Risk Score
Pending analysis
Investment Range
$576,675 - $3,928,350
Franchise Fee
$15,000
Total US Locations
4
Business Summary
Mensho restaurants are casual dining establishments specializing in authentic craft-style ramen and other Japanese dishes made with fresh, seasonal ingredients. They also serve premium beer, sake, and non-alcoholic beverages. Customers can order using smartphones or tablets for in-store dining or through third-party platforms for delivery or pickup.
Corporate History
Mensho Franchise, Inc. was formed as a California corporation on October 27, 2021, initially named Menya Shono Franchise, Inc., and later changed its name on August 11, 2022. The company began offering Mensho franchises in 2022. The Mensho ramen restaurant concept originated in 2005 when founder Tomoharu Shono opened his first Menya Shono restaurant in Tokyo. He transferred the assets of this restaurant to MENSHO, Inc., a Japanese corporation, which was organized in 2010. Through affiliates, the brand expanded in the U.S. with Mensho Tokyo opening in San Francisco in 2016 and Jikasei Mensho in San Francisco in 2021. Mensho Franchise, Inc. now aims to expand the Mensho restaurant chain in the United States through franchising.
Financial Overview
Investment Range
$576,675 - $3,928,350
Franchise Fee (Low)
$15,000
Franchise Fee (High)
$30,000
Royalty %
5%
Marketing %
1%
Equipment Costs (Low)
$409,500
Equipment Costs (High)
$3,191,000
Working Capital
$45,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Mensho Franchise, Inc. appears to be in sound financial health, with total assets exceeding total liabilities. As of September 30, 2024, the company reported positive working capital of $184,543 and a net income of $72,702. The company also strengthened its working capital by issuing $75,000 in new common stock in November 2023. The independent auditors issued an unqualified opinion, meaning the financial statements are presented fairly in all material respects according to U.S. GAAP.
Financing Details
Mensho Franchise, Inc. does not offer any direct or indirect financing to its franchisees and will not guarantee any promissory notes, leases, or other obligations. However, if a franchisee decides to apply for financing that is guaranteed by the U.S. Small Business Administration (SBA), Mensho Franchise, Inc. will provide an Addendum to the Franchise Agreement to comply with SBA requirements.
Performance Metrics
Total US Locations
4
Franchised Units
1
Corporate Units
3
Avg Square Footage
2,000
Franchising Since
2022
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Mensho Franchise, Inc. has no litigation history to report.
Bankruptcy History
Mensho Franchise, Inc. has no bankruptcy history to report.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
Mensho Franchise, Inc. franchisees have a 10-year renewal option, but this right depends on the franchisor still offering new Mensho restaurant franchises in the U.S. at the time of renewal. To exercise this option, franchisees must give written notice 9 to 12 months before the initial term expires. They must be in good standing, sign the then-current Franchise Agreement, and meet Mensho Franchise, Inc.'s current design, appearance, and trade dress standards for the restaurant. Franchisees are also required to pay a renewal fee, complete any mandatory training for renewing franchisees, and sign a general release. The new Franchise Agreement may have materially different terms, including potentially higher fees or a smaller protected area. Franchisees must also secure an extended lease for the entire renewal term or relocate, and the landlord must sign the franchisor's then-current Addendum to Lease.
Training & Support Program
Franchisor Assistance
Mensho Franchise, Inc. provides comprehensive assistance to its franchisees, starting before the restaurant opens. This includes providing a detailed Manual with operating procedures, basic demographic criteria for site selection, and input on site design and layout proposals. The franchisor also approves the franchisee's architect, design personnel, contractor, and construction drawings. During the construction phase, Mensho Franchise, Inc. offers advice on suppliers for fixtures, equipment, and furnishings. Franchisees receive a 16-day Initial Training Program for their management team, covering both classroom and on-the-job training. An affiliate, Mensho TK, sells and arranges delivery of specialized Equipment, Supplies, and Décor Packages, and opening inventory of Proprietary Products. The franchisor also reviews the franchisee's grand opening marketing plans. After opening, Mensho Franchise, Inc. provides ongoing consultation and advice on administrative and operational issues, delivered via video chat, phone, email, or in person. Optional additional on-site assistance and post-opening training for management are available for a fee. The franchisor may offer advanced and refresher training, including via video chat (no fee) or live at a Mensho restaurant (fee applies, up to 10 days per 12 months for key management). Mensho Franchise, Inc. also conducts annual meetings for franchisees (with a registration fee for live events), provides ongoing updates to the Manual, and facilitates the sale and delivery of Proprietary Products. It reviews requests for alternative suppliers (for a testing fee), performs periodic inspections of restaurants and records, and administers the Brand Development Fund for advertising. Mensho Franchise, Inc. maintains a website for Mensho restaurants and plans to introduce a mandatory mystery shopper program for performance feedback (for a fee). Mensho Franchise, Inc. also establishes pricing policies.
Initial Training Hours
276
Training Location
Hybrid (California and franchisee's restaurant)
Ongoing Support
Mensho Franchise, Inc. provides its franchisees with ongoing consultation and advice for specific administrative and operational issues, delivered via video chat, phone, email, or in person. Additional on-site assistance and training can be provided upon request or if deemed necessary by the franchisor, for which a fee applies, plus travel expenses. The franchisor offers advanced and refresher training programs, including via video chat (no fee) or live at a designated Mensho restaurant (fee applies, up to 10 days per 12 months for key management). Mensho Franchise, Inc. may also hold annual business meetings for franchisees, for which a registration fee may be charged if in-person, plus franchisee travel expenses. The Manual is periodically updated with new policies and procedures. An affiliate, Mensho TK, continues to sell and deliver Proprietary Products. The franchisor reviews requests for alternative non-proprietary goods/services and suppliers (for a testing fee). Mensho Franchise, Inc. conducts regular inspections of restaurants and records to ensure compliance, administers the Brand Development Fund for advertising, and maintains the Mensho website, with the potential for dedicated subpages for individual restaurants. A mandatory mystery shopper program is also planned for operational feedback, which will incur a fee.
Franchise Requirements
Ideal Candidate Profile
The ideal candidate for a Mensho Franchise, Inc. franchise is a qualified business entity in good standing, whose business activities are confined solely to operating a Mensho restaurant. Key owners (10% or more equity) must sign a personal guarantee. At least one owner, designated as the "Primary Owner" (owning at least 25% of the entity's equity), must be responsible for supervising the restaurant's operation and must complete the General Manager training module to be capable of stepping into that role if needed. While previous retail food service or restaurant experience is emphasized, it is not explicitly required. Franchisees should be prepared to have their restaurant under the direct, full-time supervision of a qualified General Manager, who may or may not be the Primary Owner.
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Retail
Owner Participation
Supervisory
Territory Type
Protected
Territory Size Requirements
Mensho Franchise, Inc. defines its Protected Areas based on geographic radius or the boundaries of a captive venue. For traditional locations, the Protected Area is a minimum of a one-mile radius from the front door of the Mensho restaurant. In Metropolitan Statistical Areas, the minimum Protected Area is a one-quarter mile radius. If the restaurant is located within a Captive Venue (such as a shopping mall, airport, or university), the Captive Venue itself constitutes the Protected Area. The Protected Area is not necessarily an equidistant radius and its boundaries can be defined by zip codes, roads, or other geographic or political demarcations.
Staffing Notes
Each Mensho restaurant must operate under the direct, full-time supervision of at least one General Manager. This General Manager must successfully complete the specific management training module, pass an exam, and hold ServSafe Alcohol and Food Protection Manager Certifications. Although the Primary Owner is not required to serve as the General Manager, they must complete the General Manager training module to be capable of stepping into the role if no other qualified General Manager is available. Mensho Franchise, Inc. also recommends employing at least two full-time General Managers. Additionally, each restaurant must employ at least one Kitchen Manager and one Assistant Kitchen Manager, who must both achieve and maintain a "Trained Manager" designation. If any of these key management positions become vacant, the franchisee has 90 days to designate and train a replacement, with the Primary Owner or remaining manager covering the duties in the interim. Franchisees are responsible for hiring, firing, and training all employees, who must be competent, wear designated uniforms, and, for customer service roles, be fluent in English. The franchisee must also clearly identify themselves as an independent owner to employees and the public.