Mochinut Restaurant Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$150,000 - $250,000
Franchise Fee
$28,000
Total US Locations
1
Business Summary
Mochiholic operates specialty shops that serve premium Japanese mochi donuts, boba beverages, teas, and related menu items, merchandise, and products. Mochiholic shops offer these items for on-premises dining, carryout, catering, and delivery, following a proprietary system for preparation, service, marketing, and sale.
Corporate History
Mochiholic Franchising L.L.C. was established in California on June 29, 2022, specifically to operate the Mochiholic Shop franchise system. The company began offering franchises on August 18, 2022. Mochiholic Franchising L.L.C. does not have any predecessors or a parent company. Its affiliate, Superchang, LLC, was established on February 16, 2020, owns the Licensed Marks for Mochiholic, and operates a company-owned Mochiholic shop in Pleasanton, California.
Financial Overview
Investment Range
$150,000 - $250,000
Franchise Fee (Low)
$28,000
Franchise Fee (High)
$35,000
Royalty %
5.5%
Marketing %
2%
Equipment Costs (Low)
$57,500
Equipment Costs (High)
$111,000
Working Capital
$27,500
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Mochiholic Franchising L.L.C.'s financial condition, as shown in its financial statements, raises questions about its ability to provide services and support to franchisees. The company reported net losses of $27,928 in 2022 and $20,344 in 2023, and its total assets were $11,728 at the end of 2023, indicating potential financial strain.
Financing Details
Mochiholic Franchising L.L.C. does not offer any direct or indirect financing to franchisees. Mochiholic Franchising L.L.C. also does not guarantee any notes, leases, or other obligations for its franchisees.
Performance Metrics
Total US Locations
1
Franchised Units
0
Corporate Units
1
Avg Square Footage
1,300
Franchising Since
2022
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Mochiholic Franchising L.L.C. has no litigation to disclose in this Item.
Bankruptcy History
Mochiholic Franchising L.L.C. has no bankruptcy information to disclose in this Item.
Agreement Terms
Initial Term
5 years
Renewal Term
5 years
Renewal Conditions
To renew their franchise, Mochiholic franchisees must meet several conditions, including being in compliance with their franchise agreement, providing 12 to 18 months prior written notice of their intent to renew, signing the then-current form of franchise agreement and related agreements for the renewal term, and signing a general release in favor of Mochiholic Franchising L.L.C. Franchisees must also remodel and upgrade their shop to meet current Mochiholic Franchising L.L.C. standards, secure the legal right to continue occupying their shop location, and ensure all owners are in compliance with their agreements and personally guarantee the terms of the renewal franchise agreement.
Training & Support Program
Franchisor Assistance
Mochiholic Franchising L.L.C. provides a range of assistance to its franchisees. Before opening, Mochiholic Franchising L.L.C. grants the right to operate a shop in a designated territory, provides access to confidential operations manuals, reviews and approves proposed shop sites, and provides a list of approved suppliers and equipment. Mochiholic Franchising L.L.C. also lists the franchisee's shop on its website and provides initial training for the managing owner and one manager at no additional cost, conducted remotely and at its Pleasanton, California facility, as well as the franchisee's shop location. After opening, Mochiholic Franchising L.L.C. may require participation in supplemental on-site training for a fee and provides initial training for replacement operating managers for a fee. Mochiholic Franchising L.L.C. also communicates operating standards, marketing standards, and approved vendors, and may coordinate an annual system conference for a fee. While Mochiholic Franchising L.L.C. administers marketing funds and may suggest pricing, it does not assist with employee hiring or training.
Initial Training Hours
100
Training Location
Online, Pleasanton, California, and franchisee's shop location
Ongoing Support
Mochiholic Franchising L.L.C. provides ongoing support through various means after a franchisee's shop opens. This includes offering supplemental on-site training for a fee (currently $600 per trainer per day for a minimum of five days, plus expenses) if requested or required. Training for replacement operating managers is also available for a fee (currently $300 per person per day). Mochiholic Franchising L.L.C. continuously updates and communicates operating standards, procedures, and system requirements, along with marketing standards and approved vendors. Franchisees may attend an annual System conference for a fee (up to $1,500, plus travel and accommodation expenses). Mochiholic Franchising L.L.C. also administers marketing funds and may suggest pricing levels for products and services. However, Mochiholic Franchising L.L.C. does not assist with the hiring or training of franchisee employees.
Franchise Requirements
Ideal Candidate Profile
Mochiholic Franchising L.L.C. seeks franchisees who are personally responsible for the management and overall supervision of their shop. The designated managing owner must successfully complete Mochiholic Franchising L.L.C.'s initial training program and be approved. While hands-on, day-to-day participation is recommended, franchisees may hire an approved operating manager to handle daily on-site operations, provided that the managing owner still maintains overall supervision. Ideal candidates, including transferees, are expected to be of good moral character, possess sufficient business experience, aptitude, and financial resources to own and operate a Mochiholic Shop, and meet all applicable standards for franchisees.
Industry Experience Required
No
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
retail
Owner Participation
Supervisory
Territory Type
Non-Exclusive
Territory Size Requirements
Mochiholic Franchising L.L.C. designates territories that are generally a two-mile radius from the shop location in all directions traversable by road. However, this size may be smaller depending on population density, demographics, and geographical boundaries. For shops located in non-traditional or captive markets (e.g., shopping malls, airports, universities), the designated territory may be limited to the physical boundaries of that specific facility. Mochiholic Franchising L.L.C. may also define territories using zip codes, boundary streets, highways, county lines, or other recognizable demarcations.
Staffing Notes
Mochiholic Franchising L.L.C. expects franchisees to be solely responsible for managing and supervising their employees, as Mochiholic Franchising L.L.C. does not provide assistance with hiring or training staff. Franchisees must ensure all employees wear approved branded uniforms and maintain system standards for preparing and serving products. The managing owner is required to be personally responsible for the overall supervision of the shop. While day-to-day operations can be delegated to an approved Operating Manager who has completed training and signed a confidentiality agreement, the shop must always be managed and supervised on-site by either the managing owner or an operating manager. If a franchisee operates multiple shops, each must have an on-site Operating Manager.