growth of +16.7% over 3 years (0 opened, 0 closed).
Multi-unit rate
88% of franchisees own multiple units — high repeat-buyer rate signals strong unit economics and operator satisfaction.
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 Quick-Service Restaurants averages
How Rachel’s Kitchen Compares
Is the system healthy?
Source: FDD 2024 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 7
- Opened
- 0
- Last reporting year
- Closed
- 0
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 0.0%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Multi-unit owners
- 87.5%
- Net growth (3-yr)
- +16.7%
- Net unit change over 3 years
- 3-yr CAGR
- +16.7%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 0
- Closed (3yr)
- 0
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 0
- Reacquired (3yr)
- 0
- Franchisor bought back
- Projected new
- 4
- Franchisor's next-year forecast
- Continuity rate
- 100.0%
- Units that stayed open
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)
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
- $1.3M
- Median loan
- $430K
- 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
- 3
- 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
Litigation (Item 3)
No litigation required to be disclosed
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Reese CPA LLC
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
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 69 / 100 verdict
- 01MINORNo litigation, no bankruptcy, no going-concern
- 02MINOR16.7% net growth, 0% turnover
- 03MEDVery small system (7 units) - limited scale
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 8.0% 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 | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 3 |
| Territory type | radius |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory radius | 3 mi |
| 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 | 25 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Arbitration location | Las Vegas, Nevada |
| Jury trial waiver | Yes |
| Governing law | Nevada |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation required to be disclosed
Items 10, 11
Training & Operations
- Classroom training
- 48 hrs
- On-the-job training
- 62 hrs
- Training location
- On-site at franchisee's restaurant
- Ongoing training
- Required
- POS system
- Revel
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Revel
Item 20 · call current owners
Franchisee Contacts
3 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Rachel’s Kitchen · FDD (2024) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Rachel’s Kitchen franchise?
The total investment to open a Rachel’s Kitchen franchise ranges from $298K – $816K, with an initial franchise fee of $40K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Rachel’s Kitchen franchise owners earn?
Rachel’s Kitchen 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 Rachel’s Kitchen 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 Rachel’s Kitchen FDD and qualifies whose outlets they describe.
What is Rachel’s Kitchen's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Rachel’s Kitchen (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 Rachel’s Kitchen franchise locations are there?
As of their most recent FDD filing, Rachel’s Kitchen has 7 total units in the United States, including 7 franchised units and 0 company-owned units.
Is Rachel’s Kitchen a good franchise to buy?
FranchiseVerdict rates Rachel’s Kitchen as a A-grade franchise with a verdict score of 69 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?
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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.