HOW TO OPEN A WOK FRANCHISE: COST AND FIRST STEPS
Interested in how to open a wok franchise? Learn the costs and potential profit, as well as what you need to do first.
Although the wok is Chinese in origin, “wok franchises” can describe any Asian fast casual restaurant that relies on affordable stir-fry meals as a big part of the draw. Customers can enjoy a flavorful Asian meal prepared by professionals for little more than they would spend on ingredients to cook at home. Savvy entrepreneurs looking at investing in a Japanese restaurant franchise like Teriyaki Madness have likely caught onto the fact that such an endeavor will entail low overhead, a smaller footprint than the typical restaurant, and big rewards.
Choosing your restaurant concept is a huge first step to starting your business, but you’ve already chosen to rock the wok, so… high five! While the concept will help determine other things such as menu and price points, you must also envision the overall look and feel of your shops, whether you will provide a drive-thru option or prioritize to-go over sit-down service, your hours of operation, as well as the location size you will require to run your business efficiently.
BUILD YOUR BUSINESS PLAN
Whether you formulate your plan on your own or seek outside help, this is a crucial step to building your wok restaurant. The U.S. Small Business Administration provides a complete with instructions on how to prepare an executive summary, company description, industry and geographic analysis, target market, marketing plan, management strategy, and financial plan. You should also consult with business accountants and attorneys to help with any licenses and permits that will be required.
DEVELOP A WINNING MARKETING APPROACH
Prospective customers should be made aware of your new wok shop before you even open your doors. Various marketing tactics, including traditional and digital media, can help create a buzz and draw guests to your business. For an independent restaurant, this can prove to be an expensive endeavor. However, when you go the franchising route, you will have the backing of a team of experts who are dedicated to promoting your business both locally and as part of the wider brand.
INVESTMENT & STARTUP COSTS
Opening any type of new business requires a significant investment, and a wok franchise is no different. If you plan on joining a restaurant franchise, review the Franchise Disclosure Document (FDD) to evaluate all of your startup costs, as well as take into consideration the amount of capital you’ll need to have on hand to support your business through the first 3-12 months of operation. For comparison purposes, the initial investment to own a Manchu Wok franchise ranges from $441,050 to $713,500 with a net worth requirement of $380,000 and available cash of $150,000 to $200,000. Samurai Sam’s initial investment requires between $106,260 and $432,050 with a net worth of $250,000 and available cash of $75,000. The initial investment to open a Teriyaki Madness franchise ranges from $346,400 to $768,760,* which includes the initial franchise fee. This cost covers everything from leasehold improvements to initial inventory, equipment and fixtures, insurance, and much more. TMAD franchisees are required to possess a minimum net worth of $550,000 and liquid assets of at least $150,000. You can refer to Item 7 of the FDD for a full cost breakdown.
THE WOK OF THE TOWN
Teriyaki Madness is heading full steam (and sizzle) ahead as a leading name in Asian fast casual dining. By cleverly combining the best ingredients and most efficient, cost-effective cooking methods, TMAD is dishing out bowls of awesomeness to customers in a growing number of locations. With 125+ shops now open across the U.S. (plus Mexico and Canada), TMAD shops are experiencing an Average Unit Volume (AUV) of $1.16 million* in gross sales, with more multi-unit franchisees joining the Madness every day. Voted the No. 1 Fastest Growing Big Restaurant Chain by Restaurant Business, there’s no time to waste if you want to get in on the Madness. To learn more about franchising opportunities with TMAD, download our Franchise Report. * Refer to our Franchise Disclosure Document