Fujisan Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$3,250 - $104,055
Franchise Fee
$167
Total US Locations
742
Business Summary
Fujisan Franchising Corp. grants franchises to operate FujiSan Asian bar service kiosks that specialize in preparing, merchandising, and selling sushi, appetizers, salads, soups, entrees, and other Asian-style food products. These kiosks are typically located within larger host venues, such as retail grocery stores or college campuses. Franchisees utilize a distinctive system that includes specific kiosk designs, operational procedures, recipes, food preparation techniques, and various proprietary information.
Corporate History
Fujisan Franchising Corp. was formed as a California corporation on June 14, 2016. Since its formation, it has offered franchises for FujiSan Asian Bar Kiosks. Beginning in 2024, FujiSan Franchising Corp. also started offering Omari-branded sushi kiosk franchises and expects to convert some existing FujiSan kiosks to the Omari brand. Its affiliate, Fuji Food Products, Inc. (FFP), founded in 1990 and incorporated in 1998, sells manufactured Asian-style food products at wholesale under the 'Okami' brand and is the primary supplier for products sold by FujiSan Franchising Corp. to its franchisees.
Financial Overview
Investment Range
$3,250 - $104,055
Franchise Fee (Low)
$167
Franchise Fee (High)
$3,750
Royalty %
5%
Equipment Costs (Low)
$250
Equipment Costs (High)
$21,600
Working Capital
$15,000
Audited Financials
Yes
Offers Financing
Yes
Audit Opinion
Unqualified opinion
Financial Health Notes
FujiSan Franchising Corp.'s financial condition, as noted in the Special Risks section of the FDD, raises questions about its ability to provide services and support to franchisees. While the independent auditors provided an unqualified opinion on the consolidated financial statements, this specific risk highlights potential concerns regarding the company's financial capability to fully support its franchise system.
Financing Details
FujiSan Franchising Corp. may offer direct financing to franchisees for various initial expenses. This can include the initial franchise fee (up to $3,750), opening inventory ($4,000 - $23,000), certification program fees (up to $6,000), equipment and small wares ($4,000 - $8,000), and costs for licenses, permits, uniforms, and marketing materials (approximately $250 - $3,830). These amounts are typically financed over 1 to 4 months with no interest if payments are made on time. Monthly payments are deducted from the franchisee's share of gross revenues. If a loan term extends beyond 4 months, an additional 1.5% interest fee may apply to the remaining balance. A personal guaranty is required for these financing arrangements.
Performance Metrics
Total US Locations
742
Franchised Units
742
Corporate Units
0
Franchising Since
2016
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
2
Litigation Summary
FujiSan Franchising Corp. has disclosed two legal actions. In October 2019, FujiSan Franchising Corp. entered into an agreement with the Washington Attorney General's office to stop using and enforcing 'no-poach' clauses in its franchise agreements that prevented franchisees from hiring employees from other FujiSan kiosks or company-owned locations. FujiSan Franchising Corp. agreed to remove this language from Washington franchisee agreements immediately and from others upon renewal. Additionally, in October 2022, a former franchisee and her husband filed a lawsuit against FujiSan Franchising Corp., claiming breach of contract, failure to pay owed money, failure to provide products, equipment removal, and misrepresentation. They sought $150,000 in damages. This lawsuit was dismissed in May 2024.
Bankruptcy History
FujiSan Franchising Corp. has no bankruptcy history to disclose.
Agreement Terms
Initial Term
3 years
Renewal Term
3 years
Renewal Conditions
To renew their FujiSan Kiosk franchise, franchisees must meet several conditions. They must not be in default of any agreement with FujiSan Franchising Corp., ensure their Kiosk complies with all current specifications and standards, and confirm that the Premises Host allows continued occupancy. Franchisees must also meet FujiSan Franchising Corp.'s current qualifications and certification requirements. A written notice of intent to renew must be submitted between 60 and 150 days before the agreement's expiration, accompanied by a renewal fee of $3,750 (for a Traditional Kiosk). All financial obligations to FujiSan Franchising Corp. must be current, and franchisees are required to sign the then-current franchise agreement, any applicable addenda, and a general release. Additionally, franchisees must not have received more than one written notice of default during their initial term.
Training & Support Program
Franchisor Assistance
Before a Kiosk opens, FujiSan Franchising Corp. assists with jointly agreeing on a location and Kiosk type. They provide a certification program for up to two individuals and opening assistance once the program is completed. FujiSan Franchising Corp. also sells and delivers initial product inventory, uniforms, supplies, and equipment. Franchisees receive written permission before opening their Kiosk. During operation, FujiSan Franchising Corp. provides ongoing assistance through telephone and email, lends Operations Manuals (which are updated regularly), and reviews proposed advertising. They also provide a list of approved products, services, and suppliers, and issue regular revenue sharing statements (Reconciliation) to franchisees.
Initial Training Hours
86
Training Location
Online, Fuji-NC Facility in North Carolina, Fuji-CA Facility in California, on-site at the Kiosk, or another designated site
Ongoing Support
FujiSan Franchising Corp. provides ongoing support through telephone and email assistance, and by lending Operations Manuals with updates. FujiSan Franchising Corp. reviews and approves franchisee advertising, and provides lists of approved products, services, and suppliers. The franchisor also provides regular revenue sharing statements. Franchisees and Kiosk Managers may be required to attend additional certification and instructional programs, and FujiSan Franchising Corp. can provide optional on-site consultation services at an additional fee. Franchisees are responsible for their staff's in-house training and compliance with sampling and promotion policies. While currently not established, a Marketing Fund or Local Marketing Co-op may be implemented in the future, requiring franchisee contributions. Franchisees must purchase tablet technology support services from a designated vendor and may be required to participate in any FujiSan website(s) maintained by the franchisor.
Franchise Requirements
Ideal Candidate Profile
FujiSan Franchising Corp. seeks franchisees structured as a corporation or limited liability company with a minimum of one employee. The ideal candidate, specifically the Designated Owner, must have at least a 51% ownership interest in the franchise (unless an exception is granted) and a strong commitment to operating the FujiSan Kiosk business in full compliance with the franchise agreement, System standards, and operational procedures. Candidates should be prepared to undergo background and credit checks, as financial prudence and a clean record are expected.
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
Non-Exclusive
Staff Count
5
Territory Size Requirements
The FujiSan FDD states that a franchisee is granted a franchise to operate a FujiSan Kiosk at a specific location identified in an addendum to the Franchise Agreement. FujiSan franchisees are not granted any minimum or exclusive territory. They operate solely at their designated Kiosk location and do not have any marketing or customer exclusivity or other area rights. The franchisor and its affiliates retain the right to operate other FujiSan Kiosks or competitive businesses anywhere, including near the franchisee's Kiosk location, with the exception of another FujiSan Kiosk physically located within the same Premises Host store as the franchisee's Kiosk.
Staffing Notes
FujiSan Franchising Corp. requires franchisees to have a minimum of one employee, while always maintaining sufficient personnel to staff the Kiosk business during operating hours and as required by the Premises Host. Franchisees are solely responsible for determining their staff's employment terms, compensation, and scheduling, and for providing ongoing staff development to ensure compliance with FujiSan System standards. All food menu items must be prepared by personnel who meet FujiSan certification standards. Staff are required to wear FujiSan-branded uniforms according to specifications. The Kiosk must be under the direct supervision of the Designated Owner or a Kiosk Manager at all times, with franchisees operating according to the business hours and shift requirements set by the Premises Host.