Teriyaki Madness
Teriyaki Madness offers fast-casual Japanese-style teriyaki dishes and specialty food items in franchised restaurants. Known for authentic flavors, this Colorado-based franchise requires a significant initial investment.
About Teriyaki Madness
Teriyaki Madness franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operation of a single Teriyaki Madness franchise is between $376,200 and $975,860. This includes $82,599.95 that must be paid to the franchisor or its affiliate(s). [p.2]
What is the initial franchise fee?
The initial franchise fee is a non-refundable amount paid by the franchisee upon signing the Franchise Agreement, which covers administrative and recruitment expenses. This fee is fully earned at the time of signing and does not depend on whether or not the franchise opens [p.120, p.17].
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is six percent (6%) of Net Sales, which includes revenues from various sales channels such as in-store dining, carry-out, online orders, and more [p.120]. Additionally, there is a three percent (3%) contribution to the Marketing Fund, also based on Net Sales, due at the same time as the Royalty Fee [p.45].
How long is the initial franchise agreement, and can I renew it?
The initial franchise agreement does not specify a fixed term length [p.119]. However, you may have the option to renew your right to operate the Franchise for two additional five-year terms following the expiration of this Agreement, provided you meet certain conditions [p.118].
Can I sell or transfer my franchise, and what does that require?
This isn't specified in the excerpts.
On what grounds can the franchisor terminate the agreement?
The franchisor may terminate the agreement on any grounds available by law [p.260]. Additionally, while not explicitly stated in the provided excerpts, there are legal restrictions; termination without 'reasonable cause' as defined by Virginia laws or court decisions may be unenforceable [p.262].
What financial requirements — net worth and liquid capital — do I need to qualify?
You must maintain working capital and a net worth sufficient, in the franchisor's opinion, to enable you to fulfill your responsibilities under the agreement properly [p.130]. The exact figures for net worth and liquid capital are not specified in the excerpts.
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 that the company controls [p.56, p.115].
What training and ongoing support does the franchisor provide?
The franchisor provides initial and ongoing support to franchisees [p.105]. Specifically, MH International offers initial and ongoing support [p.11], while Restaurant Sherpas provides optional management services [p.11]. Additionally, there is a discretion-based option for performing complete training sessions upon the support manager's arrival [p.176]. The franchisor also requires franchisees to replace their Managing Owner or Designated Manager by attending and successfully completing the Initial Training Program and Hands-On-Training Program if they are replaced during the term of the Franchise Agreement, with associated costs [p.61].
How many franchised outlets are there, and how many have closed or been terminated?
As of December 31, 2023, there were 138 franchised Teriyaki Shops. The excerpt does not specify the number of closed or terminated franchises, so this isn't specified in the excerpts.
Does the franchisor share any financial performance or earnings information?
Yes, the franchisor may provide financial performance information for existing outlets under certain conditions. Specifically, if you are purchasing an existing outlet, the franchisor may provide actual records of that outlet's performance [p.84]. Additionally, the franchisor includes a historical financial performance representation based on gross sales data from certain franchisees' profit and loss statements [p.69]. However, the franchisor does not make any financial performance representations for new franchises except through these specified methods [p.84].
What am I restricted to selling, and where must I buy supplies?
You are required to sell only the products and services that have been approved in writing by the franchisor [p.62]. Additionally, you must purchase all food items, beverage items, marketing materials, uniforms, logo apparel, and interior graphics from the franchisor's Approved Suppliers [p.34]. All other supplies must be purchased according to the franchisor’s specifications and from suppliers designated by them or that meet their criteria [p.35].