Teriyaki Madness Franchise
Cost, fees, owner earnings, closure rate and litigation for a Teriyaki Madness franchise — pulled from the franchisor's own public FDD (2026), not its sales material.
Disclosure honesty
Teriyaki Madness discloses earnings (Item 19) — but the grade is how honestly. We graded it C.
What their own earnings claim actually says
Gross sales data for 140 shops meeting criteria (open 1+ year, traditional location, complete P&L). 2025: $470K–$2.97M, avg $1.11M. No net income disclosed; excludes costs.
What a Teriyaki Madness franchise actually costs to run
| Fee | Disclosed | Where it comes from |
|---|---|---|
| Initial franchise fee | $45,000 | Item 5 — paid up front, before you open |
| Royalty | 6% of gross sales | Item 6 — charged on revenue, not profit |
| Advertising fund | 4% of gross sales | Item 6 — brand marketing, spent at the franchisor's discretion |
| Total recurring fees | 10% of gross sales | Before rent, labor, food or debt service |
| Total initial investment | $392,667 – $1,121,405 | Item 7 — franchisor's own low/high estimate |
Royalty 6%+4% marketing = 10% net sales. Tech $395/mo. Extension $2.5K/mo. Transfer $25K. Liquidated damages formula complex.
Royalty and ad-fund percentages are charged on gross sales — an owner pays them whether or not the location is profitable.
Teriyaki Madness system size and owner turnover
| Total outlets | 197 |
| Ceased operations | 1 |
| Terminated by franchisor | 2 |
| Transferred to new owners | 9 |
| Closure rate | 0.5% of outlets |
9 transfers & 1 ceased ops in 2025; 4 Arizona closures in 2024 due to franchise dispute.
From Item 20 of the FDD 2026. Terminations and ceased operations are the franchisor's own count of owners who stopped — the number the sales pitch leaves out.
Is Teriyaki Madness worth it? — how it compares to 164 similar franchises
| Ongoing fees | 10% of sales | steeper than 86% of quick service restaurants franchises |
| Startup cost | from $392,667 | about average (median $481,500) |
| Disclosure honesty | Grade C | typical for the category |
| Closure rate | 0.5% of outlets | better than most (median 1.3%) |
| Disclosed lawsuits | 1 | about average |
Benchmarked against every quick service restaurants franchise we've graded from public FDDs — the context the franchisor's pitch never gives you.
Owner take-home for a Teriyaki Madness
The franchisor's framing: Gross sales data for 140 shops meeting criteria (open 1+ year, traditional location, compl… We reconstruct what an owner actually keeps, from their own FDD.
- Reconstructed owner P&L — net take-home after royalty, ad fund, rent, labor & debt
- Break-even timeline + cash-on-cash ROI
- Full fee stack + required-purchase markups
- Decoded real failure / closure rate
- How it ranks vs comparable franchises
- Validation-call playbook — the exact questions to ask
See a full sample report → · 30-day guarantee
Teriyaki Madness franchise — frequently asked
- How much does a Teriyaki Madness franchise cost?
- The FDD lists a total initial investment of about $392,667–$1,121,405, including a $45,000 initial franchise fee.
- How much do Teriyaki Madness franchise owners make?
- Gross sales data for 140 shops meeting criteria (open 1+ year, traditional location, complete P&L). 2025: $470K–$2.97M, avg $1.11M. No net income disclosed; excludes costs. We grade this disclosure C for honesty.
- What are the Teriyaki Madness franchise fees?
- Teriyaki Madness' FDD discloses a $45,000 initial franchise fee, a 6% royalty on gross sales, a 4% advertising-fund contribution, for roughly 10% of gross sales in recurring fees before rent, labor, or debt service. Royalty 6%+4% marketing = 10% net sales. Tech $395/mo. Extension $2.5K/mo. Transfer $25K. Liquidated damages formula complex.
- What is the Teriyaki Madness franchise profit margin?
- Teriyaki Madness does not publish a franchisee net-profit margin — almost no franchisor does. What Item 19 actually shows: Gross sales data for 140 shops meeting criteria (open 1+ year, traditional location, complete P&L). 2025: $470K–$2.97M, avg $1.11M. No net income disclosed; excludes costs. Recurring fees alone take about 10% of gross sales, before rent, labor, food or debt service. Margin has to be reconstructed from the disclosure, not read off it.
- What is the Teriyaki Madness franchise failure rate?
- 9 transfers & 1 ceased ops in 2025; 4 Arizona closures in 2024 due to franchise dispute.
- How many Teriyaki Madness locations are there?
- Teriyaki Madness' FDD reports 197 total outlets, with 1 that ceased operations in the most recent reporting year and 9 transferred to new owners. Item 20 is where system health shows up before the marketing does.
- Does Teriyaki Madness have complaints or lawsuits?
- Teriyaki Madness discloses 1 legal matter in Item 3 of its FDD. Item 3 covers the franchisor's litigation history, which is the closest thing to a public record of how it treats franchisees — read the case descriptions, not just the count.
- Is a Teriyaki Madness franchise worth it?
- It depends on the numbers, not the pitch. Teriyaki Madness scores C on disclosure honesty, carries about 10% of sales in ongoing fees, and discloses 1 legal matters. Get the real owner take-home before you sign.
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Source: WI DFI Franchise Registration (2026). FranchiseValidate is independent and not affiliated with Teriyaki Madness or its franchisor. Figures are extracted from the franchisor's own public disclosure document; verify against the current FDD before any decision.