Bottom line
- Total investment $354K – $560K including a $35K franchise fee, 5.0% ongoing royalty.
- Average unit revenue of $797K/year (median $884K).
- Rated STRONG with a risk score of 53/100.
- Auditor disclosed a going-concern note — flagged doubt about the franchisor's ability to continue operations. Verify against the latest FDD.
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 Rooster & Rice unit return on the cash you put in?
Unlevered ROIC · per unit
27%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Rooster & Rice units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$1.6M
on $8.0M purchase
Total debt
$6.4M
SBA $4.0M + senior + seller note
Overview
About
Rooster & Rice franchisees operate fast-casual or quick-service restaurants featuring rice-based dishes (likely Asian cuisine). Day-to-day operations include food preparation, inventory management, customer service, staffing, and adherence to brand standards while managing 5% royalty obligations on gross sales.
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 · 4 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
Rooster & Rice presents moderate-to-high risk due to undisclosed profitability, minimal unit count, lack of financial substantiation, and an investment size that consumes 44-70% of average unit revenue.
Score breakdown · what drove the 53 / 100 rating
- 01MEDNet income not disclosed in FDD — unable to verify actual profitability or ROI on $353k-$560k investment
- 02MINOROnly 8 units system-wide with unknown growth trajectory — insufficient data on unit economics and franchise viability
- 03MINORHigh investment-to-revenue ratio ($353k-$560k for ~$797k avg revenue) suggests thin margins and extended payback period
- 04MINORNo Item 19 financial performance representations — franchisor not substantiating claimed average revenue with actual franchisee data
- 05MINORSmall franchisee base creates concentration risk and limits validation pool for due diligence
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
4 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Rooster & Rice · FDD (2025) PDF