Risk Score
Pending analysis
Investment Range
$352,000 - $904,000
Franchise Fee
$17,500
Total US Locations
2
Business Summary
Saucy Asian operates an authentic Seoul-inspired Korean fusion restaurant that serves bowls, burritos, tacos, poke, and other menu items topped with Korean BBQ. The franchise offers both individual restaurant units and area development opportunities for multiple locations within a specific territory.
Corporate History
Saucy Asian LLC was established on March 4, 2021, as a California limited liability company and began offering franchises in May 2021. The company does not have any predecessors or parent company. An affiliate, Shinn & Sons, Inc., was established in June 2009 and has operated a similar restaurant in San Francisco since June 2017 under the Saucy Asian brand. Another affiliate, Saucy Asian Bay St LLC, established in October 2022, also opened a similar restaurant in Emeryville in December 2023.
Financial Overview
Investment Range
$352,000 - $904,000
Franchise Fee (Low)
$17,500
Franchise Fee (High)
$35,000
Royalty %
5.5%
Marketing %
1%
Equipment Costs (Low)
$200,000
Equipment Costs (High)
$575,000
Working Capital
$40,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
The financial statements for Saucy Asian LLC show very limited assets and low net profit in recent years. Specifically, as of December 31, 2023, the company had only $510 in cash and cash equivalents. The FDD itself, in its 'Special Risks' section, explicitly states that 'the franchisor's financial condition as reflected in its financial statements (see Item 21), calls into question the franchisor's financial ability to provide services and support' to franchisees. This indicates potential concerns regarding Saucy Asian LLC's financial capacity to support its franchise system.
Financing Details
Saucy Asian does not offer any direct or indirect financing to its franchisees. Additionally, Saucy Asian does not guarantee any notes, leases, or other financial obligations for its franchisees.
Performance Metrics
Total US Locations
2
Franchised Units
0
Corporate Units
2
Avg Square Footage
1,250
Franchising Since
2021
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Saucy Asian has no litigation history to report.
Bankruptcy History
Saucy Asian has no bankruptcy history to report.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew their Saucy Asian franchise, franchisees must be in compliance with their Franchise Agreement, provide 180 days' written notice of their renewal request, and sign Saucy Asian's then-current Franchise Agreement and related agreements for the renewal term. They must also sign a general release, pay a renewal fee, and remodel and upgrade their restaurant to meet current brand standards. Franchisees need to secure the legal right to continue occupying their restaurant location and meet all other renewal requirements in the Franchise Agreement. Additionally, their Owners and their spouses must comply with their agreements, including the Owner and Spouse Agreement and Guaranty, and personally guarantee the terms of the new renewal Franchise Agreement. The new agreement may have terms materially different from the current one.
Training & Support Program
Franchisor Assistance
Saucy Asian provides pre-opening assistance by granting the right to operate a restaurant within a designated territory, providing access to confidential operations manuals, and reviewing and approving the franchisee's chosen site. Saucy Asian also provides a list of approved suppliers, equipment, furniture, and fixtures. Franchisees receive initial training for themselves or their managing owner and one manager at no additional charge, covering essential business operations. After opening, Saucy Asian may offer supplemental training for a fee, communicate operating standards, designate approved vendors, and administer marketing funds. Saucy Asian will identify the franchisee's restaurant on its website, control digital media usage, and may host an annual conference, for which a fee applies.
Initial Training Hours
91
Training Location
San Francisco, California
Ongoing Support
Saucy Asian provides ongoing support by establishing, updating, and communicating operating standards, procedures, and system requirements for the restaurant, including Approved Services and Products and System Supplies. Saucy Asian also sets and communicates marketing and brand standards, reviews and approves marketing materials, and provides names and addresses of approved vendors and suppliers. Franchisees may be required to attend supplemental on-site training for a fee if requested or if operational standards are not met, and training for replacement operating managers is also available for a fee. Franchisees contribute to a Brand Development Fund for system-wide marketing and may participate in an annual system conference for a fee. Saucy Asian reserves the right to designate pricing and promotions.
Franchise Requirements
Ideal Candidate Profile
Saucy Asian is looking for franchisees whose Managing Owner is actively, continuously, and substantially involved in the personal management and hands-on supervision of the restaurant. The Managing Owner must own at least 25% of the equity in the franchise and must successfully complete Saucy Asian's initial training program. If an Operating Manager is hired, they must also meet minimum standards and complete training.
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
Protected
Territory Size Requirements
Saucy Asian defines its designated territories, generally as a 2-mile radius from the restaurant location in all directions traversable by road. However, the size may be smaller based on population density, demographics, and geographical boundaries. For non-traditional or captive market locations like shopping malls or airports, the territory may be limited to the physical boundaries of that facility. Saucy Asian may define territories by zip code, boundary streets, highways, county lines, designated market area, or other recognizable demarcations.
Staffing Notes
Saucy Asian requires that the restaurant be managed and supervised on-site by either a Managing Owner or an approved Operating Manager. The Managing Owner is personally responsible for overall supervision, and while day-to-day participation is recommended, franchisees can hire an Operating Manager to handle daily on-site operations. Operating Managers must meet minimum standards, complete initial training, and sign a confidentiality agreement. For multi-unit owners, each restaurant must have an on-site Operating Manager. Saucy Asian does not assist with hiring or training employees, and franchisees are responsible for all management and supervision of their staff. All employees must wear approved system-branded uniforms, and franchisees must ensure System Supplies and Approved Services are prepared and served according to system standards.