Week 3: Teriyaki Madness & The Dog Stop
Fast casual asian cuisine + a dog services brand
Welcome to Franchise Breakdowns, a weekly email covering up & coming franchises to help you find the next big brand. If youâre reading this but havenât subscribed, you can do so here:
DISCLAIMER: DO NOT CONSIDER ANYTHING WRITTEN BELOW AS INVESTMENT ADVICE. IF YOU DECIDE TO PURCHASE A FRANCHISE, YOU MUST DO YOUR OWN RESEARCH, AND REALIZE ANY INVESTMENT MAY GO TO $0.00.
To franchise owners,
Todayâs edition highlights Teriyaki Madness, a restaurant serving up fresh grilled asian cuisine, and The Dog Stop, a near one stop shop for dog owners.
Letâs get the breakdowns below! đ
DISCLAIMER:Â DO NOT CONSIDER ANYTHING WRITTEN BELOW AS INVESTMENT ADVICE. IF YOU DECIDE TO PURCHASE A FRANCHISE, YOU MUST DO YOUR OWN RESEARCH, AND REALIZE ANY INVESTMENT MAY GO TO $0.00.
Teriyaki Madness
Background
Based out of Denver, Colorado
Founded in 2003, franchising since 2005
Restaurants typically need 1,400 - 2,000 square feet of space
Serves bowls with fresh grilled meat with teriyaki sauce, and your choice of white rice, brown rice, fried rice or noodles, and steamed or stir-fried veggies
Number of Units
78 locations as of 2020, +85.7% growth over the last 3 years
Source: Entrepreneur.com
Fees, Expenses (2020 FDD)
Initial franchise fee: $45,000
Royalty Fee: 6% of gross sales
Brand Development Fund: 3% of gross sales
Initial Investment (2020 FDD)
Traditional Location: $322,755 - $845,435
Leasehold improvements make up $120k-$329k of the range
Furniture, fixtures, & equipment make up $51k-$126k of the range
Financial Performance (2020 FDD)
2019 Franchisee Performance:
Median Gross Sales: $1,183,295
Average Gross Sales: $1,154,170
Note: The above statistics were based off of 15 franchised Teriyaki Shops that were open for at least 2 years, were larger than 1,350 square feet, were in traditional locations, and havenât had a change of ownership for the last 2 years.
2019 Franchisee Operating Income Statement:
Note: Operating income is defined by Teriyaki madness as Gross Profit less payroll and labor expenses, occupancy expenses, and direct operating expenses.
The Wolfâs Take đÂ
Teriyaki Madness willingly displayed franchisees income statement, which is rare to see. There were multiple incomes statements provided, but the one you see above is the top performing pure franchisee (there were examples of affiliate locations making as high as $420k in operating income prior to paying royalties).
Outside of the numbers, I like that this is a fast-casual brand built around asian cuisine. Thereâs a gluttony of fast casual brands for mexican, mediterranean, salad houses, etc. but not yet for asian food, which makes this a differentiator. If youâre interested in fast casual concepts, this is one to look into.
Recent Press
The Dog Stop
Background
Based out of Pittsburgh, Pennsylvania
Founded in 2009, franchising since 2013
Each location offers grooming, daycare, boarding, training/in-home services, and a pet retail store
Number of Units
21 units as of 2020
Source: Entrepreneur.com
Fees, Expenses (2020 FDD)
Franchise Fee: $49,500
Royalty: 6% of gross sales
Brand Development Fund: 2% of gross sales
Initial Investment (2020 FDD)
The investment section shows two ranges, 1) for if you lease your equipment, and 2) if you purchase equipment and furnishings outright from the start.
Leased Furnishings, Fixtures, & Equipment: $195,200 - $586,425
Purchased Furnishings, Fixtures, & Equipment: $259,700 - $738,150
Financial Performance (2020 FDD)
Performance of 8 franchised locations, open the full year 2019:
The Wolfâs Take đ
The chart above doesnât include every operational expense (it excludes costs such as cell phones, employee food and drink, etc.) but covers the vast majority of what it costs to run a Dog Stop franchise.
Thereâs varying performance amongst the locations, but thereâs some good signs of potential ROI in the data of Pinhook, Trussville, and USC. Iâd be curious to dive into the demographics of each of these locations to see if thereâs a correlation.
Overall, the pet industry is on FIRE these days and is primed for growth over the next decade. Covid only accelerated this trend, as people purchased âpandemic puppiesâ to combat boredom and loneliness.
Given the impressive suite of offerings The Dog Stop has to offer (itâs the only concept Iâve seen that combines daycare, grooming, training, and retail), this franchise could be an answer to the surplus of pets in need of care nationwide.
Recent Press
The Dog Stop Is Set To Open For Business in Deerfield, Illinois
The Dog Stop Accelerates Franchise Growth With Investor Partnership
Thatâs it for this weekâs Franchise Breakdowns. Feel free to reply with any questions or feedback, or leave a comment. If someone sent this your way and you havenât subscribed yet, you can also do that below. Thanks and see you next week!
NOTICE REGARDING FRANCHISE INFORMATION
The Wolf of Franchises does NOT guarantee the financial performance of any franchise mentioned. The decision to purchase a licensed affiliate or franchise must be based on your own independent research. The Wolf of Franchises is not liable for any representation made by an affiliate, associate, marketing material, or Franchise Disclosure Document of a franchise with respect to real estate, financial, operations, or marketing performance of the business being acquired.
This information is not intended as an offer to sell, or the solicitation of an offer to buy, a franchise. It is for informational purposes only, and any financial data and/or projections is clearly based upon information provided by franchises in their respective Franchise Disclosure Document. The offer of a franchise can only be made through the delivery of a franchise disclosure document, from a certified seller of the brand, which The Wolf of Franchises makes no claim to be. Do not consider any information here as a guarantee of financial performance. The Wolf of Franchises has no affiliation or relationship of any kind with any of the brands covered in this newsletter, but simply provides data that is publicly available online or in Franchise Disclosure Documents.
All data from Franchise Disclosure Documentâs is based on past performance, and if you were to purchase a franchise covered in the Wolf of Franchises newsletter, it is entirely possible that you lose your entire investment and go bankrupt.