Rachel's Kitchen franchise
2024 filing · April 12, 2024GrowingShares sales figures
Rachel's Kitchen at a glance
A fast-casual restaurant serving breakfast, lunch and dinner: soups, salads, wraps, burgers, sandwiches, pasta and smoothies. At the end of 2023 there were 7 Rachel's Kitchen locations in the US, all franchised.
The business
- Franchisor
- RDR Inc
- The company that sells the franchises
- Franchising since
- 2008
- 16 years of selling franchises
- Franchisor based in
- Las Vegas, Nevada
- Typical size
- 1,500–2,100 sq ft
What you pay
- Cost to open
- $298K–$816K
- Fee, build-out and opening working capital
- Franchise fee
- $40,000
- Paid once, when you sign
- Royalty
- 6%
- 6% of gross sales, paid weekly, plus 2% to the marketing fund
- Brand fund
- 2%
- 2% of gross sales, paid with the royalty
- Renewal fee
- $5,000
- When the agreement ends and you sign again
- Agreement length
- 10 years
- Territory
- Limited
- Limited protection
Where it is
- US locations, 2023
- 7
- Franchised and company-owned
- Franchised
- 7
- Company-owned
- 0
- Change in 3 years
- +1
- Franchised locations, 2021–2023
- States
- 1
- Most in Nevada
Support and records
From RDR Inc’s 2024 filing; SBA status from the SBA Franchise Directory, October 28, 2026.
Where it ranks
Rachel's Kitchen among all franchises with the same figure.
| Figure | Rachel's Kitchen | Among all franchises |
|---|---|---|
| Cost to open, midpointHalfway between the low and high estimate | $557,165 | Costs more than 68% of franchises |
| Franchise feePaid once, when you sign | $40,000 | Lower than 46% of franchises |
| RoyaltyShare of sales paid to the franchisor | 6% | Higher than 35% of brands with a set rate |
| US locationsFranchised and company-owned | 7 | Fewer than 66% of franchises |
| Sales per locationYearly, as the brand reports it | $1,719,649 | Higher than 83% of brands that share sales figures |
| Sales against cost to openYearly sales over the cost midpoint | 3.1× | Higher than 80% of brands that share sales figures |
How much a Rachel's Kitchen franchise costs
Opening one Rachel's Kitchen costs an estimated $298,450 to $815,880. That covers the franchise fee and everything else needed to open, through the first months of working capital.
The biggest costs are leasehold improvements ($75,000 to $350,000) and equipment ($55,000 to $150,000). Here is every line of the estimate as filed:
| What it pays for | Range | Low | High |
|---|---|---|---|
| Initial Franchise Fee | $40,000 | ||
| Leasehold Improvements | $75,000 | $350,000 | |
| Lease, Utility and Security Deposits | $9,000 | $18,000 | |
| Linens, Uniforms and Smallwares | $10,000 | $30,000 | |
| Equipment | $55,000 | $150,000 | |
| Furniture, Fixtures and Security System | $20,000 | $35,000 | |
| Signage | $6,000 | $18,000 | |
| Initial Inventory | $10,000 | $18,000 | |
| Architectural/Engineering | $5,000 | $25,000 | |
| Computer System, POS System, Office Equipment and Supplies | $6,000 | $8,000 | |
| Living and Travel Expenses While Training | $1,450 | $3,880 | |
| Business licenses and permits | $1,000 | $10,000 | |
| Insurance – 3 Months | $3,000 | $4,000 | |
| Grand Opening Advertising | $4,000 | $8,000 | |
| Professional Fees | $3,000 | $8,000 | |
| Additional Funds | $50,000 | $90,000 | |
| Total | $298,450 | $815,880 | |
Source: RDR Inc, 2024 filing, page 17
Rachel's Kitchen franchise fee
The franchise fee is $40,000. You pay it when you sign the franchise agreement.
Source: RDR Inc, 2024 filing, page 10
Royalty and ongoing fees
| Royalty | 6% of gross sales, paid weekly, plus 2% to the marketing fund. |
|---|---|
| Brand or marketing fund | 2% of gross sales, paid with the royalty. |
| POS Software Fee | $230 to $300 |
| Transfer Fee (Franchise Agreement) | $8,500 |
| Renewal Fee (Franchise Agreement) | $5,000 |
| Local Advertising | $3,000 to $5,000 |
The typical franchise royalty is 6% of sales, plus 2% for marketing. See franchise fees and royalties to compare.
Source: RDR Inc, 2024 filing, pages 11 and 12
Other fees as filed, from pages 12–14. The filing lists every fee, including late fees and audit costs.
Sales and earnings
Shares figures Rachel's Kitchen publishes sales or earnings figures for its locations. The full tables, with notes on which locations are counted, are in its filing.
- Average sales
- $1,719,649
- Median sales
- $1,675,914
Yearly figures for 2023, covering franchised restaurants open seven days a week in 2023 (one airport location; one six-day restaurant left out) (6 locations). The average and median are worked out from each location's sales as listed in the filing. The average is about 3.1 times the midpoint of the cost to open.
Sales are what a location takes in before rent, payroll, royalties and other costs, not what its owner keeps.
Source: RDR Inc, 2024 filing, page 49
SBA loans to Rachel's Kitchen franchisees
Lenders approved one SBA 7(a) loan for a Rachel's Kitchen franchisee in 2023, for $389K. It was paid in full.
A charged-off loan is one written off as uncollectible. See SBA franchise loans for how 7(a) and 504 loans work.
Source: SBA 7(a) and 504 loan data, as of September 30, 2026
Growth and closures
Share of franchised locations, 2023 / 2021–2023. Typical means the median: half of brands are above it, half below.
| Measure | Rachel's Kitchen | Typical breakfast brand | Typical franchise |
|---|---|---|---|
| GrowthNet change in franchised locations | 0% / +17% | +5.4% / +7.9% | +1.2% / +10% |
| ClosuresTerminated, not renewed or stopped operating | 0% / 0% | 0% / 7.1% | 3.9% / 16% |
| Bought backLocations the franchisor took back | 0% / 0% | 0% / 0% | 0% / 0% |
Typical breakfast brand is the median of the 20 brands in breakfast franchises with three years of counts.
How Rachel's Kitchen compares
Of the 58 breakfast franchises on this site, Rachel's Kitchen is the 10th cheapest to open and the 41st largest by number of locations.
| Figure | Rachel's Kitchen | Typical breakfast brand | Typical franchise |
|---|---|---|---|
| Cost to open, low end | $298K | $640K | $222K |
| Cost to open, high end | $816K | $1.2M | $477K |
| Franchise fee | $40K | $40K | $40K |
| Royalty | 6% | 5% | 6% |
| Brand fund | 2% | 1.4% | 2% |
| Sales per location | $1.72M | $1.72M | $794K |
| US locations | 7 | 13 | 21 |
| Shares earnings figures | Yes | 46 of 58 | 2,147 of 3,352 |
Typical is the median across the 58 brands in breakfast franchises; typical franchise, across every brand here.
Locations opened and closed
| Year | Franchised | Company-owned | Opened | Closed |
|---|---|---|---|---|
| 2021 | 7 (+1) | 0 | +1 | 0 |
| 2022 | 7 (0) | 0 | 0 | 0 |
| 2023 | 7 (0) | 0 | 0 | 0 |
Closed or left counts terminations, non-renewals, locations bought back by the franchisor and locations that stopped operating.
See which brands grew most in the fastest-growing franchises rankings.
More in the guides: franchise failure rates.
Source: RDR Inc, 2024 filing, page 50
Where Rachel's Kitchen locations are
At the end of 2023, Rachel's Kitchen had franchised locations in 1 state. The most are in Nevada.
- Nevada7
| State | Franchised |
|---|---|
| Nevada | 7 |
Source: RDR Inc, 2024 filing, page 51
Who owns Rachel's Kitchen?
Rachel's Kitchen franchises are sold by RDR Inc. Its filing names no parent company.
From RDR Inc’s 2024 filing, page 7.
Lawsuits and bankruptcy
| Lawsuits and regulatory actions | None. The filing says no litigation has to be disclosed. |
|---|---|
| Bankruptcy | None. The filing says no bankruptcy has to be disclosed. |
Franchisors must disclose lawsuits and bankruptcies involving the company, its parents and affiliates, and its executives. Many cases are routine disputes with franchisees over fees or contracts; read the descriptions in the filing and ask current owners about anything that worries you.
Source: RDR Inc, 2024 filing, litigation on page 10, bankruptcy on page 10
Rachel's Kitchen filings
The figures on this page come from RDR Inc’s 2024 filing, issued April 12, 2024, on record with the NASAA Electronic Filing Depository.
| Filing | Issued | Registry | On this page |
|---|---|---|---|
| 2024 filing | April 12, 2024 | NASAA depository | Costs, fees and locations, 2021–2023 |
Each link opens the filing as a PDF. See the newest filings across all brands.
Other breakfast franchises
All breakfast franchises
Rachel's Kitchen is also on these lists: restaurant franchises, food franchises.