Waba Grill
WaBa Grill offers quick casual Asian rice bowl restaurants. Known for its diverse menu of flavorful bowls and beverages, it operates in the quick-service restaurant sector.
About Waba Grill
WaBa Grill is an American fast casual restaurant chain specializing in healthy foods. Based in the Southwestern United States and founded in 2006, it has been called "one of the nation's leading healthy rice bowl chains".
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Waba Grill franchise FAQ
How much does it cost to open one — the total initial investment?
The initial investment necessary to begin operation of a WaBa Grill franchised business ranges from $341,000 to $577,000. This includes the initial franchise fee of $35,000 that must be paid to the Franchisor [p.1].
What is the initial franchise fee?
The initial franchise fee is $35,000 for the first WaBa Grill Restaurant and is non-refundable. For subsequent restaurants under the same agreement, this fee is reduced to $30,000 [p.8].
What are the ongoing royalty and advertising fees?
The ongoing fees include weekly royalty and marketing fees. Additionally, franchisees contribute to a marketing fund, with amounts ranging from $300,000 to $330,000 as shown in the provided excerpts [p.226, p.198, p.174]. This isn't specified in the exact dollar amount per franchisee but indicates that there is a contribution towards marketing activities.
How long is the initial franchise agreement, and can I renew it?
The initial term of the franchise agreement is for a period of ten (10) years from the Restaurant Opening Date [p.61]. While the excerpts do not explicitly state whether you can renew the agreement, they do indicate that any changes or renewals would be subject to the terms outlined in the agreement and must be in writing [p.93].
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 is subject to certain conditions. Specifically, any assignment, transfer, or sale of the franchise must comply with the conditions set forth in Section 20.4 [p.85], which includes obtaining approval from the franchisor and potentially meeting other requirements as determined by the franchisor. The franchisor can refuse a transfer for good cause, defined to include but not limited to specific reasons related to your performance or default under the lease [p.44].
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the agreement if the franchisee fails to comply with any lawful provision of the franchise agreement and does not cure such failure within a reasonable time, which cannot exceed 30 days [p.43].
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 details on specific financial requirements such as net worth or liquid capital needed to qualify for a franchise. However, it mentions that if the franchisor's most recent unaudited financial statements show a net worth of less than $100,000, you have the right to request an escrow arrangement [p.45].
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 competitive brands controlled by them [p.26]. However, you have exclusive rights to develop and operate a specified number of Restaurants within your Development Area under the Area Development Agreement [p.18], though this area can be altered only with mutual agreement [p.26] and does not guarantee a sufficient number of suitable sites for development [p.25].
What training and ongoing support does the franchisor provide?
The franchisor provides an initial training program ('Initial Training') consisting of up to three weeks, typically offered no later than one month before opening or take-over of the Restaurant. This includes two weeks at a WaBa Grill Certified Training Restaurant and one week at the Corporate Office for classroom training. The program is facilitated by a WaBa Grill Certified Training Manager. Ongoing support isn't specified in detail beyond the initial training, but the franchisor retains discretion to extend the training period if needed [p.24].
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 may provide actual records of an existing outlet if you are purchasing one, but they do not make representations about future financial performance or past financial performance of company-owned or franchised outlets. Any other financial performance information should be reported to specific authorities as outlined in the FDD [p.34].
What am I restricted to selling, and where must I buy supplies?
You are restricted to selling items according to System standards, which Franchisor can change at any time [p.29]. For Trade Secret Food Products and Branded Products, you must buy them only from specified exclusive sources such as the franchisor or its affiliates [p.14]. You currently must buy all Restaurant equipment from designated suppliers, but for other items, you may have to buy or lease from a limited group of suppliers designated by the franchisor, which may include more expensive options than those available elsewhere [p.3]. This isn't specified in the excerpts for all possible supplies and services you might need to source exclusively from the franchisor or its affiliates.