FranchiseVerdict
The Kati Roll Company logo
FV-02663·MODERATEExcellent86

The Kati Roll Company

Formerly known as The Krystal Restaurant Company

Food & Beverage - Full ServiceFranchising since 2024Website
Investment
$395K – $830K
54th pct Full Service
Avg revenue
$1.7M
36th pct Full Service
Royalty
6.0%
54th pct Full Service
Units
4
20th pct Full Service
SBA default
0.0%
vs <3% typical

Bottom line

  • Total investment $395K – $830K including a $40K franchise fee, 6.0% ongoing royalty.
  • Average unit revenue of $1.7M/year.
  • Rated MODERATE with a risk score of 63/100. SBA loan default rate of 0.0% across 2 loans (below the industry average).
  • Emerging franchise — only 2 years of franchising with 4 units. Early-stage systems carry higher risk but may offer better territory availability.

Item 1 · who you're contracting with

The Franchisor

Legal entity
TKRC Franchising Company, LLC
Incorporated in
New York
HQ
330 Pearl Street, New York, New York 10038
Auditor
Divine, Blalock, Martin & Sellari, LLC
Audited financials
Franchisor revenue
$0
vs $0 prior year

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 The Kati Roll Company unit return on the cash you put in?

Revenue · per unit, per year
$
FDD Item 19 reports $1,712,557
Franchisor take · royalty + ad fund
Royaltytyp 68%
%
Ad fundtyp 35%
%
Operating costs · category default: generic
COGS
%
Labor
%
Rent / occupancy
%
Other operating
%
Total invested capital · what you actually put in
Initial investment
$
FDD Item 7: $395K–$830K
Working capital
$
FDD reports $20K–$45K

Unlevered ROIC · per unit

40%

In Yale's "attractive" band (30–60%)

0%30–60% Yale band80%

Store EBITDA · annual
$257K
EBITDA margin
15.0%
Total invested
$645K
Payback
30 mo
Unit-level only. A multi-unit portfolio gives up roughly 5–15% of this to shared services (corporate G&A) before reaching the ~10-unit break-even Yale describes.

Levered LBO scenario · Yale Crease Capital framing

What would 25 The Kati Roll Company units return on equity?

Edit assumptions

Equity IRR · 5-yr

36.4%

4.72× MOIC

Year-1 DSCR

2.26×

EBITDA ÷ debt service

Equity required

$4.6M

on $13.7M purchase

Total debt

$9.1M

SBA $5.0M + senior + seller note

SBA 7(a) request ($6.9M) exceeds the $5M program cap. Excess capped automatically; backfill via conventional or equity.

Overview

About

Franchisees operate fast-casual Indian street food restaurants specializing in kati rolls (grilled flatbread wraps with meat/vegetables). Day-to-day operations include food preparation, inventory management, customer service, and maintaining branded standards across a limited menu format in quick-service environments.

CEO
Payal Saha
Founded
2023
FDD year
2025
States available
1

Item 7 · what it costs

The Vitals

Total investment
$395K – $830K
All-in to open one unit
Liquid capital
$20K – $45K
Cash you must have on hand
Franchise fee
$40K
Royalty
6.0%
Percentage of weekly Gross Revenues · typical 6–8%
Ad fund
2.0%
typical 3–5%
Total fee load
8.0%
vs 9–13% typical

Item 19

Financial Performance

Avg gross sales
$1.7M
Per unit, per year
Median gross sales
Item 19 type
Affiliated Entity-Owned Businesses
Sample size
4 units
vs category median 15 · small
Range (low → high)
$901K$3.6M
Cohort dispersion
Transparency
3 / 5
vs category median 4 / 5 · below
Revenue rank36th
vs Food & Beverage - Full Service peers
Investment cost rank54th
Lower investment ranks lower (better)
Royalty rate rank54th
Lower royalty = lower percentile (better)
Unit count rank20th
vs Food & Beverage - Full Service peers
Risk score rank51th
Lower risk = lower percentile (better)

Item 20 · unit dynamics

The Growth Chart

Total units
4
Opened
0
Last reporting year
Closed
0
Turnover rate
0.0%
Company-owned
4
Corporate units in the system
% franchised
0%
vs corporate-owned
2023
0±0
Franchised units
2024
0
Franchised units
2025
0
Franchised units

Year-over-year franchised unit counts and net change. Source: FDD Item 20.

Item 20 · 16 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).

AK
ME
VT
NH
MA
RI
CT
NY
NJ
PA
DE
MD
DC
WA
OR
CA
NV
ID
MT
WY
UT
CO
AZ
NM
ND
SD
NE
KS
OK
TX
MN
IA
MO
AR
LA
WI
IL
MS
TN
MI
IN
KY
AL
OH
WV
GA
VA
NC
SC
FL
HI
Registered · 16 states
Not registered

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.

Total loans
2
Loan volume
Avg loan
Default rate
0.0%
vs <3% typical · system-wide
5-yr default

FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17

Risk & Legal

63
Risk · 0-100
MODERATE63 / 100

Extreme caution warranted: a 4-unit micro-franchise with undisclosed unit economics, questionable franchisor going concern status, and insufficient operating history to validate franchisee ROI potential.

Score breakdown · what drove the 63 / 100 rating

  1. 01MEDOnly 4 units in entire system indicates severely limited scale and unproven franchisee success model
  2. 02MEDNet income not disclosed in FDD Item 19 prevents ROI validation and suggests weak unit economics
  3. 03HIGHGoing Concern status is FALSE, raising questions about franchisor financial stability and long-term viability
  4. 04MEDWide investment range ($394.5K-$830K) with no disclosed average unit volume creates uncertainty in break-even timeline
  5. 05MINOR6% royalty on $1.71M average revenue = $102.7K annual fees with unknown profitability threshold

Severity inferred from the FDD text · not a regulatory classification

FDD Items 5, 6, 12, 17 · continued from Risk & Legal

Contract & Territory Detail

Territory
Radius
Protected territory
Yes
Initial term
10 years
Renewal term
10 years
Online sales rights
Restricted
Franchisor can compete
Yes
Hire a manager?
Allowed
Litigation count
0
Right of first refusal
Yes
Franchisor can buy back on resale
Mandatory arbitration
Yes
Jury trial waiver
Yes
Non-compete
2 yrs
Post-termination restriction
Owner-operator
Required
Governing law
New York

Item 11

Training & Operations

Classroom training
28 hrs
On-the-job training
148 hrs
POS system
Toast
Operating tech stack

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

Locked
(503) 378-••••
OR
(701) 328-••••
ND
(608) 266-••••
WI

One-time purchase · CSV download · Validation questions included

FDD download

The Kati Roll Company · FDD (2025) PDF

Single-page checkout · instant download · CSV export of contacts available separately above