Hissho
Hissho Sushi offers franchises to operate sushi bars or Asian food bars under brands like Hissho Sushi or Sushi With Gusto. Known for its diverse menu options, this franchise operates in the quick-service restaurant sector.
Hissho franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operation of a franchise ranges from $26,849 to $136,829, plus an additional $0 to $150,000 if you purchase an existing food retail unit [p.1]. This includes the initial costs for food inventory and supply purchases, which range between $5,000 and $31,000 for a Full Service Sushi Bar (assuming on the high end of the range you open a Satellite Sushi Bar at the same time) or between $5,000 and $25,000 for an Asian Food Bar [p.19]. Additionally, there is an initial franchise fee that must be paid in one lump sum upon execution of the agreement [p.265], with the exact amount specified in Attachment 'A' to this Agreement.
What is the initial franchise fee?
The initial franchise fee is $7,500 for both Full Service Sushi Bars and Asian Food Bars. There is no Initial Franchise Fee for a Satellite Sushi Bar [p.17]. This fee is deemed fully earned and non-refundable in consideration of administrative and other expenses incurred by the franchisor, and for their lost or deferred opportunity to franchise to others [p.17]. The fee must be paid upon execution of the Franchise Agreement [p.265].
What are the ongoing royalty and advertising fees?
The ongoing technology fee is $125 per monthly statement, which can be increased up to $300 if costs rise [p.28]. There is no specified amount for an advertising fee, but franchisees contribute to a Brand Fund used for marketing and promoting the brand on local, regional, or national levels [p.49].
How long is the initial franchise agreement, and can I renew it?
This isn't specified in the excerpts. The FDD does not provide details about the length of the initial franchise agreement or its renewal terms beyond mentioning a "Renewal Term" on page [p.265], but the exact duration is not stated.
Can I sell or transfer my franchise, and what does that require?
Yes, you can sell or transfer your franchise, but it requires approval from the Franchisor. You must have operated the Food Retail Unit for at least one year before a transfer is considered. Additionally, you cannot transfer less than all owned Food Retail Units, and control transfers are not allowed without Franchisor approval [p.25]. There is also a fee payable to the Franchisor for reviewing the application for transfer [p.25].
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the agreement on any grounds available by law [p.362]. Additionally, under Virginia Retail Franchising Act, a franchisor cannot cancel a franchise without reasonable cause or use undue influence to induce surrender of rights provided in the Franchise Agreement [p.371-372], meaning that termination provisions must meet certain legal standards to be enforceable.
What financial requirements — net worth and liquid capital — do I need to qualify?
The FDD does not specify exact net worth or liquid capital requirements for qualifying as a franchisee. However, [p.285] indicates that you must demonstrate adequate financial resources and capital to operate the Franchised Business to the satisfaction of the franchisor. This typically involves showing that you meet the franchisor's educational, managerial, and business standards, have a good moral character, and possess sufficient financial capability as evidenced by your credit rating and prior related business experience.
Do I get an exclusive or protected territory?
No, you do not receive an exclusive territory. You may face competition from other franchisees, outlets owned by the company, or other channels of distribution or competitive brands controlled by the company [p.344].
What training and ongoing support does the franchisor provide?
The franchisor provides mandatory, additional, and ongoing training. Mandatory training is coordinated by the Hissho Training and Development Department, led by Lauren Kraemer, which includes tools and processes to support franchisees in launching and operating their stores. Additional or ongoing training may be required if certain personnel fail to attend sessions after operations begin, with a fee applicable for such additional training [p.25]. The level of support, including the number of personnel involved, can change at the franchisor's discretion [p.48].
How many franchised outlets are there, and how many have closed or been terminated?
As of December 31, 2024, there were 2,389 franchised outlets in operation [p.246]. During the last three years, a large number of franchised outlets (594) were terminated, not renewed, re-acquired, or ceased operations for other reasons [p.5]. This includes both voluntary and involuntary terminations [p.197].
Does the franchisor share any financial performance or earnings information?
The franchisor is permitted to disclose actual records of an existing outlet if purchased, and may provide additional financial performance information under certain circumstances. However, the franchisor does not make any representations about a franchisee's future financial performance or the past financial performance of company-owned or franchised outlets [p.62]. If you receive any other financial performance information or projections of your future income, you should report it to the franchisor’s management and relevant regulatory agencies [p.62].
What am I restricted to selling, and where must I buy supplies?
You are not restricted from selling any specific items, but you may have to buy or lease certain items from the Franchisor or designated suppliers as specified in [p.4]. For supplies, you can purchase produce for your own account, and on occasion, at the Franchisor's discretion, you may order from a Retail Host or other supplier of produce; however, any amounts owed must be repaid to the Franchisor [p.33].