Pokeworks
Pokeworks offers fast casual restaurants serving Hawaiian poké made from high-quality, sustainably sourced fish. Known for its fresh seafood dishes, Pokeworks franchises range from $314,699 to $608,955 and are part of the broader quick-service restaurant industry.
Pokeworks franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operation of a Pokeworks franchised restaurant ranges from $314,699 to $608,955. This includes an initial fee of $40,000 that must be paid to the franchisor or its affiliates [p.1].
What is the initial franchise fee?
The initial franchise fee is a payment made by the franchisee in consideration for the opportunity to establish the Business. According to [p.135], this fee is non-refundable once received by the Franchisor. The specific amount can be found in Schedule A of the agreement.
What are the ongoing royalty and advertising fees?
The ongoing royalty is 6% of Gross Sales [p.135]. Additionally, a marketing fee of 1.5% of gross sales is contributed to the Marketing Fund for advertising and promotional activities [p.85], although there's no guarantee that this will directly benefit each franchisee proportionally or at all [p.39].
How long is the initial franchise agreement, and can I renew it?
The term of the franchise is not specified in the excerpts provided. However, the franchise agreement may allow renewal; the franchisor cannot fail to renew a franchise unless certain conditions are met, such as providing written notice at least 180 days in advance if there is no good cause [p.257].
Can I sell or transfer my franchise, and what does that require?
According to the FDD, you can sell or transfer your franchise, but it must be done for good cause as defined by the franchisor. The franchisor also has a right of first refusal to purchase the franchise in such cases [p.278, p.313, p.255, p.5].
On what grounds can the franchisor terminate the agreement?
This isn't specified in the excerpts.
What financial requirements — net worth and liquid capital — do I need to qualify?
To qualify as a franchisee, you must have a net worth that is at least equal to the net worth of the tenant at the inception of the lease. Additionally, you are required to maintain working capital of at least $5,000 at all times during the term of the agreement, though this amount can be increased by the Franchisor with written notice [p.129]. This isn't specified in the excerpts regarding liquid capital beyond the working capital requirement.
Do I get an exclusive or protected territory?
No, you do not receive an exclusive territory. You may face competition from other franchisees, from outlets that the franchisor owns, or from other channels of distribution or competitive brands that the franchisor controls [p.47]. Your Franchise Territory is generally a region with approximately 150,000 people, but you do not have exclusive rights to this territory [p.46].
What training and ongoing support does the franchisor provide?
The franchisor provides initial training conducted by a member of their Pokeworks Team, who has completed the Pokeworks Academy. This training covers Back of House Operations, Front of House Operations, Management Operations, and Functional Expertise, totaling 135 hours [p.43]. Ongoing support includes pre-opening services such as training, and ongoing services like management of the marketing fund, development of training materials, menu items, and restaurant monitoring [p.85]. The franchisor also maintains a separate Marketing Fund to support advertising and promotion for the entire Pokeworks system [p.121].
How many franchised outlets are there, and how many have closed or been terminated?
As of December 29, 2024, there were a total of 61 franchised Pokeworks Restaurants. Out of these, one (1) franchise outlet closed from January through December of 2024 [p.67]. This isn't specified in the excerpts regarding terminations or cancellations for the last fiscal year, so we cannot provide exact numbers for those events based solely on the given information.
Does the franchisor share any financial performance or earnings information?
The franchisor may disclose actual records of an existing outlet if requested by a prospective franchisee. However, the financial performance information provided does not include details such as franchise fees, selling, general and administrative expenses, occupancy costs, taxes, insurance, and other expenses; net profit is also not presented [p.67]. This isn't specified in the excerpts for all scenarios, but it's clear that the franchisor can provide actual records of an existing outlet upon request [p.69].
What am I restricted to selling, and where must I buy supplies?
You are restricted to selling only Pokeworks Products and services as designated by the franchisor [p.55]. You must purchase all required products and services for operating your franchise from suppliers identified and approved by the franchisor or directly from them [p.29, p.3]. This includes items like food and beverages, menu items, packaging materials, uniforms, and more [p.29].