Marufuku Ramen Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$1,029,000 - $1,540,000
Franchise Fee
$20,000
Min Cash Required
$30,000
Total US Locations
9
Business Summary
Marufuku Ramen operates sit-down restaurants with table service that specialize in authentic Hakata-style Tonkotsu ramen. Marufuku Ramen also offers a diverse selection of broths, noodles, proteins, Japanese side dishes, rice bowls, chicken Paitan, izakaya appetizers, and premium beer and sake. These restaurants maintain a standard and recognizable signature color scheme and décor, appealing to a wide range of customers seeking high-quality, unique, and fresh Japanese food.
Corporate History
Marufuku Franchising, LLC was formed in California on November 6, 2018, and operates under the name Marufuku Ramen. Marufuku Ramen began offering franchises for its restaurants in 2019. The brand's parent company, EK Food Services Inc. (EKFS), was established in October 2003 and opened the first Marufuku Ramen restaurant in San Francisco in February 2017. EKFS also operates other Japanese restaurant brands.
Financial Overview
Investment Range
$1,029,000 - $1,540,000
Franchise Fee (Low)
$20,000
Franchise Fee (High)
$30,000
Minimum Cash Required
$30,000
Royalty %
5%
Marketing %
1%
Equipment Costs (Low)
$831,000
Equipment Costs (High)
$1,261,000
Working Capital
$35,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Marufuku Franchising appears to be in good financial health, with increasing revenue and net income from 2021 to 2023. The company holds significant cash balances, though some exceed FDIC insurance limits. A notable aspect of Marufuku Franchising's financial situation is a substantial related party receivable from its parent company, EK Food Services Inc. (EKFS), which grew to $460,334 in 2023. The company also derives a significant portion of its marketing fund contributions and franchise royalty fees from its parent company's restaurants and a few franchisees. There are no material legal proceedings anticipated to adversely affect its financial position.
Financing Details
Marufuku Franchising does not offer any direct or indirect financing to its franchisees. Additionally, the company will not guarantee a franchisee's promissory note, lease, or any other financial obligation.
Performance Metrics
Total US Locations
9
Franchised Units
3
Corporate Units
6
Avg Square Footage
2,400
Franchising Since
2019
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Marufuku Franchising has no litigation to report in Item 3 of its Franchise Disclosure Document.
Bankruptcy History
Marufuku Franchising has no bankruptcy history to report in Item 4 of its Franchise Disclosure Document.
Agreement Terms
Initial Term
10 years
Renewal Term
5 years
Renewal Conditions
To renew their franchise for an additional 5-year term, Marufuku Ramen franchisees must provide written notice of their intent to renew between 6 and 12 months before their initial term ends. They must be in good standing, meaning they are in compliance with all agreements with Marufuku Franchising and its affiliates, and have no uncured defaults beyond the applicable period with any real estate lease, equipment lease, financing instrument, or supplier. Franchisees must also secure the right to remain in possession of their restaurant premises, renovate their location to conform to the current brand image, and meet Marufuku Franchising's current qualification and training requirements for new franchisees. Finally, they must sign a new renewal franchise agreement, execute a general release of claims, and pay a $10,000 renewal franchise fee.
Training & Support Program
Franchisor Assistance
Before a Marufuku Ramen restaurant opens, Marufuku Franchising assists franchisees with providing site selection criteria, reviewing proposed sites and leases, and furnishing plans for the restaurant. They also approve the franchisee's construction drawings and specifications and loan the confidential operations manual. Initial training is provided for the Operating Principal and three management team members. Marufuku Franchising also offers pre-opening and opening supervision and assistance, and reviews the Grand Opening Marketing Plan. After the restaurant opens, Marufuku Franchising administers the Marketing Fund, makes advertising and promotional materials available for purchase, provides advice and written materials on restaurant management, and reviews proposed suppliers.
Initial Training Hours
240
Training Location
Franchisor Corporate Restaurant Locations in San Francisco, Oakland, or Redwood, California
Ongoing Support
After opening, Marufuku Ramen franchisees receive ongoing advice and written materials from Marufuku Franchising concerning restaurant management and operations. The franchisor periodically inspects the restaurant and its operations to ensure compliance with the System. Marufuku Franchising also makes advertising and promotional materials available for purchase and administers the Marketing Fund. Franchisees or their employees may be required to attend additional training programs, including classroom or web-based sessions, at their own expense. The Operating Principal and one other approved management person must attend an annual convention, with the franchisee responsible for registration and travel costs.
Franchise Requirements
Ideal Candidate Profile
Marufuku Franchising evaluates potential franchisees based on their energy, business skill, desire, temperament, people skills, and financial capability. The ideal candidate will designate an Operating Principal who is approved by Marufuku Franchising and capable of devoting full time and best efforts to supervising the development and operation of the Marufuku Ramen restaurants.
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Retail
Owner Participation
Full-Time
Territory Type
Protected
Territory Size Requirements
Marufuku Ramen typically defines its Protected Territory as a radius around the restaurant premises. The boundaries can also be described by specific street boundaries, county lines, state lines, municipal boundaries, railroad tracks, or other similar descriptions. When determining the territory size, Marufuku Franchising considers factors such as demographics, population density, number of households, population growth profile, and the competitive environment in the market.
Staffing Notes
Marufuku Ramen requires franchisees to maintain a competent, trained staff with sufficient numbers, including specified positions and minimum staffing levels outlined in the Manual. Franchisees are solely responsible for all employment decisions, such as hiring, firing, training, and supervision. Each restaurant must have three management team members—one Front of the House and two Back of the House team leaders—who have successfully completed the training program. These Trained Managers are then responsible for fully training the rest of the restaurant's employees within 30 days of their hire. Marufuku Franchising has the right to approve or disapprove of individuals in roles if their continued performance negatively impacts the brand. All employees must adhere to dress codes, cleanliness, and personal appearance standards set by Marufuku Franchising.