TonchinFranchise Cost, Revenue & Review 2026
Data from FDD filing
FranchiseVerdict summary · 2026
A TONCHIN franchise requires a total initial investment of $1.4M – $2.7M, including a $40K franchise fee and an ongoing 5.0% royalty[2]. The 2025 FDD does not disclose unit-level revenue (no Item 19). Verdict grade: B. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $1.4M – $2.7M
- 46th pct Service Resta…
- Avg gross sales
- N/A
- 28th pct Service Resta…
- Royalty
- 5.0%
- 7th pct Service Resta…
- Units
- 3
- 8th pct Service Resta…
- SBA default
- N/A
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
Started franchising in 2024. Newer systems carry more uncertainty but may offer better territories.
Bottom line
- Total investment $1.4M – $2.7M including a $40K franchise fee, 5.0% ongoing royalty.
- No Item 19 financial performance data disclosed. The franchisor chose not to publish revenue figures.
- Verdict B (Above Average) with a risk score of 60/100.
- No Item 19 financial performance representation. Without franchisor-disclosed revenue data, you'll need to gather unit economics directly from existing franchisees.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- TONCHIN HOSPITALITY LLC
- Parent company
- FOODEX US HOLDINGS INC
- Incorporated in
- DE
- HQ
- 16192 COASTAL HWY, LEWES, DELAWARE 19958
- Auditor
- BARTON CPA
- Audited financials
- Franchisor revenue
- $0
- Most recent fiscal year
Overview
About
Tonchin franchisees operate ramen/noodle-focused Japanese restaurants, handling day-to-day P&L management including food preparation, inventory control, staff management, and customer service. Franchisees are responsible for build-out, licensing, staffing, and marketing within their territory while adhering to brand standards and paying weekly royalties on gross sales.
- CEO
- Takao Shishido
- Headquarters
- DE
- Founded
- 2023
- FDD year
- 2025
- States available
- 2
FDD Item 7 · 2025 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $40K | $40K |
| Working capital (3–6 mo) | $30K | $50K |
| Equipment, build-out, other | $1.3M | $2.6M |
| Total initial investment | $1.4M | $2.7M |
Source: TONCHIN 2025 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $1.4M – $2.7M
- Near category avg vs category
- Liquid capital req'd
- $30K – $50K
- Better than avg vs category
- Franchise fee
- $40K – $40K
- Better than avg vs category
- Royalty
- 5.0%
- Gross Sales · typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 7.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 5.0% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
| Transfer fee | $10K |
| Renewal fee | $10K |
| Total fee load | 7.0% of rev |
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
vs Full-Service Restaurants averages
How Tonchin Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 3
- Opened
- 1
- Last reporting year
- Closed
- 0
- Turnover rate
- 0.0%
- Company-owned
- 3
- Corporate units in the system
- % franchised
- 0%
- vs corporate-owned
3-year detail · Item 20
- Transfers (3yr)
- 0
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 29 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.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
No SBA loan data available for this brand.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Tonchin presents HIGH RISK due to a micro-franchise system (3 units), absence of financial disclosure, going concern issues, unprotected territory, and a capital-intensive model with no demonstrated profitability pathway.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · BARTON CPA
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Score breakdown · what drove the 60 / 100 rating
- 01MINOROnly 3 units in system with unknown growth trajectory suggests minimal scale and validation
- 02MINORNo average revenue or net income disclosure (no Item 19) prevents ROI assessment and profitability verification
- 03HIGHGoing Concern = False indicates franchisor may have financial/operational viability issues
- 04MEDHigh investment range ($1.4M-$2.7M) with no disclosed average returns creates severe risk-reward imbalance
- 05MINORUnprotected territory means direct competition from other franchisees in same market
- 06MINORRoyalty structure tied to weekly gross sales (unusual) lacks transparency on actual franchisee obligations
- 07MINORExtremely small unit count suggests brand has failed to attract or retain franchisees
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 | 5 years |
|---|---|
| Renewal term | 5 years |
| Protected territory | No |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | Delaware |
| Litigation count | 0 |
Items 10, 11
Training & Operations
- Classroom training
- 17 hrs
- On-the-job training
- 151 hrs
- Training location
- On-site and corporate
- POS system
- Toast
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Toast
Item 20 · call current owners
Franchisee Contacts
35 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
TONCHIN · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a TONCHIN franchise?
The total investment to open a TONCHIN franchise ranges from $1.4M – $2.7M, with an initial franchise fee of $40K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do TONCHIN franchise owners earn?
TONCHIN does not disclose average franchise owner earnings in their FDD Item 19. Not all franchisors are required to make financial performance representations. We recommend asking existing franchisees directly about their financial experience.
What is TONCHIN's franchise failure rate?
SBA 7(a) loan charge-off data is not available for TONCHIN (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
How many TONCHIN franchise locations are there?
As of their most recent FDD filing, TONCHIN has 3 total units in the United States, including 0 franchised units and 3 company-owned units. 1 new units were opened in the latest reporting year.
Is TONCHIN a good franchise to buy?
FranchiseVerdict rates TONCHIN as a B-grade franchise with a risk score of 60 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.
For franchisors
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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.