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SanSai Franchise Cost & Fees

Date Incorporation: 2004

Franchising Since:  2004

Headquarters: California

Description: The franchise operates a unique system for "fast casual" Japanese grills.

Franchise Offer: The franchisor is offering the right to operate a single SanSai franchised business using the SanSai mark, design and system. Qualified persons may also be granted the right to operate a specified number of SanSai franchised businesses in a designated territory under the terms of the area development agreement.

Financial Assistance: The franchisor does not offer direct or indirect financing.

Training and Assistance: The franchisee must attend an initial orientation, an initial training program, and ongoing refresher training. The initial training program lasts approximately two weeks and will be held at a corporate unit located in the Southern California or in St. Louis, Missouri. It consists of 18 hours of classroom training and 30 hours of ‘On-the-Job’ training. The initial training program must be completed before the opening of the franchise.

Territory: The franchisee will be granted an exclusive territory for the first 18 months of the franchise term. After this start up period expires the franchisor will provide the franchisee with a right of first refusal, before licensing other SanSai franchises inside the territory.

Term of Agreement and Renewal: The length of the franchise term is 10 years, with an option for renew for a single 5 year term.

Obligations and Restrictions: The SanSai Japanese Grill must be personally managed on a full-time basis by a person who has successfully completed mandatory training and met then-current standards. The franchisee must be personally and actively involved in the overall management of the SanSai Japanese Grill on an ongoing basis.

Total Number of Units: 32 outlets at the end of 2007

Total Number of franchises Units: 21 franchised outlets at the end of 2007

Investment Tables:

Initial Investment:
Expenditures Low High
Initial Franchise Fee $35,000 $35,000
Expenses While Training $1,500 $4,000
Real Estate Lease Review  $1,500 $2,500
Real Estate Deposits and Initial Rent $5,000  $17,000
Construction and remodeling $200,000 $350,000
Furnishings $20,000  $30,000
Signage $7,000 $12,000
Equipment $100,000 $125,000
Inventory $11,000 $16,000
Utility Deposits and fees $1,000 $2,000
Business License $500 $1,000
Insurance $2,000  $3,000
Computer hardware/software POS and PC $19,800 $27,000
Grand Opening Marketing Program $5,000 $5,000
Miscellaneous costs $3,100 $4,500
Additional Funds - 3 months $30,000 $45,000
TOTAL $442,400 $679,000


Ongoing fees:

Name of Fee Amount

Year 1: 3% of Gross Volume or $500 per week whichever is greater

Year 2: 4% of Gross Volume or $750 per week whichever is greater

Year 3 and thereafter: 5% of Gross Volume or $1,000 per week whichever is greater.

Interest and Late Fees Interest is highest applicable legal rate for open account business credit. (Not to exceed 1.5% per month)
Successor Fee 20% of the then-current Initial franchise fee (minimum of $5,000)
Marketing Fund Contribution 2% of Gross Volume or a minimum of $300 per week.
Local Marketing Expenses 3% of Gross Volume or $1,500 per month whichever is greater

On-Going Real Estate Expenses:

Amendments to Lease 

Modifications of Lease

Renewal of Lease

Relocation of Site








Transfer Fee $7,500
Transfer Fee - Area Development Agreement $7,500
Internet/Intranet Service Fee Once implemented, $150 per month
Convention Support Fee $500 per unit per year
Customer Satisfaction/Quality Control Measures To be determined
Management Fee (only on default by you) $500 per day plus expenses




The above information has been taken from the UFOC/FDD of SanSai

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