Jinya Ramen Bar Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$470,500 - $6,113,000
Franchise Fee
$20,000
Min Cash Required
$25,000
Total US Locations
57
Business Summary
JINYA Franchise, Inc. offers franchises for the operation of restaurants under the names JINYA Ramen Bar and bushi by JINYA. These restaurants specialize in serving freshly prepared Japanese-style noodle dishes (ramen) with a diverse selection of broths, noodles, proteins, sauces, and garnishes. They also offer sushi, rice bowls, Japanese appetizers, and other food and beverage products. JINYA Ramen Bar locations cater to both on-premises and off-premises dining, as well as catering events, operating as fast-casual establishments.
Corporate History
JINYA Franchise, Inc. was incorporated in California on February 6, 2012, and began offering franchises for JINYA Ramen Bars in April 2012. It later expanded its franchise offerings to include bushi by JINYA in May 2018. The company operates under its corporate name and the brand names JINYA and bushi by JINYA. JINYA Franchise, Inc. does not operate any of its own JINYA Ramen Bars, though its affiliates do. Its founder, Tomonori Takahashi, has a history with various related entities, including LBDC-JPN (November 2000), LBDC-USA (September 2008), and Tomo Foods, Inc. (August 2012), which is an approved supplier. An affiliate, La Brea Dining California, Inc., opened the first JINYA Ramen Bar in the United States in September 2013.
Financial Overview
Investment Range
$470,500 - $6,113,000
Franchise Fee (Low)
$20,000
Franchise Fee (High)
$40,000
Minimum Cash Required
$25,000
Royalty %
5%
Marketing %
1%
Equipment Costs (Low)
$300,000
Equipment Costs (High)
$2,681,000
Working Capital
$30,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
JINYA Franchise, Inc. appears to be in good financial health. The company has consistently reported positive net income, with $1,449,491 in 2023, $855,077 in 2022, and $1,353,691 in 2021. Its retained earnings have grown steadily, reaching $2,928,187 by the end of 2023. The independent auditors have issued an unqualified opinion on the financial statements for 2021, 2022, and 2023, indicating no significant financial concerns or substantial doubt about the company's ability to continue as a going concern. The company's cash and cash equivalents, along with restricted cash, show healthy liquidity.
Financing Details
JINYA Franchise, Inc. does not offer any direct or indirect financing options to its franchisees. The company will also not guarantee any notes, leases, or other obligations for franchisees.
Performance Metrics
Total US Locations
57
Franchised Units
55
Corporate Units
2
Avg Square Footage
3,750
Franchising Since
2012
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Count
4
Litigation Summary
JINYA Franchise, Inc. has disclosed four past litigation matters. The first case, SF Yakiniku Corp., et al. v. Jinya Franchise, Inc., was an arbitration filed in August 2019 by franchisees who alleged breach of territorial exclusivity, fraudulent inducement, and refusal to consent to a transfer. They sought $5 million in damages, but the case settled in September 2020 for $410,000 paid by the franchisor's insurance carrier. The second case, Socal Ramen LLC v. Tomonori Takahashi, et al., was filed in February 2020 against JINYA Franchise, Inc.'s founder and an affiliate, alleging breach of contract and warranty for purported Americans with Disabilities Act violations, seeking at least $700,000. This case settled in October 2020 for $73,000 paid by the franchisor's insurance carrier. The third case, La Brea Dining California, Inc. v. The PAM Group, LLC, involved an unlawful detainer claim by an affiliate in January 2013, with the former franchisee counter-suing for fraud and breach of contract, and JINYA Franchise, Inc. and its affiliate counter-suing for trademark infringement. This multi-faceted dispute settled in May 2015, with an affiliate paying $345,000. The fourth case, Masayuki Ueda v. Tomonori Takahashi, et al., was filed in February 2017 against the founder and several affiliates, alleging breach of contract and fiduciary duty related to a stock purchase. This case settled in October 2017, with no payment made by the Blue Flamingo Parties, but an affiliate purchased Ueda's interest for $600,000. JINYA Franchise, Inc. reports no other litigation requiring disclosure.
Bankruptcy History
JINYA Franchise, Inc. has no bankruptcy history to report. Item 4 of the Franchise Disclosure Document explicitly states that no bankruptcy information is required to be disclosed.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew their JINYA Franchise, Inc. agreement, franchisees must notify the franchisor in writing at least 12 months before their current term expires. They must be in good standing, having fully complied with all obligations under their existing franchise and any other agreements. Franchisees are also required to renovate and modernize their JINYA Ramen Bar to meet the franchisor's then-current standards for new locations, satisfy any updated training requirements, and pay a renewal fee of $25,000. Additionally, they must sign a general release and provide a personal guarantee from all equity owners and their spouses. The royalty and other fees under the renewed agreement will be at the rates applicable to new franchisees at that time.
Training & Support Program
Franchisor Assistance
JINYA Franchise, Inc. provides extensive support to its franchisees. Before opening, the franchisor assists with site selection (requiring approval of the proposed location) and provides specifications for store design, décor, and layout. Franchisees must use an approved licensed architect and engineer. Initial training, lasting approximately 400 hours, is provided for up to four managers (Principal Owner, General Manager, Kitchen Manager, Assistant Kitchen Manager) at the corporate office, a company-owned JINYA Ramen Bar in Los Angeles, California, or another designated location, with managers needing to pass weekly certification tests. On-site Grand Opening Support is also provided for up to 10 days, for which a fee applies. The franchisor supplies a list of approved suppliers for mandatory product purchases. After opening, JINYA Franchise, Inc. offers regular consultation and advice on administrative and operating issues. Franchisees receive ongoing access to updated operations manuals and must participate in marketing and promotional campaigns, including a national Marketing Fund and local marketing expenditures. The franchisor also reserves the right to conduct inspections, provide pricing guidelines, and may establish a toll-free customer service number and online systems for orders and gift cards. Franchisees must also participate in an annual franchise conference.
Initial Training Hours
400
Training Location
Corporate office, Company-Owned JINYA Ramen Bar in Los Angeles, California, or other designated locations.
Ongoing Support
After opening, JINYA Franchise, Inc. provides ongoing support through regular consultation and advice for administrative and operational inquiries. The franchisor may require or offer additional and remedial training programs for managers, for which a daily fee applies. JINYA Franchise, Inc. designates the authorized products to be stocked and promoted and retains the right to conduct inspections of the JINYA Ramen Bar to ensure compliance with brand standards. They may also provide pricing guidelines, which franchisees must follow. Franchisees maintain access to updated operations manuals, and JINYA Franchise, Inc. permits the use of its marks and confidential information. The franchisor may establish a toll-free telephone number for customer orders and service. Additionally, franchisees are required to attend an annual franchise conference, for which a fee is charged.
Franchise Requirements
Ideal Candidate Profile
JINYA Franchise, Inc. seeks a Principal Owner who is acceptable to the franchisor and will be responsible for the operational decisions of their JINYA Ramen Bar. This individual must commit to working full-time in a management capacity, not behind the service counter, and generally needs to hold a majority stake in the franchisee's equity and voting rights. They must also designate a General Manager for operational oversight in the Principal Owner's absence, ensuring the JINYA Ramen Bar is always directly supervised by a fully trained manager.
Industry Experience Required
No
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Retail
Owner Participation
Full-Time
Territory Type
Limited
Territory Size Requirements
JINYA Franchise, Inc. typically defines a protected territory around each JINYA Ramen Bar. This territory is usually an area of roughly three blocks in an urban setting or a circle with a two-mile radius in other areas, avoiding natural boundaries like interstate highways or rivers. The actual size can vary based on the specific market, characteristics of the desired location, and the total population of the geographic area. For instance, a protected territory might extend to five city blocks in an urban setting, two miles in a suburban area, or five miles in an ex-urban or rural setting. The territorial protection is limited to the specific type of JINYA unit the franchisee is operating, allowing the franchisor to open or license other types of JINYA units within that area.
Staffing Notes
JINYA Ramen Bar requires a principal owner who is responsible for the restaurant's operational decisions. This principal owner must dedicate their full time and best efforts solely to managing the JINYA Ramen Bar, not working behind the service counter, and must own a majority stake in the business's equity and voting rights (unless it is a publicly held entity). In the absence of the principal owner, a General Manager must be designated to oversee the JINYA Ramen Bar's operations. The JINYA Ramen Bar must always be supervised directly by the principal owner, a General Manager, or other supervisory or managerial personnel who have successfully completed JINYA's Initial Training Program. Franchisees are also required to provide comprehensive initial, additional, and remedial training programs for all other employees. Managerial personnel who will have access to JINYA's confidential information must sign a Non-Disclosure and Confidentiality Agreement. All individuals working at a JINYA Ramen Bar are employees of the franchisee, not JINYA Franchise, Inc. JINYA Franchise, Inc. does not have the authority to hire or fire the JINYA Ramen Bar's employees. Franchisees are solely responsible for all employment decisions, including hiring, firing, training, setting pay, complying with wage and hour laws, personnel policies, benefits, recordkeeping, supervision, and employee discipline. JINYA Ramen Bar employees are required to wear uniforms of a color, design, and other specifications designated by JINYA Franchise, Inc. and must maintain a neat and clean appearance. The Initial Training Program covers about 400 hours of training for each individual and includes the Principal Owner, General Manager, Kitchen Manager, and Assistant Kitchen Manager. All trainees must pass weekly certification tests. If initial training is completed more than 40 days before opening, managers may need refresher training. JINYA Franchise, Inc. provides on-site grand opening support and training for managerial staff for up to 10 days before the JINYA Ramen Bar opens. Additional training programs may be required for new or replacement managerial personnel, or for retraining existing managers, which will incur a fee. The Principal Owner and General Managers are also required to attend an Annual Franchise Conference.