About Madurai Kitchen Franchise
Madurai Kitchen is a restaurant franchise specializing in authentic South Indian cuisine, offering a menu that includes traditional dishes such as biriyani, dosa, parotta, and a variety of soups and specialty items.
The brand brings the rich culinary traditions of the Madurai region to American diners, targeting the general public with flavorful, genuine South Indian food.
The franchise fee is $50,000, and Madurai Kitchen has been franchising since 2025.
Madurai Kitchen Franchise Cost & Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $50,000 | One-time payment upon signing |
| Royalty Fee | 5% of Gross Revenue of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | National Advertising and Development Fund: 1% of Gross Revenue; Local Advertising: 1% of Gross Revenues; Grand Opening Advertising: $1,000 - $5,000 | National brand fund |
| Total Investment Range | $221,500 – $702,500 | Includes build-out, inventory, working capital |
The investment range of $222K–$703K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (5% of Gross Revenue) and marketing fee (National Advertising and Development Fund: 1% of Gross Revenue; Local Advertising: 1% of Gross Revenues; Grand Opening Advertising: $1,000 - $5,000) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $50,000 | $50,000 |
| Traveling and Living Expenses while Training | $5,000 | $10,000 |
| Real Property Rent and Security Deposits (3 mos) | $10,000 | $25,000 |
| Leasehold Improvements | $20,000 | $250,000 |
| Furniture, Fixtures, and Décor | $50,000 | $100,000 |
| Initial Inventory | $5,000 | $30,000 |
| Signage | $2,000 | $20,000 |
| Grand Opening Advertising | $1,000 | $5,000 |
| Licenses, Permits, and Certifications | $1,000 | $5,000 |
| Insurance (3 Months) | $1,500 | $3,500 |
| Kitchen Equipment | $40,000 | $120,000 |
| TV, Cameras, and other Supplies | $2,500 | $10,000 |
| Computer and POS System | $3,000 | $10,000 |
| Professional Fees | $2,500 | $4,000 |
| Additional Funds (3 months) | $28,000 | $60,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $10,000 |
| Renewal Fee | 12.5% of the then current franchise fee |
| Technology Fee | POS and Software Fees: Approximately $1,000 per month plus transaction costs, including a web hosting and maintenance fee of approximately $400/month |
| Audit Fee | Cost of inspection plus the amount of the underpayment plus interest (lesser of 1.5% per month or highest commercial contract interest rate allowed by law) |
| Interest | Lesser of 1.5% per month or the highest commercial contract interest rate allowed by law |
| National Franchise Convention Fee | $500 |
| Maintenance and Refurbishing of Business | Reimbursement of expenses |
| Insufficient Funds | $75 |
| Bookkeeping Services | $425/mo. (up to 2 bank/ credit card accounts); $850/mo. (up to 4 bank/ credit card accounts); $1,500/mo. (more than 4 bank/credit card accounts) |
| Retraining Fee | Our then current standard rates or $500 per trainee per day, whichever is greater |
| Additional Training or Assistance | $500 per day per person plus expenses |
| Product and Service Purchases | Actual amount incurred |
| Testing of Products or Approval of new Suppliers | Not to exceed $1,000 |
| Customer Service Fee | Actual amount of our cost or reimbursement |
| E-mail Maintenance Fee | Up to $50/month per e-mail address |
| Insurance | Reimbursement of costs |
| Management Fee | $500 per person per day (plus other costs and expenses) |
| Indemnification | Will vary |
| Cost of Enforcement | All costs, including reasonable attorneys’ fees |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | 7 hours classroom, 40 hours on-the-job |
| Classroom Training | 7 Hours |
| On-the-Job Training | 40 Hours |
| Training Location | Online, at an affiliate outlet in Illinois, or another designated franchise training center. |
| Additional Training | The franchisor may charge $500 per person per day plus expenses for additional training, refresher courses, conventions, seminars, conferences, webinars, or special assistance, whether at the franchisor's location or the franchisee's location. Franchisees are responsible for trainees' salaries, benefits, travel, lodging, and meal expenses. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Exclusive |
| Exclusive Territory | Yes |
| Territory Size | Normally a 5-10 mile radius around the outlet |
| Description | A specific geographic region defined and approved by the franchisor using radius, zip codes, natural, or political boundaries, as set forth in the Franchise Agreement. The franchisor reserves the right to use other channels of distribution (Internet, catalog sales, telemarketing, direct marketing) within the territory, but normally directs inquiries to the franchisee's outlet. The franchisor may also use other channels of distribution for products/services under different trademarks. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | SEVEN (7) years |
| Renewal Term | Successive terms of SEVEN (7) years each |
| Renewal Fee | 12.5% of the then current franchise fee |
| Renewal Conditions | To renew, the franchisee must have fully complied with the Franchise Agreement, made necessary capital expenditures for uniformity, satisfied all monetary obligations, not be in default, given timely written notice of intent to renew (9-12 months prior), signed the then-current Franchise Agreement (which may have different terms and a different royalty fee), complied with current qualifications, agreed to comply with training requirements, and executed a general release (if permitted by state law). |
| Transfer Fee | $10,000 |
| Transfer Conditions | Transfers require prior written approval from the franchisor. Conditions include: franchisee compliance with Section 19, all monetary obligations paid, execution of a general release by the franchisee (if permitted by state law), prospective transferee meeting franchisor's business and financial standards, transferee signing the then-current Franchise Agreement (which may have different terms and royalty fee), provision of all related transfer documents, payment of a $10,000 transfer fee (unless transferring to a controlled entity), transferee agreeing to be personally bound by the agreement, transferee obtaining all necessary third-party consents, transferee executing a nondisclosure and non-competition agreement, and transferee completing initial training. Transfers to a controlled entity are exempt from the transfer fee. |
| Termination for Cause | The franchisor may terminate the Franchise Agreement without an opportunity to cure for reasons including: failure to timely establish/open the business, failure to complete training, failure to maintain required licenses for over 5 business days, material misrepresentation in application, conviction of a felony or reputation-affecting crime, failure to refrain from reputation-damaging conduct after notice, unauthorized use/disclosure of confidential information, failure to have required individuals execute non-compete agreements, abandonment of business for 5+ consecutive days, unauthorized transfer of control/interest, failure to maintain manager supervision after owner's death/incapacity, repeated understatement of fees (2+ times by >2%), insolvency, misuse of Marks, repeated failure to submit reports/pay fees (2+ times in 12 months), repeated health/safety violations, engaging in franchisor-reserved activities, failure to comply with law after 10 days' notice, or 3+ breaches of agreement/manual specifications in 12 months. For other defaults, cure periods are 5 days for non-payment, 10 days for insurance, and 30 days for other specified defaults. |
| Non-Compete Period | 2 years |
| Non-Compete Details | For 2 years after termination or expiration, the franchisee (and its owners/officers/managers/staff) cannot directly or indirectly: (a) offer competitive business services within a 25-mile radius of the former franchised business or any other Madurai Kitchen business/franchisor-owned business existing at termination/expiration; (b) solicit or influence customers/associates to compete with the franchisor; or (c) engage in activities injurious to the franchisor's goodwill. Certain individuals may also be required to sign separate non-compete agreements. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | Either the franchisee or an approved on-site Designated Manager must devote at least forty (40) hours per week to the day-to-day operations of the Franchised Business. The franchisor retains the right to accept or reject any proposed Designated Manager and may require them to complete initial training. If the franchisee is an entity, the Designated Manager is not required to own an equity interest. Certain individuals with access to trade secrets may be required to sign nondisclosure and non-competition agreements. Owners with 5% or greater interest in an entity franchisee must personally guarantee obligations. |
| Required Suppliers | Franchisees must use advertising material from the franchisor or designated/approved vendors, specified bookkeeping services, designated computer hardware and software, designated furniture, fixtures, and equipment vendors or those meeting specifications, and approved suppliers for inventory and supplies, including signature items (spices, rice, lentils, flour, uniforms) purchased directly from the franchisor. Franchisees must also obtain requisite insurance and purchase signage according to franchisor specifications. Leasehold improvements must follow franchisor specifications, but can be purchased from any supplier. |
| Supply Restrictions | The franchisor is an approved supplier for advertising material (not sole) and the sole approved supplier for certain signature inventory and supplies (spices, rice, lentils, flour, uniforms). Affiliates are not approved suppliers. The franchisor does not maintain written criteria for approving suppliers but allows alternative suppliers if approved, charging up to $1,000 to test new suppliers. Approval is based on quality, quantity, competitive pricing, production/delivery capability, and reputation. |
| Franchisor Revenue from Suppliers | The franchisor may derive revenue or other material consideration from required purchases or leases by franchisees and designated suppliers may make payments to the franchisor from franchisee purchases. In the fiscal year ended December 31, 2024, the franchisor did not earn revenue or receive supplier rebates, but may do so in the future. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | The franchisor does not offer direct or indirect financing and does not guarantee any franchisee's note, lease, or obligation. |
Madurai Kitchen Franchise Earnings — Item 19
Past financial performance does not guarantee future results. Individual results will vary.
Madurai Kitchen Litigation & Risk Flags
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Madurai Kitchen System Growth
Madurai Kitchen currently operates 0 franchised locations and 2 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2022 | 1 | 0 | 1 |
| 2023 | 0 | 0 | 1 |
| 2024 | 1 | 0 | 2 |
Transfers: 0 | Closures: 0
State Registrations
Registered in 14 states: CA, HI, IL, IN, MD, MI, MN, NY, ND, RI, SD, VA, WA, WI
Franchisor Financials (Item 21)
Audited by SMITH, BUZZI & ASSOCIATES, LLC. for year ending December 31.
Madurai Kitchen Franchise — FAQ
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