Hissho Sushi Franchise in 2024: Costs, Fee & FDD

Hissho Sushi, founded in 1998 by Philip Maung, is a dynamic force in the sushi industry. Maung, an immigrant from Burma, started Hissho with a dream to bring high-quality, accessible sushi to the American market. Over the years, Hissho Sushi has carved out a significant niche in the industry by placing its sushi bars in non-traditional locations like grocery stores, airports, and college campuses, making it a convenient choice for busy consumers. The brand’s commitment to innovation and quality has helped it stand out in a crowded market.

The core products of Hissho Sushi are, of course, its sushi offerings. The brand specializes in creating fresh, hand-rolled sushi, which includes a variety of traditional rolls, sashimi, and innovative fusion creations that cater to diverse tastes. Ancillary products include poke bowls, spring rolls, and other Asian-inspired dishes that appeal to a broad audience. Hissho’s core customers are health-conscious individuals looking for a quick, nutritious meal option, often found in bustling urban areas or places where convenience is key.

As of now, Hissho Sushi has grown significantly, boasting over 2,000 locations across the United States. The brand has successfully expanded its reach beyond grocery stores, establishing a presence in airports, hospitals, and college campuses. Hissho’s daily customer base is robust, serving thousands of people across its various locations, making it one of the largest sushi franchises in the U.S. The company’s ability to adapt to different environments has been a critical factor in its widespread appeal and continued growth.

Hissho Sushi offers a comprehensive support system for its franchisees. This includes a thorough training program that covers everything from sushi preparation to customer service and business management. Franchisees also benefit from ongoing support in marketing, supply chain management, and product development. The brand is known for its strong commitment to helping its franchisees succeed, providing resources that are tailored to the specific needs of each location. This support system is a key highlight for potential franchisees, ensuring that they are well-equipped to thrive in the competitive sushi market.

Hissho Sushi Franchise Insights

1. Hissho Sushi operates over 2,000 locations across the United States, making it one of the largest sushi franchises in the country.
2. The franchise focuses on high-traffic, non-traditional locations like airports and grocery stores, which contribute to a consistent and diverse customer base.
3. The brand’s innovative approach includes offering a wide range of sushi options, as well as poke bowls and Asian-inspired dishes, catering to health-conscious consumers looking for convenient meal options.

Hissho Sushi Franchise Key indicators

How much does it cost to open a Hissho Sushi franchise?

Understanding the potential investment size and capital requirements is crucial when considering opening a Hissho Sushi franchise. These financial commitments, including initial franchise fees, equipment costs, and ongoing operational expenses, impact the feasibility and profitability of the venture. Thoroughly evaluating these factors ensures that potential franchisees are prepared for the financial responsibilities and can make informed decisions about their ability to sustain and grow the business, ultimately contributing to long-term success.

Min & Max Investment

Opening a Hissho Sushi franchise involves several key costs, which are outlined in Item 7 of the Franchise Disclosure Document (FDD). You can see a breakdown of the costs to open a Hissho Sushi below from the most recent Item 7 below:

Item 7 in the Franchise Disclosure Document (FDD) is the “Estimated Initial Investment” section. It outlines the total costs a franchisee can expect to incur when starting a franchise, including the initial franchise fee, equipment, inventory, real estate, and other startup expenses. This section is crucial because it provides potential franchisees with a detailed understanding of the financial commitment required, helping them assess affordability and plan their investment strategy effectively.

Required Capital

For opening a Hissho Sushi franchise, while exact figures may vary, typical requirements for a franchise in this industry generally include the following:

• Initial Investment The total initial investment for a Hissho Sushi franchise can range from approximately $26,000 to $135,000, depending on the location and size of the operation. This estimate includes costs like franchise fees, equipment, inventory, and initial marketing expenses. Assuming that you will finance your franchise investment, you should plan to have 20% of the total investment amount in the form of equity (cash) for the investment.
• Liquid Assets Franchisees are usually required to have liquid assets of at least $50,000 to $100,000. This ensures that you have enough readily available capital to manage the day-to-day operations and any unexpected expenses.
• Net Worth A minimum net worth of around $200,000 to $500,000 is often required. This demonstrates financial stability and the ability to support the business long-term.

These figures are estimates based on similar franchises in the fast-casual and restaurant industry. It’s recommended to contact Hissho Sushi directly for the most accurate and up-to-date financial requirements.

How much does a Hissho Sushi franchise owner make?

Calculating the salary of a Hissho Sushi franchise owner involves analyzing gross sales to determine total revenue, assessing operational efficiency to understand profit margins, and accounting for franchisor fees and additional expenses such as rent, utilities, and payroll. Effective management of these factors can significantly impact the profitability and financial success of a Hissho Sushi franchise owner. This comprehensive financial analysis helps estimate net profits, from which the owner’s salary can be derived. A clear understanding of these factors ensures accurate salary projections and financial planning for sustainable business operations.

Hissho Sushi Revenue & Gross Sales

While specific revenue figures for Hissho Sushi franchises are not publicly disclosed, the franchise is recognized for its solid financial performance, driven by its fresh, high-quality sushi offerings and convenient locations. Generally, sushi franchises like Hissho Sushi can achieve impressive results when strategically placed in high-traffic areas such as grocery stores and airports. By maintaining a focus on product quality and leveraging the brand’s growing popularity, franchise owners have the potential to generate significant revenue and enjoy substantial returns on their investment.

Which key factors impact the average revenue performance of Hissho Sushi franchisees?

Several factors likely contributed to the performance of Hissho Sushi’s U.S. franchisee median gross sales over the past year. First, the increasing consumer demand for healthier, convenient food options has positioned Hissho Sushi favorably within the fast-casual dining segment. The brand’s strategic placement in high-traffic locations such as grocery stores, airports, and college campuses has likely boosted visibility and sales. Additionally, Hissho Sushi’s continuous innovation in menu offerings, such as introducing new sushi rolls and Asian-inspired dishes, has kept the brand relevant and appealing to a broad audience. Lastly, effective marketing strategies and strong franchisee support systems have also played a crucial role in maintaining and potentially increasing sales performance year over year.

Hissho Sushi Franchise Operational Costs

Operational costs for a franchise like Hissho Sushi are the ongoing expenses necessary to run the day-to-day operations effectively. These costs are crucial for maintaining the business’s quality and ensuring smooth operations. For a Hissho Sushi franchise, operational costs include:

• Food and Ingredient Costs The expenses incurred from purchasing high-quality, fresh ingredients essential for sushi preparation. This includes fresh fish, rice, vegetables, and other essential sushi components.
• Labor Costs Wages, salaries, and benefits for employees, particularly skilled sushi chefs and support staff who play a vital role in maintaining the brand’s quality standards.
• Rent or Lease Payments The cost of leasing the space where the sushi bar is located, including rent, property taxes, and insurance for the location.
• Utilities Expenses for electricity, water, gas, and other utilities necessary for running the sushi bar, especially in high-traffic areas like grocery stores or airports.
• Equipment Maintenance and Repairs Costs associated with the upkeep of sushi-making equipment, refrigeration units, and other essential tools. This includes routine maintenance and unexpected repairs.
• Supplies and Inventory This includes sushi packaging materials, kitchen supplies, cleaning products, and uniforms, as well as managing the inventory effectively to avoid waste.
• Local Marketing and Promotions While national advertising might be covered by the brand, franchisees may need to invest in local marketing efforts to attract and retain customers in their specific area.
• Insurance Costs for various insurance policies, including liability insurance and worker’s compensation, which are essential for protecting the business.
• Technology and Equipment Upgrades Expenses related to maintaining and upgrading point-of-sale systems, kitchen equipment, and any other technological infrastructure required for efficient operations.

Careful management of these operational costs is vital for the financial health and success of your Hissho Sushi franchise.

Hissho Sushi Franchise Fees

When considering the ongoing fees associated with a Hissho Sushi franchise, it’s important to be aware of the various costs that will impact your business operations. Below are some of the key fees to consider:

• Compensation to Franchisor This fee varies by location and Retail Host, typically requiring 26% of Gross Sales to be paid to the Retail Host, and 0% to 25% of Gross Sales going to the franchisor. The fee is due monthly, based on the previous month’s Gross Sales, and may be deducted directly from your Franchise Commissions.
• Brand Fund Contribution Up to 2% of Net Sales is required for the Brand Fund Contribution, which may also be deducted directly from your Franchise Commissions.
• Sales Inquiry Fee A $100 fee is charged for each monthly statement where you request sales or other financial information. This fee is due each time a sales report is requested and may be deducted directly from your Franchise Commissions.
• Additional Fees Depending on the specific terms of your franchise agreement and location, there may be other fees, such as technology fees, training fees, or local marketing contributions, that you will need to account for.

Careful planning and understanding of these fees are essential for the financial health of your Hissho Sushi franchise.

Hissho Sushi Franchise Earnings

While specific earnings data for Hissho Sushi franchises is not available, an informed overview based on industry standards and the franchise’s characteristics can offer valuable insights. Hissho Sushi, with its strategic placement in high-traffic locations and focus on fresh, quality sushi offerings, has the potential to generate substantial revenue in the fast-casual dining sector. Factors such as location, customer traffic, and effective management are crucial in determining the financial performance of each franchise.

Industry benchmarks for similar sushi and fast-casual franchises indicate that gross sales can vary significantly, with well-placed and efficiently operated franchises achieving impressive sales figures. The initial investment and ongoing costs, including food and labor expenses, should be carefully considered when projecting potential earnings. Typically, franchises with strong support systems and comprehensive training programs, like Hissho Sushi, are better positioned to reach profitability.

Prospective franchisees should conduct thorough market research and consider factors such as local competition and customer demographics. By leveraging the brand’s growing popularity and adhering to best practices, a Hissho Sushi franchise can become a profitable venture, aligning with the earnings potential observed in successful fast-casual franchises. Consulting with current franchisees and financial advisors can also provide valuable insights into realistic earnings expectations.

How to Open a Hissho Sushi Franchise

Becoming a Hissho Sushi franchisee involves several key steps, from initial inquiry to the start of operations. Here’s a general overview of the process:

1. Initial Inquiry You or your franchise specialist submits an initial inquiry basic information about your interest and background. You should also conduct thorough research on the franchise, including seeing all of the information available on the Vetted Biz franchise intelligence platform, including access to the most recent Franchise Disclosure Document (FDD).
2. Franchise Application After your inquiry is reviewed, you’ll be invited to complete a more detailed franchise application. This step involves providing comprehensive information about your financial situation, business experience, and why you’re interested in becoming a Hissho Sushi franchisee.
3. Discovery Day Next, you may be invited to a Discovery Day, where you visit the Hissho Sushi headquarters. During this visit, you’ll meet key members of the franchise team, learn more about the brand, and get a better sense of the operational aspects of the business. This is also an opportunity for both parties to evaluate if the partnership is a good fit.
4. Franchise Agreement If you and Hissho Sushi decide to move forward, the next step is to sign the Franchise Agreement. This legally binding contract outlines the terms and conditions of your relationship with the franchisor, including your rights, responsibilities, and the fees you will pay.
5. Site Selection and Lease Negotiation Once the agreement is signed, the process of site selection begins. Hissho Sushi will assist you in finding a suitable location, often in high-traffic areas such as grocery stores or airports. They’ll also help negotiate the lease terms to ensure they are favorable.
6. Training Program Before opening, you’ll undergo a comprehensive training program. This training covers everything from sushi preparation and inventory management to customer service and marketing. The goal is to equip you with the knowledge and skills necessary to run a successful Hissho Sushi franchise.
7. Build-Out and Setup With the location secured, the build-out and setup of your sushi bar begin. This includes purchasing equipment, setting up the kitchen, and ensuring that everything meets Hissho Sushi’s brand standards.
8. Pre-Opening Marketing Prior to opening, Hissho Sushi will assist you with pre-opening marketing efforts to build excitement and awareness in your local community. This might include social media campaigns, local advertising, and promotions.
9. Grand Opening and Start of Operations Finally, once everything is in place, your franchise is ready to open. Hissho Sushi typically provides support during the grand opening to ensure a smooth launch. From there, you’ll start daily operations, with ongoing support from the franchisor as needed.

Pros & Cons

Pros

Strategic Location Opportunities: Hissho Sushi places its franchise units in high-traffic areas like grocery stores, airports, and college campuses, offering excellent visibility and consistent customer flow.

Growing Demand for Healthy Options: The increasing consumer demand for fresh, healthy, and convenient food options positions Hissho Sushi well in the fast-casual dining market.

Established Brand Reputation: With years of experience in the industry, Hissho Sushi has built a strong brand reputation, which can be a significant advantage in attracting customers and building trust.

Innovation in Menu Offerings: The franchise regularly updates its menu with new sushi rolls and Asian-inspired dishes, keeping the brand relevant and appealing to a wide customer base.

Cons

Competitive Market: The fast-casual dining sector, especially in urban areas, is highly competitive, and standing out in a crowded market can be challenging.

Dependence on High-Traffic Locations: Success is heavily tied to securing a prime location in high-traffic areas. If a suitable location isn’t available or the area doesn’t perform as expected, it could impact your profitability.

Operational Complexity: Managing a sushi bar requires attention to detail, particularly in food safety, quality control, and staffing. The operational demands can be higher compared to other fast-casual franchises.