Yoshinoya Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$456,150 - $2,153,900
Franchise Fee
$13,750
Total US Locations
100
Business Summary
Yoshinoya Restaurants are quick-service establishments specializing in freshly prepared, quality Japanese-style foods. Yoshinoya offers a menu that includes a variety of rice bowl sizes and selections, such as its signature Beef Bowl®, Ribeye Steak, Teriyaki Chicken, and Salmon, along with soup, desserts, fresh side dishes, and beverages.
Corporate History
Yoshinoya America, Inc. was incorporated in Delaware in 1977. Its predecessor, Yoshinoya Franchise of North America, Inc. (YFNA), began offering Yoshinoya Restaurant franchises in 1996. On October 1, 2008, Yoshinoya West, Inc. merged with YFNA and Yoshinoya America, Inc., with Yoshinoya West, Inc. surviving and changing its name to Yoshinoya America, Inc. Yoshinoya West, Inc. had operated Yoshinoya Restaurants in California since 1979. The original Yoshinoya Restaurant concept was founded in Japan in 1899 as a family business. Yoshinoya America, Inc. is a wholly-owned subsidiary of YOSHINOYA HOLDINGS CO., LTD., a Japanese corporation.
Financial Overview
Investment Range
$456,150 - $2,153,900
Franchise Fee (Low)
$13,750
Franchise Fee (High)
$27,500
Royalty %
5.5%
Marketing %
3.5%
Equipment Costs (Low)
$308,000
Equipment Costs (High)
$1,695,000
Working Capital
$88,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Going concern qualification
Financial Health Notes
The financial statements for Yoshinoya America, Inc. indicate substantial doubt about its ability to continue as a going concern due to incurring losses from operations in recent years. As of December 31, 2023, Yoshinoya America, Inc. had an accumulated deficit of $120,405,296 and its total liabilities exceeded its total assets by $12,797,759. The company has relied on capital contributions from its parent company and a related entity, totaling $23,755,758 in 2023, to fund operations and capital expenditures. Yoshinoya America, Inc. expects continued financial assistance from its parent company and related entity if necessary.
Financing Details
Yoshinoya America, Inc. does not offer any direct or indirect financing to its franchisees, nor does it guarantee any notes or obligations to third parties. Franchisees will need to secure their own funding.
Performance Metrics
Total US Locations
100
Franchised Units
23
Corporate Units
77
Avg Square Footage
1,800
Franchising Since
1996
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Yoshinoya America, Inc. has no litigation or legal disputes to report in Item 3 of its FDD.
Bankruptcy History
Yoshinoya America, Inc. has no bankruptcy history to report in Item 4 of its FDD.
Agreement Terms
Initial Term
10 years
Renewal Term
5 years
Renewal Conditions
To renew their franchise agreement, Yoshinoya America, Inc. franchisees must submit a timely written request and complete a renewal application. They must have maintained substantial and timely compliance with their existing Franchise Agreement and any other agreements with Yoshinoya America, Inc. or its affiliates. Franchisees are required to remodel, refurbish, and renovate their restaurant to meet current standards and must secure the right to operate at their accepted location or relocate if necessary. They must also sign Yoshinoya America, Inc.'s then-current form of Renewal Franchise Agreement, which may have materially different terms, pay a renewal fee equal to 25% of the then-current Initial Franchise Fee, and sign a general release.
Training & Support Program
Franchisor Assistance
Yoshinoya America, Inc. provides extensive support to its franchisees. Before opening, Yoshinoya America, Inc. reviews the proposed location, provides a sample layout and specifications for the restaurant, reviews architectural plans, and assists in identifying approved general contractors and suppliers. Yoshinoya America, Inc. also provides access to its Manuals, conducts an initial Management Training Program, and approves grand opening advertising. After opening, Yoshinoya America, Inc. continues to identify approved suppliers, reviews any proposed new suppliers or products, manages the advertising fund, and updates its brand standards and operational manuals. Yoshinoya America, Inc. also offers general support services, which may be on-site, off-site, or via telephone, with timing dependent on staff availability. Yoshinoya America, Inc. also reviews plans for relocations and remodels.
Initial Training Hours
320
Training Location
Southern California operating restaurant
Ongoing Support
After opening, Yoshinoya America, Inc. provides ongoing support by continually identifying approved suppliers and reviewing any new proposed suppliers or products. It manages the advertising fund, updates its operational standards and manuals, and reviews franchisee advertising. Yoshinoya America, Inc. also offers general support services, which may be on-site, off-site, or via telephone, with timing dependent on staff availability. Franchisees may also receive additional consulting or support services for a fee, and may be required to attend refresher and advanced training courses and conferences.
Franchise Requirements
Ideal Candidate Profile
Yoshinoya America, Inc. seeks qualified individuals or business entities. Ideal candidates must pass a financial credit check, demonstrate basic competency in the English language, successfully complete an operations interview, and pass a criminal background check. If the franchisee is an individual, they must devote their best efforts to the business. If an entity, one of its owners must be a Primary Contact, hold at least a 10% ownership interest, successfully complete the initial training, and directly supervise the restaurant's operations.
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
Yoshinoya America, Inc.'s protected territories are determined on a case-by-case basis, considering factors like market demand, demographics, population, median household income, competitor presence, traffic patterns, and future development plans. If a protected territory is granted, it is typically defined as a 0.2-mile radius from the accepted location, with the location as the center point. There is no minimum protected area.
Staffing Notes
Yoshinoya America, Inc. requires its franchisees to staff their Yoshinoya Restaurant with a minimum number of dedicated managers. Specifically, each franchised business must employ at least two managers from before its opening date until 90 days after opening, and then at least one manager thereafter. These managers must have day-to-day management responsibilities, provide on-premises supervision, and actively participate in the direct operation of the business. If the franchisee operates four or more Yoshinoya Restaurants, Yoshinoya America, Inc. may also require the appointment of a Director of Operations to supervise multiple locations. All managers and directors must successfully complete the Management Training Program and meet other specified qualification standards.