Teriyaki Madness reported these official 2025 EBITDA figures for 140 traditional U.S. franchised Teriyaki Shops open at least one year. EBITDA is the strongest disclosed earnings measure, but it is not owner salary or after-tax take-home pay. It is before interest, income taxes, depreciation, amortization, financing principal, and future capital spending.
Legal franchisor: M.H. Franchise Company Inc., a subsidiary of M.H. Enterprises, Inc. Disclosure document: 2026 U.S. Franchise Disclosure Document issued March 18, 2026. Item 19 status: official Gross Sales, Total Net Revenue, expense, and EBITDA data for franchised shops. Population: traditional U.S. shops open at least one year with complete owner-provided profit-and-loss statements. Date checked: July 14, 2026. No matching public official FDD PDF was verified, so FDD references are cited by year, Item, and page rather than linked. The official Teriyaki Madness franchise website separately presents the current franchise offer.
The midpoint EBITDA disclosed for the 140-shop reporting group.
The arithmetic mean, equal to 7% of Net Revenue on the FDD’s rounded presentation.
Revenue, not earnings: exact median Gross Sales were $1,025,162.
140 of 197 franchised shops, or approximately 71% of the year-end system.
6% Royalty Fee plus 4% Marketing Fund Contribution, each based on Net Sales.
BLS 2024 median wage for Food Service Managers in food services and drinking places.
What does the official earnings evidence actually measure?
Officially, Item 19 measures shop-level EBITDA, not an owner’s personal paycheck. The 2025 reporting group consisted of 140 traditional franchised Teriyaki Shops that had operated for at least one year and supplied complete monthly profit-and-loss statements. The FDD defines EBITDA as Total Net Revenue minus Total Expenses, before interest, income taxes, depreciation, and amortization. This evidence applies to calendar 2025 and excludes nontraditional shops, newer shops, and incomplete reporters.
The FDD’s Total Payroll & Labor Expenses include staff wages, overtime, management salaries, bonuses, payroll taxes, administration, and employee benefits. Total Other Operating Expenses include royalties, technology fees, Marketing Fund Contributions, restaurant supplies, repairs, card processing, delivery charges, insurance, licenses, utilities, and other operating costs. That means the disclosed EBITDA is already after the recurring franchise charges recorded in those owner-provided statements; subtracting the Royalty Fee and Marketing Fund Contribution again would double count them.
| 2025 Item 19 measure | System average | System median | Interpretation |
|---|---|---|---|
| Gross Sales | $1,113,760 | $1,025,162 | Top-line receipts before Sales Discounts; not owner earnings. |
| Total Net Revenue | $1,079,323 | $998,576 | Gross Sales less the source-defined Sales Discounts. |
| Total Expenses | $1,000,152 | $941,518 | Cost of goods, labor, occupancy, and other operating expenses. |
| EBITDA | $79,171 | $65,201 | Official pre-interest, pre-tax, pre-depreciation, pre-amortization earnings measure. |
Source: 2026 Teriyaki Madness FDD, Item 19, pp. 55-73. The median line items are separate statistical medians and do not form a mathematically additive median income statement; the published median EBITDA should therefore be used as disclosed rather than recomputed from the median expense rows.
Official average expense values for 140 reporting shops, with the operating residual shown as EBITDA.
Interpretation: labor and food costs absorbed almost 59% of average Total Net Revenue before occupancy and other operating expenses. The chart uses a $285,010 reconciliation residual for Other Operating Expenses; the FDD displays $285,009, a $1 difference caused by rounding the separately averaged line items. Source: 2026 FDD, Item 19, p. 72.
The official 2025 average Gross Sales figure of $1,113,760 is roughly fourteen times the average EBITDA figure of $79,171. The brand’s official franchise profitability page publishes the same Average Unit Volume, but Item 19’s expense disclosure is the evidence needed to move from revenue to an earnings measure.
How broad is a reasonable annual earnings range?
The strongest central range is the official $65,201 median to $79,171 average EBITDA, but the official maturity cohorts show materially wider outcomes. For 2025 traditional franchised shops open more than one year, median EBITDA ranged from $20,825 in the one-to-two-year cohort to $130,654 in the eight-plus-year cohort. These are official cohort observations, not a forecast that every shop will move along the same path.
The sample excludes 57 of the 197 franchised shops operating at year-end 2025: 45 had not been open for a full year, four were in nontraditional spaces, and eight lacked complete profit-and-loss statements. A new buyer therefore should not treat the system median as a first-year expectation. Item 20 also reports 197 franchised outlets at the end of 2025, up from 156 at the start of the year, so a large share of the system was still too new for the Item 19 reporting group.
| 2025 shop-age cohort | Shops | Average EBITDA | Median EBITDA |
|---|---|---|---|
| More than 1 year, less than 2 years | 35 | $62,611 | $20,825 |
| More than 2 years, less than 4 years | 45 | $56,122 | $61,111 |
| More than 4 years, less than 6 years | 25 | $92,294 | $57,853 |
| More than 6 years, less than 8 years | 16 | $90,255 | $106,336 |
| 8 years or more | 19 | $137,664 | $130,654 |
Source: 2026 Teriyaki Madness FDD, Item 19, pp. 72-73. Shop age is associated with the disclosed cohorts, but the FDD does not isolate the effects of location, rent, local wages, delivery mix, operator skill, financing, or survivorship.
How does owner involvement change the economics?
Officially, the franchise is designed to be managed by the owner or Managing Owner; a Designated Manager is allowed only with franchisor approval. Item 15 and the Franchise Agreement state that the owner or Managing Owner is expected to supervise day-to-day operations and exert best efforts. If an owner does not supervise full time, the franchisor may permit a trained Designated Manager. The official 2025 EBITDA population mixes shop operators without disclosing which owners worked full time or how owner compensation was recorded.
The owner-operator figures below are independent analytical scenarios. They combine identified 2026 FDD facts with a separately identified U.S. Bureau of Labor Statistics wage benchmark. They are not a financial performance representation by M.H. Franchise Company Inc. Actual results can differ materially by location, shop format, sales, labor, occupancy, financing, owner involvement, and execution. The added labor value is compensation for work performed, not passive business profit.
For a labor-value reference, the BLS Food Service Managers profile reports a May 2024 median annual wage of $63,040 in food services and drinking places. Adding that wage to EBITDA illustrates the value an owner might combine with residual operating earnings by replacing a paid manager. The calculation excludes employer payroll burden and benefits, but it may still overstate incremental benefit if owner wages were already included in the reporting shop’s payroll line.
Three analytical references use official FDD EBITDA observations plus $63,040 of owner labor value.
Interpretation: replacing a paid manager can increase the owner’s combined economic benefit, but the increase is payment for full-time operating work. Conservative, Base, and Upside are analytical references, not probabilities or promises. Formula: official FDD EBITDA reference + $63,040 BLS wage benchmark. Sources: 2026 FDD, Item 19, pp. 72-73; Item 15, pp. 45-46; BLS Occupational Outlook Handbook, Food Service Managers, 2024 wage data.
At the system median and average EBITDA levels, the same labor-value method produces estimated owner-operator benefits of $128,241 to $142,211. The $63,040 difference is not incremental passive profit; it is the benchmark value of managing the restaurant. A manager-run owner should focus on the residual $65,201 to $79,171 EBITDA range before financing and capital-spending effects.
Which franchise charges materially affect earnings?
Officially, the main percentage charges are a 6% Royalty Fee and a 4% Marketing Fund Contribution, both based on the FDD’s separately defined Net Sales. The 2026 FDD also lists a $395 monthly Technology Fee after opening and recommends local advertising equal to 2% of Net Sales per calendar quarter; the franchisor may make that local expenditure mandatory on notice. These obligations apply to the Teriyaki Shop operating model and are already captured when the Item 19 P&Ls record them in Total Other Operating Expenses.
| Recurring item | 2026 FDD amount | Earnings treatment |
|---|---|---|
| Royalty Fee | 6% of Net Sales | Included within the source-defined Other Operating Expenses when reported by the shop. |
| Marketing Fund Contribution | 4% of Net Sales | Included in Other Operating Expenses; do not subtract again from Item 19 EBITDA. |
| Technology Fee | $395/month | $4,740 annualized before permitted increases; included when recorded in the P&L. |
| Local advertising | 2% recommended | Additional to the Marketing Fund; the franchisor may make the minimum mandatory on notice. |
Sources: 2026 Teriyaki Madness FDD, Item 6, pp. 7-14; Item 11, pp. 28-30; Item 19, pp. 59-60. “Net Sales” for the Royalty Fee is not identical to Item 19 “Total Net Revenue,” so the 10% contractual burden should not be mechanically multiplied by the Item 19 revenue line.
What still comes out after EBITDA?
Uncertain owner cash flow will usually be lower than EBITDA when the business has financing, replacement-equipment needs, or owner-specific tax obligations. Item 19’s 2025 EBITDA excludes interest, income taxes, depreciation, and amortization. Financing principal is not an operating expense and is also outside EBITDA, while recurring maintenance capital expenditures are not separately disclosed. The FDD does not provide a standardized debt structure or a personal tax rate, so neither debt service nor after-tax take-home pay can be calculated responsibly for all buyers.
- Business profit referenceItem 19 EBITDA is the official shop-level operating earnings measure before interest, income taxes, depreciation, and amortization.
- Owner labor compensationThe value of work performed by an owner-operator is separate from passive residual profit and may overlap with payroll already reported by some shops.
- Debt serviceInterest reduces cash available to the owner; principal repayment uses cash but is not deducted in EBITDA.
- Capital expendituresEquipment replacement, repairs that are capitalized, and remodel obligations can reduce cash even when EBITDA is positive.
- Personal taxesEntity structure, jurisdiction, deductions, and owner circumstances determine after-tax results; no after-tax estimate is presented.
What should a buyer verify before relying on the range?
A buyer should treat $65,201 to $79,171 as a high-confidence official EBITDA reference, then verify the cash-flow adjustments for the exact shop and owner role. The decisive information is not another generic margin assumption; it is the written Item 19 substantiation, comparable franchisee records, manager-pay treatment, local occupancy, maintenance capital needs, and the buyer’s financing structure.
- Request Item 19 written substantiationConfirm how the 140 profit-and-loss statements were collected, standardized, and reviewed, and ask for the exact definition of each line item.
- Ask whether owner compensation is in payrollDetermine whether Managing Owner wages, draws, benefits, or related-party payments are included in Total Payroll & Labor Expenses for comparable shops.
- Compare mature and ramp-up shops separatelyInterview operators in the one-to-two-year and eight-plus-year cohorts without assuming maturity alone caused the EBITDA difference.
- Normalize occupancy and laborUse the proposed market’s rent, common-area charges, wage rates, staffing model, and hours rather than system averages alone.
- Separate operating earnings from financingModel interest and principal under the buyer’s actual loan terms and retain a capital-expenditure reserve.
- Review excluded and former outletsUse Item 20 and franchisee interviews to understand the 45 newly opened shops, incomplete reporters, transfers, closures, and nontraditional formats omitted from the reporting group.
The strongest defensible annual range is $65,201 to $79,171 of official 2025 EBITDA per traditional franchised shop open at least one year. For an active owner who genuinely replaces a paid restaurant manager, a central estimated owner-operator benefit is approximately $128,241 to $142,211, but roughly $63,040 of that amount represents labor value rather than passive profit. Sales volume and labor control are the largest earnings drivers in the disclosed average income statement. The largest unresolved uncertainty is how owner pay, manager compensation, maintenance capital spending, and debt service differ across the 140 reporting shops. Before investing, verify the Item 19 substantiation, comparable-shop P&Ls, and owner-compensation treatment directly with M.H. Franchise Company Inc. and current franchisees.