Ace Sushi Franchise

Financing Details

Ace Sushi Franchise Corporation may, at its discretion, offer financing for various initial costs in the form of deductions from the commissions paid to franchisees. This can include financing for the Initial Franchise Fee (ranging from $6,000 to $16,500), the Onsite Training Fee ($1,500 to $9,000), Initial Food Inventory, Equipment, Marketing Smallwares & Supplies (up to $31,500), and the one-time payment for the label machine ($500 per machine). Franchisees can also finance the purchase of a sushi robot from AMG, with costs ranging from $16,575 to $17,025 plus shipping. Payment plans for the sushi robot may require a down payment. Additionally, Ace Sushi Franchise Corporation may provide monetary advances of up to $10,000 to franchisees with lower weekly sales (below $1,500). Financing may also be available for purchasing an existing Ace Sushi Bar from the franchisor ($1,000 to $100,000). Repayment terms for these financed items typically range from 1 to 12 months, with no prepayment penalties. While the franchisor does not require security for most financed items, its affiliate AMG maintains a secured interest in any purchased sushi robot. Ace Sushi Franchise Corporation does not offer any other direct or indirect financing and does not guarantee franchisee obligations to third parties.

Litigation Summary

Ace Sushi Franchise Corporation's affiliate, AMG, faced several legal actions in the mid-2000s where various states (Maryland, Rhode Island, Virginia, and Washington) determined that AMG's prior 'Contracts for Services' were unregistered franchises. Ace Sushi Franchise Corporation and AMG entered into consent orders in these states, agreeing to cease and desist from unregistered sales, diligently pursue registration, and pay fines or investigation costs. None of the licensees in those states chose to rescind their contracts. More recently, a former franchisee, Ngung Sang, filed a small claims lawsuit against Ace Sushi Franchise Corporation in Iowa in December 2021, alleging breach of contract, fraud, and misrepresentation after their franchise closed. Ace Sushi Franchise Corporation settled this case for $5,375.00 in March 2022.

Renewal Conditions

To renew their franchise agreement, Ace Sushi Franchise Corporation franchisees must provide at least 60 days advance written notice of their intent to renew. They must be in good standing, having complied with all obligations of their existing agreement and being current on all financial payments. Franchisees are required to sign a general release of claims against the franchisor and its affiliates, and to sign either a renewal agreement or a new franchise agreement, which may have materially different terms. They also need to achieve an 'A' or passing grade on their most recent health inspection and demonstrate at least 80% compliance with all mandated operational checklists. Furthermore, franchisees must renovate and refurbish their Ace Sushi Bar to meet the franchisor's then-current standards and comply with all current qualification, training, and certification requirements at their own expense.

Staffing Notes

Ace Sushi Franchise Corporation requires that each Main Sushi Bar always employs at least one full-time employee who has completed the franchisor's minimum training. Additionally, the sushi bar must always be staffed by a sushi chef who has been successfully trained and certified by Ace Sushi Franchise Corporation or an approved trainer. The Main Sushi Bar must be managed at all times by the franchisee or a full-time management employee who has successfully completed the Initial and Onsite Training Programs.