Franchise Deep Dive: Teriyaki Madness Franchise Costs, Fees, Profit and Data

The fast-casual concept has been called the “fastest-growing big restaurant chain” and offers owners a chance to invest in an increasingly popular market.

By Katie Porter1851 Franchise Contributor

Updated 2:14PM • 03/19/23

LAST UPDATED: December 27, 2022

FRANCHISE WEBSITE: www.franchise.teriyakimadness.com/

NUMBER OF LOCATIONS: 125+

REPORTED COST TO GET IN: $346,400 – $768,760

ESTIMATED ANNUAL PROFITS: $110,112 – $220,224 (VettedBiz calculation)

Teriyaki Madness is a burgeoning Japanese-style fast-casual franchise that serves teriyaki dishes, specialty food items, beverages and more. The company is headquartered in Denver, Colorado and has grown to reach triple-digit locations in the last couple of years, with a tremendous momentum for development. In its segment, Teriyaki Madness competes against brands like Pei Wei Asian Eatery, Pick Up Stix and Panda Express.

How Many Teriyaki Madness Locations Are There?

As of December 2022, Teriyaki Madness’ website claims there are more than 125 locations open in the United States, Mexico and Canada. Data from the 2021 Franchise Disclosure Document shows most stores were franchisee-owned, with 100 franchise units operated by 31 franchisees and 1 corporate-operated entity at the time of publishing.

The brand has seen a big influx in interest in recent years, more than doubling its footprint since 2019. Teriyaki Madness started 2019 with 42 outlets, ended 2020 with 88, ended 2021 with 101 and will wrap up 2022 with close to 130 locations in operation. VettedBiz calculates that this is an average of 19 units opened each year, even throughout the difficulties of the pandemic.

This surge in development has also helped company-wide sales, which grew 39% in 2020 and reached the $60 million mark. Same-store sales grew about 18% during that same period, Franchise Chatter shows. The brand has also been rapidly growing its corporate staff to ensure there is enough support at its headquarters to aid new owners, increasing the employee count by more than 50%.

Such tremendous growth has not gone unrecognized by those in the franchising sphere: Restaurant Business recently called Teriyaki Madness the #1 fastest-growing restaurant chain, Fast Casual listed them in its Top 100 Movers & Shakers list, and QSR Magazine ranked the chain as #4 for Best Franchise Deals.

What is the Teriyaki Madness Model?

Teriyaki Madness’ 2020 FDD states that the company has been offering franchises since March 2016. The concept is a made-to-order fast-casual eatery where high-quality meats are cooked and marinated and served quickly for either dine-in, takeout or delivery. Customers are typically in the age demographic of between 18 and 49 years old. The company also has popular catering service offerings that offer additional streams of revenue for franchise owners.

The FDD explains that there are three different franchise packages offered, varying based on the number of units an investor would like to sign up for initially. A “Single Franchise” is for one location, a “Standard Franchise” is for three Teriyaki Madness locations and the “Platinum Franchise” package offers territory rights to open five stores. These three models have different initial investment points, but there are discounts available for those who sign agreements for multiple locations.

How Much Can Teriyaki Madness Franchise Owners Make?

Franchise Chatter compared past years’ financial performance representations to show the average, high and low numbers for each location’s sales. To be included in the data set, the stores had to be open for at least two years with no change of ownership, were in “traditional locations” between 1,350 square feet and 3,000 square feet and not currently for sale.

The average gross sales (AGS) for the last five years are:

2021: $1,161,201
2020: $1,079,488
2019: $1,154,180
2018: $1,134,507
2017: $1,079,140

VettedBiz estimates that based on 2021’s AGS of $1,161,201 and a 15% profit margin, it takes about five years for a franchise owner who made a midpoint investment of $557,580 to realize a return on that money. This is fairly fast for the fast-casual space.

How Much Does it Cost to Open a Teriyaki Madness?

The total investment required when a new franchisee signs a franchise agreement with Teriyaki Madness is dependent on the model chosen, varying from $346,400 to $768,760. An owner can see savings when they bundle for a three-unit or five-unit deal.

Franchise Chatter broke down the initial investment costs from the 2022 FDD:

Shop Opening Assistance Fee: $27,500 for the first location, optional after that
Site Investigation: $1,000 per location
Site Survey: $2,000 to $5,000 per location
Rent, Security Deposit, Utility Deposit: $7,000 to $13,000
Permit Expeditor: $1,000 to $2,000 per location
Leasehold Improvements: $100,000 to $260,000 per location
Furniture, Fixtures, and Equipment: $90,000 to $170,000 per location
Architect: $11,500 to $15,000 per location
Initial Inventory and Supplies: $12,500 to $17,000 per location
Insurance: $1,500 to $5,000 per location
Business Licenses and Permits: $500 to $9,860 per location
Professional Fees: $2,500 to $4,000 per location
Signage: $9,000 to $23,900 per location
Security and Music System: $1,600 to $2,000 per location
Office Equipment and Supplies: $12,000 to $15,000 per location
Grand Opening Promotion: $10,000 per location
Uniforms: $600 to $1,000 per location
Initial and Hands-On Training Expenses: $1,200 to $4,500 per location
Opening Extension Fee: $250 per week, starting the 54th-week post-signing
Additional Funds – 3 Months: $10,000 to $30,000

Ongoing Costs and Fees include:

Royalty: 6% of net sales
Marketing Fee: 3% of net sales
Technology fee: Up to $600 per month/per location

What is the Franchise Fee for Teriyaki Madness?

The franchise fee to open a Teriyaki Madness varies depending on if the investor signs an agreement for one unit, three or five. A “Single Franchise” is available for $45,000, a “Standard Franchise” for a discounted $99,000 and a “Platinum Franchise” for a low rate of $150,000. Those who would like to renew their franchise agreement with Teriyaki Madness can do so for 10% of the present-day fee.

Who is the Leadership of Teriyaki Madness?

What Helpful Articles Can I Read to Learn More About Teriyaki Madness?

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