Rakkan Ramen franchise
2022 filing · March 10, 2022Growing
Rakkan Ramen at a glance
A quick-service ramen restaurant serving plant-based broth ramen and Japanese side dishes. At the end of 2021 there were 7 Rakkan Ramen locations in the US, 3 franchised and 4 company-owned, so most are run by the company itself.
The business
- Franchisor
- RAKKAN USA Franchise, LLC
- The company that sells the franchises
- Current franchisor selling since
- 2019
- 3 years of selling franchises
- Franchisor based in
- Gardena, California
What you pay
- Cost to open
- $390K–$875K
- Fee, build-out and opening working capital
- Franchise fee
- $40,000
- $20,000 for a second and later outlet
- Royalty
- 5%
- 5% of gross revenues, paid monthly
- Brand fund
- 1%
- 1% of gross revenue, paid monthly
- Renewal fee
- $5,000 3
- When the agreement ends and you sign again
- Agreement length
- 10 years
- Territory
- Protected
- Protected territory
- Franchisor financing
- None offered
Where it is
- US locations, 2021
- 7
- Franchised and company-owned
- Franchised
- 3
- Company-owned
- 4
- Change in 3 years
- +3
- Franchised locations, 2019–2021
From RAKKAN USA Franchise, LLC’s 2022 filing; SBA status from the SBA Franchise Directory, October 28, 2026.
Where it ranks
Rakkan Ramen among all franchises with the same figure.
| Figure | Rakkan Ramen | Among all franchises |
|---|---|---|
| Cost to open, midpointHalfway between the low and high estimate | $632,250 | Costs more than 72% of franchises |
| Franchise feePaid once, when you sign | $40,000 | Lower than 46% of franchises |
| RoyaltyShare of sales paid to the franchisor | 5% | Lower than 69% of brands with a set rate |
| US locationsFranchised and company-owned | 7 | Fewer than 66% of franchises |
How much a Rakkan Ramen franchise costs
Opening one Rakkan Ramen costs an estimated $389,500 to $875,000. That covers the franchise fee and everything else needed to open, through the first months of working capital.
Source: RAKKAN USA Franchise, LLC, 2022 filing, page 1
Rakkan Ramen franchise fee
The franchise fee is $40,000, $20,000 for a second and later outlet. You pay it when you sign the franchise agreement.
Source: RAKKAN USA Franchise, LLC, 2022 filing, page 9
Royalty and ongoing fees
| Royalty | 5% of gross revenues, paid monthly. |
|---|---|
| Brand or marketing fund | 1% of gross revenue, paid monthly. |
| Transfer Fee | $10,000 3 |
| Renewal Fee | $5,000 3 |
| Initial Training Fee for Additional Attendees | $1,500/attendee |
| Local Marketing Expenditure | 1% to 3% of Gross Revenues (Recommended) |
The typical franchise royalty is 6% of sales, plus 2% for marketing. See franchise fees and royalties to compare.
Source: RAKKAN USA Franchise, LLC, 2022 filing, pages 9 and 10
Other fees as filed, from pages 10–11. The filing lists every fee, including late fees and audit costs.
Sales and earnings
No figures Rakkan Ramen does not share sales or profit figures for its locations. Talking to current and former franchise owners is the usual way to learn what a location earns.
Source: RAKKAN USA Franchise, LLC, 2022 filing, page 31
- Estimate Estimated yearly sales per location
- $910K–$1.6M
Estimated from the sales that 292 comparable franchises file, matched on industry, format, cost to open, fees and size.
How Rakkan Ramen compares
Of the 813 restaurant franchises on this site, Rakkan Ramen is the 381st cheapest to open and the 495th largest by number of locations.
| Figure | Rakkan Ramen | Typical restaurant brand | Typical franchise |
|---|---|---|---|
| Cost to open, low end | $390K | $408K | $222K |
| Cost to open, high end | $875K | $866K | $477K |
| Franchise fee | $40K | $35K | $40K |
| Royalty | 5% | 5% | 6% |
| Brand fund | 1% | 2% | 2% |
| US locations | 7 | 14 | 21 |
| Shares earnings figures | No | 474 of 813 | 2,147 of 3,352 |
Typical is the median across the 813 brands in restaurant franchises; typical franchise, across every brand here.
Locations opened and closed
| Year | Franchised | Company-owned | Opened | Closed |
|---|---|---|---|---|
| 2019 | 0 (0) | 3 | 0 | 0 |
| 2020 | 0 (0) | 4 | 0 | 0 |
| 2021 | 3 (+3) | 4 | +3 | 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: RAKKAN USA Franchise, LLC, 2022 filing, page 31
Who owns Rakkan Ramen?
Rakkan Ramen franchises are sold by RAKKAN USA Franchise, LLC. Its filing names no parent company.
From RAKKAN USA Franchise, LLC’s 2022 filing, page 6.
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: RAKKAN USA Franchise, LLC, 2022 filing, litigation on page 9, bankruptcy on page 9
Rakkan Ramen filings
The figures on this page come from RAKKAN USA Franchise, LLC’s 2022 filing, issued March 10, 2022, on record with the NASAA Electronic Filing Depository.
| Filing | Issued | Registry | On this page |
|---|---|---|---|
| 2022 filing | March 10, 2022 | NASAA depository | Costs, fees and locations, 2019–2021 |
Each link opens the filing as a PDF. See the newest filings across all brands.
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