Risk Score
Pending analysis
Investment Range
$307,300 - $686,300
Franchise Fee
$25,000
Min Cash Required
$50,000
Total US Locations
12
Business Summary
POKÉ HOUSE is a restaurant that specializes in Hawaiian-style poke, which is a fish salad made with cut fish served over rice or greens, along with soy sauce, green onions, sesame oil, and various toppings. The restaurants also sell items like fountain beverages, bottled water, and cooked fish or meat. POKÉ HOUSE establishments are typically located in shopping centers and operate as fast-food, counter-service units with seating. Customers go through a cafeteria-style line to customize their poke bowls by choosing their base, protein, dressing, and toppings.
Corporate History
Poke House, Inc., which operates under the name POKÉ HOUSE, was organized as a California corporation on July 22, 2015. The company opened its first POKÉ HOUSE restaurant on January 27, 2016, and has continuously operated POKÉ HOUSE restaurants since that time. POKÉ HOUSE began offering franchises intermittently since September 2017.
Financial Overview
Investment Range
$307,300 - $686,300
Franchise Fee (Low)
$25,000
Franchise Fee (High)
$45,000
Minimum Cash Required
$50,000
Royalty %
4%
Equipment Costs (Low)
$200,000
Equipment Costs (High)
$475,000
Working Capital
$65,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Qualified opinion
Financial Health Notes
Poke House, Inc. received a Qualified Opinion on its financial statements as of December 31, 2023 and 2022. The auditors noted two main reasons for this qualification: they did not observe the physical count of inventories at year-end for both years, and depreciation expense was calculated using tax methods (Modified Accelerated Cost Recovery System and Section 179) which is a departure from generally accepted accounting principles (GAAP). Additionally, the company has not recorded finance and operating leases on its balance sheet as required by GAAP. For the years ended December 31, 2023 and 2022, Poke House, Inc. reported net losses of $200,475 and $108,305, respectively. The company's cash balance was $19,914 in 2023. The notes also indicate several related-party transactions, including significant loans to related parties and the sole stockholder with no interest or set payment terms on most of them.
Financing Details
POKÉ HOUSE does not offer any direct or indirect financing to its franchisees. The franchisor also does not guarantee any notes, leases, or other obligations that franchisees might obtain from third-party lenders.
Performance Metrics
Total US Locations
12
Franchised Units
6
Corporate Units
6
Avg Square Footage
1,550
Franchising Since
2017
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
POKÉ HOUSE has no litigation required to be disclosed in Item 3 of its Franchise Disclosure Document. This means the company has not been involved in any material litigation or legal proceedings that need to be reported to potential franchisees.
Bankruptcy History
POKÉ HOUSE has no bankruptcy history to report. Neither the franchisor nor its key personnel have been involved in any bankruptcy proceedings that are required to be disclosed in Item 4 of the Franchise Disclosure Document.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew their franchise agreement, POKÉ HOUSE franchisees must provide written notice of their intent to renew at least 9 to 12 months before the current term ends. They must pay a non-refundable successor fee, sign a new franchise agreement with the then-current terms, and execute a general release of claims. Franchisees also need to meet POKÉ HOUSE's current training requirements and ensure their restaurant conforms to the latest design standards through remodeling. Additionally, the franchisee must be in good standing under their expiring franchise agreement.
Training & Support Program
Franchisor Assistance
Before a POKÉ HOUSE restaurant opens, the franchisor provides a copy of its confidential operations and procedures manuals, recommends suppliers, and offers location assistance, including demographic guidance and site proposal review. Once a site is approved, POKÉ HOUSE provides prototype construction drawings and specifications, reviews the franchisee's final construction plans, and conducts inspections before opening. After opening, POKÉ HOUSE offers ongoing support through periodic advanced and refresher training, specialized training for new products or operational aspects, and may conduct annual meetings. The franchisor also conducts research and development, provides regular consultation and advice on administrative and operational matters, performs periodic inspections, reviews alternate supplier requests, and revises the manuals with updates.
Initial Training Hours
120
Training Location
Northern California area
Ongoing Support
After a POKÉ HOUSE restaurant opens, franchisees receive ongoing support through various programs. The franchisor periodically offers advanced and refresher training for managers, and may provide specialized training if new products or programs are launched, or to address specific aspects of the Franchise System like inventory management or financial record-keeping. These training programs are typically held at the franchisor's headquarters in San Jose, California, or another designated location in northern California. POKÉ HOUSE conducts research and development, monitoring industry developments and testing new menu items. Franchisees receive regular and continuing advice on operating, production, and administrative matters, including local marketing and employee issues. The franchisor also conducts periodic inspections of operations and provides written and/or verbal evaluations and feedback. If a lease requires grand opening advertising, POKÉ HOUSE will consult with the franchisee on designing a promotional program and will review all local advertising created by the franchisee. The franchisor also reviews requests for approval of alternate suppliers and periodically revises the operations manuals, providing all updates to franchisees.
Franchise Requirements
Ideal Candidate Profile
POKÉ HOUSE seeks franchisees who are willing to devote full time and attention to supervising the administrative and operational activities of their restaurant. If the franchisee is an individual, they are recommended to serve as the Approved Manager. For entities, a person with a controlling interest or a general/operating partner is required to provide full-time supervision. Candidates should also be capable of finding a location with high foot traffic and a surrounding population of 'Enterprising Professionals,' defined as well-educated individuals climbing the ladder in science, technology, engineering, and mathematics occupations.
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
Each POKÉ HOUSE franchisee is granted a territory that typically consists of a two-mile radius around the front door of their restaurant. However, if this two-mile radius includes a population of more than 15,000 people (based on U.S. Census data), the territory will instead be defined as a specific geographic area outlined on a map attached to the franchise agreement. This mapped area will be centered around the restaurant and will encompass a population of at least 15,000 individuals.
Staffing Notes
POKÉ HOUSE requires that each franchisee's restaurant is staffed with at least one 'Approved Manager.' This manager, who could be the franchisee themselves or a principal owner if an entity, must meet the franchisor's minimum performance criteria for managers and devote full-time attention to day-to-day supervision. Franchisees are responsible for hiring all other employees and ensuring they receive sufficient in-restaurant training in the Franchise System as required by POKÉ HOUSE. All employees who interact with customers must have adequate literacy and fluency in English. The franchisee is solely responsible for all employment-related decisions, including hiring and firing.