Risk Score
Pending analysis
Investment Range
$268,000 - $439,000
Franchise Fee
$30,000
Total US Locations
5
Business Summary
Katsu Bar is a quick-service restaurant franchise that specializes in selling katsu sandwiches to the general public. Katsu Bar restaurants operate under the brand's name, logos, and trademarks, adhering to a specific system of standards, methods, and procedures for food preparation, decor, and marketing.
Corporate History
CT Katsu Bar, LLC, also known as Katsu Bar and Noodle or Katsu Bar, was incorporated in California on November 6, 2019. Katsu Bar has been operating its own restaurants since March 1, 2019, focusing exclusively on this line of business.
Financial Overview
Investment Range
$268,000 - $439,000
Franchise Fee (Low)
$30,000
Franchise Fee (High)
$30,000
Royalty %
6%
Marketing %
1%
Equipment Costs (Low)
$175,000
Equipment Costs (High)
$270,000
Working Capital
$55,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
The franchisor, CT Katsu Bar, LLC, states in its Special Risks section that its financial condition, as reflected in its financial statements, calls into question its financial ability to provide services and support to franchisees.
Financing Details
Katsu Bar does not offer any direct or indirect financing to its franchisees. The franchisor also does not guarantee any notes, leases, or other obligations franchisees may have to third parties.
Performance Metrics
Total US Locations
5
Franchised Units
0
Corporate Units
5
Avg Square Footage
1,450
Franchising Since
2024
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Katsu Bar has no litigation to report. There are no pending or past material litigation matters involving the franchisor or its management team.
Bankruptcy History
Katsu Bar has no bankruptcy history to report for the franchisor or its management.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew their franchise agreement, Katsu Bar franchisees must provide prior written notice, pay a renewal fee of $10,000, and satisfy all requirements of the then-existing Franchise Agreement, which they must also execute.
Training & Support Program
Franchisor Assistance
Before opening, Katsu Bar assists with site selection and evaluation, reviews and approves the lease, provides specifications for remodeling and equipping the location, and offers an initial training program. After opening, Katsu Bar provides ongoing support through periodic advice via telephone, email, and newsletters, offering general guidance and consultation on operations and management. They also provide ongoing training, approve local advertising materials, and furnish modifications to the Confidential Operations Manual.
Initial Training Hours
80
Training Location
Corporate location Los Angeles
Ongoing Support
After opening, Katsu Bar franchisees receive periodic general guidance and advice through telephone, email, and newsletters, covering operational methods, accounting procedures, and marketing strategies. Katsu Bar also provides consultation and assistance in various aspects of operating and managing the restaurant, makes ongoing training available as needed, and approves advertising materials. Franchisees also receive modifications to the Confidential Operations Manual as they become available.
Franchise Requirements
Ideal Candidate Profile
Katsu Bar seeks franchisees who meet its financial, professional, and operational standards and who will operate in a market where Katsu Bar seeks to be represented. Franchisees must agree to pay certain fees and comply with various requirements. If the franchisee is a corporation or other business entity, anyone who owns a 5% or greater interest in the entity must personally guarantee the performance of all obligations under the Franchise Agreement.
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
retail
Owner Participation
absentee-allowed
Territory Type
non-exclusive
Territory Size Requirements
Katsu Bar franchisees do not receive an exclusive territory and may face competition from other Katsu Bar franchisees, company-owned outlets, or other distribution channels controlled by Katsu Bar. Franchisees operate from one approved location and must receive written permission before relocating. Katsu Bar retains the right to establish, own, or operate Katsu Bar restaurants at any location, including non-traditional venues, and through alternate channels of distribution. Katsu Bar also reserves the right to acquire, merge with, or affiliate with other businesses, even if they compete with Katsu Bar, and to engage in any activities not explicitly forbidden by the Franchise Agreement.
Staffing Notes
Katsu Bar does not require franchisees to personally participate in the daily operation of the business. However, if a franchisee does not, they must appoint a "Designated Manager" to manage and be responsible for the Katsu Bar Franchised Restaurant. This Designated Manager must attend and satisfactorily complete the initial training program before the restaurant opens and any additional training required after opening. Franchisees must keep Katsu Bar informed of their current Designated Manager's identity. If a franchisee is a Developer, they must maintain a daily supervisory role, ensuring continuous communication and reporting between themselves and their Designated Manager for each franchise opened. All employees, including the Designated Manager, who have access to Katsu Bar's trade secrets or confidential information, will be required to sign nondisclosure and non-competition agreements. The initial training program covers topics like food preparation, sales and marketing, quality standards, customer service, and record-keeping.