Ace Sushi Franchise Corporation
Date Incorporation: 2004
Franchising Since: 2005
Headquarters: California
Description: The franchisee will operate an ACE Sushi Bar in grocery stores, supermarkets and other locations offering high quality, raw and cooked sushi and related food products as carry-out items for off-premises consumption.
Franchise Offer: The franchise grants the right to establish and operate one Main Sushi Bar at a Store selected by them. The term of the franchise agreement will be 24 months. The franchise agreement may also grant the right to deliver proprietary products from the main Ace Sushi Bar to satellite stores under a satellite store addendum.
Financial Assistance: The franchisor offers a financing package for the initial franchise fee. The franchisor will finance $3,000 to $4,000 of the fee, for a term of 12 months with no down payment and monthly repayments depending on the number of months given to pay the initial franchise fee. There is no interest rate on the package.
Training and Assistance: The franchisee must successfully complete the initial training program to the satisfaction of the franchisor. The training fee is $700 for the initial training program, and $500 for each additional trainee, payable before training begins. The initial training program currently consists of 42 hours of ‘On-the-Job’ and classroom training.
Territory: The franchisee will be granted a specific Main Sushi Bar location and may conduct business only at this franchised location. They will not receive any protected territory nor will they have any exclusive rights to the franchised location or the geographic territory in which the Main Sushi Bar is located.
Term of Agreement and Renewal: The term of the franchise agreement is 24 months or the term of the sushi supply agreements with the store owners, whichever is less. The franchisee may renew for an additional period of 24 months or the term agreed.
Obligations and Restrictions: The franchisee must actively participate in the ACE Sushi Bar's operations. Unless the franchisor approves otherwise, only the franchisee may be the ACE Sushi Bar's principal operator. The ACE Sushi Bar must be managed at all times by the franchisee or one full-time management employee who has completed the minimum level of training required of in-store management employees.
Total Number of Units: 387 units at the end of 2007
Total Number of franchises Units: 349 franchised units at the end of 2007
Investment Tables:
Initial Investment:
| Expenditures | Low | High |
|---|---|---|
| Initial Training Fee | $700 | $1,700 |
| Initial Franchise Fee | $3,000 to for each Sushi Bar and $300 to for each Satellite Store | $4,000 to for each Sushi Bar and $400 to for each Satellite Store |
| Equipment | $1,000 | $2,500 |
| Licenses | $100 | $500 |
| Insurance | $500 | $5,000 |
| Initial Food Inventory | $3,000 | $5,000 |
| Initial Small Wares, Supplies, Uniforms and Other Non-Food Items | $200 | $300 |
| NSF Approved Camcarrier | $300 | $300 |
| Refrigerated Display Case and Refrigerated Table | $32 | $259 |
| Label Machine with Label Template | $300 as a on-time payment and $300 for templates | $300 as a on-time payment and $1,600 for templates |
| Computer System | $400 | $1,200 |
| Expenses Before Opening | $500 | $5,000 |
| Security Deposit | $2,500 | $5,000 |
| Additional Funds, Working Capital Reserve | $5,000 | $10,000 |
| TOTAL | $18,132 | $43,059 |
Ongoing fees:
| Name of Fee | Amount |
|---|---|
| Compensation to ACE | Varies. Typically 25% - 45% of "Gross Sushi Sales" |
| Expenses (Food Charges, Freight Charges, Insurance Charges, Equipment Charges, Initial Franchise Fee and other amounts due to us or AMG or ACE) | Varies. Typically, Food Costs: 20% - 30% of Gross Sushi Sales; Freight Charges: 1% -5% of Gross Sushi Sales; Insurance Charges: .5% - 5% of Gross Sushi Sales; Equipment Charges: .05% -4% of Gross Sushi Sales; Other Charges: .001% -1% of Gross Sushi Sales |
| NSF Approved Camcarrier | $300 |
| Refrigerated Display Case and Refrigerated Table | 36 monthly lease payments of $235 |
| Uniforms | $200 |
| Label Machine. | $300 one-time payment; monthly lease payments of $95 and monthly maintenance fees of $15 |
| Pricing Labels | Franchisor’s cost, estimated to be approximately $500 per item for which a price is changed |
| Initial Training Fee | $700 for franchisee and $500 for each additional employee |
| Additional Training and Education Programs | $100-$500 per trainee necessary to defray franchisors direct costs to provide additional training programs |
| Administrative Transfer Fee and Costs | $3,000 plus franchisors out of pocket costs associated with the transfer, including costs of attorneys' fees associated with the transfer |
| Management Fee | $500 per day plus the travel and lodging fees for franchisors employees |
| Renewal Fee | 50% of franchisors then-current Initial Franchise Fees |
| Supplier Approval Fee | $200 - $600 per item |
| Interest on Overdue Payments | Lesser of 18% per year or maximum rate permitted by law which may range from $10 - $500 or more |
| Adulteration, Health Violation or Failure of Sanitation Inspection Fee | Franchisors expenses including attorneys' fees, and inspection fees of a minimum of $500 |
| Reimbursement of money paid by us on your behalf | Varies with circumstances and may range from $100 - $5,000 or more |
| Costs and Attorneys' Fees |
Will vary under circumstances and may range from $1,000 -$25,000 or more |
| Audit Expenses | Cost of audit and interest on underpayment or over payment at 10% per annum or the maximum rate permitted by law which may range from $1,000 - $5,000 or more |
| Indemnification | Will vary under circumstances and may range from $1,000 -$25,000 or more |
| Lost Manual Fee | $1,000 |
| Web Site Usage Fee | $20 - $40 per month |
| Security Deposit | $2,500 - $5,000 |
Date of FDD: 01/04/2008
The above information has been taken from the UFOC/FDD of Ace Sushi Franchise Corporation
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