The Sushi Franchising Guide
A bed of rice, molded with care,
Topped with fish, so fresh and rare
With soy and wasabi, a perfect pair,
A Japanese delight, beyond compare.
What am I?
In today’s rapidly evolving culinary landscape, sushi has transcended from a traditional Japanese delicacy to a global sensation, captivating palates across continents. This blog post is intended to be an overview, offering a view into the multifaceted world of sushi franchising, offering insights into market trends, top-performing brands, and strategic investment opportunities. So whether you are a seasoned restaurateur or an aspiring entrepreneur, let’s discover how a passion like love for sushi can transform into a thriving business opportunity.
Seriously considering a sushi franchise opportunity? Franchises are sold through disclosure of a franchise disclosure document. The first step is to introduce yourself to the brand. Next, work with franchise legal counsel to ensure you understand disclosures, and appreciate your legal rights and obligations.
We have no affiliation with any of these brands mentioned below, and we would love to help guide you you through the process of evaluating a franchise opportunity.
The Different Types of Sushi
SASHIMI
Sashimi is all about the fish—sliced thin and served raw, often accompanied by a bit of soy sauce and wasabi
NIGIRI
A small, perfectly shaped mound of sushi rice, delicately seasoned with vinegar, and topped with a slice of fresh fish or seafood
MAKI
Maki sushi features vinegared rice and various fillings, such as fish, vegetables, or even fruit, all rolled up in a sheet of nori (seaweed)
TEMAKI
A sushi roll that you can hold in your hand like an ice cream cone – a temaki is a cone-shaped nori sheet filled with rice, fish, and vegetables.
Sushi Franchises in the US
In the competitive landscape of the U.S. restaurant industry, there are relatively few sushi focused concepts. Primarily, sushi franchises cater either to (i) the traditional restaurant space or (ii) to quick-service locations like your local grocery store. There are several well established and emerging brands in the sushi franchising space. The 4 brands below are among those with publicly available Franchise Disclosure Documents (FDDs), giving potential franchisees valuable insight into the operations, costs, and expectations associated with running a franchise.
Franchise Disclosure Document ("FDD")
The FDD is the cornerstone of the franchising process, serving as a comprehensive guide that provides certain key disclosures and explains certain legal rights and obligations. When used properly, the FDD can serve as a roadmap to help potential franchisees assess whether a particular franchise aligns with their goals, financial situation, and risk tolerance.
For franchisors, the FDD is crucial because it lays out the terms and conditions of the franchise agreement clearly and consistently. It helps set expectations, define the roles and responsibilities of each party, and protect the brand’s reputation by ensuring that all franchisees operate under the same standards. This document also safeguards franchisors by disclosing all material facts upfront, reducing the risk of disputes down the road.
For franchisees, the FDD is a powerful tool that provides a deep dive into the franchise’s business model, financial health, and the franchisor’s track record. It covers everything from the initial franchise fee, estimated startup costs, and ongoing royalties to training programs, advertising commitments, and the support you can expect from the franchisor. The FDD also includes information about the territory rights, which can prevent conflicts with other franchisees, and provides a list of current and former franchisees, allowing potential investors to seek feedback from those already in the system.
Essentially, for both franchisors and franchisees, the FDD is about clarity, trust, and setting the stage for a successful, long-term partnership.
ACE SUSHI
ACE SUSHI FRANCHISE CORPORATION, the franchisor of the Ace Sushi, was incorporated in California on October 7, 2004. It began offering franchises since June 2005. Its franchise offering is for the operation of Sushi Bar departments in grocery stores, supermarkets and other locations. Such Sushi Bar departments will offer fresh, healthy, high quality, raw and cooked sushi and other related Asian fusion food products for sale at competitive prices for eat-and-go and carry-out consumption.
TWO TYPES OF FDD
Ace Sushi has two FDDs offered which is referred to as the “Traditional FDD” and the “Non-Traditional” FDD. Their differences are outlined below:
ACE SUSHI TRADITIONAL FDD
Under the Ace Sushi Traditional FDD which has an issuance date of April 24, 2024, there are three types of programs offered under this FDD which are explained below:
Single Unit Program
Upon the signing of a Franchise Agreement, a franchisee will be granted the right to establish and operate one main sushi bar at a host venue selected by Ace Sushi.
Satellite Store Program
Upon Under this program, a franchisee will also be granted the right and obligation to deliver Proprietary Products from their main Ace Sushi Bar to Satellite Stores under a Satellite Store Addendum
Area Development Program
Upon the signing of an Area Development Agreement, a franchisee can develop multi Main Sushi Bars and Satellite Stores at host venues the franchisee selects and Ace Sushi accepts (or alternatively, that Ace Sushi may propose to the franchisee)
ACE SUSHI NON-TRADITIONAL FDD
Under the Ace Sushi Non-Traditional FDD which also has an issuance date of April 24, 2024, there is only one franchise program offered which is the Non-Traditional Program.
Under the non-traditional program, upon the signing of a Franchise Agreement, a franchisee has the right to operate one main sushi bar at the non-traditional host venue or prepare sushi and related products from an Ace Sushi Bar or a central kitchen facility at the Non-Traditional Host Venue which are then delivered to locations throughout the campus or hospital, each a “satellite location”
A non-traditional host venue refers to a university or college campus or inside a hospital.
INVESTMENT NEEDED
The investment needed for an Ace Sushi franchise will depend on the franchise program availed of by a franchisee:
UNDER THE TRADITIONAL ACE SUSHI FDD
Single Unit Program
According to its 2024 Traditional FDD, the total investment necessary to begin operation of your own Ace Sushi Bar under a Single Unit Program is estimated to be around $16,775 to $96,625, or $17,775 to $196,625, if you purchase an existing Ace Sushi Bar from the franchisor. These amounts include $12,575 to $85,725, which must be paid to the Franchisor or an affiliate, or $13,575 to $185,725, which must be paid to the Franchisor or an affiliate if you purchase an existing Ace Sushi Bar from the franchisor.
Satellite Store Program
According to its 2024 Traditional FDD, the total investment necessary to begin operation of your own Ace Sushi Bar and one Satellite Store is estimated to be around $19,875 to $109,125, or $20,875 to $209,125, if you purchase an existing Ace Sushi Bar from the franchisor. These amounts include $14,175 to $92,225, which must be paid to the Franchisor or an affiliate, or $15,175 to $192,225, which must be paid to the Franchisor or an affiliate if you purchase an existing Ace Sushi Bar from the franchisor.
Area Development Program
According to its 2024 Traditional FDD, the total investment necessary to begin operations as an Area Developer of Ace Sushi is estimated to be around $59,500 to $300,000 (for 40 Ace Sushi Bars plus an additional $500 to $1,250 for each Ace Sushi Bar you commit to develop in excess of 40) in addition to the investment necessary for a single Ace Sushi Bar or a single Ace Sushi Bar and one Satellite Store.
UNDER THE NON- TRADITIONAL ACE SUSHI FDD
Non-Traditional Program
According to its 2024 Non-Traditional FDD, the total investment necessary to begin operations of a franchise at a non-traditional venue is estimated to be around $18,275 to $124,375 for a main sushi bar; $19,775 to $129,375 for a main sushi bar with a satellite location, or $20,775 to $229,375 if a franchisee purchases an existing Ace Sushi Bar from the franchisor.
INITIAL FRANCHISE FEE
According to Item 5 of the 2024 Traditional and Non-Traditional FDDs of Ace Sushi, the Initial Franchise Fee for an Ace Sushi franchise varies accordingly, depending on the type of program of the franchise.
Under the Traditional Ace Sushi FDD
The initial franchise fee under the Traditional Ace Sushi FDD is based on the market area of the traditional franchise , particularly the average income of the population within a 3 mile radius of the main sushi bar.
SINGLE UNIT PROGRAM
Average Household Income in Market Area
Initial Franchise Fee from Main Sushi Bar
Less than $75,000
$6,000
$75,000 to $99,999
$7,500
$100,000 to $149,999
$10,000
$150,000 +
$15,000
SATELLITE STORE PROGRAM
Initial Franchise Fee for Main Sushi Bar
Initial Franchise Fee for Each Satellite Store
$6,000
$600
$7,500
$750
$10,000
$1,000
$15,000
$1,500
AREA DEVELOPMENT PROGRAM
Number of Ace Sushi Bars to Develop
Development Fee
5 Ace Sushi Bars
$59,500
10 Ace Sushi Bars
$112,000
40 or More Ace Sushi Bars (no fewer than 30 of which are Main Sushi Bars)
$300,000 plus the Initial Franchise Fees for the Ace Sushi Bars required to develop (excluding the fees for the first 5 Main Sushi Bars)
Under the Non-Traditional Ace Sushi FDD
NON-TRADITIONAL PROGRAM
The calculation of initial fees of franchises under the Non-Traditional Program of Ace Sushi would depend on the Market Area of the non-traditional host venue, such that if the non-traditional franchise will be at a college or university, the number of student enrollees will determine the amount of initial franchise fee; and if the non-traditional franchise will be at a hospital, the total number of hospital beds will determine the initial franchise fee.
The calculation of initial fees of franchises under the Non-Traditional Program of Ace Sushi would depend on the Market Area of the non-traditional host venue, such that if the non-traditional franchise will be at a college or university, the number of student enrollees will determine the amount of initial franchise fee; and if the non-traditional franchise will be at a hospital, the total number of hospital beds will determine the initial franchise fee.
Non-Traditional Venue: College or University
Total Student Enrollees
Initial Franchise Fee
less than 10,000
$6,000
more than 10,000 but less than 15,000
$7,500
more than 15,000 but less than 20,000
$10,000
more than or equal to 20,000
$15,000
Non-Traditional Venue: Hospital Beds
Total Student Enrollees
Initial Franchise Fee
less than 300
$6,000
more than 300 but less than 600
$7,500
more than 600 but less than 1,000
$10,000
more than or equal to 1,000
$15,000
Under either traditional or non-traditional franchise program, the initial franchise fee for an Ace Sushi franchise is either payable in full upon signing of the Franchise Agreement, or if a franchisee prefers, and it comes into agreement with Ace Sushi, payable in 2 to 12 equal monthly payments in the manner Ace Sushi requires after the signing of the Franchise Agreement.
COMPENSATION TO ACE SUSHI FRANCHISE CORPORATION
According to its 2024 FDDs, the monthly compensation to Ace Sushi varies, but it typically ranges from 8% to 15% of Gross Sushi Sales for traditional franchises and 8% to 15% of chef or invoice price per unit for non-traditional franchises.
"Gross Sushi Sales"
According to Item 6 of the traditional FDD, Gross Sushi Sales means all revenue from the sale of Proprietary Products at a franchisee’s Ace Sushi Bar and Satellite Stores.
Compensation under the Non-Traditional FDD
According to Note 2 of Item 6 of the non-traditional FDD, the compensation of a non-traditional franchisee and Ace Sushi is calculated based on a percentage (typically 55-70%) of pre-established “chef prices” per product unit sold.
The pre-established chef price per unit is agreed upon by Ace Sushi and the venue owner; and the percentage that is remitted to a franchisee and the percentage retained by Ace Sushi for each product unit sold will be set forth in the Franchise Agreement.
FRANCHISES IN THE US AS OF THE END OF 2023
The Ace Sushi franchise brand has grown significantly in the span of a year. According to its 2024 FDD, the brand started 2023 with 372 franchised locations and ended 2023 with 482 franchised locations. Additionally, they had 86 company owned locations at the end of 2023, for a total of 568 Ace Sushi outlets. Note that the aforementioned figures reflect both traditional and non-traditional franchises.
These 482 franchised outlets are found in the following states: Alabama, Arkansas, Arizona, California, Colorado, Connecticut, Florida, Hawaii, Iowa, Idaho, Illinois, Indiana, Kansas, Kentucky, Louisiana, Massachusetts, Michigan, Minnesota, Missouri, Mississippi, Montana, Nebraska, North Carolina, New Hampshire, New Jersey, Nevada, New York, Ohio, Oklahoma, Oregon, Pennsylvania, Tennessee, Texas, Utah, Washington and Wisconsin.
Lime House Sushi & Ramen
LIME HOUSE FRANCHISE, INC., the franchisor of Lime House Sushi & Ramen, is a New York corporation established on March 15, 2023. It began offering franchises as of March 17, 2023. Its franchise offering is for the development and operation of a Lime House Sushi & Ramen Restaurant.
INVESTMENT NEEDED
Under a Franchise Agreement
According to its 2024 FDD, the total investment necessary to begin operation of your own Lime House Sushi & Ramen Restaurant under a Franchise Agreement is estimated to be around $348,278 to $781,653. This amount includes $66,557 to $74,447 that must be paid to the franchisor or its affiliates.
Under a Multi-Unit Development Agreement
According to its 2024 FDD, the total investment necessary to begin operation of your own Lime House Sushi & Ramen Restaurant under a Franchise Agreement is estimated to be around $348,278 to $781,653. This amount includes $66,557 to $74,447 that must be paid to the franchisor or its affiliates.
INITIAL FRANCHISE FEE
According to Item 5 of its 2024 FDD, upon signing a franchise agreement, Lime House Sushi & Ramen charges an initial franchise fee of $35,000. This amount is non-refundable.
ROYALTY FEE
According to its most recent FDD, the royalty fee Lime House Sushi & Ramen collects from its franchisees is a continuing weekly fee equal to 5% (the “Royalty Rate”) of your weekly Gross Sales(the “Royalty Fee”).
However, if any federal, state or local tax other than an income tax is imposed on the Royalty Fee which Lime House Sushi & Ramen cannot directly, and dollar for dollar, offset against taxes required to be paid under any applicable federal or state laws, the franchisee must compensate Lime House Sushi & Ramen such that the net amount or net effective Royalty Fees received by Lime House Sushi & Ramen is not less than 5% of a franchisee’s Gross Sales.
"Gross Sales"
Note 3 of Item 6 of Lime House Sushi & Ramen’s FDD explains:
Note: “You” as referred to below pertains to the franchisee
“Gross Sales” means the total dollar sales from all business and customers of your Restaurant and includes the total gross amount of revenues and sales from whatever source derived, whether in form of cash, credit, agreements to pay or other consideration including the actual retail value of any goods or services traded, borrowed, or received by you in exchange for any form of non-money consideration (whether or not payment is received at the time of the sale), from or derived by you or any other person or Corporate Entity from business conducted or which started in, on, from or through your Restaurant and/or your Restaurant Location, whether such business is conducted in compliance with or in violation of the terms of the Franchise Agreement. Gross Sales include the total gross amount of revenues.
FRANCHISES IN THE US AS OF THE END OF 2023
Having offered franchises only beginning March 17, 2023, as of December 31, 2023, Lime House Sushi & Ramen still does not have any franchised outlets in the US. This is according to Item 20 of its 2024 FDD.
SUSHI AVENUE
SAH HOLDINGS, LLC, the franchisor of Sushi Avenue, is a limited liability company organized under the laws of the State of Minnesota on March 10, 2023. It began offering sushi bar franchises since September 8, 2023. Its franchise offering is for the operation of a Sushi Avenue food outlet or sushi bar which specializes in freshly prepared sushi
INVESTMENT NEEDED
According to its 2024 FDD, the total investment necessary to begin operation of your own Sushi Avenue sushi bar is estimated to be around $30,850 to $102,970. If If a franchisee is purchasing an existing sushi bar currently operated by Sushi Avenue’s affiliate, the total investment necessary to begin operations of that sushi bar is estimated to be around $6,600 to $82,970. This includes $0 to $35,750 that must be paid to Sushi Avenue as the franchisor or its affiliate.
INITIAL FRANCHISE FEE
According to Item 5 of its 2024 FDD, upon signing a franchise agreement, Sushi Avenue generally charges an initial franchise fee of $20,000. However, Sushi Avenue will waive the entire initial franchise fee for all existing Sushi Bars that are being operated by qualified Contract Chefs under an agreement with Sushi Avenue, Incorporated.
Discount for Additional Sushi Bars
If an existing franchisee acquires the right to operate additional sushi bars later on, the initial franchisee fee for the additional sushi bars may be discounted as follows:
COMPENSATION TO STORES AND FRANCHISOR
According to its most recent FDD, the compensation to Stores and Franchisor is 0% to 40% of Gross Sales to Store and 0% to 25% of Gross Sales of Sushi Bar which is due monthly.
"Compensation to Stores and Franchisor"
Note 1 of Item 6 of Sushi Avenue’s FDD explains:
Note: “You” as referred to below pertains to the franchisee while “We” pertains to the franchisor
You do not receive direct payment for the sales of goods and services from your Sushi Bar. Those payments will be made to the Store where the Sushi Bar is located through the cash registers of the Store. As used in this disclosure document, “Gross Sales” includes all revenue from the sale of all services and products related to the Franchise Business, whether for cash or credit and regardless of collection in the case of credit; except that “Gross Sales” does not include any sales taxes or other taxes collected from customers for transmittal to the appropriate taxing authority. Those taxes, if any, will be collected and remitted to appropriate accountants by the Stores.
The percentage of sales that the Store may retain as its share of Gross Sales (the “Service Commission”) is negotiated directly by us or Sushi Avenue, Incorporated with the Stores and may vary among Sushi Bars. The Service Commission is dependent on Store and location. It ranges from 0% to 40% of Gross Sales. The amount remaining from Gross Sales after deduction of the Store’s Service Commission is referred to as the Franchise Commission. Any additional charges or changes in cost made by the Store will be passed along to you and will be deducted from your Franchise Commissions.
When we receive the Franchise Commissions from the Store, we will remit it to you, but only after first deducting from your Franchise Commissions (i) all amounts owed to us and our affiliates, including all fees listed in this Item 6 payable to us; (ii) all amounts you owe to Sushi Avenue and affiliated suppliers for food and supplies and other purchases made by Franchisee, and (iii) any other amounts owed arising from loans, financings, advances, credits or deferrals made to you by us or our affiliates. After all deductions, we will remit any remainder of your Franchise Commissions to you. If after all deductions from the Franchise Commission there remains a negative balance, then the negative balance will be carried forward to the next month, and if necessary, additional subsequent months, and the negative balance shall be deducted from your next month’s Franchise Commission. You will not be entitled to payment except in the amount of the Franchise Commissions after all deductions. Unless otherwise noted, all fees listed in the table above are non-refundable.
FRANCHISES IN THE US AS OF THE END OF 2023
Item 20 of Sushi Avenue’s 2024 FDD shows that at the start of 2023, it had 0 franchised outlets, and by the end of 2023, it had 214 franchised outlets.
These franchised outlets are found in the following states: Alabama, Arizona, California, Colorado, Connecticut, Florida, Idaho, Indiana, Kansas, Mississippi, Missouri, Montana, Nevada, New Jersey, New Mexico, Ohio, Pennsylvania, Texas, Utah, Wisconsin, and Wyoming.
ROCK N ROLL SUSHI
ROCKNROLL SUSHI HOLDINGS LLC, the franchisor of Rock N Roll Sushi, is a Florida limited liability company formed on September 30, 2020. It began offering franchises as of October 9, 2020. Its franchise offering is for the operation of a rock-and-roll music themed sushi restaurant that offers the public high-quality food and beverages of a distinctive character and quality in a location utilizing Rock n Roll Sushi’s distinct design, décor, color scheme and furnishings
INVESTMENT NEEDED
According to its 2024 FDD, the total investment necessary to begin operation of your own Rock N Roll Sushi restaurant is estimated to be around $232,000 to $875,000. This includes $36,000 that must be paid to Rock N Roll Sushi or its affiliates.
INITIAL FRANCHISE FEE
According to Item 5 of its 2024 FDD, upon signing a franchise agreement, Rock N Roll Sushi charges an initial franchise fee of $36,000. This amunt is fully earned and is non-refundable upon payment.
Reduced Fee for Additional Units
On the other hand, if a franchisee candidate qualifies for owning multiple units, such franchisee shall be granted the right to develop locations and pay a reduced fee of $24,000 for each additional unit.
Reduced Initial Franchise Fee for Veterans of the US Armed Forces
Veterans of the U.S. Armed Forces qualified under the International Franchise Association’s VetFran Program have a reduced initial franchise fee by $9,000 on their first Rock N Roll Sushi restaurant.
ROYALTY FEE
According to its most recent FDD, the royalty fee Rock N Roll Sushi collects from its franchisees weekly is equal to 6% of Gross Revenues.
"Gross Revenues"
The first Note to Item 6 of Rock N Roll Sushi’s FDD explains:
“Gross Revenues” means sales made and all of the revenue from operating the Franchised Business, excluding taxes collected from customers and paid to taxing authority, rebates received from a supplier, and reduced by the amount of any documented refunds, credits, allowances, and chargebacks the Franchised Business in good faith gives to customers.
FRANCHISES IN THE US AS OF THE END OF 2023
Item 20 of Rock N Roll Sushi shows that an increase in its number of franchise units from 58 at the end of 2022 to 62 by December 31, 2023.
These franchised outlets are found in the following states: Alabama, Arkansas, Arizona, Colorado, Florida, Georgia, Louisiana, Mississippi, Tennessee, and Texas.
Remember that working with a franchise attorney to evaluate a franchise opportunity is essential.
Meet the Author:
Christine Bontuyan is a lawyer based in Cebu City, Philippines. She earned her Juris Doctor degree in 2020. Apart from handling civil and criminal cases in the Philippines, Christine serves as a paralegal for reputable US law firms. From 2018 to 2023, Christine has also held public office as one of the elected SK Chairpersons in Cebu City, Philippines.
