Ginger Sushi
Ginger Sushi + Poke Shop offers quick-service restaurants serving sushi, poke, and other menu items under the GINGER SUSHI + POKE SHOP™ brand. Known for its variety of fresh sushi options, this franchise operates in food court and standard locations.
Ginger Sushi franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operation ranges between $281,800 and $501,700 for a standard franchise, including $40,000 to $42,500 that must be paid to the franchisor or its affiliates. This amount does not include financing costs or other variable expenses such as leasehold improvements and construction [p.1].
What is the initial franchise fee?
The initial franchise fee is not fully detailed in these excerpts, but it is recognized on a straight-line basis over the term of the franchise agreement once the restaurant has opened [p.95, p.133]. This fee constitutes part of the franchisor's general operating fund and will be used at their discretion for various expenses [p.317].
What are the ongoing royalty and advertising fees?
The ongoing royalty is six percent (6%) of Gross Sales during the term and any interim period [p.200]. Franchisees must also pay a fee to promotional funds, which are used for promotional and advertising purposes [p.95, p.99].
How long is the initial franchise agreement, and can I renew it?
This isn't specified in the excerpts. The provided FDD excerpts do not mention the duration of the initial franchise agreement or the renewal process beyond stating that a Renewal Franchise Agreement may have different terms from the current one [p.176].
Can I sell or transfer my franchise, and what does that require?
According to the FDD, you can transfer your franchise, but it requires approval from the franchisor [p.321]. The process must be conducted in good faith and may involve paying transfer fees as specified in the agreement [p.321]. Additionally, the franchisor has the right to refuse a transfer for good cause, which includes conditions they specify [p.313].
On what grounds can the franchisor terminate the agreement?
According to [p.313], the franchisor can terminate the franchise agreement only for good cause, which includes the failure of the franchisee to comply with any lawful provision of the franchise agreement and failing to cure such failure after being given written notice and a reasonable opportunity (no more than 30 days) to do so. This isn't specified in the other excerpts provided.
What financial requirements — net worth and liquid capital — do I need to qualify?
This isn't specified in the excerpts. The FDD focuses on working capital requirements rather than net worth or liquid capital specifically for qualification as a franchisee. It does state that you need at least $5,000 of working capital at all times during the term of the Franchise Agreement [p.194] and recommends having additional funds to cover various expenses during your first three months of operation [p.46].
Do I get an exclusive or protected territory?
No, you do not receive an exclusive territory. The franchise is non-exclusive, and you may face competition from other franchisees, outlets owned by the franchisor, or other competitive brands [p.63]. This isn't specified in the excerpts regarding territorial protection.
What training and ongoing support does the franchisor provide?
The franchisor provides a comprehensive Training Program that includes both classroom (administrative and theoretical) and in-store training. The initial training requires approximately 40 hours of new owner training and around 150 hours of in-store training, totaling about 190 hours. This program is mandatory for the franchisee and their Designated Manager to complete successfully before opening the store [p.55]. Ongoing support includes the availability of Regional Directors of Operations for on-the-job training, and the franchisor may adjust certain portions of the Training Program based on the franchisee's skill sets [p.61]. Additionally, the franchisor administers a Marketing Fund to support advertising and promotion efforts across all Ginger Sushi + Poke Shop franchises, although there is no guarantee that any specific franchise will benefit directly from these efforts [p.187].
How many franchised outlets are there, and how many have closed or been terminated?
Based on the provided excerpts, as of November 30, 2023, there is one Tasti D-Lite franchise in operation. The information does not specify the exact number of closed or terminated franchises for other brands like Big Smoke Burger, Pizza Fresh Take●N●Bake, Wafflō, and Tango. This isn't specified in the excerpts.
Does the franchisor share any financial performance or earnings information?
The franchisor does not provide representations about future financial performance or past financial performance of company-owned or franchised outlets [p.77]. However, if you are purchasing an existing outlet, the franchisor may provide actual records of that specific outlet's performance [p.77]. Additionally, the franchisor can disclose information about the financial performance of its outlets if there is a reasonable basis for such information and it is included in the disclosure document [p.77].
What am I restricted to selling, and where must I buy supplies?
You are restricted to selling only the products and services designated as required, specifically "Ginger Sushi + Poke Shop Products," which includes those made from confidential proprietary recipes obtained from designated sources. You must not offer or sell any other types of products or services or operate in any other business. Supplies and equipment used in your Ginger Sushi + Poke Shop Restaurant must be purchased from the franchisor or a vendor approved by them, or meet the standards and specifications set by the franchisor from time to time as detailed in the Confidential Manual [p.69].