RAKKAN RamenFranchise Cost, Revenue & Review 2026
Data from FDD filing
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]. Per the 2025 FDD, average unit revenue was $950K[2]. Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $380K – $865K
- 26th pct Service Resta…
- Avg gross sales
- $950K
- 9th pct Service Resta…
- Royalty
- 5.0%
- 7th pct Service Resta…
- Units
- 15
- 25th 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
Franchised units fell from 12 to 3 over 3 years. Investigate why operators are leaving.
Bottom line
- Total investment $380K – $865K including a $20K franchise fee, 5.0% ongoing royalty.
- Average unit revenue of $950K/year (median $946K).
- Verdict A (Top Quintile) with a risk score of 44/100.
Item 1 · who you're contracting with
The Franchisor
- 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
- CA
- 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
Franchisees operate fast-casual ramen restaurants serving noodle-based dishes with Japanese-style broth and toppings. Day-to-day operations include managing kitchen staff, inventory procurement, food prep/quality control, point-of-sale systems, and customer service in a high-volume QSR environment with significant labor and food cost exposure.
- CEO
- Ryohei Ito
- Headquarters
- CA
- Founded
- 2019
- FDD year
- 2025
- States available
- 6
FDD Item 7 · 2025 filing · 19 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.
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
$114K
12.0% margin
Unlevered ROIC
18%
EBITDA / total invested capital
Payback
5.6 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $380K – $865K
- Better than avg vs category
- Liquid capital req'd
- $9K – $25K
- Better than avg vs category
- Franchise fee
- $20K – $20K
- Better than avg 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 |
A 6.0% total fee load is unusually lean. More of each revenue dollar stays with the franchisee.
Financial Performance
- Avg gross sales
- $950K
- Per unit, per year
- Median gross sales
- $946K
- Item 19 type
- gross_sales
- Sample size
- 11 units
- vs category median 13
- Range (low → high)
- $525K→$1.6M
- Cohort dispersion (min → max)
- Quartile band
- $550K→$1.1M
- Bottom 25% → top 25%
- Transparency tier
- revenue_only
- Categorical assessment of disclosure depth
- Reporting year
- 2024
- 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 RAKKAN Ramen Compares
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
- 6.7%
- Company-owned
- 3
- Corporate units in the system
- % franchised
- 80%
- vs corporate-owned
- Multi-unit owners
- 4.3%
- Net growth (yr3)
- +0.0%
- Net unit change last year
- 3-yr CAGR
- +100.0%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 0
- 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.
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.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
RAKKAN presents elevated risk due to non-disclosure of profitability metrics, micro-scale unit count, franchisor financial concerns, and wide investment variance with unproven returns.
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 44 / 100 rating
- 01MEDNo Item 19 (Average Unit Volume) disclosed despite $949,925 avg revenue claim — cannot verify profitability or ROI credibility
- 02MEDOnly 15 units system-wide indicates minimal scale and limited proven replicability; growth trajectory unknown
- 03HIGHGoing Concern designation is FALSE — potential financial instability at franchisor level affecting support and longevity
- 04MINORHigh initial investment range ($379.5K–$865K) creates significant downside risk with unproven unit economics
- 05MEDNet income completely undisclosed — franchisees cannot model realistic profit scenarios or payback periods
- 06MINOR5% royalty on gross (not net) means profitability erodes quickly if margins are thin in competitive ramen market
Severity inferred from the FDD text · not a regulatory classification
Item 8 · 7 categories disclosed
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 | — |
FDD Items 5, 6, 12, 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
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?
According to Item 19 of the RAKKAN Ramen FDD, the average gross sales per unit is $950K. The median is $946K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
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 risk score of 44 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.