In this FDD Talk 2016 post, you’ll learn the following:
- Section I – Background information on the Teriyaki Madness franchise opportunity, including relevant news updates
- Section II – Estimated initial investment for a Teriyaki Madness franchise, based on Item 7 of the company’s 2016 FDD
- Section III – Presentation and analysis of Teriyaki Madness’s financial performance representations, based on Item 19 of the company’s 2016 FDD, including information on the:
- 2008 to 2016 average, high, and low gross revenues; same stores sales increase; number and percentage of franchisees at or above the average unit volume; and number and percentage of franchisees at or above same store sales increase of Teriyaki Madness restaurants that have operated for at least one year in premises of 1,300 square feet or greater (which matches the footprint required of new units)
Section I – Background Information
Bringing Seattle’s Love for Teriyaki to the Rest of the U.S.
Teriyaki Madness opened its first location in 2003 in Las Vegas. The founders wanted to bring Seattle’s love for teriyaki shops to another part of the United States. Additionally, the founders wanted to offer a quicker and healthier option to traditional fast food. The initial shop soon gained popularity and franchising officially began in 2005.
For the next few years, Teriyaki Madness only opened locations in the Las Vegas area. In 2013, the brand started opening locations in other parts of the country. Teriyaki Madness almost doubled the number of locations from eight in 2013 to 15 in 2014. The franchise has continued to open additional locations and today, Teriyaki Madness has over 30 locations throughout the United States.
Teriyaki Madness Secures Largest Franchise Deal in Company’s History
Since 2013, the company has continued to push expansion into other areas of the United States. As a result of the recent pursuit of growth, Teriyaki Madness signed the biggest franchise deal in the company’s history during the last quarter of 2016.
In October, Teriyaki Madness signed a deal with a multi-unit operator who wanted to add Teriyaki Madness to a portfolio that consists of 35 other existing restaurant franchises. The deal will bring new Teriyaki Madness locations to the city of Phoenix, AZ and the surrounding areas.
As per the deal, 20 new Teriyaki Madness locations are set to open in the Phoenix area. Teriyaki Madness first entered the Phoenix market with a location in nearby Mesa, AZ in early 2015.
Vice President of Development Todd Owen says the Phoenix deal will help push the company’s national growth further.
Teriyaki Madness Brings on New Leadership
In early 2016, Teriyaki Madness brought on seven new individuals to its executive team. Each of the new executives has an extensive background in the fast casual service industry.
CEO Michael Haith says, “Teriyaki Madness is in a completely new life stage. We’re growing quickly and consistently, and we need an executive leadership team that understands the restaurant industry and can help us keep the Teriyaki Madness brand strong and profitable as we continue to expand.”
The primary goal of the new team is to increase overall franchise sales, while offering a solid support system for new franchisees.
The new team consists of Liz Worley, Director of Marketing; Alison Satriana, Franchise Development Manager; Rusty Schaffer, Director of Supply Chain; Eric Richardson, Director of Construction; Tyler Antikainen, Communications Manager; Bobbi Capps, Support Manager; and Shanlee Kasson, Corporate Training Manager.
Towards the end of September, Teriyaki Madness brought on Todd Owen as Vice President of Development to further the brand’s expansion. Owen previously held leadership roles at Taco Bell and Qdoba Mexican Grill. The new VP of Development was instrumental in helping Qdoba grow from 60 units to more than 630 in less than a decade. Owen hopes to take Teriyaki Madness in a similar direction.
First Teriyaki Madness Location in Georgia
Continuing with plans to enter new markets in the U.S., Teriyaki Madness has just opened its first Georgia location in Marietta. The new location opened on January 16, 2017. To mark the occasion, the first five guests that ordered from the new location received free teriyaki bowls for a year. The next 20 guests that placed an order received free bowls for a month. Additional prizes and coupons were handed out throughout the day.
Debut on Entrepreneur’s Franchise 500
Although Teriyaki Madness has been in business for over a decade, growth had been slow until recently. 2017 marks the first year that Teriyaki Madness has ranked on Entrepreneur’s Franchise 500 list. Teriyaki Madness lands on the list at spot No. 330.
Section II – Estimated Costs
- Please click here for detailed estimates of Teriyaki Madness franchise costs, based on Item 7 of the company’s 2016 FDD (updated).