Teriyaki Madness Franchise in 2024: Costs, Fee & FDD
Uncover the key reasons Teriyaki Madness is making waves in the fast-casual industry. Explore its growth, low overhead, and solid franchise support. Could this be your next low-cost franchise restaurant investment? Learn more now!
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Teriyaki Madness is a fast-casual franchise that focuses on bringing bold, Asian-inspired flavors to the masses. Founded in 2003 by Rod Arreola, Alan Arreola and Eric Garma, it quickly gained a reputation for offering fresh, customizable teriyaki bowls made with high-quality ingredients. What sets Teriyaki Madness apart is its fun, relaxed vibe and a focus on customer satisfaction, making it a significant player in the quick-service restaurant (QSR) industry. Haith, along with his leadership team, aimed to create a franchise that balances bold flavors with simplicity, and they’ve hit a sweet spot, especially for those craving a healthier, fast-casual dining option.
At its core, Teriyaki Madness is all about customizable bowls filled with teriyaki chicken, beef, and tofu, accompanied by rice or noodles, fresh veggies, and house-made sauces. While teriyaki bowls are the star of the menu, they also offer a range of other options, like egg rolls, edamame, and salads, which cater to a broad audience, from health-conscious diners to those seeking a quick, flavorful meal. Their core customer tends to be individuals looking for a satisfying, healthier alternative to typical fast food—think busy professionals, students, and families who want tasty, fresh food on the go.
As of today, Teriyaki Madness has grown steadily, with over 120 locations across the U.S., and the brand continues to expand internationally. It’s a franchise with a strong presence in major cities and suburban markets alike, serving thousands of customers daily. Their streamlined operations make it a go-to choice for franchisees who want to jump into a growing market without the complications that come with larger restaurant concepts. The focus on healthy, customizable meals resonates with today’s consumers, which helps maintain a loyal customer base.
When it comes to franchisee support, Teriyaki Madness really shines. They provide comprehensive training programs that cover everything from operations and food preparation to marketing and customer service. New franchisees go through an extensive onboarding process, which includes in-store training and ongoing coaching. The brand also offers strong marketing support, with national advertising campaigns and local marketing strategies to help franchisees succeed. The low overhead and simple business model, combined with top-notch support, make Teriyaki Madness an attractive investment for those looking to enter the QSR space.
Teriyaki Madness Franchise Insights
- Founded in 2016, Teriyaki Madness has rapidly expanded its franchise network and now has 139 U.S. locations, with 138 franchised units and just 1 corporate unit, showing a strong focus on franchising growth.
- The franchise operates under 6% royalty fees and 3% marketing fees, with a franchise fee of $45,000 giving potential franchisees a clear view of the financial commitment.
- Teriyaki Madness has been working with franchise brokers since it started offering franchises in 2016, emphasizing its franchisee-friendly approach.
- Teriyaki Madness has a comprehensive training program, offering 3 weeks of hands-on, in-store training, followed by ongoing operational support to ensure franchisee success.
Teriyaki Madness Franchise Key indicators
Growth YOY (%)
14%
vs industry 0%
Total U.S. Franchised Units
138
3-Year Failure Rate
18%
vs industry 10%
Sales-to-Investment ratio
2.6:1
How much does it cost to open a Teriyaki Madness franchise?
Understanding the potential investment size and capital requirements is crucial when considering opening a Teriyaki Madness 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 Teriyaki Madness 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 Teriyaki Madness below from the most recent Item 7 below:
| Type of Expenditure | Minimum Investment | Maximum Investment |
|---|---|---|
| Initial Franchise Fee | $45,000 | $45,000 |
| Shop Opening Assistance Fee | $27,500 | $27,500 |
| Site Survey | $2,000 | $6,500 |
| Rent, Security Deposit, Utility Deposit | $7,000 | $18,000 |
| Permit Expenditure | $0 | $3,000 |
| Leasehold Improvements | $95,000 | $505,000 |
| Furniture, Fixtures and Equipment | $91,800 | $201,000 |
| Architect | $16,500 | $29,500 |
| Initial Inventory and Supplies | $15,000 | $18,000 |
| Insurance | $1,500 | $5,000 |
| Business Licenses and Permits | $500 | $9,860 |
| Professional Fees | $2,500 | $30,000 |
| Exterior Signage | $5,000 | $25,000 |
| Interior Branding/Graphics | $6,800 | $10,000 |
| Security and Music System | $1,600 | $2,000 |
| Point of Sale System | $10,000 | $15,000 |
| Office Equipment and Supplies | $1,000 | $4,000 |
| Grand Opening Promotion | $10,000 | $10,000 |
| Uniforms | $600 | $1,000 |
| Initial and Hands-On Training Expenses | $1,200 | $4,500 |
| Opening Extension Fee | $0 | $3,000 |
| Additional Funds - 3 Months | $10,000 | $30,000 |
| Total Estimated Initial Investment | $350,500 | $976,860 |
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
To open a Teriyaki Madness franchise, the required capital involves both the initial investment costs and a net worth requirement set by Teriyaki Madness. Let’s take a closer look below:
- Total estimated initial investment $350,500 – $976,860. This is the official range provided by Teriyaki Madness and includes everything from the franchise fee, build-out, equipment, and working capital for the early months of operation. 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 required Typically, franchises in this industry require at least $100,000 – $150,000 in liquid assets. This is an estimate based on similar franchises and ensures you have readily available cash to handle upfront costs and initial working capital needs.
- Net worth required Many franchisors in the QSR industry expect franchisees to have a minimum net worth of $500,000 or more. This is an estimate based on industry standards, which ensures financial stability to sustain the business long-term.
How much does a Teriyaki Madness franchise owner make?
Calculating the salary of a Teriyaki Madness 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 Teriyaki Madness 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.
Teriyaki Madness Revenue & Gross Sales
Based on most recent analysis, Teriyaki Madness franchisees have a median gross sales of $1,756,105. This strong financial performance underscores the brand’s robust consumer demand and potential for significant revenue generation.
Which key factors impact the average revenue performance of Teriyaki Madness franchisees?
The performance of U.S. franchisee median gross sales for Teriyaki Madness over the past year was likely influenced by several key factors. First, the rising consumer demand for healthier, customizable fast-casual options may have driven more foot traffic and online orders. Additionally, the brand’s focus on digital marketing and delivery platforms likely expanded its customer reach, especially during periods of increased takeout and delivery demand. Economic conditions, such as inflation and supply chain challenges, could have affected food costs, potentially impacting overall margins but not necessarily reducing sales. Lastly, the franchise’s expansion into new markets and consistent brand recognition likely contributed to higher year-over-year sales performance.
Teriyaki Madness Franchise Operational Costs
When opening a Teriyaki Madness franchise, key ongoing operational costs will include several factors that can impact profitability:
- Labor costs Staffing is a significant expense, covering wages, payroll taxes, and benefits for employees. Managing labor efficiency is critical to maintaining profitability.
- Food and supply costs The cost of fresh ingredients and supplies, including chicken, beef, rice, sauces, and packaging, will fluctuate depending on market prices and supplier agreements.
- Rent and utilities Your lease agreement for the restaurant space, along with utilities like electricity, gas, water, and internet, will be a consistent ongoing expense, especially in high-traffic areas.
- Marketing and local promotions Although national marketing is covered by fees, you’ll likely invest in local advertising and promotions to drive customer traffic to your specific location.
- Equipment maintenance and repairs Regular upkeep of kitchen equipment, POS systems, and other essential tools is necessary to keep operations running smoothly and avoid costly downtime.
These are the primary operational costs that will need to be managed efficiently to maintain profitability in your franchise location.
Teriyaki Madness Franchise Fees
Teriyaki Madness requires their franchisees to pay the below fees:
- Royalty Fee 6% of net sales, paid weekly. This fee grants you access to the brand’s intellectual property and system support, ensuring ongoing assistance in running your franchise.
- Marketing Fund Contribution 3% of net sales, paid at the same time as the royalty fee. This goes towards the collective marketing efforts of the brand, helping boost your visibility through national and regional campaigns.
- Grand Opening Advertising A minimum of $10,000, spent before and after the grand opening. This investment helps promote your store to the local community during its critical launch phase.
- Potential Additional Fees There may be additional costs, such as local marketing efforts, special promotions, or fees for specific services, depending on the franchisor’s requirements and your location.
These fees are crucial for ensuring that you receive the necessary support and exposure as you operate your Teriyaki Madness franchise.
Teriyaki Madness Franchise Earnings
Based on the most recent data, a Teriyaki Madness franchise saw median gross sales of approximately $1,756,105 for a location. For an owner-operator, the corresponding earnings were around $263,416 based on industry margins. These figures represent a healthy revenue stream, showcasing the profitability potential of the franchise model.
While earnings can vary based on location, operational efficiency, and other factors, this data highlights that Teriyaki Madness can provide strong returns, particularly for hands-on franchisees who manage day-to-day operations. These numbers make it clear that Teriyaki Madness is positioned as a strong option in the quick-service restaurant market, especially for franchisees looking to maximize their personal involvement.
How to Open a Teriyaki Madness Franchise
Here’s an overview of the process to become a Teriyaki Madness franchisee:
- 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).
- Franchise Application You’ll be asked to complete a detailed application, providing information about your background, financial qualifications, and business experience. This helps the franchisor assess if you meet the minimum requirements.
- Discovery Day Next, you’ll attend a Discovery Day at the Teriyaki Madness headquarters. This is an opportunity to meet the executive team, learn more about the business model, and visit a working location to experience operations firsthand.
- Signing the Agreement Once both parties are confident about moving forward, you’ll sign the franchise agreement and officially become a Teriyaki Madness franchisee.
- Training Program Before opening, you’ll undergo an extensive training program that includes in-store, operational, and marketing training to ensure you’re fully prepared to run the business.
- Site Selection and Build-Out Teriyaki Madness will assist with selecting the right location and managing the build-out process. This includes negotiating the lease and designing the restaurant according to brand standards.
- Grand Opening and Operations Once the location is built and staff is trained, you’ll have a grand opening event to introduce your business to the local community. From there, ongoing operations begin, supported by the franchisor through regular consultations and marketing efforts.
Pros & Cons
Pros
Strong Brand Appeal: Teriyaki Madness is part of the growing fast-casual segment, offering healthier, customizable meals that are in high demand among health-conscious consumers.
Low Overhead Costs: Compared to larger restaurant franchises, Teriyaki Madness has a relatively low investment range and manageable overhead, making it accessible to a wider range of investors.
Growth Potential: With over 120 locations and growing, there’s a strong opportunity to benefit from the franchise’s expansion into new markets.
Cons
Operational Involvement: As with many restaurant franchises, this is a hands-on business that requires significant time and effort, especially in the early stages.
Market Competition: The fast-casual space is competitive, and it’s important to consider local market saturation when choosing a location.
Initial Investment Range: While the costs are lower than many larger franchises, the initial investment of $350,500 – $976,860 is still significant and requires careful financial planning.
