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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,

Today’s edition highlights Teriyaki Madness, a restaurant serving up fresh grilled asian cuisine, and The Dog Stop, a near one stop shop for dog owners.

Let’s get the breakdowns below! 👇

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.

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 haven’t 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 Wolf’s Take 🍟 

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. There’s a gluttony of fast casual brands for mexican, mediterranean, salad houses, etc. but not yet for asian food, which makes this a differentiator. If you’re interested in fast casual concepts, this is one to look into.

Recent Press

• Teriyaki Madness Opens in Canada

• At 100, Teriyaki Madness Tracks Toward 500

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 Wolf’s Take 🍟

The chart above doesn’t 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.

There’s varying performance amongst the locations, but there’s some good signs of potential ROI in the data of Pinhook, Trussville, and USC. I’d be curious to dive into the demographics of each of these locations to see if there’s 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 “pandemic puppies” to combat boredom and loneliness.

Given the impressive suite of offerings The Dog Stop has to offer (it’s the only concept I’ve 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

That’s it for this week’s Franchise Breakdowns. Feel free to reply with any questions or feedback, or leave a comment. If someone sent this your way and you haven’t subscribed yet, you can also do that below. Thanks and see you next week!

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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 Document’s 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.