Bottom line
- Total investment $335K – $682K including a $40K franchise fee, 7.0% ongoing royalty.
- Average unit revenue of $698K/year.
- Rated MODERATE with a risk score of 65/100. SBA loan default rate of 0.0% across 8 loans (below the industry average).
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 Urban Wok unit return on the cash you put in?
Unlevered ROIC · per unit
18%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Urban Wok units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$1.1M
on $5.6M purchase
Total debt
$4.5M
SBA $2.8M + senior + seller note
Overview
About
Urban Wok franchisees operate fast-casual Asian noodle and wok-based restaurants, managing daily kitchen operations, front-of-house service, inventory control, and staff scheduling. Franchisees oversee food preparation quality, customer service delivery, and local marketing while adhering to Urban Wok's proprietary recipes and operational standards.
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 · 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).
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
Urban Wok presents meaningful risk due to undisclosed profitability data, questionable corporate health (Going Concern status), and an unproven micro-franchise system with only 8 units attempting aggressive growth.
Score breakdown · what drove the 65 / 100 rating
- 01MINORNo Item 19 (Net Income) disclosure - cannot validate profit claims against $698K avg revenue
- 02HIGHGoing Concern status is FALSE - suggests corporate financial instability or restructuring risk
- 03MINOROnly 8 units system-wide - extremely small franchise network limits support infrastructure and brand leverage
- 04MEDHigh royalty burden (7%) combined with non-disclosed net income makes profitability unclear at unit level
- 05MINORAggressive growth target (40% YoY) on tiny base suggests unproven scalability or recruitment-focused model
- 06MINORWide investment range ($334.5K-$682K spread) indicates inconsistent unit economics or build-out variability
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
20 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Urban Wok · FDD (2024) PDF