Bento Sushi Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$2,600 - $171,800
Total US Locations
63
Business Summary
Bento Sushi Franchise, Inc. offers franchises for Bento Sushi Counters, which operate within larger host facilities like grocery stores, retail centers, universities, airports, or hospitals. These counters prepare and sell 'BENTO SUSHI' branded sushi and related pre-packaged food products. Customers purchase items from the counter and pay at the host facility's checkout, meaning franchisees do not handle money. The business does not offer dine-in service, and products are intended for off-site consumption. There are two types of operations: On-Site Locations, which are full-time sushi counters with a manager and sushi chef present, making fresh sushi on-premises; and Satellite Locations, which are only available to existing On-Site franchisees, where sushi is prepared at the franchisee's On-Site Location and delivered to the Satellite Location, with no manager or sushi chef required to be present.
Corporate History
Bento Sushi Franchise, Inc. (BSFI), a Delaware corporation, was formed on April 12, 2016, specifically to offer and sell Bento Sushi franchises in the United States. It operates its franchise distribution system under a license agreement with its Canadian affiliate, Bento Inc., which owns the 'BENTO SUSHI' trademarks and has been operating company-owned sushi outlets and subcontracts in Canada since 1996. BSFI's immediate parent company is Bento Nouveau Inc. (BNI), a Delaware corporation established in October 2005, which operates company-owned Bento Sushi outlets and subcontractors in the U.S. While BSFI itself has never operated a business like the franchised counters, its affiliates have extensive experience in the sushi business in both Canada and the U.S. Another affiliate, JFE Franchising, Inc. (acquired by Snowfox Midco 1, Limited in 2019), has been franchising retail sushi businesses under different marks ('JFE,' 'Snowfox,' 'Sushibox') since October 2013 and fresh-cut fruit kiosks ('Snowfruit') since February 2022. Bento Sushi USA, Inc., another affiliate, has offered Bento Sushi franchises in Hawaii since July 2021.
Financial Overview
Investment Range
$2,600 - $171,800
Franchise Fee (High)
$100,000
Royalty %
10%
Equipment Costs (Low)
$600
Equipment Costs (High)
$7,300
Working Capital
$10,000
Audited Financials
Yes
Offers Financing
Yes
Audit Opinion
Unqualified opinion
Financial Health Notes
The franchisor, Bento Sushi Franchise, Inc., has a financial condition that raises concerns about its ability to provide services and support to franchisees, as noted in the FDD's special risks. Its balance sheets show a consistent shareholder's deficiency, indicating negative equity. The company is also exposed to liquidity risk, particularly regarding accounts payable, accrued liabilities, and amounts due to related parties.
Financing Details
Bento Sushi Franchise, Inc. may offer financing to qualified franchisees for up to 100% of their initial franchise fee and initial inventory order. This financing requires a $2,000 down payment and has an annual interest rate of 7.5%. An administrative charge, which is the greater of 1% per month of the amount due or $100 total, also applies. The repayment term ranges from 4 to 30 weeks. All owners of the franchisee entity must personally guarantee the Promissory Note, but no other security is required. Franchisees can prepay the loan without penalty. If a franchisee defaults, Bento Sushi Franchise, Inc. can declare the entire balance due immediately, apply an interest rate of 15% per year, and charge all collection costs and attorney's fees. A late charge of 1% is applied if any weekly payment is over 5 days past due.
Performance Metrics
Total US Locations
63
Franchised Units
62
Corporate Units
1
Franchising Since
2016
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Bento Sushi Franchise, Inc. has no litigation history to report.
Bankruptcy History
Bento Sushi Franchise, Inc. has no bankruptcy history to report.
Agreement Terms
Initial Term
3 years
Renewal Term
3 years
Renewal Conditions
To renew their franchise agreement, Bento Sushi Franchise, Inc. franchisees must provide advance notice, ensure their premises are well-maintained, attend any required refresher training, and sign a general release of claims. They must also pay a renewal fee, which will be the greater of the initial franchise fee originally paid or the current initial franchise fee for a new location, based on factors Bento Sushi Franchise, Inc. uses. Finally, franchisees must sign the then-current renewal agreement, which may have materially different terms and conditions, although the royalty fee will not exceed what is charged to other renewing franchisees in similar situations.
Training & Support Program
Franchisor Assistance
Before a Bento Sushi Counter opens, Bento Sushi Franchise, Inc. helps arrange an agreement with a Host Facility (such as a grocery store), may secure necessary business licenses and permits, and provides both online and on-site initial training. It also offers ongoing advice and support for operating the business, develops new products, and leases its Operations Manual. Franchisees must purchase a label machine, an iPad, and initial employee uniforms from Bento Sushi Franchise, Inc. or its affiliates, and may also purchase initial ingredients and smallware. After opening, Bento Sushi Franchise, Inc. continues to provide on-site training, lends and updates the Operations Manual, indemnifies franchisees for proper use of the Bento Sushi Marks, and tests proposed products or suppliers. It may also establish a Marketing Fund and review local advertising materials, and evaluates potential buyers if a franchisee decides to sell their business.
Initial Training Hours
124
Training Location
Online (wherever you have internet access) and on-site at the franchisee's Sushi Counter or a designated Bento Sushi Counter in operation.
Ongoing Support
After a Bento Sushi Counter opens, Bento Sushi Franchise, Inc. continues to lend and update the Operations Manual, offering ongoing advice and support for business operations. It indemnifies franchisees for proper use of the Bento Sushi Marks and conducts testing for any proposed new products or suppliers. Bento Sushi Franchise, Inc. may also establish and manage a Marketing Fund for promotional programs and reviews local advertising materials. Additionally, it evaluates prospective buyers for any franchise transfers.
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
Supervisory
Territory Type
Non-Exclusive
Staff Count
2
Staffing Notes
Bento Sushi Franchise, Inc. requires that for On-Site locations, a full-time manager (who may be the franchisee) and a sushi chef must be present on-premises during all operating hours to make fresh sushi. The franchisee, even if not the manager, must be personally and actively involved in supervising employees and operations. If a franchisee operates multiple locations, at least one ServSafe Manager certified employee must act as manager for those additional counters. All employees, including non-managers, must complete ServSafe Food Protection training and certification. Managers are required to sign a confidentiality and non-competition agreement with the franchisee, naming Bento Sushi Franchise, Inc. as a third-party beneficiary. Franchisees must clearly inform all applicants that they are applying to work for an independently owned franchise, not for Bento Sushi Franchise, Inc.