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KBM-USA
KBM-USA Co., Ltd. offers subfranchise opportunities for the right to grant unit franchises for Warabimochi Kamakura shops featuring Japanese sweets and beverages, including traditional Kamakura Warabimochi made fresh on-site with high-quality honwarabi powder. The business model involves subfranchisors signing a Master Franchise Agreement to develop specified territories in the United States by issuing subfranchises according to a development schedule. The target market includes consumers interested in authentic Japanese desserts and potential subfranchisees seeking to expand this specialty retail concept.
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Franchise Costs
40% of (i) the initial franchise fees collected from subfranchisees and (ii) royalty fees collected from subfranchisees based on Gross Sales of their Franchised Shops; no ad fund or fixed monthly fees.
Financial Performance
Item 19 Financial Performance
This franchise did not provide Item 19 financial performance data.
Be careful if you are interested in investing. The lack of financial performance representations may indicate limited data or varying results across franchises.
Extracted Item 19 Section
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Unlock financial performance dataKBM-USA Franchise Analysis
What if a dessert franchise demanded 40% of every subfranchisee dollar you collect? KBM-USA, bringing authentic Kamakura warabimochi to U.S. territories, structures its master franchise with fees that dwarf typical ice cream concepts. Item 7 lays out the numbers, while the system's youth raises questions about scalability—can this niche Japanese sweet conquer American palates?
Item 7 estimates total initial investment at $88,890-$226,899 for subfranchisors, including a $69,398 franchise fee. Ongoing royalties hit 40% of initial franchise fees and royalty fees from subfranchisees' gross sales—no advertising fund or fixed monthly fees, but that 40% is a franchise-industry outlier, far above the 5-8% norm for desserts. No Item 19 means no disclosed earnings for subfranchised units, leaving profitability opaque; you'd rely on your subfranchisees' performance in a specialty retail niche. Projected new units stand at just 1 for the coming year, signaling cautious expansion since franchising began in 2025.
This subfranchise model suits aggressive developers eyeing exclusive territories for high-margin Japanese treats made fresh with honwarabi powder, but the steep royalties could squeeze margins unless subfranchisees thrive quickly. System health shows zero historical data on terminations or transfers due to its newness under parent K&S Co., Ltd., emphasizing the high-risk bet on unproven U.S. demand. Investors must project subfranchisee recruitment success to offset the front-loaded costs—a bold play, but one demanding ironclad market validation.
Analysis based on the 2025 Franchise Disclosure Document. All figures should be independently verified before making investment decisions.
How KBM-USA Compares
Key Insights
- One of the lowest investment costs in Desserts & Ice Cream (ranked #2 of 28)
| Franchise | Investment | Fee | Royalty | Locations |
|---|---|---|---|---|
KBM-USA Current | $89K – $227K | $69K | 40.0% | 0 |
| RITA'S FRANCHISE COMPANY, LLC; RITA'S ICE-CUSTARD-HAPPINESS | $315K – $713K | $35K | 6.5% | 569 |
| MENCHIE'S | $180K – $515K | $54K | 6.0% | 295 |
| DIPPIN' DOTS | $139K – $399K | $35K | 6.0% | 260 |
| MARBLE SLAB CREAMERY | $355K – $477K | $25K | 6.0% | 249 |
| BRUSTER'S | $415K – $1.1M | $40K | 5.0% | 219 |
Desserts & Ice Cream Average 28 franchises | $326K – $656K | $37K | 7.0% | – |
* Comparison based on latest FDD filings. Investment ranges from Item 7, fees from Item 5. Showing top 5 of 28 Desserts & Ice Cream franchises by location count.
Franchisee Contacts
1 franchisee contacts on file from official FDD filings.
1 Contacts Available
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Unlock contactsDue Diligence
Litigation (Item 3)
Bankruptcy (Item 4)
System Health (Item 20)
Franchise system changes reported in the most recent fiscal year
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Unlock due diligence reportsFrequently Asked Questions
The total initial investment to open a KBM-USA franchise ranges from $88,890 to $226,899. This includes a franchise fee of $69,398. Ongoing royalty fees are 40.0% of gross sales.