Risk Score
Pending analysis
Investment Range
$184,500 - $378,400
Franchise Fee
$20,000
Total US Locations
33
Business Summary
POKEMOTO® operates shops featuring poke bowls, salads, and wraps with a variety of toppings, smoothies, and other complementary beverages. These shops offer dine-in, take-out, and third-party delivery services, identified by distinctive branding, recipes, and operational standards.
Corporate History
Poke Co Holdings LLC, operating as Pokemoto, was incorporated in Connecticut in April 2018. It is a wholly owned subsidiary of Sadot Restaurant Group LLC, which is owned by Sadot Group, Inc. (formerly Muscle Maker, Inc.). Pokemoto LLC, an affiliate, owns the Pokemoto brand marks and licenses them to Poke Co Holdings LLC. Poke Co Holdings LLC began offering Pokemoto franchises in July 2018. The parent company, Sadot Group Inc., also has an affiliate, Muscle Maker Development, LLC, which franchises Muscle Maker Grill restaurants, and another affiliate, Muscle Maker Development International LLC, which handles international master franchises for Muscle Maker Grill. Additionally, Sadot Group, Inc. has an ownership interest in Healthy Joe's, another restaurant brand.
Financial Overview
Investment Range
$184,500 - $378,400
Franchise Fee (Low)
$20,000
Franchise Fee (High)
$30,000
Royalty %
6%
Marketing %
1%
Equipment Costs (Low)
$118,000
Equipment Costs (High)
$253,000
Working Capital
$7,500
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Poke Co Holdings LLC's financial statements received an unqualified opinion from its auditors, indicating they present fairly its financial position. However, some states, like Illinois and Washington, have noted that Pokemoto's financial condition, as reflected in its financial statements, calls into question its ability to provide services and support to franchisees. In 2023, Pokemoto reported a net income of $431,000, an increase from $108,000 in 2022, and members' equity significantly increased to $600,000 from $169,000. Cash decreased substantially to $167,000 in 2023 from $2,934,000 in 2022, primarily due to a transfer of cash from Poke Co Holdings LLC back to its Holding Company. Operating cash flow was negative in 2023 at -$2,767,000.
Financing Details
Pokemoto does not offer any direct or indirect financing arrangements to its franchisees and does not guarantee their notes, leases, or other obligations. Franchisees are responsible for securing their own financing.
Performance Metrics
Total US Locations
33
Franchised Units
25
Corporate Units
8
Avg Square Footage
1,500
Franchising Since
2018
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Pokemoto has no litigation to disclose in this section.
Bankruptcy History
Pokemoto has no bankruptcy history to disclose in this section.
Agreement Terms
Initial Term
10 years
Renewal Term
5 years
Renewal Conditions
Pokemoto franchisees may renew their franchise agreement for one additional five-year term if they provide notice between six and nine months before the current term ends. To qualify, franchisees must be current on all payments and not in default, and may need to renovate or upgrade their shop to meet current Pokemoto standards. They must also be able to maintain possession of the approved premises, sign a general release, sign the then-current renewal franchise agreement, and pay a renewal fee equal to 50% of the standard initial franchise fee.
Training & Support Program
Franchisor Assistance
Pokemoto provides several forms of assistance to its franchisees. Before a shop opens, Pokemoto reviews and approves the proposed site, offers written site selection guidelines, lends prototypical design plans for adaptation, and provides access to its confidential Operations Manual. Pokemoto also gives a list of approved suppliers and conducts initial training for the franchisee and general manager. After opening, Pokemoto may conduct visits and evaluations of the shop, provides access to the updated Operations Manual, offers advice and written materials on managing operations, and can provide additional on-site training upon request, for which franchisees pay a daily fee plus expenses.
Initial Training Hours
63
Training Location
Wichita, KS or any affiliate owned Pokemoto Shop that Pokemoto designates
Ongoing Support
Pokemoto provides ongoing support through periodic visits and evaluations of the shop to ensure quality standards, and grants franchisees access to its confidential Operations Manual, which is updated regularly. The franchisor also offers advice and written materials on managing and operating the shop, including new developments in equipment, products, and recipes. Upon request and subject to personnel availability, Pokemoto can provide additional on-site training, though franchisees must cover a per diem fee for trainers plus their expenses. Pokemoto may also offer refresher training programs or an annual meeting, with attendance potentially mandatory, and franchisees are responsible for their attendees' expenses.
Franchise Requirements
Ideal Candidate Profile
The ideal candidate for a Pokemoto franchise, particularly if they act as the General Manager, is someone who will devote full-time and best efforts to supervise and manage the shop. This individual must be acceptable to Pokemoto, meet its educational and business experience criteria, and successfully complete the mandatory initial training program.
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
non-exclusive
Territory Size Requirements
Pokemoto franchisees do not receive a protected territory. However, they are required to conduct local advertising in an area covering at least a 5-mile radius from their shop.
Staffing Notes
Pokemoto franchisees are required to designate a General Manager who will be solely responsible for the day-to-day supervision and management of the shop, devoting full-time and best efforts to this role. This General Manager must successfully complete Pokemoto's initial training program before the shop opens. Franchisees are also responsible for hiring any other personnel needed to operate the shop and must ensure compliance with all employment laws. Additionally, franchisees are required to obtain non-competition and confidentiality covenants from their General Manager and any other personnel who have access to confidential information.