Rachel’s KitchenFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
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]. Per the 2024 FDD, average unit revenue was $1.7M[2]. Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2024 FDD issuance
Overview
- Investment
- $298K – $816K
- 18th pct Service Resta…
- Avg gross sales
- $1.7M
- 18th pct Service Resta…
- Royalty
- 6.0%
- 26th pct Service Resta…
- Units
- 7
- 17th pct Service Resta…
- SBA default
- N/A
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
Each dollar invested generates 3.1x in gross revenue, well above the typical 1.5-2.5x range.
Bottom line
- Total investment $298K – $816K including a $40K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $1.7M/year (median $1.7M).
- Verdict A (Top Quintile) with a risk score of 34/100.
- 88% of franchisees own multiple units, a high repeat-buyer signal suggests strong unit economics.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- RDR Inc.
- Ultimate parent
- None
- CEO title
- Founder & CEO
- Debbie Roxarzade
- Founder active
- Yes
- Original founder still leading the business
- Incorporated in
- NV
- 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
Rachel's Kitchen franchisees operate health-focused quick-service or casual dining restaurants featuring prepared meals, likely organic/fresh ingredients. Daily operations include food preparation, customer service, inventory management, staffing, and compliance with the franchisor's proprietary recipes and operational systems.
- CEO
- Debbie Roxarzade
- Headquarters
- NV
- Founded
- 2008
- FDD year
- 2024
- States available
- 1
FDD Item 7 · 2024 filing · 16 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.
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$172K
10.0% margin
Unlevered ROIC
27%
EBITDA / total invested capital
Payback
3.6 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $298K – $816K
- Better than avg vs category
- Liquid capital req'd
- $50K – $90K
- Better than avg vs category
- Franchise fee
- $40K – $40K
- Better than avg 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 |
Financial Performance
- Avg gross sales
- $1.7M
- Per unit, per year
- Median gross sales
- $1.7M
- Item 19 type
- gross_sales
- Sample size
- 6 units
- vs category median 13 · small
- Range (low → high)
- $1.1M→$2.8M
- Cohort dispersion (min → max)
- Reporting year
- 2023
- Fiscal year the figures cover
- Transparency
- 4 / 5
- vs category median 4 / 5 · typical
Compared against 1264 Full-Service Restaurants brands
vs Full-Service Restaurants averages
How Rachel’s Kitchen Compares
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 (yr3)
- +0.0%
- Net unit change last year
- 3-yr CAGR
- +0.0%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 0
- 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 20 · 8 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
- $1.3M
- Median loan
- $430K
- average
- Charge-off rate
- N/A
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
- 0
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Rachel’s Kitchen's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 3 lenders with concentration factor
- Per-state charge-off rates across 1 states
- Startup risk premium and job creation velocity
- 3-year lending trend
Instant access. No subscription.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Rachel's Kitchen presents high risk due to going concern status, micro-scale operations (7 units), zero transparency on profitability, and undisclosed growth dynamics.
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 34 / 100 rating
- 01HIGHGoing Concern status indicates the franchisor itself may be financially unstable or facing viability questions
- 02MINOROnly 7 units systemwide suggests a micro-franchise with minimal scale, support infrastructure, and survival track record
- 03MEDNo Item 19 (Average Unit Volume) disclosed despite $1.7M average revenue claim — lack of transparency on profitability
- 04MEDHigh investment range ($298K-$816K) with no disclosed net income creates uncertainty on actual returns and payback period
- 05MINORUnknown unit growth trajectory — no data on openings/closures suggests potential contraction or stagnation
- 06MINORExtremely small franchise system limits purchasing power, brand recognition, marketing reach, and operational support depth
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 | 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
9 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?
According to Item 19 of the Rachel’s Kitchen FDD, the average gross sales per unit is $1.7M. The median is $1.7M. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
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 risk score of 34 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.