Ace Sushi
Ace Sushi offers fresh, healthy sushi and Asian fusion food in grocery stores and supermarkets. Known for competitive pricing and convenience, it operates through single unit, satellite store, and area development programs.
Ace Sushi franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operations of a single Ace Sushi Bar ranges from $18,275 to $119,650. If you purchase an existing Ace Sushi Bar from the franchisor, this amount increases to between $19,275 and $219,650. [p.1, p.30, p.28]
What is the initial franchise fee?
The initial franchise fee for an Ace Sushi Bar franchise is either payable in full when signing the Franchise Agreement or can be paid in 2-12 equal monthly installments after signing, provided it is agreed upon. This fee is fully earned and not refundable except as specified [p.17].
What are the ongoing royalty and advertising fees?
The ongoing fees include an initial franchise fee and additional fees for opening new ACE Sushi Bars as per the Franchise Agreement [p.174]. For advertising, a 2% contribution of Gross Sushi Sales must be made to the Marketing Fund, though other franchisees may have different obligations or none at all [p.41]. The franchisor controls how these funds are used for marketing and advertising purposes [p.41, p.89], with specific guidelines on what types of expenditures can be covered [p.89].
How long is the initial franchise agreement, and can I renew it?
The initial term of the franchise agreement is generally from 90 days to 24 months, unless terminated sooner as per the terms of the agreement [p.85]. If Franchisor cannot offer you their current form of franchise agreement at the time you exercise an option to extend, they may renew your existing agreement on the terms set forth in the agreement for the extended term or offer a week-to-week extension until they can legally offer you their current agreement [p.86].
Can I sell or transfer my franchise, and what does that require?
According to the FDD, a franchisor can refuse to permit a transfer of ownership of a franchise except for good cause [p.6]. Good cause is defined but not fully detailed in the provided excerpts. Additionally, the franchisor has the right to transfer or assign its rights or obligations under the agreement, and any subsequent assignee would become responsible for performing those obligations [p.107].
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the agreement on any grounds available by law, as stated on [p.213]. However, termination without 'reasonable cause' as defined by Virginia Retail Franchising Act or Virginia laws may not be enforceable, according to [p.226].
What financial requirements — net worth and liquid capital — do I need to qualify?
This isn't specified in the excerpts. The FDD does discuss maintaining adequate reserves and working capital [p.101, p.33], but it doesn't provide specific details on net worth or liquid capital requirements for qualifying as a franchisee.
Do I get an exclusive or protected territory?
No, you do not get an exclusive or protected territory. According to [p.45] and [p.47], you may face competition from other franchisees, franchised Ace Sushi Bars, Satellite Stores, or competitive brands controlled by the company. There are no guaranteed territories or exclusive rights provided to you.
What training and ongoing support does the franchisor provide?
The franchisor provides training personnel for up to 4 days before and after opening the Main Sushi Bar, with the number of personnel and duration at their discretion. Additionally, franchisees and their employees must attend any additional courses, seminars, and other training programs as required by the franchisor, with associated costs to be reimbursed by the franchisee. [p.44, p.201, p.212, p.45]
How many franchised outlets are there, and how many have closed or been terminated?
The FDD does not provide specific numbers regarding the total number of franchised outlets or those that have closed or been terminated. However, it mentions that during the last 3 years, a large number of franchised outlets (247) were terminated, not renewed, reacquired, or ceased operations for other reasons [p.5].
Does the franchisor share any financial performance or earnings information?
The franchisor may provide financial performance information if there is a reasonable basis for it and if it is included in the Disclosure Document. Additionally, if you are purchasing an existing outlet, the franchisor may provide actual records of that outlet. However, the franchisor does not make any financial performance representations and does not authorize its employees or representatives to do so either orally or in writing [p.56, p.57].
What am I restricted to selling, and where must I buy supplies?
You are required to sell only products and services that meet the franchisor's current standards of quality and have been expressly approved in writing by them. You must also sell or offer for sale all items, products, and services as specified in the Confidential Operations Manual or otherwise in writing by the franchisor [p.50]. For supplies, you may have to buy or lease certain items from the franchisor or a limited group of suppliers designated by them, which may be more expensive than other options [p.4]. Additionally, you must purchase Proprietary Products such as food products (excluding produce), refrigerated display cases and tables, label machines, marketing materials, utensils, menu holders, labels, uniforms, and an NSF approved Camcarrier from the franchisor or its authorized distributors [p.34].