Genji

The royalty rate of 15% is 2.5 times the typical range for casual dining (4.5-6%). How is this significantly higher rate justified, and what specific services or support does it fund compared to other casual dining franchises?

With a franchise fee of only $4,500 versus the typical $30,000-$50,000 for casual dining, what is included in the initial investment, and what additional startup costs should a franchisee expect?

The 5-year initial term is substantially shorter than the typical 10-15 years. What is the franchisor's rationale for this shorter term, and what protections exist for franchisees investing in build-out and training?

The territory structure offers no exclusivity and no encroachment protection. Under what circumstances could the franchisor establish competing Genji units near my location?

The non-compete clause is 2 years and 10 miles. Are there specific carve-outs for franchisees who do not renew, and how is this enforced?

The agreement lists 24 termination causes, above the typical range of 15-20. Can you provide the complete list and clarify which are curable with specific timeframes and which are non-curable?

Why is there such unusually low turnover (0.0%) compared to the typical casual dining range of 4-16%? What factors contribute to this stability?

The franchise agreement mentions Hana Group Ops, LLC as the exclusive supplier for most food items and supplies. What pricing mechanisms exist to prevent excess markup, and can franchisees source from alternative suppliers if Hana's pricing is uncompetitive?

All franchisees and their spouses are required to provide personal guarantees. Are there any limits to this personal liability exposure, or are franchisees liable for all obligations regardless of circumstances?

The cure periods range from 3 days for insurance failures to 10 days for other defaults. What happens if a franchisee discovers a curable default but is unable to remedy it within 3-10 days, and what appeal process exists?

The agreement requires compliance with 11 renewal conditions at contract renewal. What specifically are these conditions, and have any franchisees been unable to renew due to failure to meet them?

Four units closed in 2024 (3 units) and 2023 (1 unit). Can you provide details on why these units closed, whether franchisees exited voluntarily or were terminated, and what support was offered before closure?

The transfer fee of $1,500 is significantly lower than the typical $5,000-$18,000 range. What restrictions exist on selling or transferring the franchise, and must franchisor approval be obtained?

Why does the agreement contain 11 renewal conditions when typical casual dining franchises have 7-8? What operational or financial benchmarks must be met?

The initial and total potential term (5 and 10 years respectively) are much shorter than typical (10-15 and 20-25 years). What happens after the second renewal term expires?

Since no Item 19 (financial performance representations) is provided, can you share average unit volumes, profit margins, or other financial metrics from existing franchisees for comparable unit types?

The indemnification clause requires franchisees to indemnify the franchisor for all claims arising from operations. Are there any limits to this indemnity, and are franchisees required to carry specific insurance amounts?

What specific training and ongoing support justify the high royalty rate of 15%, and how frequently are franchisees required to implement system updates or modifications?

With no litigation history over the review period, are there any unresolved disputes or franchisor complaints currently under investigation by state regulators?

The renewal fee is $3,500. Are there additional fees required at renewal beyond this, and what compliance costs should franchisees budget to meet the 11 renewal conditions?