RAKKAN Ramen Franchise Cost, Revenue & Review 2026
Data from FDD filing
Analysis by FranchiseVerdict Research · Methodology
RAKKAN Ramen is a fast-casual franchise serving Japanese ramen with rich, vegan-friendly broths and toppings. Franchisees run the restaurants, managing kitchen production, staffing, and service.
FranchiseVerdict summary · 2026
A RAKKAN Ramen franchise requires a total initial investment of $380K – $865K, including a $20K franchise fee and an ongoing 5.0% royalty[2]. The 2025 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 2025 FDD issuance
Overview
- Investment
- $380K – $865K
- 63rd pct Service Resta…
- Avg gross sales
- N/A
- Royalty
- 5.0%
- 11th pct Service Resta…
- Units
- 15
- 45th 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 $380K – $865K including a $20K franchise fee, 5.0% ongoing royalty.
- RETURNSItem 19 reports outlet revenue, but not in a form that yields a per-outlet average we can compare across brands.
- RISKVerdict A (Strongest tier), verdict score 78/100 (higher is better).
- DATAItem 19 reports outlet revenue, but not in a form that yields a per-outlet average we can compare across brands. Ask franchisees directly for full unit-level revenue.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- RAKKAN USA Franchise, LLC
- CEO title
- Founder, Chief Executive Officer
- Ryohei Ito
- Founder active
- Yes
- Original founder still leading the business
- Incorporated in
- California
- HQ
- 1025 W. 190th St., Suite 160, Gardena, California 90248
- Auditor
- Schild & Co., Inc.
- Audited financials
- Franchisor revenue
- $224K
- vs $579K prior year
Independent franchisee associations
- Franchise Advisory Council (FAC)
Franchisee-led councils or alliances disclosed in Item 20. Indicates operator voice.
Overview
About
- CEO
- Ryohei Ito
- Headquarters
- CA
- Founded
- 2019
- FDD year
- 2025
- States available
- 6
Can you afford it, and what does the money buy?
Entry cost is about average for a quick-service restaurants franchise.
Source: FDD 2025 · Items 5–7
Full Item 7 breakdown19 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Feenot refundable | $20K | $20K | |
| Initial Training Feenot refundable | $10K | $10K | |
| Training expenses (Travel, Meals, Lodging and Salaries) | $10K | $20K | |
| Grand Opening advertising and promotionnot refundable | $3K | $8K | |
| Real property lease or rental agreement, including security deposit | $6K | $15K | |
| Real property lease construction, remodeling, leasehold improvements and decorating costs - net of landlord contribution | $200K | $550K | |
| Equipment, fixtures and other fixed assets | $60K | $110K | |
| Point of Sale system (including cash register, computer system, setup fee) and telecommunications | $8K | $11K | |
| Signage | $5K | $20K | |
| Inventory and supplies to begin operating | $16K | $20K | |
| Water filter to supply soft water | $4K | $4K | |
| Professional fees - legal and accounting | $3K | $5K | |
| Insurance premiums | $2K | $3K | |
| Utility deposits, business licenses, fictitious business name filing and other prepaid expenses | $3K | $5K | |
| Initial floor plan fee and travel expenses (Franchisee's architect) | $16K | $27K | |
| Initial floor plan fee (Franchisor's architect) | $4K | $8K | |
| Cost of Kitchenware | $2K | $4K | |
| Additional funds - 3 months | $9K | $25K | |
| Development Fee (ADA)not refundable | $20K | $20K | |
| Total initial investment | $400K | $885K |
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
- $380K – $865K
- Middle of category vs category
- Liquid capital req'd
- $9K – $25K
- Top 40% of category vs category
- Franchise fee
- $20K – $20K
- Top 40% of category vs category
- Royalty
- 5.0%
- Gross Revenues · 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 |
| Training fee | $10K |
| Transfer fee | $10K |
| Renewal fee | $5K |
| Inventory (initial) | $16K – $20K |
| Total fee load | 6.0% of rev |
What do units actually make?
Source: FDD 2025 · Item 19
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
RAKKAN Ramen 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 RAKKAN Ramen unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
19%
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: 2025 FDD
Financial Performance
- Item 19 type
- gross sales
- Sample size
- 11
- vs category median 20
- Range (low → high)
- $525K→$1.6M
- Cohort dispersion (min → max)
- Transparency tier
- revenue_only
- Categorical assessment of disclosure depth
- Reporting year
- 2024
- Fiscal year the figures cover
- Source filing
- FDD 2025
- Disclosed in the 2025 filing, covering 2024
- 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 6.0% — below the Quick-Service Restaurants average of 7.9%.
Disclosure
Item 19 reports outlet revenue, but not in a form that yields a per-outlet average we can compare across brands.
Operator retention
System expanding at 100.0% CAGR over 3 years across 15 units — operators are staying and new ones are joining.
Multi-unit rate
Only 4% of franchisees own multiple units. Could indicate challenging economics or a young system where operators haven't had time to expand.
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 RAKKAN Ramen Compares
Is the system healthy?
Source: FDD 2025 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 15
- Opened
- 1
- Last reporting year
- Closed
- 1
- 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
- 3
- Corporate units in the system
- % franchised
- 80%
- vs corporate-owned
- Multi-unit owners
- 4.3%
- Net growth (3-yr)
- +100.0%
- Net unit change over 3 years
- 3-yr CAGR
- +100.0%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 3
- Closed (3yr)
- 0
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 0
- Reacquired (3yr)
- 0
- Franchisor bought back
- Projected new
- 3
- Franchisor's next-year forecast
- Ceased ops
- 6.7%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 6 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.
Fast growth in a small system. Newer franchisors expanding quickly may not yet have the support infrastructure of larger systems.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
No SBA loan data available for this brand.
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 · Schild & Co., Inc.
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 78 / 100 verdict
- 01MINORNo litigation, no bankruptcy, no going-concern
- 02MINORPositive net worth $312,728, net income $6,153, audited
- 03MINORSmall system (15 units); thin net income
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 6.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2025 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 2 |
| Territory type | Population-based |
| Protected territory | Yes |
| Exclusive territoryℹ | Yes |
| Territory population | 50,000 |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 1 year |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Curable defaultsℹ | 3 |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | California |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation required to be disclosed
Suppliers & sourcing7 categories · Item 8
Supplier requirements
| Category | Approval | Kickback |
|---|---|---|
| Kitchenwarefranchisor-owned | Required | — |
| Computer / personal computer system | Required | — |
| Equipment, fixtures, and signage | Required | — |
| Food and beverage items | Required | 9% to 11% rebate on RAKKAN original food items collected from approved/designated suppliers; FY2024 rebates totaled $78,122 (United Foods International - seasonings), $5,593.20 (Tasty Foods - seasonings), $28,447.57 (Maruha Nichiro Meat & Products USA - cooked meat), $45,846.58 (Nippon Trends Food Service - noodles) |
| POS system | Required | — |
| Signage and display materials | Required | — |
| Trademarked items | Required | — |
Items 10, 11
Training & Operations
- Classroom training
- 14 hrs
- On-the-job training
- 81 hrs
- Training location
- On-site and corporate
- Time to open
- 10 mo
- From signing to launch
- Site selection
- joint
- POS system
- RAKKAN Point of Sale program software
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: RAKKAN Point of Sale program software
Item 20 · call current owners
Franchisee Contacts
14 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
RAKKAN Ramen · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a RAKKAN Ramen franchise?
The total investment to open a RAKKAN Ramen franchise ranges from $380K – $865K, with an initial franchise fee of $20K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do RAKKAN Ramen franchise owners earn?
RAKKAN Ramen 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 RAKKAN Ramen 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 RAKKAN Ramen FDD and qualifies whose outlets they describe.
What is RAKKAN Ramen's franchise failure rate?
SBA 7(a) loan charge-off data is not available for RAKKAN Ramen (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 RAKKAN Ramen franchise locations are there?
As of their most recent FDD filing, RAKKAN Ramen has 15 total units in the United States, including 12 franchised units and 3 company-owned units. 1 new units were opened in the latest reporting year.
Is RAKKAN Ramen a good franchise to buy?
FranchiseVerdict rates RAKKAN Ramen as a A-grade franchise with a verdict score of 78 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 RAKKAN Ramen, you can request corrections or provide updated information.
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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.