Genji Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$42,170 - $133,500
Franchise Fee
$3,500
Total US Locations
225
Business Summary
Genji Franchising, LLC operates Genji sushi bars that specialize in offering pre-packaged and made-to-order sushi, Japanese food, soups, hot and cold rice, hot and cold noodle bowls, hot and cold vegetable bowls, and other food items. These sushi bars, and potentially smaller satellite sushi bars, are typically located inside retail establishments run by third-party operators, such as supermarkets.
Corporate History
Genji Franchising, LLC's system has roots tracing back to its predecessor, Peace Dining Corporation, which was formed in February 1997 under the name Genji Sushi Express, Inc. This entity operated Genji sushi bars, similar to the current franchised business. The current franchisor entity, Hana Group Franchising, LLC, was formed in June 2015 as Mai Franchising, LLC and changed its name in September 2021. Genji Franchising, LLC began offering Genji franchises in May 2022. An affiliate, Hana Group Ops, LLC, has also operated Genji sushi bars since April 2010.
Financial Overview
Investment Range
$42,170 - $133,500
Franchise Fee (Low)
$3,500
Franchise Fee (High)
$4,500
Royalty %
45%
Equipment Costs (Low)
$6,100
Equipment Costs (High)
$39,800
Working Capital
$31,500
Audited Financials
Yes
Offers Financing
Yes
Audit Opinion
Unqualified opinion
Financial Health Notes
Genji Franchising, LLC's financial statements show an unqualified audit opinion, meaning the auditors found no material misstatements. However, the company reported a member's equity deficit of $97,890 in 2024, a decrease from a positive equity of $189,724 in 2023. Additionally, Genji Franchising, LLC had negative working capital in 2024, with current liabilities exceeding current assets. Despite this, the company demonstrates strong cash flow from operating activities and significant net income, with the equity deficit primarily driven by large member distributions.
Financing Details
Genji Franchising, LLC offers two financing options. Franchisees can finance their initial opening inventory of food items, smallwares, uniforms, and supplies (estimated between $7,500 and $20,000) over three equal monthly installments, with an 8% annual interest rate. Additionally, Genji Franchising, LLC may offer franchisees the option to lease a sushi robot machine (for rolling, cutting, or sheet making functions). This lease involves 12 equal monthly payments over a one-year term, with a 0% effective interest rate, after which the franchisee can acquire the equipment for $1.
Performance Metrics
Total US Locations
225
Franchised Units
37
Corporate Units
188
Avg Square Footage
600
Franchising Since
2022
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Genji Franchising, LLC has no litigation to report, meaning there are no legal cases or lawsuits that need to be disclosed in the FDD.
Bankruptcy History
Genji Franchising, LLC has no bankruptcy history to disclose, indicating that neither the franchisor nor its key personnel have been involved in any bankruptcy proceedings.
Agreement Terms
Initial Term
5 years
Renewal Term
5 years
Renewal Conditions
To renew their franchise agreement, Genji Franchising, LLC franchisees must meet several conditions. These include: Genji Franchising, LLC must still be offering franchises for the retail location where the sushi bar operates; the franchisee must have substantially complied with all terms of the agreement; they must sign the then-current franchise agreement, which may have materially different terms; the franchisee must update their Genji sushi bar and any satellite locations to meet current brand standards, including new equipment and procedures; they must complete any new training requirements; all financial obligations to Genji Franchising, LLC, its affiliates, and suppliers must be satisfied; the franchisee must sign a general release of claims; they must provide written notice of their intent to renew 2 to 6 months before the current agreement expires; they must maintain all necessary licenses and permits; Genji Franchising, LLC must retain the right to operate at the retail location; and the franchisee must pay a successor agreement fee, which is $2,500 for a 3-year term or $3,500 for a 5-year term.
Training & Support Program
Franchisor Assistance
Genji Franchising, LLC provides various forms of support. Before opening, the franchisor secures a Vendor Agreement for the retail location, provides an Initial Training Program (costing $2,000 for the operating principal and $1,500 for additional attendees, plus reimbursement for travel/expenses). They also provide an opening inventory (ranging from $7,500 to $20,000), a Confidential Operating Manual, confidential recipes, and set System Standards. Genji Franchising, LLC specifies insurance limits, makes advertising/social media materials available, provides a list of approved products, and may offer on-site grand opening assistance and the option to lease sushi robot equipment. Ongoing support includes remitting Franchise Commissions, inviting franchisees to meetings, providing updated recipes, maintaining System Standards and the Operating Manual, and making advertising materials available. Genji Franchising, LLC may also offer lists of approved products/suppliers, periodic counseling, additional on-site or off-site assistance, and inspect the sushi bar and products.
Initial Training Hours
112
Training Location
Franchisee's location or alternate designated location
Ongoing Support
After opening, Genji Franchising, LLC provides ongoing support to its franchisees. This includes remitting Franchise Commissions after deductions, inviting franchisees to meetings with personnel and other Genji franchisees, and providing updated confidential recipes and System Standards. Genji Franchising, LLC continues to loan its Confidential Operating Manual and makes advertising and social media materials available. The franchisor may also provide a list of approved products and suppliers, review franchisee-developed advertising materials, and develop materials for a Brand Fund if established. Periodic counseling may be offered in person, by phone, or through seminars and newsletters. Genji Franchising, LLC may provide additional on-site assistance beyond grand opening support and conduct inspections of the sushi bar and products. Optional additional training courses and the ServSafe training program may also be provided.
Franchise Requirements
Ideal Candidate Profile
Genji Franchising, LLC seeks franchisees or their designated Operating Principals who are committed to personally supervising the day-to-day activities of their Genji sushi bar for at least 36 hours per week. If the Operating Principal cannot always be present, they must employ a full-time manager exclusively responsible for on-premises supervision. All supervising personnel must successfully complete the franchisor's Initial Training Program and any supplemental training, and all employees, including managers, must complete a ServSafe training program. Candidates must be able to pass a credit and criminal background check. For entities, each owner and their spouse must personally guarantee the franchise's financial obligations and sign a confidentiality and non-competition agreement.
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
Territory Size Requirements
The primary Genji Franchising, LLC territory is limited to the specific retail location where the Genji sushi bar operates. However, franchisees may be offered or required to operate Genji satellite sushi bars within a 40-mile radius of their main Genji sushi bar.
Staffing Notes
Genji Franchising, LLC requires the franchisee or their designated Operating Principal to personally supervise the day-to-day activities of the Genji sushi bar for a minimum of 36 hours per week. If the Operating Principal is not present, a full-time manager must be exclusively responsible for on-premises daily supervision. All supervising staff must complete the Initial Training Program and any supplemental training. Furthermore, all employees, including managers, must complete a ServSafe training program, and each Genji sushi bar is required to have at least one ServSafe certified person on duty at all times.