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TERIYAKI MADNESS
Teriyaki Madness franchises operate fast casual restaurants that prepare and sell Japanese-style teriyaki dishes featuring grilled high-quality meats marinated in proprietary signature teriyaki sauces, along with other specialty food items, beverages, and related products, emphasizing generous portions at reasonable prices cooked to order. The franchisor offers single-unit franchises or multi-unit development agreements (standard for 3 units or executive for 3+ with unlimited potential), providing a proprietary system including know-how, training, operations manuals, and marketing support. The target market consists primarily of customers aged 18-49 seeking high-quality quick-service meals in the competitive fast-casual restaurant industry.
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Franchise Costs
6% royalty + 4% ad fund + $395/mo technology fee
Financial Performance
Item 19 Financial Performance
Data Based On: 140 franchised Teriyaki Shops that met the Conditions for the 2025 calendar year. Detailed Profit and Loss statements were provided for 66 of these shops.
* Average Gross Revenue is directly from the Gross Sales Table for 2025 on Page 1. Median Gross Revenue is directly from the Gross Sales Table for 2025 on Page 1. Revenue Top Quartile is the Average Gross Sales for Quartile 1 in 2025 on Page 3. Revenue Bottom Quartile is the Average Gross Sales for Quartile 4 in 2025 on Page 3. Average Gross Profit is calculated as the sum of (Net Revenue - Total Cost of Goods Sold) for the 66 shops with detailed Profit and Loss data provided, divided by 66. Total Gross Profit: $53,498,038. Average EBITDA is calculated as the sum of EBITDA for the 66 shops with detailed Profit and Loss data provided, divided by 66. Total EBITDA: $6,710,270. EBITDA Margin % is calculated as (Total EBITDA for 66 shops) / (Total Net Revenue for 66 shops). Average Net Profit is set to Average EBITDA, as the document defines EBITDA as 'Total Net Revenue less Total Expenses, calculated before interest, income taxes, depreciation, and amortization', which aligns with operating profit or net profit before specific non-operating items. Best Guess Profit Low and High are derived from the 25th and 75th percentiles of the EBITDA values of the 66 shops with detailed Profit and Loss data.
Extracted Item 19 Section
Avg. Revenue: $1,113,760
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Unlock financial performance dataTERIYAKI MADNESS Franchise Analysis
Teriyaki Madness entered franchising nearly two decades ago, carving a niche in fast-casual teriyaki with a system that's expanded steadily amid fierce QSR competition. Item 19 financial disclosures paint a picture of high-volume performers, yet the profit trajectory raises eyebrows when paired with operational realities. Does this Denver-based brand offer the scalable returns to justify the seven-figure buildout, or are hidden risks cooling the sizzle?
The system's track record shows resilience: franchising since 2005, now at 197 franchise locations plus 2 corporate stores, with 41 projected new units signaling aggressive growth. Terminations remain low at just 2, while 8 transfers indicate some owner churn but not systemic distress. Item 19 reveals average gross revenues of $1,127,022 and medians at $1,054,343 across units, impressive for fast-casual teriyaki bowls targeting 18-49-year-olds. This trajectory points to a maturing brand gaining traction, though the jump from 2005 origins to today's footprint underscores steady rather than explosive expansion.
Economics demand scrutiny: initial investments span $392,667-$1,121,405, with a $45,000 franchise fee, 6% royalty, 4% brand fund, plus $395/month tech and $13/month gift card fees eroding margins. EBITDA sits at 0%, and estimated profits swing wildly from -$263,488 to $329,768, highlighting high-revenue but volatile profitability amid food costs and competition. Red flags abound—litigation includes arbitration against a former franchisee for early closure, countered with fraud and misrepresentation claims, plus a bankruptcy history that could spook lenders. For investors eyeing multi-unit deals, the numbers tempt with top-line potential, but breakeven hurdles and legal shadows suggest caution over blind enthusiasm.
Analysis based on the 2026 Franchise Disclosure Document. All figures should be independently verified before making investment decisions.
How TERIYAKI MADNESS Compares
| Franchise | Investment | Fee | Royalty | Locations |
|---|---|---|---|---|
TERIYAKI MADNESS Current | $393K – $1.1M | $45K | 6.0% | 199 |
| Tropical Smoothie Cafe | $276K – $771K | $35K | 6.0% | 1,650 |
| TROPICAL SMOOTHIE CAFÉ | $300K – $721K | $35K | 6.0% | 1,371 |
| FIREHOUSE SUBS RESTAURANTS (UNIT) | $405K – $1.6M | $20K | 6.0% | 1,249 |
| Zaxby's | $1.4M – $3.8M | $35K | 6.0% | 826 |
| Qdoba | $548K – $1.3M | $40K | 5.0% | 652 |
Fast Casual Average 112 franchises | $521K – $1.2M | $38K | 5.6% | – |
* Comparison based on latest FDD filings. Investment ranges from Item 7, fees from Item 5. Showing top 5 of 112 Fast Casual franchises by location count.
Locations & Growth
Outlet Growth Over Time
Total outlets at end of each year
Geographic Distribution (2025)
Outlets by state across the United States
+26 more states
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Unlock location growth dataFranchisee Contacts
169 franchisee contacts on file from official FDD filings.
169 Contacts Available
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Unlock contactsDue Diligence
Litigation (Item 3)
Primarily disputes related to post-termination obligations, breach of contract, and alleged misrepresentations/omissions during the franchise sale process.
Bankruptcy (Item 4)
Patrick Pounders, an Executive Director of Franchise Development, filed Chapter 13 bankruptcy in 2017, which was confirmed in 2017 and dissolved in 2022.
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 TERIYAKI MADNESS franchise ranges from $392,967 to $1,122,005. This includes a franchise fee of $45,000. Ongoing royalty fees are 6.0% of gross sales.
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