Teriyaki Madness Franchise Costs, Fees & FDD

Year Business Began: 2003

Franchising Since: 2005

Headquarters: Denver, Colorado

Estimated Number of Units: 160

Franchise Description: The franchisor is M. H. Franchise Company Inc. Teriyaki Madness businesses are fast casual restaurants (sometimes referred to as “shops”) that make and sell Japanese-style teriyaki dishes and other specialty food items, beverage items, and other items.
Training Overview: The franchisor provides an initial training program that consists of approximately 30 hours of training that is conducted over a period of approximately four days. The initial training program is required for franchisees or their managing owner and their designated manager (if applicable) for their first shop. The initial training program is conducted at either the franchisor’s designated training facility in Denver, Colorado or at the location of the franchisor’s choice. Franchisees and their designated manager (if applicable) for their first shop are also required to successfully complete all currently offered courses on the franchisor’s online training platform and learning management system. The online training program currently consists of approximately 14 hours and 25 minutes of training. Additionally, franchisees or their managing owner and their designated manager (if applicable) for their first shop will be required to travel to the franchisor’s designated training facility or to the location of the franchisor’s choice for 10 days of hands-on training. The hands-on training program consists of approximately 119 hours of training. During the opening of the Teriyaki Madness business, the franchisor will provide an on-site training program that consists of between 10 and 17 days for a franchisee’s first shop, at its discretion. The franchisor may offer continuing, refresher or additional training courses from time to time. If the franchisor does, these courses will be mandatory for the managing owner and designated manager.

Territory Granted: Franchisees will operate their Teriyaki Madness business at an approved location within the “area of protection.” The area of protection is based on the geographic area and population properties within that territory and other relevant demographic characteristics. During the term of the Franchise Agreement, with exceptions as provided, the franchisor will not establish or operate, or franchise any person to establish or operate, a business using the marks and system at any location within the area of protection for each Teriyaki Madness business. The scope of the area will likely differ among franchisees, and will be determined by population density and demographics, and geographical and political boundaries. As a general rule, the area of protection will include an area with a population of approximately 25,000 people.

Obligations and Restrictions: The Teriyaki Madness business, according to the franchisor, shall be managed by franchisees (or if the franchisee is an entity, by a managing owner). Under certain circumstances, the franchisor may allow franchisees to appoint a designated manager to supervise the day-to-day operations of the Teriyaki Madness business. Franchisees are required to offer for sale only products and services that have been approved and specified by the franchisor in writing. Franchisees may not offer for sale any products or services not specifically approved by the franchisor in writing and they may not use their Teriyaki Madness business premises for any other purpose than the operation of a Teriyaki Madness business and the sale of products or services approved by the franchisor.

Term of Agreement and Renewal: The length of the initial franchise term is 10 years. Two five-year renewal periods are available if franchisees meet certain conditions.

Financial Assistance: The franchisor does not offer direct or indirect financing. The franchisor does not guarantee a franchisee’s notes, leases, or any other obligations. The franchisor currently offer a 15% discount to individuals who have been in the hospitality industry for a minimum of three years.

Estimated Initial Investment

Name of Fee	Low	High
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	$21,000
Permit Expeditor	$0	$3,500
Leasehold Improvements	$134,000	$520,000
Furniture, Fixtures and Equipment	$76,000	$174,000
Architect	$16,500	$30,500
Initial Inventory and Supplies	$17,000	$18,000
Insurance	$1,500	$5,000
Business Licenses and Permits	$500	$9,860
Professional Fees	$2,500	$4,000
Exterior Signage	$5,500	$27,000
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	$7,500
Additional Funds –3 Months	$10,000	$30,000
ESTIMATED TOTAL	$376,200	$975,860

 
Other Fees

Type of Fee	Amount
Royalty Fee	6% of net sales.
Marketing Fund Contribution	3% of net sales.
Grand Opening Advertising	Minimum of $10,000, including upon a transfer or relocation.
Technology Fee	Up to $600 per month per shop (currently $99.95 per month until the first shop opens and then $395 per month per opened shop).
Continuing, Refresher, Additional Training or Assistance Fees	An amount set by the franchisor (currently $500 per person per day for additional training plus all travel expenses).
Conference Fee	An amount designated by the franchisor.
Transfer Fee	$25,000
Renewal Franchise Fee	$5,000
Relocation Fee	$5,000 per shop.
Food Safety Audit	Cost of audit (estimated to be approximately $300). Cost of retraining (estimated to be approximately $3,000).
Audit	Cost of audit, plus lesser of the daily equivalent of 15% per year simple interest or the highest rate allowed by law (the franchisor estimates this cost to be between $1,000 and $15,000).
Taxes	Amount assessed by federal, state and local tax authorities on any payments franchisees make to the franchisor.
Indemnification	Varies under circumstances.
Legal Costs and Professional Fees	Will vary under circumstances.
De-Identify Premises	Will vary under circumstances.
Insurance	Reimbursement of the franchisor’s costs plus a 20% administration charge.
Liquidated Damages	Will vary under the circumstances.
Maintenance Fee	Varies under circumstances.
Failure to Submit Required Reports	$100 per occurrence and $100 per week.
Supplier and Product Evaluation Fee	Cost of inspection (estimated to be approximately $100 to $500).
Customer Satisfaction Reimbursement	Varies under circumstances.
Interim Manager Fee	$500 per day plus the interim manager’s direct out-of-pocket costs and expenses.
Broker Fees	The franchisor’s actual cost of the brokerage commissions, finder’s fees, or similar charges.

The above information has been compiled from the FDD of Teriyaki Madness. Year of FDD: 2025.
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