Rakkan Ramen
Food & Beverage · Quick-Service Restaurants
- Active units
- 12
- Royalty
- 5.0%
Franchised, year-end 2024
of weekly Net Sales
About Rakkan Ramen
RAKKAN Ramen is a brand that offers healthy and tasty ramen options. Unlike traditional ramen, they do not use fatty, high-calorie, meat-based broths like tonkotsu. Instead, their soups are crafted from high-quality vegetables such as mushrooms and seaweed, along with their own fermented seasoning, resulting in a flavorful explosion. Founded in 2011, RAKKAN began as a small restaurant in Tokyo and has since expanded to multiple locations. Their motto, Authentic Japanese food, ready for the world, reflects their commitment to providing real Japanese soul food on an international scale. Despite facing challenges along the way, they have strived to consistently serve high-quality soup that meets their own expectations and those of their valued customers. In addition to their delicious ramen, RAKKAN Ramen is dedicated to sustainability. For World Vegan Day, they planted one tree for each bowl of vegan ramen sold and have already planted over 1000 trees in 2022. They are continuously working towards creating a better environment. With their commitment to quality, sustainability, and authentic Japanese flavors, RAKKAN Ramen is a top choice for ramen enthusiasts looking for a memorable dining experience.
Key terms
- Franchise fee
$20k
- Brand fund
1.0% of Net Sales
- Area Development Agreement (ADA) Development Fee
$20k
- Veteran discount
Not offered
Brand Percentile Rankings
Rankings compare brands in the same operating year. Fee and investment figures come from the FDD (2026 filing).
Growth
- Total locations9
Franchised units open at year-end
- New openings1
Gross new units opened during the calendar year
- 1-year unit growth rate-25.0%
Net unit growth versus prior year
- 3-year unit CAGR-13.4%
Compound annual growth rate of unit count over the trailing 3 years
- Unit growth ratio1.0×
Cumulative opens / closures through year-end
Unit economics
- Annual unit volume (Median)—
Per FDD Item 19 disclosure
- Annual unit volume (25th percentile)—
Per FDD Item 19 disclosure
- Annual unit volume (75th percentile)—
Per FDD Item 19 disclosure
- 1-year Median AUV growth rate—
Year-over-year change in median AUV
- Store-level EBITDA Margin—
Median unit-level EBITDA / AUV
Investment profile
- Estimated initial investment$622k
Midpoint of estimated initial investment range
↓ Lower is better - Time to open305 months
Midpoint of average time from agreement to opening
↓ Lower is better - Royalty rate5.0%
Percent of net sales paid to the franchisor
↓ Lower is better - Sales-to-investment ratio—
Median AUV / estimated initial investment midpoint
- Cash-on-cash returns—
Median unit-level EBITDA / estimated initial investment midpoint. Steady-state estimate; year 1 returns will be lower as the unit ramps to median volumes.
Franchisee healthLocked
- Unit closure ratio
- Transfer vs. closure ratio
- Percent multi-unit franchisees
- Litigation rate
- EBITDA multiple on sales & transfers
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Sources
Financial and operating figures are sourced from the brand's Franchise Disclosure Documents. Brand percentile rankings are based on comparisons to other brands that include the same metrics in their Franchise Disclosure Documents.