Tulsi Indian Eatery Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$239,000 - $534,333
Franchise Fee
$22,500
Total US Locations
3
Business Summary
Tulsi operates fast casual restaurants offering a fresh vegetarian and plant-based menu. The menu includes regional specialties from India, American favorites, Indian-fusion dishes, and Pan-Asian specialties.
Corporate History
Tulsi Franchising, LLC was formed as a Delaware Limited Liability Company on November 15, 2023. While the franchising entity is new, its affiliate, J & J Hospitality Group, LLC, has operated Tulsi restaurants in Los Angeles, California, since 2020, Northridge since 2021, and Westwood since 2022. Tulsi Franchising began offering franchises in January 2024.
Financial Overview
Investment Range
$239,000 - $534,333
Franchise Fee (Low)
$22,500
Franchise Fee (High)
$30,000
Royalty %
5%
Marketing %
1%
Equipment Costs (Low)
$108,000
Equipment Costs (High)
$290,000
Working Capital
$75,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Tulsi is a new franchisor, formed in November 2023, and has not been in business for three years, so its financial statements are limited to an audited opening balance sheet dated January 22, 2024. The California Department of Financial Protection and Innovation has determined that Tulsi has not demonstrated it is adequately capitalized and may rely on franchise fees to fund its operations. Due to this, the Commissioner has imposed a condition requiring Tulsi to defer the collection of all initial fees from California franchisees until all pre-opening obligations are completed and the franchisee's unit is open for business. For multi-unit development agreements in California, development and initial fees for specific units are deferred until those units are open.
Financing Details
Tulsi does not offer any direct or indirect financing to its franchisees. Additionally, Tulsi does not guarantee any franchisee's notes, leases, or other obligations.
Performance Metrics
Total US Locations
3
Franchised Units
0
Corporate Units
3
Franchising Since
2024
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Tulsi has no litigation history to report. Item 3 of the FDD states that no litigation is required to be disclosed for the company.
Bankruptcy History
Tulsi has no bankruptcy history to report. Item 4 of the FDD states that no bankruptcy information is required to be disclosed for the company or its key personnel.
Agreement Terms
Initial Term
10 years
Renewal Term
5 years
Renewal Conditions
To renew their franchise agreement, Tulsi franchisees must provide notice between 90 and 180 days before their current term ends. They must be in full compliance with all contractual obligations to Tulsi and any third parties. Franchisees are required to renovate their business to meet Tulsi's then-current standards, which may include a full remodel. Additionally, they must sign Tulsi's current standard form of franchise agreement and related documents, including a personal guaranty, and execute a general release of any claims against Tulsi.
Training & Support Program
Franchisor Assistance
Before opening, Tulsi assists franchisees by reviewing and advising on potential locations based on its criteria, and providing sample building plans, specifications, and a list of approved suppliers. Tulsi offers an initial training program for the Principal Executive and up to three team members. It also advises on planning a market introduction and provides a representative for one to two weeks of on-site support during the business opening. After opening, Tulsi offers advice by phone or electronic communication regarding business improvement and problem-solving, if requested. It provides recommended prices for products and services, recommended administrative, bookkeeping, accounting, and inventory control procedures, and manages the Brand Fund. Tulsi also maintains a brand website that includes franchisee business information.
Initial Training Hours
109
Training Location
Northridge, CA or Your Location
Ongoing Support
After their business opens, Tulsi provides ongoing support and advice to franchisees via telephone or electronic communication, addressing business development and operational issues as deemed reasonable by Tulsi. If in-person support is requested, Tulsi may charge a daily fee plus expenses. Tulsi provides recommended prices for products and services and outlines administrative, bookkeeping, accounting, and inventory control procedures. It also administers the Brand Fund for marketing purposes and maintains the brand's website, which includes information about franchisee locations.
Franchise Requirements
Ideal Candidate Profile
Tulsi's ideal candidate for a franchisee must designate a 'Principal Executive' who is primarily responsible for the business and holds decision-making authority. This Principal Executive must own at least 10% of the business and is expected to devote substantial time and attention to its operation. The Principal Executive must successfully complete Tulsi's initial training program and any future post-opening training, as well as attend all required in-person and remote meetings.
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Retail
Owner Participation
Absentee Allowed
Territory Type
Exclusive
Territory Size Requirements
Tulsi defines its franchise territories by a radius around the business location. Each territory will encompass a population of approximately 50,000 people from the location, or a smaller area if determined by population. Other boundaries such as county lines, political boundaries, streets, geographical features, or trade areas may also be used. If a territory is not explicitly defined in writing, it will be considered the zip code where the business operates and the immediately surrounding zip codes, totaling a minimum population of 50,000.
Staffing Notes
Tulsi provides its franchisees with suggested staffing levels and guidelines for hiring employees. Additionally, operational instructions in the Brand Standards Manual can be utilized by franchisees as part of their new employee training. However, specific numbers for employees, detailed job roles, or operational staffing requirements are not outlined in the FDD.