Kuma Ani
Kuma Ani offers fast casual Ramen and Donburi dishes from a chain of restaurants. Known for in-house noodle preparation, this New York-based franchise requires an initial investment of $344,500 to $544,000.
Kuma Ani franchise FAQ
How much does it cost to open one — the total initial investment?
The total estimated initial investment required to open your first Franchised Business is between $344,500 and $544,000. This includes a range of $30,000 to $35,000 that must be paid to the franchisor or affiliate [p.1].
What is the initial franchise fee?
The initial franchise fee is $25,000. This fee must be paid upon signing the franchise agreement and is fully earned at that time, being non-refundable [p.11].
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is not specified in these excerpts, but it is mentioned that 50% of the initial franchise fee and 50% of royalties are deemed paid for the use of marks and training/support respectively [p.111]. For advertising, you must spend a minimum of 1% of Gross Revenues per month on local advertising according to the franchisor's guidelines, with a minimum of $2,000 - $5,000 spent on Grand Opening Advertising [p.24].
How long is the initial franchise agreement, and can I renew it?
The initial franchise agreement typically has a 10-year term [p.110, p.139, p.151, p.161], and you have the opportunity to enter into renewal terms subject to certain conditions [p.139, p.151, p.161].
Can I sell or transfer my franchise, and what does that require?
According to the FDD, a sale or transfer of your franchise requires compliance with Section 19.4 [p.80]. Generally, you cannot sell or transfer the Franchised Business except to a member of your family without adhering to the terms specified in this section. For transfers outside of family members, you must first ensure that any proposed transferee meets the franchisor's qualifications and agrees in writing to comply with all lawful obligations [p.5]. This isn't specified in the excerpts for transfers within the family.
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the agreement upon written notice and a 60-day opportunity to cure for any breach of the Franchise Agreement [p.171]. Additionally, the franchisor can immediately terminate the agreement for insolvency, abandonment, mutual agreement to terminate, material misrepresentation, legal violation persisting 10 days after notice, repeated breaches, judgment, criminal conviction, monies owed to the franchisor more than 5 days past due, and imminent danger to public health or safety [p.171].
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?
Yes, you will receive an exclusive territory, meaning a geographic area within which the franchisor promises not to establish either a company-owned or franchised outlet selling the same or similar goods or services under the same or similar trademarks or service marks [p.27, p.56].
What training and ongoing support does the franchisor provide?
The franchisor provides an initial training program before operations commence, which includes up to two employees chosen by the franchisee at their own expense for travel and living costs [p.25]. Ongoing support may include additional training at a cost of $250 per person per day if conducted at the franchisor's location or a similar rate if at the franchisee's location, plus related expenses [p.26, p.31]. This isn't specified in the excerpts for other forms of ongoing support beyond initial training.
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 does not make any financial performance representations except for providing actual records of an existing outlet if you are purchasing one. Any other financial performance information or projections should be reported to specified contacts as outlined in the FDD [p.40].
What am I restricted to selling, and where must I buy supplies?
You are not specifically restricted to selling only certain items; however, you may have to buy or lease items from the franchisor or a limited group of suppliers designated by them, which might be more expensive than other options [p.3]. For supplies like computer hardware and software, you must purchase according to their specifications [p.17].