Aloha Poke
Aloha Poke offers poke bowls of raw or marinated fish in a restaurant setting under the ALOHA POKE CO.® brand. Known for its fresh seafood bowls, the franchise operates in the quick-service restaurant sector.
Aloha Poke franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment to begin operation of a new ALOHA POKE CO.® Restaurant ranges from $140,900 to $475,930 [p.1]. This includes an initial franchise fee of $35,000 for the first restaurant and $30,000 for each additional one [p.20], along with other costs such as real estate and market introduction programs [p.1, p.116].
What is the initial franchise fee?
The initial franchise fee is $35,000 for your first ALOHA POKE CO. Restaurant and $30,000 for each subsequent restaurant [p.10, p.96]. This fee is not refundable under any circumstances [p.10, p.96].
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is 5% of the Restaurant's Gross Sales for each calendar week [p.97]. For advertising, you must contribute up to 2% of the Restaurant's monthly Gross Sales to the Cooperative, which funds marketing activities [p.35]. This contributes towards the Local Marketing Spending Requirement but not toward the market introduction program or Brand Fund contributions.
How long is the initial franchise agreement, and can I renew it?
The initial term of the franchise agreement is typically 10 years [p.77]. You have the right to renew the franchise agreement for three successive 10-year terms after the initial term, but this depends on various conditions being met [p.5(d)].
Can I sell or transfer my franchise, and what does that require?
According to the FDD, you must obtain a true and complete copy of a bona fide, executed written offer from a responsible and fully-disclosed buyer before selling or transferring your franchise rights. This offer must include details of the proposed sale's payment terms, financing sources, and an earnest money deposit of at least 5% of the proposed purchase price [p.129]. Additionally, good cause can be used by the franchisor to refuse such a transfer [p.5].
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the agreement on good cause, which includes the failure of the franchisee to comply with lawful provisions of the franchise agreement and to cure such failure after being given written notice and a reasonable opportunity (not more than 30 days) to do so [p.5]. Additionally, the franchisor may terminate the agreement for other reasons not constituting good cause, though termination without reasonable cause is unlawful under Virginia law [p.200]. This isn't specified in the excerpts for all possible grounds, but changes to the business model or franchise operations could also lead to additional investments or harm to the franchisee's business, potentially leading to termination [p.3].
What financial requirements — net worth and liquid capital — do I need to qualify?
This isn't specified in the excerpts.
Do I get an exclusive or protected territory?
No, you do not receive an exclusive territory. You may face competition from other franchisees and from outlets owned by the company or its affiliates, including those at Non-Traditional Venues within the Area of Protection [p.41, p.43]. This is because the FDD specifies that there are no restrictions on the company's activities in or at these venues [p.41].
What training and ongoing support does the franchisor provide?
The franchisor provides an initial training program for up to four people, including the Operator and Restaurant managers [p.37], which typically lasts about two weeks [p.38]. This initial training is provided at no additional fee but requires the franchisee to cover their employees' wages, benefits, and travel expenses during this period [p.40]. The franchisor also has the right to require attendance at various training courses and programs throughout the franchise term, not exceeding five days per calendar year [p.40], with the franchisee responsible for paying the compensation and expenses of the attendees. Additionally, the franchisor may charge up to $500 per trainer per day plus certain expenses for supplemental and ongoing training if requested by the franchisee [p.40].
How many franchised outlets are there, and how many have closed or been terminated?
This isn't specified in the excerpts.
Does the franchisor share any financial performance or earnings information?
The franchisor may provide financial performance information based on actual records from existing outlets, but it is not required to do so beyond what is included in Item 19 of the disclosure document [p.55]. The franchisor does not make any other financial performance representations and does not authorize its employees or representatives to make such claims [p.62].
What am I restricted to selling, and where must I buy supplies?
You are restricted to selling products prepared and sold at the physical location of the Restaurant; you cannot distribute these products over the Internet or use other supply channels. For supplies, you must buy items like equipment, food ingredients, paper products, operating supplies, computer/point-of-sale system, printed marketing/advertising materials, and gift card/loyalty program services only from suppliers approved by the franchisor or according to their specifications [p.22].