About Genji Sushi Bars Franchise
Genji Sushi Bars is a sushi and Japanese food franchise that operates preparation counters within retail locations such as supermarkets, grocery stores, hospitals, and corporate cafeterias.
Franchising since 2022 under Hana Group US, LLC, the brand brings fresh sushi and Japanese cuisine directly to shoppers and workers in the places they already visit daily.
The initial franchise fee ranges from $3,500 to $4,500.
Genji Sushi Bars Franchise Cost & Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $3,500 - $4,500 | One-time payment upon signing |
| Royalty Fee | Effectively 45% of Gross Sales (inclusive of Royalty fees paid to us and Retail Commissions paid to the Retail Operator) of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | Up to 1% of Gross Sales (if created) (Brand Fund Contribution); 1% of Gross Sales (Local Advertising Marketing and Promotional Expenditures, if required in future) | National brand fund |
| Total Investment Range | $42,170 – $133,500 | Includes build-out, inventory, working capital |
The investment range of $42K–$134K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (Effectively 45% of Gross Sales (inclusive of Royalty fees paid to us and Retail Commissions paid to the Retail Operator)) and marketing fee (Up to 1% of Gross Sales (if created) (Brand Fund Contribution); 1% of Gross Sales (Local Advertising Marketing and Promotional Expenditures, if required in future)) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $3,500 | $4,500 |
| Computer, Office Supplies, Equipment and Fixtures | $6,100 | $39,800 |
| Advertising, Marketing and Promotional Materials and Signage | $500 | $1,500 |
| Opening Inventory and Smallwares | $7,500 | $20,000 |
| Initial Training Fees | $2,000 | $8,000 |
| ServSafe Training | $100 | $1,500 |
| Pre-opening Travel Expense | $0 | $2,500 |
| Insurance Deposits and Premiums | $500 | $2,000 |
| Pre-opening Labor | $1,000 | $3,500 |
| Professional Fees | $2,500 | $3,000 |
| Business Permits and Licenses | $350 | $2,000 |
| Credit and Criminal Background Check | $120 | $200 |
| Additional funds – Pre-Opening and Initial 3 Months’ Operations | $18,000 | $45,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $1,500 (for most transfers, no charge for certain internal transfers) |
| Renewal Fee | $2,500 or $3,500 (Successor Agreement Fee) |
| Technology Fee | $190 per month (Data Fee) |
| Audit Fee | $185-$205 per quarterly audit (Food Safety Audit Fees) |
| Interest | 8% per year or highest rate allowed by law |
| Late Fee | $25 per day |
| Testing or Supplier Approval Fee | $500 per product item, plus costs and expenses (estimated at $3,000 if travel within U.S.) |
| Accounting Fee | Costs and expenses |
| Additional training | $1,500 for additional people; $500 per day plus costs and expenses for additional training |
| Legal fees and expenses | All costs and expenses, including attorneys’ fees |
| Indemnification | The amount of any claim, liability or loss we incur from your Franchised Business |
| Reimbursement of Costs and Expenses | Costs and expenses |
| Confidential Operating Manual Replacement Fee | $250 |
| Post-Termination or Post-Expiration Expenses | Costs and expenses |
| ServSafe Training | $100 to $300 per person; $50 per person re-testing fee |
| Management Fee | 5% of Gross Sales for the period in which we operate the Franchised Business plus expenses |
| Test Marketing | Your actual costs and expenses, estimated to be $1,000 |
| Liquidated Damages | Product of (i) a fraction (months remaining/total months) times (ii) the Initial Franchise Fee |
| Non-compliance fee | $500 per instance |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | 5 to 12 days |
| Classroom Training | 16 |
| On-the-Job Training | 24-96 |
| Training Location | The location of your Franchised Business or an alternate location that we agree to |
| Additional Training | The franchisor may offer and/or require additional training courses for the franchisee, operating principal, and/or previously trained employees at designated times and locations. A supplemental training fee of $500 per day plus costs and expenses (travel, room, board, living expenses) may be charged. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Non-exclusive |
| Exclusive Territory | No |
| Territory Size | The minimum territory granted to you will be the Retail Location in which your Genji Sushi Bar is located. |
| Description | Franchisees operate within specific Retail Locations (supermarkets, grocery stores, hospitals, corporate cafeterias, etc.) under a Vendor Agreement with a third-party Retail Operator. No exclusive territory is granted, and franchisees may face competition from other franchisees, company-owned outlets, or other competitive brands. The franchisor reserves the right to operate or franchise other Genji Sushi Bars or Satellite Sushi Bars, even within a forty (40) mile radius of a franchisee's location, without compensation to the franchisee. Relocation requires franchisor's prior written approval. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 3 or 5 years |
| Renewal Term | one additional consecutive 3 or 5 year term |
| Renewal Fee | $2,500 or $3,500 |
| Renewal Conditions | Franchisor must be offering franchises for the retail location, franchisee must have substantially complied with terms, execute then-current agreement (which may differ materially), bring business into full compliance with current standards (including upgrades), meet new training requirements, satisfy all monetary obligations, execute a general release, give 2-6 months written notice, maintain licenses/permits, and franchisor must retain right to operate at retail location. |
| Transfer Fee | $1,500 |
| Transfer Conditions | Franchisee must notify franchisor in writing of proposed transfer, transferee must meet franchisor's standards (business experience, financial resources, no interest in competitive business), franchisee must have paid all obligations and cured all breaches, transferee/operating principal must complete initial training and ServSafe, retail operator must consent, transferee must execute then-current franchise agreement and pay current franchise fee, transferee must upgrade Genji Sushi Bar to current standards, franchisor not responsible for representations not in FDD, franchisee/owners sign general release, terms of transfer not adversely affect business, financing subordinate to franchisor, franchisee not identify as former Genji franchisee, transferee sign personal guarantees, transferee pass credit/criminal background check, transfer includes all Genji Satellite Sushi Bars. No transfer permitted within first two years. |
| Termination for Cause | Franchisor may terminate for various defaults including material misrepresentation, unauthorized business activity, felony conviction, dishonest/unethical conduct, failure to pay taxes, repeated failures to comply with agreement, health/safety violations, failure to comply with confidentiality/trademark restrictions, unauthorized assignment/relocation, loss of right to operate at retail location, failure to follow recipes/use required ingredients, or failure to pass credit/criminal background check. Curable defaults have a 10-day cure period (3 days for insurance, 72 hours for health/safety). |
| Non-Compete Period | During the term of the franchise agreement and for an uninterrupted period of two (2) years after the later of: (i) termination or expiration of the Franchise Agreement; (ii) transfer of the franchise; or (iii) date of a final non-appealable judgment or order enforcing the non-compete. |
| Non-Compete Details | During the term, there is no geographical limitation on engaging in competitive business, soliciting employees, or owning interest in competitive business (except <5% publicly traded stock). Post-term, restrictions apply at the location of the Genji Sushi Bar and within ten (10) miles of any Genji Sushi Bar (franchisee's or other Genji units). Also prohibits soliciting employees for 24 months. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | The franchisee or its Operating Principal must personally supervise the day-to-day activities of the Franchised Business for a period of no less than thirty-six (36) hours per week. If the owner does not personally supervise, a full-time manager, approved by the franchisor and having completed all required training, must be employed for on-premises supervision. All employees, including managers, must complete ServSafe training. |
| Required Suppliers | Our affiliate, Hana Group Ops, LLC is currently the exclusive Supplier of raw and cooked food items, packaged food items, grains, supplies, condiments, utensils and other items. |
| Supply Restrictions | Franchisees must obtain all goods, services, supplies, materials, fixtures, furnishings, equipment (including computer hardware and software) and other products used only from our designated or approved suppliers, vendors, manufacturers, printers, contractors, and distributors, including an affiliated entity or us. |
| Franchisor Revenue from Suppliers | $1,792,032 (from purchases by Genji franchisees from Hana Group Ops, LLC for fiscal year ended June 30, 2024). Total revenue from purchases or leases of products or services required from Genji franchisees was $27,500 (0.55% of total revenues). Approximate mark-up on purchases or leases of products and services required to be made by franchisees from us is 6%, and the approximate mark-up on Products sold by our affiliate, Hana Group Ops, LLC, to franchisees ranges between 9% (plus freight and handling costs) and 30% of such affiliate’s cost. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | Yes |
| Description | The franchisor offers financing for the opening inventory of food items, smallwares, uniforms, and supplies in three equal monthly installments with an 8% annual interest rate. The financed amount is estimated between $7,500 and $20,000. The franchisor may also offer a lease-to-own arrangement for a new sushi robot machine (costing up to $14,800) with 12 equal monthly payments over a 1-year term, with a $1 purchase option at the end. Personal guarantees are required for entity franchisees and their spouses for both types of financing. |
Genji Sushi Bars Franchise Earnings — Item 19
Genji Sushi Bars does not include an Item 19 financial performance representation in their FDD. Contact information for current and former franchisees is listed in Item 20 of the FDD.
Genji Sushi Bars Litigation & Risk Flags
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Genji Sushi Bars System Growth
Genji Sushi Bars currently operates 37 franchised locations and 188 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2022 | 0 | 0 | 0 |
| 2023 | 13 | 0 | 13 |
| 2024 | 24 | 0 | 37 |
Transfers: 0 | Closures: 0
State Registrations
Registered in 12 states: CA, IL, IN, MD, MI, MN, NY, ND, RI, VA, WA, WI
Franchisor Financials (Item 21)
Audited by Citrin Cooperman & Company, LLP for year ending June 30.
Genji Sushi Bars Franchise — FAQ
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