Teriyaki MadnessFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Teriyaki Madness franchise requires a total initial investment of $376K – $976K, including a $45K franchise fee and an ongoing 6.0% royalty[2]. Per the 2025 FDD, average unit revenue was $1.2M[2]. SBA 7(a) loans show a 7.1% charge-off rate across 127 loans[1]. Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $376K – $976K
- 25th pct Service Resta…
- Avg gross sales
- $1.2M
- 12th pct Service Resta…
- Royalty
- 6.0%
- 26th pct Service Resta…
- Units
- 158
- 44th pct Service Resta…
- SBA default
- 7.1%
- system-wide median varies by category
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 156 to 122 over 3 years. Investigate why operators are leaving.
Bottom line
- Total investment $376K – $976K including a $45K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $1.2M/year (median $1.1M), with an estimated 13% cash-on-cash return (based on P&L Bottom Line).
- Verdict A (Top Quintile) with a risk score of 44/100. SBA loan charge-off rate of 7.1% across 127 loans (near or below the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2024).
- Bankruptcy history disclosed in the FDD. Review Item 4 for details before proceeding.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- M. H. Franchise Company Inc.
- Parent company
- M.H. Enterprises, Inc.
- Predecessor
- was Madness Worldwide
- Prior franchisor entity
- CEO title
- Chief Executive Officer, Chairman
- Michael Haith
- Founder active
- Yes
- Original founder still leading the business
- Incorporated in
- CO
- HQ
- 950 S. Cherry Street, Suite 850, Denver, Colorado 80246
- Auditor
- Kezos & Dunlavy
- Audited financials
- Franchisor revenue
- $12.0M
- vs $10.2M prior year
- Management churn noted
- Frequent turnover
- Item 2 disclosed frequent executive changes
Independent franchisee associations
- Franchise Advisory Council (FAC)
Franchisee-led councils or alliances disclosed in Item 20. Indicates operator voice.
Affiliated brands
- conducts training
Other brands the franchisor or its parent operates (Item 1).
Overview
About
Teriyaki Madness franchisees operate fast-casual Asian cuisine restaurants, primarily serving made-to-order teriyaki bowls, noodles, and related dishes. Day-to-day operations include inventory management, food preparation, customer service, and local marketing—with 6% of revenues flowing to the franchisor as royalties while franchisees absorb labor, rent, and operational costs.
- CEO
- Michael Haith
- Headquarters
- CO
- Founded
- 2012
- FDD year
- 2025
- States available
- 37
FDD Item 7 · 2025 filing · 22 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Feenot refundable | $45K | $45K | |
| Shop Opening Assistance Fee | $28K | $28K | |
| Site Survey | $2K | $7K | |
| Rent, Security Deposit, Utility Deposit | $7K | $21K | |
| Permit Expeditor | $0 | $4K | |
| Leasehold Improvements | $134K | $520K | |
| Furniture, Fixtures and Equipment | $76K | $174K | |
| Architect | $17K | $31K | |
| Initial Inventory and Supplies | $17K | $18K | |
| Insurance | $2K | $5K | |
| Business Licenses and Permits | $500 | $10K | |
| Professional Fees | $3K | $4K | |
| Exterior Signage | $6K | $27K | |
| Interior Branding/Graphics | $7K | $10K | |
| Security and Music System | $2K | $2K | |
| Point of Sale System | $10K | $15K | |
| Office Equipment and Supplies | $1K | $4K | |
| Grand Opening Promotionnot refundable | $10K | $10K | |
| Uniforms | $600 | $1K | |
| Initial and Hands-On Training Expenses | $1K | $5K | |
| Total initial investment | $376K | $976K |
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
$106K
9.0% margin
Unlevered ROIC
15%
EBITDA / total invested capital
Payback
6.6 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $376K – $976K
- Better than avg vs category
- Liquid capital req'd
- $10K – $30K
- Better than avg vs category
- Franchise fee
- $45K – $122K
- Better than avg vs category
- Royalty
- 6.0%
- Gross Sales · typical 6–8%
- Ad fund
- 3.0%
- typical 3–5%
- Total fee load
- 9.0%
- vs 9–13% typical
- Payback period
- 7.9 yrs
- From FDD / Item 19
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.0% of gross sales |
| Marketing / ad fund | 3.0% of gross sales |
| Technology fee | $600 |
| Transfer fee | $25K |
| Renewal fee | $5K |
| Inventory (initial) | $15K – $18K |
| Total fee load | 9.0% of rev |
Financial Performance
- Avg gross sales
- $1.2M
- Per unit, per year
- Median gross sales
- $1.1M
- Avg p&l bottom line
- $86K
- Reported as P&L Bottom Line in FDD Item 19
- Cash-on-cash
- 12.7%
- Based on P&L Bottom Line / investment midpoint
- Item 19 type
- gross_sales
- Sample size
- 105 units
- vs category median 13 · large
- Range (low → high)
- $461K→$3.1M
- Cohort dispersion (min → max)
- Quartile band
- $607K→$1.7M
- Bottom 25% → top 25%
- Transparency tier
- full
- Categorical assessment of disclosure depth
- Transparency
- 10 / 5
- vs category median 4 / 5 · above
Compared against 1264 Full-Service Restaurants brands
vs Full-Service Restaurants averages
How Teriyaki Madness Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 158
- Opened
- 36
- Last reporting year
- Closed
- 14
- Terminated
- 3
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 10.1%
- Company-owned
- 2
- Corporate units in the system
- % franchised
- 99%
- vs corporate-owned
- Net growth (yr3)
- +13.7%
- Net unit change last year
- 3-yr CAGR
- +27.9%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 16
- Closed (3yr)
- 6
- Terminated (3yr)
- 1
- Transfers (3yr)
- 8
- Transfer rate
- 5.1%
- Owners selling to other franchisees
- Termination rate
- 0.6%
- Franchisor-initiated terminations
- Ceased ops
- 3.8%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 41 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.
Available to sell in · Item 12
- California
- Hawaii
- Illinois
- Indiana
- Maryland
- Michigan
- Minnesota
- New York
- North Dakota
- Rhode Island
- South Dakota
- Virginia
- Wisconsin
States where the franchisor is registered to sell new franchises (FDD registration filings).
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 127
- Loan volume
- $54.2M
- Median loan
- $390K
- 50th percentile
- Charge-off rate
- 7.1%
- rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 75.0%
- 5-yr charge-off
- 0.0%
- Loans approved 2021+
- Active lenders
- 51
- Defaults
- 9
Vintage analysis
Teriyaki Madness charge-off rate by loan vintage
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Teriyaki Madness's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 10 lenders with concentration factor
- Per-state charge-off rates across 15 states
- Startup risk premium and job creation velocity
- 12-year lending trend
Instant access. No subscription.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Teriyaki Madness shows moderate-to-cautionary risk: solid unit growth and territory protection are offset by active litigation alleging misrepresentation, lack of financial disclosure, high fee burden relative to profitability, and documented franchisee support concerns.
Litigation (Item 3)
M.H. Franchise Company Inc. v. Stephen Alexander, LFG Restaurant Group Inc., and related entities (Case No. 01-240008-3563, AAA Denver). Arbitration filed October 23, 2024 for breach of contract regarding premature closure of Teriyaki Shops in Arizona and Florida. Respondents filed counterclaims November 7, 2024 for breach of contract, fraudulent inducement, negligent misrepresentation, and securities law violations. Arbitrator appointed February 6, 2025.
Largest disclosed settlement: $150,000
Bankruptcy (Item 4)
Disclosed in last 7 years
Patrick Pounders, Franchise Development Manager, filed Chapter 13 bankruptcy petition May 22, 2017 (Case No. 17-14737-JGR, U.S. District Court, District of Colorado). Plan confirmed September 13, 2017 and dissolved September 2022.
Audited financials (Item 21)
Yes · Kezos & Dunlavy
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
- 01HIGHActive litigation with counterclaims alleging misrepresentation and inadequate franchisor support—suggests systemic operational or support issues
- 02HIGHNo Item 19 financial performance representations (Going Concern = False)—unable to independently verify the $85,690 average net income claim
- 03MINORHigh initial investment range ($376k–$975k) paired with modest average net income ($85,690 annually) yields 4.4–11.2 year payback period with significant capital risk
- 04MINORRoyalty structure (6% of Net Sales) on $1.18M average revenue = ~$70,680 in annual fees, consuming 82% of average net income
- 05HIGHLitigation context mentions 'failure to provide support' and 'misuse of marketing funds'—indicates potential franchisor accountability and trust concerns
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 | 5 years |
| Allowed renewalsℹ | 2 |
| Territory type | Population-based |
| Protected territory | Yes |
| Territory population | 25,000 |
| 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 |
| Curable defaultsℹ | 4 |
| Mandatory arbitration | Yes |
| Arbitration location | Denver, Colorado |
| Jury trial waiver | Yes |
| Governing law | Colorado |
| Litigation count | 1 |
View Item 3 litigation summary
M.H. Franchise Company Inc. v. Stephen Alexander, LFG Restaurant Group Inc., and related entities (Case No. 01-240008-3563, AAA Denver). Arbitration filed October 23, 2024 for breach of contract regarding premature closure of Teriyaki Shops in Arizona and Florida. Respondents filed counterclaims November 7, 2024 for breach of contract, fraudulent inducement, negligent misrepresentation, and securities law violations. Arbitrator appointed February 6, 2025.
Items 10, 11
Training & Operations
- Classroom training
- 75 hrs
- On-the-job training
- 218 hrs
- Training location
- On-site and corporate
- Site selection
- joint
- Franchisor financing
- Offered
- Item 10
- POS system
- Revel
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Revel
Item 20 · call current owners
Franchisee Contacts
208 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Teriyaki Madness · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Teriyaki Madness franchise?
The total investment to open a Teriyaki Madness franchise ranges from $376K – $976K, with an initial franchise fee of $45K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Teriyaki Madness franchise owners earn?
According to Item 19 of the Teriyaki Madness FDD, the average gross sales per unit is $1.2M. The median is $1.1M. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Teriyaki Madness's franchise failure rate?
Based on SBA 7(a) loan data, Teriyaki Madness has a charge-off rate of 7.1% across 127 loans, meaning 7.1% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many Teriyaki Madness franchise locations are there?
As of their most recent FDD filing, Teriyaki Madness has 158 total units in the United States, including 156 franchised units and 2 company-owned units. 36 new units were opened in the latest reporting year.
Is Teriyaki Madness a good franchise to buy?
FranchiseVerdict rates Teriyaki Madness 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.