Tikka Shack / Masala Wok
Bottom line
- Total investment $499K – $722K including a $40K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $1.1M/year (median $1.0M).
- Rated MODERATE with a risk score of 60/100. SBA loan default rate of 0.0% across 8 loans (below the industry average).
- System growing at 70.0% CAGR over 3 years with 23 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 Tikka Shack / Masala Wok unit return on the cash you put in?
Unlevered ROIC · per unit
25%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Tikka Shack / Masala Wok units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$1.7M
on $8.7M purchase
Total debt
$6.9M
SBA $4.3M + senior + seller note
Overview
About
Franchisees operate fast-casual Indian and Asian fusion restaurants (Tikka Shack and Masala Wok brands), managing front-of-house service, food prep execution, inventory, staff scheduling, and local marketing. Day-to-day involves order fulfillment, food quality control, vendor management, and driving foot traffic in protected territories while remitting 6% of gross sales to the franchisor.
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 · 7 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
Rapid unit expansion in a young system with undisclosed profitability, concerning Going Concern status, and missing financial transparency data presents material risk despite healthy average revenue figures.
Score breakdown · what drove the 60 / 100 rating
- 01MEDNo Item 19 (Average Unit Volume) disclosed despite $1.08M average revenue claim — cannot verify profitability or validate ROI claims
- 02HIGHGoing Concern status is FALSE — indicates potential financial instability at franchisor level, raising questions about support, marketing, and system sustainability
- 03MINORExplosive 54.5% YoY unit growth (9 units added to 23-unit system) may indicate unsustainable recruitment over profitability; typical mature franchises grow 10-15% annually
- 04MEDHigh investment range ($498.5K–$721.5K) paired with undisclosed net income creates opacity on break-even timeline and actual ROI
- 05HIGHNo litigation disclosed is neutral but combined with Going Concern status suggests either poor disclosure or genuine operational distress
- 06MINOR6% royalty is reasonable but becomes problematic if franchisees cannot achieve $1.08M in revenue consistently across the growing system
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
14 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Tikka Shack / Masala Wok · FDD (2025) PDF