About RAKKAN Ramen Franchise
RAKKAN Ramen is a quick serve restaurant franchise specializing in authentic Japanese ramen (Japanese style noodle) dishes made with various types of broth, Japanese appetizers, specified condiments and ingredients, and other food, beverages and related products.
Franchisees operate a single retail food outlet serving ramen prepared with proprietary recipes and condiments as a standard size full service restaurant.
The target market is all individuals within a reasonable proximity to the outlet, as the business is fully developed and does not involve sales primarily to a certain group and is not seasonal.
RAKKAN Ramen Franchise Cost & Fees
Minimum Investment
$390K
Average Investment
$632K
Maximum Investment
$875K
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $40,000 | One-time payment upon signing |
| Royalty Fee | 5% of Gross Revenues of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 1% of Gross Revenues (Marketing and Promotion Fee) | National brand fund |
| Total Investment Range | $389,500 – $875,000 | Includes build-out, inventory, working capital |
The investment range of $390K–$875K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (5% of Gross Revenues) and marketing fee (1% of Gross Revenues (Marketing and Promotion Fee)) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $40,000 | $40,000 |
| Training Expenses (Travel, Meals, Lodging and Salaries) | $10,000 | $20,000 |
| Grand Opening Advertising and Promotion | $3,000 | $8,000 |
| Real Property Lease or Rental Agreement, Including Security Deposit | $6,000 | $15,000 |
| Real Property Lease Construction, Remodeling, Leasehold Improvements and Decorating Costs | $200,000 | $550,000 |
| Equipment, Fixtures and Other Fixed Assets | $60,000 | $110,000 |
| Point of Sale System (Including Cash Register, Computer System, Setup Fee) and Telecommunications | $7,500 | $11,000 |
| Signage | $5,000 | $20,000 |
| Inventory and Supplies to Begin Operating | $16,000 | $20,000 |
| Water Filter to Supply Soft Water | $4,000 | $4,000 |
| Professional Fees - Legal and Accounting | $2,500 | $5,000 |
| Insurance Premiums | $2,000 | $3,000 |
| Utility Deposits, Business Licenses, Fictitious Business Name Filing and Other Prepaid Expenses | $2,500 | $5,000 |
| Initial Floor Plan Fee and Travel Expenses | $20,000 | $35,000 |
| Cost of Kitchenware | $2,000 | $4,000 |
| Additional Funds - 3 Months | $9,000 | $25,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $10,000 |
| Renewal Fee | $5,000 |
| Audit Fee | Cost of audit plus interest on underpayment |
| Local Marketing Expenditure | 1% to 3% of Gross Revenues (Recommended) |
| Additional Marketing and Promotion Fees | Determined by affirmative vote of all affected RAKKAN franchisees |
| Advertising Cooperative Fee | Up to 1% of Gross Revenues |
| Initial Training Fee for Additional Attendees | $1,500/attendee |
| Initial Training Fee (General Manager retaking or replacement) | $1,000 (5 days), $2,000 (10 days), or $3,000 (15 days) per attendee |
| Additional Training Fee (at designated location) | $1,000 (5 days) or $2,000 (10 days) per attendee |
| Additional Training Fee (at Outlet) | $500/day and reimbursement for expenses |
| Late Payment Penalty | 5% of the amount past due |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | 15 days |
| Classroom Training | 14 hours |
| On-the-Job Training | 81 hours |
| Training Location | Redondo Beach, California |
| Additional Training | On-site training of staff at franchisee's outlet for at least two weeks prior to grand opening, plus a three-day on-site training immediately before and after opening. Additional training available upon request at $500/day at outlet or $1,000-$2,000 at designated location. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Exclusive |
| Exclusive Territory | Yes |
| Territory Size | Minimum population of 50,000 based on U.S. Census |
| Description | A defined area surrounding the outlet determined from U.S. Census report or other reliable demographers. So long as franchisee continues to fulfill material obligations under the Franchise Agreement, franchisor will not grant a RAKKAN franchise to any other person, nor will franchisor or affiliates operate an Outlet within the Territory. However, franchisee may face competition from other franchisees and outlets near the Territory, from other channels of distribution, and from other competitive brands controlled by the franchisor. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years |
| Renewal Term | 10 years |
| Renewal Fee | $5,000 |
| Renewal Conditions | Written notice delivered not less than 180 days before end of existing term; in full compliance with operating requirements; all fees paid; not in breach of any term; sign then-current Franchise Agreement modified for renewal; remodel Outlet if necessary. Renewal agreement may have materially different terms. |
| Transfer Fee | $10,000 |
| Transfer Conditions | New franchisee qualifies; transfer fee paid; purchase agreement approved; training arranged; release signed by transferor; current agreement signed by new franchisee. Franchisor approval required for all transfers including transfers of more than 50% equity or controlling interest. Franchisor has right of first refusal to match any legitimate offer. |
| Termination for Cause | Franchisor can terminate for material default only. Non-curable defaults include bankruptcy, insolvency, abandonment, conduct reflecting materially and unfavorably on RAKKAN reputation, material misrepresentations, conviction of felony or criminal misconduct, imminent danger to public health or safety. Curable defaults allow 30 days after notice to cure monetary and other defaults. |
| Non-Compete Period | 1 year after termination or expiration |
| Non-Compete Details | No competing business within 25 miles of franchisee's Outlet or any other RAKKAN Outlet for 1 year after termination or expiration. During the term of the franchise, no involvement in any competing business anywhere without prior written consent. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | No |
| Participation Details | Franchisee must employ at least one designated General Manager who has completed initial training to devote their entire time during normal business hours to management, operations and development of the Outlet. If the General Manager is not a Principal Equity Owner, at least one Principal Equity Owner must directly oversee or participate personally in operations. The franchisee is not required to have ownership interest, but the General Manager may need to sign a non-competition agreement. |
| Required Suppliers | Must purchase items bearing RAKKAN trademarks only from designated vendors or approved suppliers. Must purchase POS system from designated vendor. Must purchase water filter from designated vendor. Food and beverage items must be purchased from manufacturers or producers designated or approved by RAKKAN. |
| Supply Restrictions | Franchisees may request approval of alternative suppliers by submitting written request with evidence of conformity to specifications. Approval within 30 days of completed request. |
| Franchisor Revenue from Suppliers | Franchisor collects rebates from suppliers ranging from 9% to 11% of purchase price. In fiscal year ending December 31, 2021, collected $30,774.40 from United Foods, $15,868.96 from Wismettac Asian Foods, and $21,514.40 from Nippon Trends Food Service. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | We do not offer direct or indirect financing. We do not guarantee your note, lease or obligation. |
RAKKAN Ramen Franchise Earnings — Item 19
RAKKAN Ramen does not make an Item 19 financial performance representation in their FDD. This means they do not disclose revenue, profit, or earnings data for franchised locations. Before investing, ask the franchisor directly for franchisee contact information so you can speak with existing owners about their actual financial performance.
RAKKAN Ramen does not include an Item 19 financial performance representation in their FDD. Contact information for current and former franchisees is listed in Item 20 of the FDD.
RAKKAN Ramen Litigation & Risk Flags
Clean Litigation RecordRAKKAN Ramen has no pending litigation actions listed in their FDD. There is also no bankruptcy history disclosed.
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
RAKKAN Ramen System Growth
Total Units
7
Franchised
3
Company-Owned
4
RAKKAN Ramen currently operates 3 franchised locations and 4 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2019 | 0 | 0 | 0 |
| 2020 | 0 | 0 | 0 |
| 2021 | 3 | 0 | 3 |
Transfers: 0 | Closures: 0
State Registrations
Registered in 4 states: CA, IL, NV, TX
Franchisor Financials (Item 21)
Revenue
$176K
Net Income
$61K
Total Assets
$335K
Audited by Schild & Co., Inc. for year ending December 31.
RAKKAN Ramen Franchise — FAQ
The total investment to open a RAKKAN Ramen franchise ranges from $389,500 to $875,000, per their Franchise Disclosure Document. This includes the initial franchise fee of $40,000. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
RAKKAN Ramen charges a royalty fee of 5% of Gross Revenues of gross sales, plus a 1% of Gross Revenues (Marketing and Promotion Fee) contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the RAKKAN Ramen Franchise Disclosure Document free on this page. The FDD is a public document filed with state franchise registries. Always also request the current FDD directly from RAKKAN Ramen to ensure you have the most up-to-date version.
RAKKAN Ramen does not provide an Item 19 financial performance representation in their FDD, which means they do not disclose franchisee revenue or earnings data. Prospective investors should contact existing franchisees directly (listed in Item 20 of the FDD) to gather real-world financial performance information.
RAKKAN Ramen has been franchising since 2019. The FDD shows an investment range of $389,500-$875,000, a 5% of Gross Revenues royalty, and no Item 19 earnings disclosure. There is no pending litigation. Review the full FDD and contact current franchisees listed in Item 20 before making any investment decision.
The franchise fee is $40,000 and the total investment ranges from $389,500 to $875,000 depending on location size and market. Contact the franchisor directly for current net worth and liquid capital requirements, territory availability, and application details.
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Data Source & Disclaimer: This website is for informational purposes only. It is not an offer to sell or buy a franchise. This profile is based on publicly available FDD data sourced from state franchise registry filings. All information is for research purposes only and does not constitute legal, financial, or investment advice. Data may be outdated or contain errors. Always obtain the current FDD directly from RAKKAN Ramen and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with RAKKAN Ramen or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com