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Teriyaki Madness Franchises: $1.1M Turnover and Solid Profits

Teriyaki Madness is one of the recent franchise success stories: founded in 2003, the chain now has 125 restaurants across 18 states in the US. The brand faces little competition and benefits from a strong demand for Japanese-style teriyaki food in an industry that is still underserved.

Beyond the hype, Teriyaki is also a very profitable franchise: the initial investment required to open a new Teriyaki Madness restaurant is only $557,000 yet it generates on average a $1.1 million turnover per year..!

We found Teriyaki Madness also has one of the best payback period in the restaurant industry: 3.4 years on average.

Want to hear more? In this article we’re looking at Teriyaki Madness financials to see whether you should invest in this business. Read on!

Teriyaki Madness: key figures

Franchise fee$45,000
Royalty fee6.0%
Marketing fee3.0%
Investment (mid-point)$558,000
Average sales$1,101,000
Sales to investment ratio2.0x
Payback period*3 years
Minimum net worth$550,000
Minimum liquid capital$150,000
* using 15% net profit margin
Teriyaki Madness franchise business plan template

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📗 Updated with Franchise Disclosure Document

📊 5-year pro forma financial model

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What is Teriyaki Madness?

Teriyaki Madness is an American fast-casual food chain headquartered in Denver, Colorado.

The brand serves flavorful Asian cuisines, such as Japanese-style teriyaki bowls of grilled meat with your choice of rice, noodles, or vegetables. Also, it offers chicken, salmon, beef, and vegetarian dishes, as well as sauces and sides.

The chain was founded in 2003 by Eric Garma, Rod Arreola, and Allan Arreola in Las Vegas, Nevada.

It began its franchising journey in 2005, and now it has over 125 restaurants in 18 states in the US, Canada, and Mexico.

Teriyaki Madness franchises pros and cons


  • Flexible franchise formats: Teriyaki Madness has flexible franchise formats that can fit into different real estate opportunities. Franchisees can make the most of their available locations by using the brand’s inline stores and small footprints located in strip malls or power centers, urban or small towns, and new build or retrofit franchise options.
  • Exclusive territory protection: The brand grants its franchisees the right to operate in a protected location. It does not allow other franchises or itself to operate a parallel business in the agreed-upon area.
  • Real estate support: The franchisor offers its franchisees an experienced real estate team to help them establish and build their restaurant with minimum costs. It assists them in site selection to identify a viable location regarding vehicle and foot traffic, customer proximity, and other growth potential indicators.
  • Franchise support: The brand’s top leadership offers solid support to the franchisees to start and manage their businesses smoothly. Franchisees get experienced professionals in the industry, access to resources, and helpful consultations so that they can operate and grow their businesses efficiently.
  • Quality training: The franchisor provides its franchisees comprehensive training about its business concepts, operations, and restaurant management. It also trains them on how to carry out a successful grand opening and hire and train skilled staff.
  • Simple concept: The brand operates on a simple and easy-to-implement concept for the franchise owners and their employees. Franchisees can get started quickly and stand out from the competition with unique franchise designs and technology to scale their restaurant’s growth and profitability.


  • No financing: The brand does not directly or indirectly finance its franchisees for start-up costs, inventory, payroll, or trade fixtures. Also, it does not guarantee any lease, note, or grant for its franchisees.
  • Not a passive investment: The Teriyaki Madness franchise does not present an absentee business ownership opportunity. The franchisees must be actively involved in the restaurant’s daily operations.
  • Competition: The brand faces stiff competition from other Asian cuisine brands such as Panda Express or even Waba Grill

How much does a Teriyaki Madness franchise cost?

On average, you may need to invest around $557,580 to open a Teriyaki Madness restaurant.

The investment amount is an average that depends on conditions like location, restaurant size, etc. Generally, the investment amount ranges between $346,400 and $768,760 (FDD 2022).

The investment amount covers all the initial startup costs that are needed befreo you can open your restaurant. In addition to the franchise fee, the investment amount covers:

  • Formation Costs: security deposit, shop opening assistant fee, leasehold improvements, construction, furniture, fixtures, equipment, computer system, trio software license fee, liquor license, training expenses, etc.
  • Initial Marketing: grand opening promotion fee. 
  • Operating Costs: opening inventory, office equipment and supplies, insurance, working capital for first 3 months, etc.
Type of costLowHigh
Initial Franchise Fee$45,000$150,000
Formation Costs$255,400$544,760
Initial Marketing$10,000$10,000
Operating Costs$36,000$64,000
Source: Franchise Disclosure Document 2022
Teriyaki Madness franchise business plan template

Download the Teriyaki Madness franchise business plan

📗 Updated with Franchise Disclosure Document

📊 5-year pro forma financial model

📞 Free support

What is the turnover of a Teriyaki Madness franchise?

On average, a Teriyaki Madness franchise makes $1,101,124 in sales per year.

The sales number is the annual average sales of franchised restaurants operating in 2021.

As you can see, the average revenue per restaurant has been more or less stable over the last few years. Despite the impact of COVID-19 in 2020, sales are on a rebound and increased in 2021.

How profitable is a Teriyaki Madness franchise?

We estimate that an average Teriyaki Madness franchise makes $241,053 in profits per year. This represents a 22% profit margin (adjusted EBITDA margin).

The 22% adjusted EBITDA margin is on the lower end compared to similar franchises as per our intelligence (~25-27% industry average). 

The margin is low mainly because of very high COGS (34% sales vs. 25% industry average) and labor costs (30% vs. 29%) despite lower rent costs (5.1% vs. 8%).

Profit-and-lossAmount ($)As % of sales
Royalty + marketing fees$(99,101)9.0%
Adjusted EBITDA$241,053~22%

Is a Teriyaki Madness franchise a good investment?

We found that the payback period for a Teriyaki Madness is only 3.4 years: it’s an excellent payback period.

Indeed, it means it would take on average 3.4 years for you as the franchisee to repay the initial startup costs of $557,000 with the profits generated from your restaurant.

Teriyaki Madness franchise business plan template

Download the Teriyaki Madness franchise business plan

📗 Updated with Franchise Disclosure Document

📊 5-year pro forma financial model

📞 Free support

How does it compare vs. other franchises?

FranchiseInvestment ($)Sales ($)Payback (years)Min. net worth ($)Min. liquid capital ($)
Dunkin' Donuts,0001,056,5211.44.9500,000250,000
Krispy Kreme,0003,400,0004.11.62,000,000300,000
Little Caesars,022,850798,1130.88.5350,000150,000
Steak 'n Shake, Milshakes815,6261,346,3321.74.01,500,000500,000
Crumbl Cookies,2241,582,0903.12.1300,000150,000
Taco Bell,4131,650,0003.61.91,500,000750,000
Smoothie King,108573,2690.88.0300,000100,000
Jersey Mike's,3231,220,5862.14.7300,000100,000
Nothing Bundt Cakes,6501,307,2802.42.7600,000150,000
Jimmy John's,650874,8451.73.9300,00080,000
Texas Roadhouse,209,5002,955,5340.79.5n.a.200,000
Kung Fu Tea tea250,125353,2371.44.7n.a.25,000
Burger King,242,9501,215,9701.06.81,500,000500,000
Sonic Drive-In,467,0831,617,0001.16.01,000,000500,000
Panera Bread,290,5002,599,4321.15.97,500,0003,000,000
Pizza Hut,575906,9111.06.9700,000350,000
Dairy Queen Cream1,404,2201,143,1800.88.2750,000400,000
Jack in the Box,195,8001,755,5030.812.51,000,000250,000
Papa John’s,6951,101,1273.12.1750,000250,000
Five Guys,2251,203,3662.42.8500,000250,000
Carl’s Jr.,860,3351,419,5160.88.71,000,000500,000
Baskin-Robbins Cream465,100316,8150.79.8250,000125,000
Applebee’s American5,137,9662,356,9650.514.51,000,000500,000
Denny's American3,785,4591,639,5490.415.41,000,000500,000
Papa Murphy's,174580,4411.35.0275,000125,000
Auntie Anne's,692343,1351.55.6300,000100,000
Firehouse Subs,186888,3561.44.6350,000100,000
Tropical Smoothie Cafe,500961,9692.23.0350,000125,000
Marco’s Pizza,625895,5232.03.3400,000100,000
Cold Stone Creamery Cream310,956417,5881.35.0250,000100,000
Church’s Chicken,195,1471,395,0881.25.71,000,000300,000
Moe’s Southwest Grill,3701,013,3611.35.21,000,000100,000
Tim Hortons,242,7501,188,2401.07.0500,000100,000
Checkers & Rally's,8471,039,7731.25.4750,000250,000
Charleys Philly Steaks,806786,2331.54.3500,000100,000
Buffalo Wild Wings,546,9002,534,1480.79.31,500,000750,000
Rita's Ice Cream215,839248,3401.25.8300,000100,000
A&W Restaurants,750851,2121.16.2350,000150,000
Hungry Howie’s Pizza,682806,8991.93.5750,000200,000
McAlister’s Deli,424,9631,865,8611.35.11,000,000500,000
Round Table Pizza,2501,037,8161.35.0500,000200,000
Qdoba Mexican Eats,250972,9621.54.5
Taco John’s,119,0001,124,9801.06.61,000,000400,000
Scooter’s Coffee,143,250797,1010.79.6500,000200,000
Einstein Bros. Bagels,075885,0111.25.71,000,000536,500
Great American Cookies,275452,7711.25.7250,000100,000
Wienerschnitzel dogs873,300880,9801.06.6600,000250,000
Blaze Pizza,4501,096,4321.37.9500,000300,000
Wetzel's Pretzels,571748,8572.03.4300,00050,000
Pizza Ranch,268,3001,174,0880.418.61,000,000297,000
Del Taco,406,8501,345,3411.07.02,000,000500,000
Schlotzsky’s, Salads1,102,9331,053,3330.322.21,000,000300,000
Captain D’s,7781,067,8160.419.01,000,000350,000
Biggby Coffee,575648,3520.320.0300,000100,000
Which Wich,375281,8860.322.2500,000150,000
Marble Slab Creamery Cream407,360251,0520.416.7250,000100,000
Mountain Mike's Pizza,900865,7130.320.0300,000100,000
Huddle House,743712,4280.513.3600,000300,000
L&L Hawaiian Barbecue,350612,9210.333.3500,000150,000
Chicken Salad Chick, Salads651,0001,202,0200.320.0750,000250,000
Golden Chick,975917,6092.52.62,000,000425,000
Waba Grill,000466,5361.06.51,000,000250,000
Bruster’s Ice Cream Cream663,925466,6960.79.5375,000150,000