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Teriyaki Madness Franchise ProfileRestaurant Franchises > Quick-Service Restaurants |
What Are the Initial Investment Requirements for a Teriyaki Madness Franchise?
To open a Teriyaki Madness franchise, you will need to prepare for an initial investment ranging from $350,500 to $976,860. This includes a franchise fee of $45,000. Additionally, you should have a net worth between $500,000 and $1,000,000, along with sufficient cash reserves to cover startup costs. Understanding these financial commitments is crucial for aspiring franchisees as they lay the foundation for your business journey.
What Are the Ongoing Fees for Teriyaki Madness Franchisees?
As a Teriyaki Madness franchisee, you will be required to pay a royalty fee of 6% on your gross sales, along with a marketing fee of 3%. These ongoing fees contribute to the support and resources provided by the franchisor, including marketing initiatives and operational guidance. It's important to factor these costs into your financial planning to ensure the sustainability and profitability of your franchise.
What Is the Average Revenue Potential for a Teriyaki Madness Franchise?
The average annual revenue per Teriyaki Madness unit is approximately $1,090,110, with a median revenue of $1,014,900. However, revenue can vary significantly, with the lowest annual revenue reported at $368,639 and the highest reaching $2,683,444. This revenue potential underscores the importance of location, management, and operational efficiency in driving sales and achieving financial success.
How Quickly Can You Expect to Break Even with a Teriyaki Madness Franchise?
Franchisees can anticipate a breakeven time of around 12 months, with an investment payback period of approximately 18 months. This timeline indicates a relatively quick return on investment compared to many other franchise opportunities. However, achieving these results will depend on factors such as market conditions, effective management, and adherence to the brand's operational standards.
Teriyaki Madness Franchise Financial Requirements
Below, you’ll find an overview of the initial investment needed to launch the business, along with the ongoing fees required by the franchisor to maintain operations over time.
The minimum total assets (minus liabilities) you must possess.
Net Worth Required:
The estimated period to recoup your total investment.
Investment Payback:
The initial fee paid to join the franchise system.
Franchise Fee:
Ongoing percentage of revenue paid to the franchisor.
Royalty Fee:
Regular contribution toward the franchise’s advertising fund.
Marketing Fee:
The estimated timeframe to recover your initial costs.
Breakeven Time:
The total amount required to launch the franchise.
Initial Investment:
The minimum liquid capital you must have on hand.
Cash Required:
The typical yearly revenue generated per franchise location.
Average Revenue:
The middle value of yearly revenue among franchise locations.
Median Revenue:
The largest reported annual revenue among franchisees.
Highest Revenue:
The smallest reported annual revenue among franchisees.
Lowest Revenue:
A broad sector defining similar types of franchise businesses.
Industry:
A more specific division within the broader industry.
Category:
The key individuals guiding the franchise’s strategy and growth.
Leadership:
The official business address of the franchisor’s headquarters.
Corporate Address:
Available financing options to help start the franchise.
Funding Year:
The main organization that owns the franchise brand.
Parent Company:
Teriyaki Madness Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
| Units | 2021 | 2022 | 2023 |
|---|---|---|---|
| Total Units | 89 | 100 | 123 |
| Net Change YoY | 11 | 23 | |
| Franchised Units | 88 | 100 | 122 |
| Net Change YoY | 12 | 22 | |
| Corporate Units | 1 | 0 | 1 |
| Net Change YoY | -1 | 1 |
Initial Investment
The initial investment for a Teriyaki Madness franchise ranges from $350,500 to $976,860. This includes a franchise fee of $45,000 and other startup costs associated with opening a new location. Aspiring franchisees should prepare for a comprehensive financial commitment that encompasses equipment, site development, and operational expenses.
Financial Performance
Teriyaki Madness units generate an average annual revenue of approximately $1,090,110, with a median revenue of $1,014,900. Revenue can vary significantly, with the lowest annual revenue reported at $368,639 and the highest reaching $2,683,444. These figures highlight the potential for profitability, but also the variability based on location and management.
Royalty and Marketing Fees
Franchisees are required to pay a royalty fee of 6% of gross sales, along with a marketing fee of 3%. These fees are essential for maintaining brand integrity and supporting national marketing efforts, which can drive customer traffic to individual franchise locations.
Breakeven and Payback Period
New franchisees can expect to reach their breakeven point within 12 months of operation, with an average investment payback period of 18 months. These timelines indicate a relatively quick return on investment, making Teriyaki Madness an attractive option for motivated entrepreneurs.
Franchise Growth
Teriyaki Madness has shown consistent growth in its franchised units, increasing from 88 units in 2021 to 122 units in 2023. This expansion reflects the brand's popularity and market demand, presenting opportunities for new franchisees to join a growing network.
Operational Insights
The average operating expenses for a Teriyaki Madness unit total approximately $1,244,844 annually. Key expense categories include cost of goods sold (72% of revenue) and various operational costs. Understanding these financial metrics is crucial for franchisees to manage their businesses effectively and optimize profitability.
Frequently Asked Questions
The initial investment for a Teriyaki Madness franchise ranges from $350,500 to $976,860. This includes the franchise fee, equipment, and other startup costs.