DO I QUALIFY?

Licensing Partner Assessment Factors

Multi-Unit Experience

Track Record Operating a Multi-unit Business

Financial Qualifications

Ability to finance the growth of a new venture.

Strong Reputation

A formidable personal and financial reputation.

Motivation

A commitment and passion to achieve and a desire to succeed.

Culture and Brand Fit

An outspoken brand ambassador and cultural leader.

Growth Mindset

Strong work ethic with a resourceful mindset for growth.

Licensing Partner Assessment Criteria

Multi-Unit Operations Experience

Proven track record in operating a multi-unit restaurant or hospitality business (preferably quick service restaurant)

Successful business ownership experience (preferably multi-unit restaurant)

Financial Qualifications

$1,500,000 Total Net Worth

$750,000 Total Liquid Assets*

Net Worth and Liquid capital access commensurate with ownership level (may vary significantly from minimum requirements)

Personal & Financial Reputation and Stability

No criminal convictions, history of litigation, bankruptcy

Business history and reputation, referrals

Press/Social Media

Motivation and Commitment

Willingness to guarantee Franchise Agreement obligations

Time commitment for required training programs (includes entire organization)

Hands on in the day to day operation of the business, Residency/proximity

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Application Process

Background Information

Complete franchisee preliminary questionnaire
Franchise Disclosure Document (FDD) issued, FDD receipts signed and returned
Financial assets verified and geographic interests specified
Complete franchise application, credit and background checks conducted
Review goals, approval process, designated training and prepare operations plan with Pelian

Operations Interview

Interview preparation and complete due diligence (i.e., contact existing franchisees, finalize operating plans, etc.)
Complete interview with operations team
Candidate’s existing operations visited, if applicable

Leadership Team Approval

Visit restaurant for half-day, in-store experience
Attend a Business Bootcamp
Meet with Leadership Team and Brand Ambassadors. Discuss Opportunities for Acquisition and Development

FAQ

YOUR QUESTIONS AND CONCERNS ANSWERED

What are the minimum requirements to qualify to be a franchisee?

Qualifications will largely depend on the positioning and the brand of interest. Typical candidates will have the following characteristics.

Financial:

  • ¥3M+ (Individual Unit) / ¥5M+ (Regional Co-op) Liquid Assets
  • ¥5M (Individual Unit) / ¥10M+ (Regional Co-op) Net Worth
  • Strong Financial History
  • Reputable Credit Report

Experience:

Ideal candidates will preferably have a background in the multi-unit retail, hospitality or restaurant ownership and/or management business.

Growth:

Qualified individuals will have a “hands-on” mentality with the business, a keen eye for detail and the ability to build and mentor a high performance team.

What will I need to pay in royalties and advertising? What is the fee structure when I become a franchisee?

Franchise costs and fee’s will vary largely on the licensed brand and the agreed expansion model.  An example of a standard cost structure for a brand would include:

  • Initial Franchise Fee = ¥ 150,000
  • Monthly Service Fee (Royalties) = 5% of Gross Sales
  • National Advertising = Year 1: 3% , Year 2: 4%, Year 3+: 5%
  • Security Deposit = ¥ 100,000

Amounts above do not include initial investment required to construct a unit, opening expenses or opening inventory. Please refer to the individual brand Franchise Disclosure Document (FDD) for more in-depth information on the total estimated initial investment and ongoing fee structures.