FDD ITEM 20 · FISCAL 2022–2025
RAKKAN RAMEN Item 20: outlets, closures & growth
In its latest FDD Item 20 (fiscal 2025), RAKKAN RAMEN reported 9 franchised outlets at year end. 4 of 12 franchised outlets open at the start of the year left the system — an annualized exit rate of 33.3%— while 1 new outlets opened. Systemwide units moved +33.3% over 2022–2025.
| Status (FTC) | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Outlets at start | 7 | 9 | 15 | 15 |
| Opened | 3 | 6 | 1 | 1 |
| Transfers | 0 | 0 | 0 | 0 |
| Terminations | 0 | 0 | 0 | 0 |
| Non-renewals | 0 | 0 | 0 | 0 |
| Reacquired by franchisor | 0 | 0 | 0 | 0 |
| Ceased — other reasons | 0 | 0 | 1 | 4 |
| Outlets at end | 9 | 15 | 15 | 12 |
| Net change | +2 | +6 | 0 | -3 |
0 terminations + 0 non-renewals + 4 ceased (other) = 4 exits ÷ 12 at start = 33.3%
These are the three FTC Item 20 statuses in which a franchisee involuntarily or terminally leaves the system. Transfers (0) are resales, not exits; reacquisitions by the franchisor (0) are tracked separately. There is no official “failure rate” — this annualized exit rate is the disclosed, measurable floor.
| State | Franchised | Company-owned |
|---|---|---|
| TX | 5 | — |
| CA | 3 | 3 |
| IL | 1 | — |
| CO | 0 | — |
| GA | 0 | — |
| NV | 0 | — |
A broker is paid by the franchisor to place you. An independent CPA is paid by you — and the job is pressure-testing RAKKAN RAMEN's numbers, including talking you out of a bad deal.
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