Wagyu Street Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$377,200 - $689,730
Franchise Fee
$20,000
Business Summary
Wagyu Street operates fast-casual restaurants specializing in Japanese barbecue-style, high-quality meat and Wagyu beef menu items. The restaurants offer food for carryout, delivery, and catering, focusing on a Japanese barbecue culinary experience. Wagyu Street offers both individual restaurant franchises and multi-unit development opportunities within designated territories.
Corporate History
GYUSHIGE U.S.A. LLC was established in Washington on April 1, 2019. The company operates both the Wagyu Street and Gyushige restaurant franchise systems. It began offering Gyushige franchises in the United States in September 2019 and started offering Wagyu Street franchises in December 2023. Prior to February 29, 2024, Food's Style USA Inc. was the parent company. As of February 29, 2024, Food Links International, Inc. acquired GYUSHIGE U.S.A. LLC and became its new sole member.
Financial Overview
Investment Range
$377,200 - $689,730
Franchise Fee (Low)
$20,000
Franchise Fee (High)
$40,000
Royalty %
5%
Equipment Costs (Low)
$197,000
Equipment Costs (High)
$326,000
Working Capital
$88,050
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Going concern qualification
Financial Health Notes
Wagyu Street's financial statements show operating losses for the years ended December 31, 2023, and 2022. These losses have been covered by equity contributions and loans from the company's members. Due to these conditions, the auditors have noted substantial doubt about Wagyu Street's ability to continue operating. The company's owner and a stockholder of the new owner have committed to funding future working capital through loans or additional equity if needed, which management believes will provide sufficient resources for at least one year. The franchisor's financial condition, as reflected in its financial statements, calls into question its financial ability to provide services and support to franchisees.
Financing Details
Wagyu Street does not offer any direct or indirect financing to its franchisees and does not guarantee their notes, leases, or other obligations.
Performance Metrics
Total US Locations
0
Franchised Units
0
Corporate Units
0
Avg Square Footage
575
Franchising Since
2019
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Wagyu Street has no litigation history that is required to be disclosed in the FDD.
Bankruptcy History
Wagyu Street has no bankruptcy history to disclose in the FDD.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew their Wagyu Street franchise, franchisees must be in compliance with their franchise agreement and all related agreements. They need to provide 180 days' written notice of their intent to renew, sign the then-current franchise agreement and related renewal agreements, and execute a general release in favor of Wagyu Street. Franchisees are also required to pay a renewal fee and remodel or upgrade their restaurant to meet the current brand standards and specifications. Additionally, they must have the legal right to continue occupying their restaurant location and fulfill all other renewal requirements outlined in the franchise agreement. All owners, and their spouses, must also be in compliance with their agreements and personally guarantee the terms of the new renewal franchise agreement, which may contain materially different terms.
Training & Support Program
Franchisor Assistance
Wagyu Street provides pre-opening assistance, including granting the franchise rights, defining the designated territory, and providing access to its confidential operations manuals. It reviews and approves proposed restaurant sites and offers a list of approved suppliers and equipment. Wagyu Street also identifies the franchisee's restaurant on its website and provides an initial training program for the franchisee or managing owner and one designated manager. Post-opening, Wagyu Street may require supplemental on-site training (for a fee), communicate updated operating standards, marketing standards, and approved vendors, and coordinate annual system conferences (for a fee).
Initial Training Hours
60
Training Location
Long Beach, California or franchisee's restaurant location
Ongoing Support
After opening, Wagyu Street may require franchisees or their operating managers to participate in supplemental on-site training for a fee. The franchisor also communicates updated operating standards, procedures, and system requirements, as well as marketing standards and approved vendors. Wagyu Street may coordinate an annual conference for franchisees (with an attendance fee) and administers any system-wide marketing funds. Franchisees are responsible for their own employee hiring and training, and while Wagyu Street may suggest pricing levels, franchisees exclusively determine prices for their products and services.
Franchise Requirements
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
Protected
Territory Size Requirements
The designated territory for a Wagyu Street restaurant will generally be a distance of two miles from the restaurant location in all directions travelable by road, though it may be smaller based on population density, demographics, and geographical boundaries.
Staffing Notes
Wagyu Street does not provide assistance with the hiring and training of employees. Franchisees are directly responsible for the management and supervision of their employees. Franchisees must ensure all employees wear and maintain proper uniforms with approved System branded apparel and uniforms. They also need to monitor that all System Supplies and Approved Services and Products are prepared, maintained, and served in accordance with the System standards and Operations Manuals.