Teriyaki Madness Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Teriyaki Madness is a fast-casual franchise serving made-to-order teriyaki rice and noodle bowls with grilled proteins. Franchisees run restaurants managing food prep, counter service, delivery, and staffing.
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]. FranchiseVerdict grade: A (Strongest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2025 FDD issuance
Overview
- Investment
- $376K – $976K
- 62nd pct Service Resta…
- Avg gross sales
- $1.2M
- 20th pct Service Resta…
- Royalty
- 6.0%
- 46th pct Service Resta…
- Units
- 158
- 81st pct Service Resta…
- SBA charge-off
- 7.1%
- % of SBA 7(a) loans not repaid · median varies by category
Quick verdict · Quick-Service Restaurants · color = vs category peers
Green = favorable by >10% vs Quick-Service Restaurants avg · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $376K – $976K including a $45K franchise fee, 6.0% ongoing royalty.
- RETURNSAverage unit revenue of $1.2M/year (median $1.1M), with an estimated 7% cash-on-cash return (based on EBITDA $85,690 / 8%).
- RISKVerdict A (Strongest tier), verdict score 83/100 (higher is better). 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, 2010–2025).
- FLAGBankruptcy history disclosed in the FDD. Review Item 4 for details before proceeding.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- M. H. Franchise Company Inc.
- Parent company
- M.H. Enterprises, Inc.
- Predecessor
- Teriyaki Madness LLC (and Teriyaki Madness Franchising LLC); earlier predecessor Madness Worldwide, LLC
- 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
- CEO
- Michael Haith
- Headquarters
- CO
- FDD year
- 2025
- States available
- 37
Can you afford it, and what does the money buy?
Entry cost is about average for a quick-service restaurants franchise.
Source: FDD 2025 · Items 5–7
Full Item 7 breakdown22 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.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $376K – $976K
- Middle of category vs category
- Liquid capital req'd
- $10K – $30K
- Top 40% of category vs category
- Franchise fee
- $45K – $45K
- Bottom third — review vs category
- Royalty
- 6.0%
- percentage · typical 6–8%
- Ad fund
- 3.0%
- typical 3–5%
- Total fee load
- 0.1%
- vs 9–13% typical
- Payback period
- 14.3 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 | $395 |
| Transfer fee | $25K |
| Renewal fee | $5K |
| Inventory (initial) | $17K – $18K |
| Total fee load | 0.1% of rev |
A 0.1% total fee load is unusually lean. More of each revenue dollar stays with the franchisee.
What do units actually make?
Average unit sales land near the quick-service restaurants norm.
Source: FDD 2025 · Item 19
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
$153K
13.0% margin
Unlevered ROIC
22%
EBITDA / total invested capital
Payback
4.5 yrs
cash-on-cash, unlevered
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
FDD-reported earnings vs. model
The FDD reports $86K as EBITDA $85,690 / 8%. Our model estimates $153K SLEBITDA from the same revenue using category-average cost assumptions. These numbers differ because EBITDA $85,690 / 8% deducts different expense categories than our model.
What one unit earns on your invested capital
Model A · Single-Unit Return
Computes unlevered return on invested capital (ROIC) for a single franchise unit. The target band for an attractive franchise is 30–60% ROIC. Below that and a passive index fund likely outperforms; above that and the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses. It's the top line only. Operating costs below are category estimates. Override them to match your real lease quote, labor market, and build-out budget.
Returns model · single-unit ROIC
What would one Teriyaki Madness unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
22%
Below the 30–60% attractive-franchise band
What 25 units return when you use SBA financing
Model B · Return on Equity: Debt-Financed Acquisition
Models a 25-unit portfolio acquisition financed with an SBA 7(a) loan. Shows equity IRR (your return on cash invested), DSCR (how safely the cash flow covers debt service), and the capital stack (SBA + seller + equity breakdown).
This is the “search fund” or “entrepreneurship through acquisition” scenario: you buy an existing multi-unit operator, use leverage to amplify returns, and either operate or hire management. The 25-unit size is the typical minimum for an SBA-backed franchise portfolio acquisition to pencil as a full-time income.
What “return on equity” means here: if you put in $500K of your own cash and the business generates enough EBITDA to pay down debt and grow, your equity IRR is the annual return on that $500K, including the value created when you eventually sell. Target IRR for a search fund is typically 25–35%.
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
$1.4M
on $7.1M purchase
Total debt
$5.7M
SBA $3.5M + senior + seller note
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2025 FDD
Financial Performance
- Avg gross sales
- $1.2M
- Per unit, per year
- Median gross sales
- $1.1M
- Avg ebitda $85,690 / 8%
- $86K
- Reported as EBITDA $85,690 / 8% in FDD Item 19
- Cash-on-cash
- 7.0%
- Based on EBITDA $85,690 / 8% / investment midpoint
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- gross sales
- Sample size
- 105 outlets
- vs category median 20 · large
- Range (low → high)
- $461K→$3.1M
- Cohort dispersion (min → max)
- Quartile band
- $715K→$1.7M
- Bottom 25% → top 25%
- Transparency tier
- full
- Categorical assessment of disclosure depth
- Reporting year
- 2024
- Fiscal year the figures cover
- Source filing
- FDD 2025
- Disclosed in the 2025 filing, covering 2024
- Transparency
- 10 / 10
- vs category median 4 / 10 · above
Compared against 782 Quick-Service Restaurants brands
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Unit economics
Average unit generates $1.2M/year in gross sales. Revenue-to-investment ratio: 1.7x.
Fee burden
Total ongoing fee load of 0.1% — below the Quick-Service Restaurants average of 7.9%.
Disclosure
Transparency score 10/10 — this franchisor discloses detailed breakdowns (quartiles, segments, or cohort data). Buyers can model unit economics with higher confidence.
Operator retention
System expanding at 27.9% CAGR over 3 years across 158 units — operators are staying and new ones are joining.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Quick-Service Restaurants averages
How Teriyaki Madness Compares
Is the system healthy?
Source: FDD 2025 · Item 20
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
- 10.3%
- Company-owned
- 2
- Corporate units in the system
- % franchised
- 99%
- vs corporate-owned
- Net growth (3-yr)
- +27.9%
- Net unit change over 3 years
- 3-yr CAGR
- +27.9%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 35
- Closed (3yr)
- 13
- Terminated (3yr)
- 3
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 8
- Reacquired (3yr)
- 1
- Franchisor bought back
- 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)
- 92.9%
- 5-yr charge-off
- 0.0%
- Loans approved 2021+
- Active lenders
- 51
- Defaults
- 9
- Typical loan rate
- 8.8%
- avg rate to borrowers
- Franchised industry avg
- 10.8%
- brand beats franchise avg ↓
- Jobs supported
- 2,963
- 5.5 per loan
- Lender concentration
- 32%
- top lender's share
Borrower mix: 91% went to startups / new businesses, 9% to established operators
Franchise vs independent — in limited-service restaurants, franchised businesses charge off at 10.8% vs 10.0% for independents — franchising is associated with 8% higher SBA default risk in this category.
Vintage analysis
Teriyaki Madness charge-off rate by loan vintage
Top lenders financing Teriyaki Madness franchisees
Showing 3 of 51 lenders. The full breakdown — every lender, state distribution, interest rates & risk ratings — is in the SBA Lending Report below.
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.
What could kill this investment?
SBA loans charge off at 7.1% — 56% below the 16.0% national norm, i.e. lower lender-observed risk.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
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)
One arbitration: M.H. Franchise Company Inc. v. Stephen Alexander et al. (AAA, Denver, CO, Case No. 01-24-0008-3563). Franchisor filed an arbitration demand against a former franchisee for breach of contract over premature closure of Teriyaki Shops in AZ and FL; respondents counterclaimed for fraudulent inducement, misrepresentation, securities-law violations, and deceptive trade practices.
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: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 83 / 100 verdict
- 01HIGHActive litigation with counterclaims alleging misrepresentation and inadequate franchisor support—suggests systemic operational or support issues
- 02MINORHigh 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
- 03MINORRoyalty structure (6% of Net Sales) on $1.18M average revenue = ~$70,680 in annual fees, consuming 82% of average net income
- 04HIGHLitigation 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
What are you signing up for?
Ongoing fees run about 0.1% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2025 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 2 |
| Territory type | protected |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory population | 25,000 |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| 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 | CO |
| Litigation count | 1 |
View Item 3 litigation summary
One arbitration: M.H. Franchise Company Inc. v. Stephen Alexander et al. (AAA, Denver, CO, Case No. 01-24-0008-3563). Franchisor filed an arbitration demand against a former franchisee for breach of contract over premature closure of Teriyaki Shops in AZ and FL; respondents counterclaimed for fraudulent inducement, misrepresentation, securities-law violations, and deceptive trade practices.
Items 10, 11
Training & Operations
- Classroom training
- 30 hrs
- On-the-job training
- 119 hrs
- Training location
- Denver, Colorado (or location of franchisor's choice)
- Ongoing training
- Required
- Time to open
- 9 mo
- From signing to launch
- Site selection
- joint
- Franchisor financing
- Offered
- Item 10
- POS system
- Revel/POS
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Revel/POS
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 Item 19 in the Teriyaki Madness FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the Teriyaki Madness FDD and qualifies whose outlets they describe.
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 verdict score of 83 out of 100 (higher is better), 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.
For franchisors
Are you the franchisor?
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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.