Ivan Ramen Logo

Ivan Ramen

Ivan Ramen Franchising LLC
https://www.ivanramen.com
1-914-406-1169
42 Maple Street, Dobbs Ferry, NY 10522

Initial Investment Range

$1,024,500 to $2,302,100

Franchise Fee

$35,000 to $350,000

The franchisee will operate one or more Ivan Ramen casual dining restaurants specializing in the sale of ramen (Japanese style noodle) dishes / American Izakaya with a diverse selection of broths, noodles, proteins, sauces and garnishes.

Enjoy our complimentary free risk analysis below

Unlock the full risk analysis to access 9 more categories covering 100+ risks.

Ivan Ramen March 21, 2025 FDD Risk Analysis

Free FDD Library AI Analysis Date: July 16, 2025

DISCLAIMER: Not Legal Advice - For Informational Purposes Only. Consult With Qualified Franchise Professionals.

1

Franchisor Stability Risks

Start Here
Total: 10
3
2
5

Disclosure of Franchisor's Financial Instability

High Risk

Explanation

The franchisor's 2024 financial statements show significant weakness. With only $5,992 in cash and a net worth of just $1,040 against liabilities of $32,000, there is substantial financial risk. The company incurred a net loss of over $76,000 in 2024 and relies on owner contributions and related-party loans to operate. The FDD explicitly states this condition calls into question their ability to provide support, representing a direct threat to your investment.

Potential Mitigations

  • Your accountant must conduct an in-depth review of the franchisor’s financial statements, including cash flow and dependency on new franchise sales.
  • It is critical to discuss the implications of the franchisor's financial condition and the explicit 'Financial Condition' risk warning with your franchise attorney.
  • A business advisor can help you assess if the franchisor has sufficient capital to meet its support obligations to you.
Citations: Item 21, Exhibit C, Special Risks to Consider About This Franchise

High Franchisee Turnover

High Risk

Explanation

Item 20 data reveals extremely high franchisee turnover. In 2023, one franchised outlet opened, which appears to have been a 'ghost kitchen.' By the end of 2024, this single outlet had ceased operations, representing a 100% turnover of the franchised system during that period. This is a critical indicator of potential systemic problems, franchisee dissatisfaction, or issues with the business model's viability, posing a significant risk to your potential success.

Potential Mitigations

  • You should insist on speaking with the principal of the former ghost kitchen operation to understand the reasons for its closure; your attorney can help facilitate this.
  • Have your accountant analyze the turnover data in the context of the franchisor's very short operating history.
  • Discussing this turnover rate with a franchise business advisor is essential to gauge the overall health of the franchise system.
Citations: Item 20

Rapid System Growth

Low Risk

Explanation

This risk was not identified in the FDD package. Rapid, uncontrolled growth can strain a franchisor's ability to provide adequate support. While this system is not yet experiencing rapid growth, its plans for area development could lead to this risk in the future.

Potential Mitigations

  • Engaging a business advisor to review the franchisor's growth plans in relation to their support infrastructure is a prudent step.
  • Your accountant should analyze the financial statements to determine if the franchisor is adequately capitalized for future growth.
  • Asking your attorney about contractual protections related to support levels can provide clarity on your rights if growth becomes an issue.
Citations: Items 1, 2, 20, 21

New/Unproven Franchise System

High Risk

Explanation

The franchisor, Ivan Ramen Franchising LLC, was formed in July 2021 and has a very limited operating history with minimal franchised outlets opened and one already closed. The FDD explicitly discloses this 'Short Operating History' as a special risk, stating the franchise is likely a riskier investment. This lack of a proven track record for the franchise system itself increases the uncertainty and potential for systemic challenges affecting your investment and potential for success.

Potential Mitigations

  • Your business advisor should help you perform extensive due diligence on the viability of the business model given the limited history.
  • Consulting with an accountant is crucial to assess the financial projections and risks associated with an unproven franchise system.
  • It is vital that your attorney review the explicit 'Short Operating History' risk warning and its implications for your investment.
Citations: Item 1, Item 2, Item 20, Special Risks to Consider About This Franchise

Possible Fad Business

Low Risk

Explanation

This risk was not identified in the FDD package. A fad business is one tied to a fleeting trend, which can threaten long-term viability. While ramen is a popular food category, it appears to have sustained consumer demand, reducing the immediate risk of it being a short-lived fad.

Potential Mitigations

  • A business advisor can help you conduct independent market research to assess the long-term consumer demand for this specific restaurant concept in your area.
  • Review the franchisor’s plans for menu innovation and concept evolution in Item 11 with your business advisor.
  • Discussing the overall market trends for fast-casual dining and ethnic foods with a restaurant industry consultant could provide valuable insight.
Citations: Item 1, Item 11

Inexperienced Management

Medium Risk

Explanation

The franchisor entity was formed in July 2021 and has limited experience in operating a franchise system, as shown in Items 1 and 20. While the key executives have experience operating the Ivan Ramen brand through affiliate companies, their direct experience in managing a franchise network, providing franchisee support, and scaling a system is minimal. This lack of franchising-specific experience presents a risk to the quality of support and strategic guidance you may receive.

Potential Mitigations

  • Your business advisor should help you thoroughly vet the management team's specific experience in franchising, not just in the restaurant industry.
  • Discussing the quality and responsiveness of franchisor support with the few existing franchisees is a critical due diligence step.
  • It is advisable to ask your attorney about the franchisor's contractual support obligations outlined in the Franchise Agreement.
Citations: Item 1, Item 2

Private Equity Ownership

Low Risk

Explanation

This risk was not identified in the FDD package. Private equity ownership can sometimes lead to decisions that prioritize short-term returns over the long-term health of the brand. The FDD does not indicate that Ivan Ramen Franchising LLC (Ivan Ramen) is owned by a private equity firm.

Potential Mitigations

  • Your attorney can help you investigate the franchisor's ownership structure to confirm the absence of private equity involvement.
  • A business advisor can help research the background of the franchisor's parent company and its principals.
  • Understanding the franchisor's long-term vision for the brand, which can be discussed during validation calls with other franchisees, is beneficial.
Citations: Item 1, Item 17, Item 21

Non-Disclosure of Parent Company

Medium Risk

Explanation

The franchisor licenses its core intellectual property from an affiliate, Ivan Ramen IP Holdings LLC. While the FDD discloses the parent company, Ivan Ramen Holdings Co, LLC, neither the parent nor the IP-holding affiliate provides financial statements in Item 21. Given the franchisor's weak financial position, the financial health of these closely related entities is material to assessing the overall stability of the system, creating a potential disclosure risk.

Potential Mitigations

  • Your franchise attorney should analyze the cross-license agreement to understand the stability of the IP rights.
  • An accountant should review the implications of the franchisor's dependency on its parent and affiliates for financial support and IP.
  • It is advisable to ask the franchisor for financial statements of the parent company to better assess the system's overall financial health.
Citations: Item 1, Item 13, Item 21

Predecessor History Issues

Low Risk

Explanation

This risk was not identified in the FDD package. The franchisor does not disclose any predecessors in Item 1. This means the entity has not acquired substantial assets from another company that previously operated the same system, so there is no hidden history of predecessor failure or litigation to consider.

Potential Mitigations

  • Your attorney can confirm the franchisor's corporate history to ensure no predecessor entities have been omitted from the disclosure.
  • In discussions with the franchisor, a business advisor can help you probe the full history of the brand's development.
  • Reviewing public records with the assistance of legal counsel can help verify the information provided in Item 1.
Citations: Item 1, Item 3, Item 4

Pattern of Litigation

Low Risk

Explanation

This risk was not identified in the FDD package. Item 3 states that there is no litigation required to be disclosed. This indicates the franchisor is not currently involved in any material legal disputes with franchisees, suppliers, or government agencies that would suggest a pattern of fraudulent or problematic behavior.

Potential Mitigations

  • Your attorney can conduct independent searches of court records to verify the accuracy of the Item 3 disclosure.
  • It is still prudent to ask existing and former franchisees about any informal disputes they may have had with the franchisor.
  • A business advisor can help you assess the overall health of franchisor-franchisee relationships during your due diligence.
Citations: Item 3
2

Disclosure & Representation Risks

Total: 15
3
1
11

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

3

Financial & Fee Risks

Total: 10
1
6
3

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

4

Legal & Contract Risks

Total: 16
2
8
6

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

5

Territory & Competition Risks

Total: 5
2
2
1

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

6

Regulatory & Compliance Risks

Total: 10
2
5
3

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

7

Franchisor Support Risks

Total: 4
2
2
0

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

8

Operational Control Risks

Total: 12
3
7
2

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

9

Term & Exit Risks

Total: 18
9
7
2

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

10

Miscellaneous Risks

Total: 2
0
2
0

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.