RAKKAN Ramen
RAKKAN Ramen offers quick serve Japanese-style ramen restaurants with various broth options and traditional dishes. Known for authentic flavors and diverse menu choices, it operates in the fast-casual dining sector.
RAKKAN Ramen franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operation of a RAKKAN Ramen outlet ranges from $32,000 to $34,000 that must be paid to the franchisor plus additional costs bringing the total investment between $379,500 and $865,000. [p.1]
What is the initial franchise fee?
The initial franchise fee is $40,000 for a single franchised restaurant. If a franchise enters into an area development agreement to develop restaurants in a defined market, there is a development fee of $20,000 per restaurant [p.52].
What are the ongoing royalty and advertising fees?
Each franchisee is required to pay a royalty of 5% of their gross sales. Additionally, each restaurant contributes up to 2% of gross sales towards national, regional or local system-wide advertising campaigns managed by the Company. [p.52]
How long is the initial franchise agreement, and can I renew it?
The initial franchise agreement typically lasts for 10 years [p.64]. You can renew the agreement, but both parties must sign a Renewal Franchise Agreement before the end of the term expiring, which will supersede this current agreement [p.83].
Can I sell or transfer my franchise, and what does that require?
According to [p.101], if requested by the franchisor, you must provide a copy of any agreements related to the sale, assignment, or transfer of the franchise, the assets of the Franchised Business, or your interest in it. This isn't specified in more detail regarding the process or requirements for selling or transferring your franchise in these excerpts.
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the agreement on any grounds available by law [p.175]. However, under Virginia law, terminating a franchise without reasonable cause is unlawful [p.176], meaning that provisions allowing termination for certain stated grounds must comply with legal definitions of "reasonable cause."
What financial requirements — net worth and liquid capital — do I need to qualify?
This isn't specified in the excerpts.
Do I get an exclusive or protected territory?
Yes, you are granted an exclusive territory. According to [p.23], the minimum territory is defined around your Outlet with a population of at least 50,000, and you will not face competition from other RAKKAN franchises within this area as long as you fulfill your obligations under the Franchise Agreement. However, there may still be competition from other outlets owned by the company near your territory.
What training and ongoing support does the franchisor provide?
The franchisor provides an initial three-day on-site training immediately before and after the opening of the Outlet [p.23]. Additionally, there is a requirement for the franchisee to conduct on-site staff training at their location for at least two weeks prior to the grand opening [p.23]. For ongoing support, see Item 11 of the FDD for details on the training offered by or on behalf of the franchisor [p.182].
How many franchised outlets are there, and how many have closed or been terminated?
The FDD does not provide specific numbers for either the total number of franchised outlets or those that have closed or been terminated. [p.137] gives information about open and operating outlets as of December 31, 2024, but details on terminated or closed outlets are not included in the provided excerpts.
Does the franchisor share any financial performance or earnings information?
The franchisor may provide actual records of an existing outlet if you are purchasing one, but generally does not make any financial performance representations [p.32]. Additionally, while the FDD does not provide an earnings projection except as specified in Item 19, upon written request, the franchisor will provide substantiation for the data used in preparing any financial performance representation [p.31, p.181].
What am I restricted to selling, and where must I buy supplies?
You are not specifically restricted to selling only certain goods or services; however, the franchise agreement requires you to purchase initial supplies and accessories from the franchisor or other designated or approved suppliers. You must also buy replacement or additional inventory of RAKKAN Products, fixtures, equipment, accessories, and other authorized items exclusively from the franchisor or these approved suppliers [p.87].