Risk Score
Pending analysis
Investment Range
$1,024,500 - $1,982,100
Franchise Fee
$25,000
Min Cash Required
$150,000
Total US Locations
1
Business Summary
Ivan Ramen Franchising LLC offers franchises for Ivan Ramen casual dining restaurants. These restaurants specialize in Japanese-style ramen dishes and American Izakaya, featuring a variety of broths, noodles, proteins, sauces, and garnishes. They also sell rice bowls, Japanese appetizers, alcoholic beverages, and other food and drink items for both dining in and takeout or delivery.
Corporate History
Ivan Ramen Franchising LLC was organized in New York in July 2021 and began offering franchises in the same year. Its parent company, Ivan Ramen Holdings Co, LLC, was formed in February 2015. An affiliate, Ivan Ramen USA LLC, has owned and operated an Ivan Ramen Restaurant business in New York City since May 2016. Another affiliate, Ramen Junkie USA LLC, previously operated an 'Ivan Ramen Slurp Shop' from approximately 2013 to November 2020. While Ivan Ramen IP Holdings LLC previously licensed ghost kitchens, Ivan Ramen Franchising LLC is currently focusing its efforts in the United States on expanding the traditional 'brick-and-mortar' Ivan Ramen Restaurant concept.
Financial Overview
Investment Range
$1,024,500 - $1,982,100
Franchise Fee (Low)
$25,000
Franchise Fee (High)
$35,000
Minimum Cash Required
$150,000
Royalty %
5%
Equipment Costs (Low)
$583,600
Equipment Costs (High)
$1,188,600
Working Capital
$225,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
The FDD highlights Ivan Ramen Franchising LLC's financial condition as a special risk, noting that it calls into question the franchisor's financial ability to provide services and support to franchisees. The company's financial statements show net losses for 2024, 2023, and 2022. As of December 31, 2024, Ivan Ramen Franchising LLC's members' equity was $1,040, which is very low compared to the estimated initial investment range for a single franchise unit of $1,024,500 to $1,982,100. While the auditors issued an unqualified opinion on the financial statements, the FDD explicitly points out the company's limited operating history and financial condition as factors that make this franchise a riskier investment.
Financing Details
Ivan Ramen Franchising LLC does not offer any direct or indirect financing to its franchisees. Additionally, it does not guarantee any notes, leases, or other obligations a franchisee might incur.
Performance Metrics
Total US Locations
1
Franchised Units
0
Corporate Units
1
Avg Square Footage
3,000
Franchising Since
2021
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Ivan Ramen Franchising LLC has no litigation, lawsuits, or legal disputes to report in Item 3 of its Franchise Disclosure Document. This means Ivan Ramen Franchising LLC has not been involved in any administrative, criminal, or material civil actions regarding franchise laws, securities laws, fraud, or other similar allegations.
Bankruptcy History
Ivan Ramen Franchising LLC has no bankruptcy history to report for itself or its key management personnel. Item 4 of the Franchise Disclosure Document explicitly states that no bankruptcy information is required to be disclosed.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew their franchise agreement, Ivan Ramen Franchising LLC franchisees must meet several conditions: they need to notify Ivan Ramen Franchising LLC between six and nine months before their initial agreement expires. Throughout the initial term and at the time of renewal, they must have fully complied with all terms of the Franchise Agreement, Brand Standards, and other agreements, and satisfied all monetary obligations to Ivan Ramen Franchising LLC, its affiliates, their landlord, and suppliers. Franchisees must also show they can renew their lease or secure a new approved location without business interruption. They are required to sign a General Release and have their Operations Manager, Trainer, and other designated staff attend and complete any reasonable training, at their own expense. A successor term fee of $35,000 is also required. Furthermore, the franchised restaurant must be refurbished, redesigned, or remodeled to meet Ivan Ramen Franchising LLC's then-current standards and specifications.
Training & Support Program
Franchisor Assistance
Before an Ivan Ramen Restaurant opens, Ivan Ramen Franchising LLC designates the territory, approves the site and lease, and reviews the final construction plans. It specifies the required accounting and point-of-sale systems, provides confidential operating manuals (Brand Standards), and identifies suppliers for proprietary products. Ivan Ramen Franchising LLC also approves proposed advertising materials and furnishes requirements for personnel selection, training, and duties. It may also exercise rights regarding product pricing. Additionally, a chief management employee provides up to five business days of on-site pre-opening and opening assistance, though the franchisee must reimburse their travel, lodging, and meal expenses. After opening, Ivan Ramen Franchising LLC provides ongoing field support, supervision, and assistance through various communication modes. Franchisees can consult headquarters for guidance, and Ivan Ramen Franchising LLC continues to approve advertising, furnish product specifications, and specify approved suppliers. It also conducts additional training programs (up to twice a year for a fee, plus an annual conference) for key personnel like the head Chef, Operations Manager, and Trainer. The initial training program is 106 hours long and takes place in New York City, NY.
Initial Training Hours
106
Training Location
New York City, NY
Ongoing Support
After their Ivan Ramen Restaurant opens, franchisees receive field support services and assistance through on-site visits, off-site sessions, and telephonic or electronic communication, as deemed advisable by Ivan Ramen Franchising LLC. Franchisees can contact headquarters for consultation and guidance on operations. Ivan Ramen Franchising LLC continues to approve advertising and promotional materials, furnish specifications for required products and services, and specify approved suppliers. It also maintains requirements for the selection, training, and duties of personnel, including Operations Managers. Ivan Ramen Franchising LLC may also develop additional training programs, which the head Chef, Operations Manager, and Trainer must attend and successfully complete, potentially up to two times per year, with a daily fee up to $500 per trainee and a maximum annual cost of $10,000 for ongoing training programs and conferences. An annual conference, convention, or training session is also held, which the franchisee (if an individual) and their Operations Manager must attend at their own expense.
Franchise Requirements
Ideal Candidate Profile
Ivan Ramen Franchising LLC expects its franchisees to be dedicated and hands-on, committing their full time, attention, and best efforts to honestly and diligently perform their obligations and promote the restaurant. If a franchisee operates multiple units, they must devote the necessary time and attention for the proper and effective operation of each. Franchisees must designate an Operations Manager, who can be the individual franchisee if they are well-qualified and experienced in this type of business. The Operations Manager must provide on-premises supervision and personally participate in the direct operation of the business, meeting educational, managerial, and business standards. Additionally, a Trainer must be designated, who has completed Ivan Ramen Franchising LLC's entire Initial Training Program, to be responsible for training restaurant staff.
Industry Experience Required
No
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Retail
Owner Participation
Hands-On
Territory Type
Limited
Staffing Notes
Ivan Ramen Restaurants must adhere to Ivan Ramen Franchising LLC's specifications for staffing, including criteria for selection, qualifications, hiring, training, and pre-training/post-training of personnel. Franchisees are required to maintain a competent, conscientious, and trained staff in sufficient numbers to ensure prompt, efficient, and effective customer service. Ivan Ramen Franchising LLC prescribes minimum staffing levels in its Brand Standards to maintain the quality, uniformity, and service associated with the Ivan Ramen brand. Key roles include an Operations Manager (who exercises on-premises supervision and direct participation), a Chef, a Sous Chef, an Assistant General Manager, and both back-of-house and front-of-house staff, as indicated by pre-opening payroll estimates.