Teriyaki Madness Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$376,200 - $975,860
Franchise Fee
$38,250
Total US Locations
158
Business Summary
Teriyaki Madness operates fast-casual restaurants specializing in Japanese-style teriyaki dishes and other unique food and beverage items. These businesses prepare and sell meals featuring grilled, high-quality meats marinated with proprietary teriyaki sauces. Teriyaki Madness aims to offer substantial portion sizes at affordable prices, with all meals cooked to order and served quickly from approved retail shop locations.
Corporate History
M. H. Franchise Company Inc. was formed as a Colorado corporation in February 2016. However, the Teriyaki Madness franchise concept has a longer history, with its predecessor, Madness Worldwide, LLC, beginning to offer franchises for Teriyaki Madness Businesses in June 2005. In January 2016, M.H. Enterprises, Inc., the current franchisor's parent entity, acquired the assets of Teriyaki Madness LLC (which included Teriyaki Madness Franchising LLC, the direct predecessor). Following this acquisition, the existing franchise agreements were assigned to M. H. Franchise Company Inc. in February 2016, and the company began actively offering Teriyaki Madness franchises in March 2016.
Financial Overview
Investment Range
$376,200 - $975,860
Franchise Fee (Low)
$38,250
Franchise Fee (High)
$150,000
Royalty %
6%
Marketing %
3%
Equipment Costs (Low)
$233,900
Equipment Costs (High)
$748,000
Working Capital
$20,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
The Franchise Disclosure Document includes a special risk factor highlighting that the franchisor's financial condition, as reflected in its financial statements, calls into question its financial ability to provide services and support to franchisees. The financial statements provided are for M.H. Enterprises International, Inc., an affiliate that has unconditionally guaranteed to assume the duties and obligations of the franchisor under franchise agreements if the franchisor becomes unable to perform.
Financing Details
Teriyaki Madness does not offer any direct or indirect financing options to its franchisees. Additionally, the company does not guarantee any franchisee notes, leases, or other obligations.
Performance Metrics
Total US Locations
158
Franchised Units
156
Corporate Units
2
Avg Square Footage
1,550
Franchising Since
2005
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
Yes
Litigation Count
1
Litigation Summary
Teriyaki Madness is currently involved in one arbitration case filed in October 2024 against a former franchisee and their operating entities. Teriyaki Madness claims breach of contract due to the premature closure of several Teriyaki Madness locations. The former franchisees have filed counterclaims, alleging that Teriyaki Madness made misrepresentations and omissions, failed to provide adequate operational support, and misused marketing funds. An arbitrator was appointed in February 2025 to oversee the dispute.
Bankruptcy History
Teriyaki Madness's Franchise Development Manager, Patrick Pounders, filed for personal Chapter 13 bankruptcy in May 2017 to reorganize his debts. His reorganization plan was confirmed in September 2017 and was dissolved in September 2022.
Agreement Terms
Initial Term
10 years
Renewal Term
5 years
Renewal Conditions
To renew their Teriyaki Madness franchise for two additional five-year terms, franchisees must provide written notice between six and nine months before the current term ends. They must also ensure their Teriyaki Madness location is upgraded to meet the brand's current standards for new shops, be in full compliance with all agreements with Teriyaki Madness and its affiliates, pay a $5,000 renewal fee per shop, and sign a general release of claims. The franchisee and their Managing Owner/Designated Manager must also meet current qualification and training requirements and secure the right to occupy the approved location for the new term. The new agreement may have different terms and conditions, and the territory boundaries may change.
Training & Support Program
Franchisor Assistance
Teriyaki Madness provides comprehensive assistance to its franchisees, starting with pre-opening support. This includes help with site selection, access to a national broker partner, lease review, and design and construction guidance such as initial floor plans, approved architects and contractors, and project management oversight. They also provide lists of approved suppliers, initial inventory ordering assistance, and a confidential operations manual. For training, Teriyaki Madness offers an initial training program, an online learning system (Mad U), and hands-on training, all at no tuition fee for the first shop's Managing Owner and Designated Manager, with on-site support during opening. Ongoing assistance includes operational advice, modifications to system standards, licensing of intellectual property, administration of the marketing fund and system website, review of new items and suppliers, and additional training programs (which may incur fees). Franchisees also gain access to an intranet system for support and materials, and participate in mandatory annual conferences.
Initial Training Hours
163
Training Location
Denver, Colorado, online, and on-site at the franchisee's Teriyaki Madness Business
Ongoing Support
After opening, Teriyaki Madness franchisees receive continuous support through advice on operations, access to the operational manual, and updates to the brand's system standards. Teriyaki Madness licenses confidential information and trademarks for ongoing use and maintains and administers marketing programs, a marketing fund, and the brand's system website. Franchisees can request approval for additional items, services, and suppliers, and Teriyaki Madness reviews all marketing materials. Additional or refresher training courses are offered, which may be mandatory for the Managing Owner and Designated Manager, and may incur tuition fees. Franchisees also have access to an intranet system for materials and support and are required to attend annual conferences, with associated fees and expenses.
Franchise Requirements
Ideal Candidate Profile
Teriyaki Madness offers a 15% discount to individuals who have been in the hospitality industry for a minimum of three years, indicating a preference for candidates with such a background. For those considering an Executive Franchise package, Teriyaki Madness is seeking individuals who aim to develop multiple businesses and demonstrate flexibility and growth potential. Franchisees, or their approved Managing Owner or Designated Manager, are required to actively supervise day-to-day operations and must successfully complete the franchisor's training programs, including obtaining ServSafe Manager food and beverage safety certification. Teriyaki Madness also requires franchisees to hire a qualified bookkeeper or accountant to manage accounting software and maintain accurate financial records.
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Retail
Owner Participation
Hands-On
Territory Type
Protected
Territory Size Requirements
Teriyaki Madness defines its Area of Protection based on geographic area, population density, and other demographic characteristics. Generally, an area is expected to have a population of approximately 25,000 people, though this can be less in areas with high non-resident traffic. The boundaries for a Teriyaki Madness location can be described using contiguous zip codes, street boundaries, county lines, or visually on a map attached to the Franchise Agreement.
Staffing Notes
Teriyaki Madness franchisees are responsible for hiring and supervising a sufficient number of competent and courteous employees to operate their Teriyaki Madness business efficiently. All employees must wear clean uniforms from approved suppliers. Franchisees are solely responsible for all employment decisions, including hiring, firing, training, compensation, and compliance with labor laws. Teriyaki Madness also requires franchisees to hire a qualified bookkeeper or accountant to manage accounting software and maintain accurate financial records. The operations manual outlines specific job descriptions and responsibilities for roles such as Shop Owner/Manager, Shift Supervisor, Cashier, Point, Grill, Range, and Prep staff.