Pepper Lunch
Pepper Lunch franchises operate fast-casual Japanese specialty restaurants offering do-it-yourself meals of beef, chicken, and seafood cooked on iron griddles, accompanied by signature pepper rice, pasta, proprietary sauces, side dishes, and non-alcoholic beverages for on-premises and off-premises consumption. The franchisor, Hot Palette America Incorporated, sells single-unit franchises or multi-unit development agreements requiring a minimum of 5 restaurants in defined areas. It targets customers in the competitive fast-casual dining market, particularly those interested in interactive Japanese cuisine experiences.
Disclaimer: This information was extracted using AI from public Franchise Disclosure Documents and should be independently verified. This is not financial or legal advice. Always review official FDD filings before making investment decisions.
Overview
Financial Requirements
5% royalty + 2% Brand Building Fund + $300/mo technology fee (up to $500/mo)
Franchise Stats
Financial Performance
Item 19 Financial Performance
Data Based On: 5 franchised Pepper Lunch Restaurants for the period January 1, 2024 to December 31, 2024.
* Calculated average gross revenue from 5 individual franchised units: ($2,967,474.62 + $1,289,286.04 + $1,561,864.68 + $1,177,400.32 + $1,089,402.32) / 5 = $1,617,085.60. Calculated median gross revenue from the same 5 units = $1,289,286.04. No expense or profit data provided.
Extracted Item 19 Section
How Pepper Lunch Compares to Other Fast Food Franchises
| Franchise | Investment Range | Franchise Fee | Royalty | Locations |
|---|---|---|---|---|
Pepper Lunch Current | $657K - $1.7M | $50K | 5.0% | 5 |
| Burger King | $2.1M - $4.7M | $50K | 4.5% | 19,732 |
| MCDONALD'S | $1.5M - $2.6M | $45K | N/A | 12,772 |
| AFC | $45K - $151K | $6K | 9.5% | 3,572 |
| SONIC DRIVE-IN | $1.7M - $3.1M | $15K | 5.0% | 3,441 |
| JIMMY JOHN'S | $366K - $728K | $35K | 6.0% | 2,647 |
Fast Food Average 127 franchises | $605K - $1.5M | $35K | 6.1% | - |
* Comparison based on latest FDD filings. Investment ranges from Item 7, fees from Item 5. Showing top 5 of 127 Fast Food franchises by location count.
Locations & Growth
Outlet Growth Over Time
Total outlets at end of each year
Geographic Distribution (2024)
Outlets by state across the United States
Franchisee Contacts
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Due Diligence
Litigation (Item 3)
No litigation involving franchisees reported in the FDD.
Bankruptcy (Item 4)
No bankruptcy history reported in the FDD.
System Health (Item 20)
Franchise system changes reported in the most recent fiscal year
Frequently Asked Questions
How much does it cost to open a Pepper Lunch franchise?
The total initial investment to open a Pepper Lunch franchise ranges from $657,000 to $1,688,500. This includes a franchise fee of $50,000. Ongoing royalty fees are 5.0% of gross sales.
How much revenue does a Pepper Lunch franchise make?
According to the 2025 FDD, the average gross revenue for a Pepper Lunch franchise is $1,617,085.6. The median revenue is $1,289,286.04.
How many Pepper Lunch franchise locations are there?
As of the 2025 FDD, Pepper Lunch has 5 franchise locations. The company has been franchising since 2023.
Is Pepper Lunch a good franchise to buy?
Pepper Lunch shows several positive indicators: transparent financial performance data (Item 19). However, franchise success depends on many factors including location, local market conditions, and owner involvement. We recommend speaking with existing franchisees and consulting with a franchise attorney before making a decision.
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