Risk Score
Pending analysis
Investment Range
$140,900 - $475,930
Franchise Fee
$30,000
Total US Locations
17
Business Summary
Aloha Poke Co. operates restaurants that offer and sell poke bowls, which consist of cubed raw or marinated fish, along with other food products and beverages. These restaurants operate under the "ALOHA POKE CO." brand name and associated trademarks.
Corporate History
Aloha Poke Franchising LLC is an Illinois limited liability company, with its parent company being Aloha Poke Holdings LLC. While Aloha Poke Franchising LLC began offering franchises and development rights for ALOHA POKE CO. Restaurants in June 2019, its affiliates have been operating one or more ALOHA POKE CO. Restaurants since 2016, indicating the brand's operational history predates its franchising efforts.
Financial Overview
Investment Range
$140,900 - $475,930
Franchise Fee (Low)
$30,000
Franchise Fee (High)
$35,000
Royalty %
5%
Marketing %
1%
Equipment Costs (Low)
$75,600
Equipment Costs (High)
$344,230
Working Capital
$17,500
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Going concern qualification
Financial Health Notes
Aloha Poke Franchising LLC's financial condition raises concerns regarding its ability to provide services and support to franchisees, as noted in the FDD's special risks section. The independent auditor's report mentions that conditions or events, when considered in aggregate, could raise substantial doubt about the company's ability to continue as a going concern. Additionally, in 2024, significant funds totaling $175,000 were transferred to the parent company, Aloha Poke Holdings LLC, as distributions and were not expected to be collected, which further highlights potential cash flow challenges for the franchisor.
Financing Details
Aloha Poke Franchising LLC does not offer any direct or indirect financing options to its franchisees. The franchisor also does not guarantee any notes, leases, or other obligations that franchisees might incur.
Performance Metrics
Total US Locations
17
Franchised Units
5
Corporate Units
12
Avg Square Footage
1,150
Franchising Since
2019
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Aloha Poke Franchising LLC has no litigation to disclose. The company or its management have not been involved in any material litigation or bankruptcy proceedings that are required to be reported in this section.
Bankruptcy History
Aloha Poke Franchising LLC has no bankruptcy to disclose. The company or its management have not been involved in any bankruptcy proceedings that are required to be reported in this section.
Agreement Terms
Initial Term
10 years
Renewal Term
5 years
Renewal Conditions
To renew their franchise, Aloha Poke Co. franchisees must make a timely written request for a business review (between 6 and 9 months before the term ends). They must have substantially complied with all contractual obligations and operated their restaurant in accordance with brand standards. At the franchisor's discretion, franchisees may be required to remodel, upgrade, or relocate their restaurant. Additionally, they must sign the then-current form of franchise agreement and a general release (if allowed by state law), and pay a successor franchise fee.
Training & Support Program
Franchisor Assistance
Aloha Poke Franchising LLC provides various forms of assistance to its franchisees. Before opening, the franchisor reviews potential restaurant sites, assists with lease acceptance, and provides template construction plans. Franchisees and their managers receive initial training, and an opening team offers on-site support for at least three days. The franchisor also consults on the market introduction program for each restaurant. Ongoing assistance includes operational advice and recommendations, access to an operations manual and an Intranet for communication. The franchisor maintains a Brand Fund for advertising and marketing, conducts periodic inspections, offers refresher training courses, and requires attendance at an annual franchisee meeting.
Initial Training Hours
80
Training Location
Chicago, IL
Ongoing Support
After opening, Aloha Poke Co. franchisees receive ongoing advice and recommendations from the franchisor regarding restaurant operations, purchasing, training methods, accounting, and marketing. They have continuous access to the operations manual and a system-wide Intranet for communications. The franchisor manages a Brand Fund to support advertising, marketing, and technology initiatives for all ALOHA POKE CO. Restaurants. Franchisees are subject to periodic inspections and may be required to attend refresher training courses. They are also required to attend an annual meeting with other franchisees.
Franchise Requirements
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
retail
Owner Participation
hands-on
Territory Type
limited
Territory Size Requirements
Aloha Poke Franchising LLC defines each restaurant's Area of Protection as a circular area centered on the restaurant's front door. The specific radius is determined by market factors such as population density and drive times, with no fixed minimum or maximum size. The franchisor anticipates that the protected area will typically encompass a combined residential and daytime population of approximately 100,000 people, though this figure might be lower in downtown areas of major cities.
Staffing Notes
Aloha Poke Co. restaurants are required to have at least two fully-trained managers on staff, which includes the Operator. The Operator is responsible for the restaurant's daily operations and must properly train all other restaurant employees for their specific roles. A designated Managing Owner, who holds at least a 20% ownership interest in the franchisee entity, is responsible for overall business management and ensures the Operator fulfills their obligations.