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Ace Sushi Franchise ProfileRestaurant Franchises > Specialty Cuisine |
What Are the Investment Requirements for an Ace Sushi Franchise?
To open an Ace Sushi franchise, the initial investment ranges from $16,775 to $209,125. This includes a franchise fee of $6,000. Franchisees should also be prepared for ongoing royalty fees between 8% and 15%, plus a marketing fee of 2%. A cash reserve of $16,775 to $96,625 is recommended, along with a net worth requirement of $150,000 to $500,000, ensuring that potential franchisees are financially equipped to support their business.
What Is the Average Revenue Potential for Ace Sushi Franchisees?
Ace Sushi franchisees can expect an average annual revenue of approximately $882,621 per unit. The revenue range varies widely, with the lowest annual revenue reported at $100,000 and the highest at $1,000,000. This variability underscores the importance of location, management, and market conditions in determining financial success within the franchise model.
How Quickly Can Franchisees Expect to Break Even?
Franchisees of Ace Sushi typically achieve breakeven within 12 months of opening their unit. This rapid payback period is appealing for many investors, as it indicates a strong potential for profitability in a relatively short timeframe. Effective operational management and a solid marketing strategy can further enhance this timeline.
What Are the Operational Costs for Running an Ace Sushi Franchise?
Running an Ace Sushi franchise involves various operational expenses. While rent and utilities can vary, marketing and advertising costs typically range from $1,000 to $4,000 annually. Other expenses include insurance ($400 to $4,100), equipment rental ($600 to $6,000), and training costs ($1,500 to $6,000). Overall, total annual running expenses can range from $4,600 to $26,100, highlighting the need for careful financial planning and budget management.
Ace Sushi Franchise Financial Requirements
Below, you’ll find an overview of the initial investment needed to launch the business, along with the ongoing fees required by the franchisor to maintain operations over time.
The minimum total assets (minus liabilities) you must possess.
Net Worth Required:
The estimated period to recoup your total investment.
Investment Payback:
The initial fee paid to join the franchise system.
Franchise Fee:
Ongoing percentage of revenue paid to the franchisor.
Royalty Fee:
Regular contribution toward the franchise’s advertising fund.
Marketing Fee:
The estimated timeframe to recover your initial costs.
Breakeven Time:
The total amount required to launch the franchise.
Initial Investment:
The minimum liquid capital you must have on hand.
Cash Required:
The typical yearly revenue generated per franchise location.
Average Revenue:
The middle value of yearly revenue among franchise locations.
Median Revenue:
The largest reported annual revenue among franchisees.
Highest Revenue:
The smallest reported annual revenue among franchisees.
Lowest Revenue:
A broad sector defining similar types of franchise businesses.
Industry:
A more specific division within the broader industry.
Category:
The key individuals guiding the franchise’s strategy and growth.
Leadership:
The official business address of the franchisor’s headquarters.
Corporate Address:
Available financing options to help start the franchise.
Funding Year:
The main organization that owns the franchise brand.
Parent Company:
Ace Sushi Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
| Units | 2020 | 2021 | 2022 |
|---|---|---|---|
| Total Units | 306 | 357 | 399 |
| Net Change YoY | 51 | 42 | |
| Franchised Units | 304 | 346 | 372 |
| Net Change YoY | 42 | 26 | |
| Corporate Units | 2 | 11 | 27 |
| Net Change YoY | 9 | 16 |
Investment Overview
The Ace Sushi franchise offers a range of investment options, with initial costs ranging from $16,775 to $209,125. The franchise fee is set at $6,000, and franchisees can expect ongoing royalty fees between 8% and 15% of gross sales, along with a marketing fee of 2%. The total cash required for starting a unit varies from $16,775 to $96,625, making it accessible for a diverse group of aspiring entrepreneurs.
Financial Performance
On average, Ace Sushi units generate annual revenues of approximately $882,621, with the median revenue at $250,000. The lowest annual revenue recorded is $100,000, while the highest can reach $1,000,000. With a breakeven time and investment payback period of just 12 months, franchisees can expect a relatively quick return on their investment.
Franchise Growth
The Ace Sushi franchise has shown significant growth in recent years, expanding from 304 franchised units in 2020 to 372 in 2022. This steady increase indicates a strong market demand and the brand's successful expansion strategy. The number of corporate-owned units has also grown, from 2 in 2020 to 27 in 2022, reflecting the company's commitment to strengthening its footprint.
Operational Expenses
Franchisees should consider various operational expenses when budgeting for their Ace Sushi unit. Annual costs can vary widely, with rent and utilities being variable, while marketing and advertising expenses typically range from $1,000 to $4,000. Other costs, such as insurance and equipment rental, can also fluctuate, leading to a total expense range of $4,600 to $26,100 annually.
Training and Support
Ace Sushi provides comprehensive training and support to franchisees, ensuring they are well-equipped to manage their units successfully. Initial training covers essential operational procedures, marketing strategies, and customer service practices. Ongoing support includes access to resources, updates on industry trends, and assistance with marketing initiatives, fostering a collaborative environment for franchisees to thrive.
Brand Identity
Ace Sushi is recognized for its commitment to high-quality ingredients and authentic sushi offerings. The brand aims to deliver a unique dining experience that reflects Japanese culinary traditions while catering to local tastes. With a focus on freshness and presentation, Ace Sushi has built a reputation that attracts a loyal customer base, positioning itself as a go-to destination for sushi lovers in various markets.
Frequently Asked Questions
The initial investment for an Ace Sushi franchise ranges from $16,775 to $209,125, which includes the franchise fee and other startup costs.