Why Invest: Co-Founder Rod Arreola Talks About His Goals for Turning Teriyaki Madness into a Nationwide Mania (Part 2)

(Ambrosio’s note:  Welcome to Franchise Chatter’s newest bonus series for Platinum subscribers, Why Invest. Inspired by our very popular Fro-Yo Files, this new series will go beyond frozen yogurt to provide exclusive coverage of the larger franchise universe — including everything from pizza chains to massage concepts — and impart useful information and advice straight from franchise insiders.

Today’s post is the second of three parts.  Stay tuned for Part 3 to be posted tomorrow. To read Part 1, please click here.)

Franchise Set for National Rollout

Though the first franchise unit has been around since 2005, the rollout of further outlets was slowed because of the poor economy, Arreola said. The time lag for a larger expansion has allowed the company to perfect its franchising plan. The recent partnership with Franchise Sherpas has strengthened the company’s position, providing further expertise to go “all in” with a nationwide strategy.

The benefits to franchisees who get in on the ground floor of this small franchise are multiple, Arreola said, including an initial investment cost that could be as much as 50 percent less than some other fast casual franchise opportunities. According to the Teriyaki Madness Franchise Disclosure Document, the total investment necessary to begin operation of a franchise is between $225,573 and $358,713.

“Looking from a return-on-investment perspective, our ROI is very good,” Arreola said. “I’m assuming things are going to go up as we grow,” he added, referring to costs such as the franchise fee.

Plus, the small size of the current franchise operation and the motivation to see the brand take off push the corporate team to give its undiverted attention to those who sign agreements early on, Arreola said.

“From a relationship standpoint, they’re going to get a lot of attention from corporate. We’re really counting on the first franchisees to be successful, so we’re going to do everything in our power to see that they’re successful.”

Attracting Ground-Floor Franchisees

At present, Teriyaki Madness is getting franchise leads through its website, online portals, and by working with franchise brokers. It hasn’t been recruiting through conventions or expos yet, but that might be explored in the future.

The ideal candidate, according to Arreola, 38, would be between 30 and 48 years old, with some college education and an entrepreneurial spirit. Prior restaurant experience is not necessarily a prerequisite for success. Because of the grilling concept, Teriyaki Madness tends to attract more males, he added.

“They live an active lifestyle. They’re looking for a restaurant concept in a fast-growing market, and they definitely have confidence in their abilities,” he said.

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