Bottom line
- Total investment $380K – $865K including a $20K franchise fee, 5.0% ongoing royalty.
- Average unit revenue of $950K/year (median $946K).
- Rated MODERATE with a risk score of 62/100.
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 RAKKAN Ramen unit return on the cash you put in?
Unlevered ROIC · per unit
25%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 RAKKAN Ramen units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$1.9M
on $9.5M purchase
Total debt
$7.6M
SBA $4.7M + senior + seller note
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.
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 20 · 10 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 phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.
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
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.
Score breakdown · what drove the 62 / 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
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
18 numbers
One-time purchase · CSV download · Validation questions included
FDD download
RAKKAN Ramen · FDD (2025) PDF