Pokemoto
Pokemoto offers poke bowls, salads, wraps, smoothies, and beverages in franchised shops. Known for healthy, customizable meal options, it operates in the quick-service restaurant sector.
Pokemoto franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operation of a Pokemoto shop ranges from $184,500 to $378,400, as stated on [p.1].
What is the initial franchise fee?
The initial franchise fee for your first Pokemoto Shop is $30,000. For subsequent shops, it is discounted to $25,000 for your or your affiliates' second shop and $20,000 for each third and subsequent shop [p.13, p.18]. This fee is fully earned by the company upon execution of the Franchise Agreement and is non-refundable [p.13].
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is six percent (6%) of Gross Sales, due weekly [p.73]. Additionally, you must spend one percent (1%) of Gross Sales each week on Local Advertising within a 5-mile radius from your shop [p.85].
How long is the initial franchise agreement, and can I renew it?
The term of the initial franchise agreement isn't specified in detail in these excerpts. However, you have an option to renew the franchise for one additional period of five years (the 'Renewal Term'), subject to meeting certain conditions as outlined on page [p.72].
Can I sell or transfer my franchise, and what does that require?
According to [p.6], a franchisor can refuse to permit the transfer of ownership of a franchise except for good cause. Good cause includes scenarios such as the franchisor exercising a right of first refusal to purchase the franchise. This means there are conditions under which you might be able to sell or transfer your franchise, but it is subject to the franchisor's approval based on what they consider to be good cause.
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the agreement on any grounds available by law [p.162]. Additionally, according to [p.5], good cause for termination includes failure to comply with lawful provisions of the franchise agreement, which must be cured within a reasonable time frame not exceeding 30 days after written notice.
What financial requirements — net worth and liquid capital — do I need to qualify?
This isn't specified in the excerpts. The FDD does not provide specific details on your required net worth or liquid capital amount for qualification as a franchisee. However, it does state that you must have provided recent financial statements and maintain sufficient working capital to fulfill your obligations [p.77].
Do I get an exclusive or protected territory?
No, you do not receive an exclusive or protected territory. According to the FDD excerpts, you may face competition from other franchisees and outlets owned by the company or its affiliates [p.31], and your rights are limited only to operating your Shop at the Approved Location without any minimum or protected territory [p.31].
What training and ongoing support does the franchisor provide?
The franchisor provides a mandatory initial training program that takes approximately 2 weeks to complete, which must be attended by the franchisee (or one of their Controlling Principals) and the General Manager before opening the shop. This training is conducted in-person at the franchisor's affiliate's Pokemoto Shop or another designated location. Additionally, the franchisor may offer virtual training via the Internet or prerecorded videos as a replacement for part of the in-person training. [p.28] However, any General Manager subsequently designated by you must also receive and complete this initial training to the franchisor's satisfaction. [p.28] This isn't specified in the excerpts regarding ongoing support beyond the 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 representations about a franchisee's future financial performance or the past financial performance of company-owned or franchised outlets [p.41]. However, if you are purchasing an existing outlet, the franchisor may provide actual records of that outlet. Additionally, the franchisor is permitted to provide financial performance information under certain conditions, such as providing actual records of an existing outlet or supplementing the information provided in Item 19 with possible performance at a particular location or under specific circumstances [p.41].
What am I restricted to selling, and where must I buy supplies?
You are restricted to selling only the menu items and other products and services that the franchisor has expressly approved in writing. You must also sell all required menu items with specific recipes and procedures as detailed in the Manual or other written instructions [p.36]. For supplies, you must purchase or lease and install all required fixtures, furnishings, equipment, décor items, signs, etc., from the designated suppliers specified by the franchisor [p.20].