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.
- Rated CAUTION with a risk score of 72/100.
- 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
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 TONCHIN unit return on the cash you put in?
Unlevered ROIC · per unit
6%
Below typical band (30–60%)
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.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
Item 20 · unit dynamics
The Growth Chart
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 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.
No SBA loan data available for this brand.
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.
Score breakdown · what drove the 72 / 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
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
35 numbers
One-time purchase · CSV download · Validation questions included
FDD download
TONCHIN · FDD (2025) PDF