About TONCHIN Franchise
Tonchin Hospitality, LLC grants franchises for the operation of retail stores specializing in Japanese Ramen Foods under the TONCHIN brand.
Franchisees operate distinctive restaurant stores that serve high-quality specialty Japanese ramen — specifically a pork bone ramen where everything is handmade and freshly made — along with other complementary food and beverage products.
The target customers are consumers seeking authentic Japanese ramen dining experiences, and stores are typically located in highly visible, high-traffic retail locations.
TONCHIN Franchise Cost & Fees
Minimum Investment
$1.4M
Average Investment
$2.0M
Maximum Investment
$2.7M
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $40,000 | One-time payment upon signing |
| Royalty Fee | 5% of Gross Sales of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 2% of weekly Gross Sales | National brand fund |
| Total Investment Range | $1,396,000 – $2,703,000 | Includes build-out, inventory, working capital |
The investment range of $1.4M–$2.7M reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (5% of Gross Sales) and marketing fee (2% of weekly Gross Sales) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Unit Franchise Fee | $40,000 | $40,000 |
| Training Fee | $15,000 | $30,000 |
| Initial Inventory | $25,000 | $50,000 |
| Training Program Travel and Living Expenses | $10,000 | $30,000 |
| Security and Utilities Deposits | $30,000 | $60,000 |
| Rent (Three months) | $30,000 | $90,000 |
| Leasehold Improvements/Construction | $1,000,000 | $2,000,000 |
| Fixtures and Equipment | $150,000 | $200,000 |
| Signage | $10,000 | $20,000 |
| Point-of-Sale, Web Camera and other Computer System | $20,000 | $35,000 |
| Permits and Licenses | $1,000 | $3,000 |
| Legal and Accounting Fees | $10,000 | $18,000 |
| Insurance | $5,000 | $7,000 |
| Grand Opening Advertising | $10,000 | $20,000 |
| Miscellaneous | $10,000 | $50,000 |
| Additional Funds - 3 Months | $30,000 | $50,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | Greater of $10,000 or 5% of the then-current Unit Franchise Fee |
| Renewal Fee | Greater of $10,000 or 5% of the then-current Unit Franchise Fee |
| Audit Fee | Amount incurred by franchisor including employee salaries and benefits, travel expenses, and audit fees (only if audit shows understatement of Gross Sales by more than 2%) |
| Additional Support Fees | $400 per day per officer/employee plus travel expenses |
| Travel Expenses | All expenses incurred for round trip airline ticket, local travel, accommodation, visa/passport and meals |
| Relocation Fee | $1,500 plus $500 per week Store is closed during relocation |
| Insurance | Cost of insurance if franchisee fails to obtain required insurance |
| Interest Charges | 1.5% per month or maximum rate permitted by law, whichever is less |
| Late Charge | $100 per week for late or non-submittal of required reports |
| Insufficient Security Deposit/Advertising Fund Contribution Fee | $100 per occurrence |
| Liquidated Damages | $250 per day for unauthorized products/services; then-current Unit Franchise Fee for other breaches |
| Management Fee | $1,000 per day |
| Indemnification and Costs and Attorneys' Fees | Variable, as incurred |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | Approximately 30 days |
| Classroom Training | 17 hours |
| On-the-Job Training | 151 hours |
| Training Location | Tonchin New York |
| Additional Training | Franchisor may provide additional training if determined necessary during the term of the Franchise Agreement. Franchisor may periodically conduct additional training sessions, conferences, seminars and programs. Additional Support Fee of $400 per day per person plus travel expenses applies for additional training. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Non-exclusive |
| Exclusive Territory | No |
| Description | Franchisee will not receive an exclusive territory. Franchisee may face competition from other franchisees, from outlets owned by the franchisor, or from other channels of distribution or competitive brands controlled by the franchisor. Franchisor reserves the right to develop TONCHIN businesses and competitive businesses under other brand names, in non-traditional locations, and to market and distribute products through any channel including Internet, mail order, food truck, telemarketing, etc. regardless of proximity to franchisee's store. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 5 years |
| Renewal Term | 5 years |
| Renewal Fee | Greater of $10,000 or 5% of the then-current Unit Franchise Fee |
| Renewal Conditions | Must give written notice at least 210 days but not more than 1 year before expiration; must have complied with all material terms; paid all monetary obligations; not in default; not been in default more than two times with no default uncured for longer than 30 days; must have right to continue occupying premises for at least 5 additional years; sign then-current franchise agreement; pay successor fee; execute general release; Manager and one other employee must complete required training; agree to remodel Store within six months. |
| Transfer Fee | Greater of $10,000 or 5% of the then-current Unit Franchise Fee plus Training Fee |
| Transfer Conditions | Must provide 3 months written notice; all monetary obligations paid in full; not in default; execute general release; transferee must meet franchisor's standards for new franchisees; transferee must sign then-current franchise agreement; transferee must complete Training Program; pay Transfer Fee and Training Fee. |
| Termination for Cause | Immediate termination without cure for: conviction of law violation, insolvency/bankruptcy, assignment for benefit of creditors, abandonment, failure to provide financial records, material impairment of goodwill, repeated breaches (2+ in 12 months or 4+ during term), failure to locate site within 120 days or open by Required Opening Date, fraud, failure to maintain insurance, failure to comply with quality/sanitation standards (24-hour cure), health/safety violations, unauthorized transfer, false reports, purchasing from unauthorized suppliers. 30-day cure period for other defaults including false information, failure to obtain licenses, failure to complete training, law violations, failure to pay fees (10-day cure), late reports, failure to pay obligations, dishonored checks, loss of lease/license, equipment maintenance failures, failure to replace Managing Owner, breach of other agreements. |
| Non-Compete Period | 24 months |
| Non-Compete Details | For 24 months after termination, franchisee may not participate in any Competitive Business within 25 miles of the Store or any other Tonchin business. Competitive Business means any business featuring Ramen Foods and complementary products similar to TONCHIN, employing distinctive elements of the Franchise System, or using a similar menu. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | Franchisee must appoint a Managing Owner who is responsible for the overall management and operation of the TONCHIN Business. The Managing Owner must own or control at least 10% of the ownership equity. The Manager must personally participate in the day-to-day management of the Store. At all times during the operation of the Store, there must be at least one person who has completed the Training Program or is otherwise certified to manage a Store. |
| Required Suppliers | Franchisees must obtain all inventory, supplies, fixtures, furnishings, equipment, and other products used or offered for sale solely from franchisor, designated suppliers, or approved suppliers. Specific designated items include blast chiller, combi oven, dishwasher, Toast POS system, Magic web camera system, and proprietary ingredients including sauce, soup, and noodles. |
| Supply Restrictions | Certain foods, beverages, and products include proprietary ingredients that may only be used for the TONCHIN Business. Franchisees cannot use proprietary ingredients for non-TONCHIN business or sell/transfer them to third parties. Franchisees must request written approval to use unapproved suppliers and pay for all inspection and evaluation costs. |
| Franchisor Revenue from Suppliers | Franchisor may receive income in the form of rebates, discounts, allowances or other payments from designated or approved suppliers. As of the date of the FDD, neither franchisor nor affiliate has derived any revenue from sales to franchisees. Purchases from designated/approved suppliers estimated at up to 30% of initial expenditures and approximately 4% of annual ongoing expenditures. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | Franchisor does not offer direct or indirect financing. Franchisor does not guarantee any note, lease or obligation. |
TONCHIN Franchise Earnings — Item 19
TONCHIN 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.
TONCHIN 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.
TONCHIN Litigation & Risk Flags
Clean Litigation RecordTONCHIN 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.
TONCHIN System Growth
Total Units
3
Franchised
0
Company-Owned
3
TONCHIN currently operates 0 franchised locations and 3 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2021 | 0 | 0 | 1 |
| 2022 | 1 | 0 | 2 |
| 2023 | 1 | 0 | 3 |
Transfers: 0 | Closures: 0
State Registrations
Registered in 3 states: CA, TX, MN
Franchisor Financials (Item 21)
0
Net Income
$-1,550
Total Assets
$10K
Audited by Barton CPA Firm for year ending August 31.
TONCHIN Franchise — FAQ
The total investment to open a TONCHIN franchise ranges from $1,396,000 to $2,703,000, 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.
TONCHIN charges a royalty fee of 5% of Gross Sales of gross sales, plus a 2% of weekly Gross Sales contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the TONCHIN 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 TONCHIN to ensure you have the most up-to-date version.
TONCHIN 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.
TONCHIN has been franchising since 2024. The FDD shows an investment range of $1,396,000-$2,703,000, a 5% of Gross Sales 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 $1,396,000 to $2,703,000 depending on location size and market. Contact the franchisor directly for current net worth and liquid capital requirements, territory availability, and application details.
Similar Food & Beverage Franchises
Interested in TONCHIN?
Get free info on this franchise. We will send you a detailed FDD report by email.
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 TONCHIN and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with TONCHIN or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com