Teriyaki Madness
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). Estimated payback in 7.9 years.
- Rated STRONG with a risk score of 42/100. SBA loan default rate of 0.0% across 238 loans (below the industry average).
- System growing at 27.9% CAGR over 3 years with 158 total units — strong expansion trajectory.
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 Teriyaki Madness unit return on the cash you put in?
Unlevered ROIC · per unit
24%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Teriyaki Madness 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 $8.2M purchase
Total debt
$6.6M
SBA $4.1M + senior + seller note
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.
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 · 14 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.
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.
Score breakdown · what drove the 42 / 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
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
67 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Teriyaki Madness · FDD (2025) PDF