While competitors are staring down at their empty plates, Teriyaki Madness’ bowls runneth over.
The fast-growing teriyaki franchise with 130-plus shops and another 90 in development recently announced a strategic partnership with FranShares, the only platform making franchise investing accessible. They’re going to partner with Teriyaki Madness franchisees to expand their multi-unit footprints to meet the nationwide demand of their ravenous fans for delicious teriyaki bowls.
FranShares is a platform that has raised over $20 million to fund franchise systems. They work to source the best franchise opportunities, conduct rigorous due diligence, and negotiate the best partnerships for both franchisees and investors.
“Out of the thousands of franchisors, they’ve only deemed two franchise concepts worthy of investing in to start, due to our historical profitability and ROI,” said Michael Haith, Teriyaki Madness CEO. “Teriyaki Madness has already proven to bring the heat. With FranShares in our franchisee’s corner, we’re going to take it up a notch.”
FranShares was created by industry expert Kenny Rose, whose career started off in finance at Merrill Lynch where he advised individuals on building their portfolios to preserve and grow wealth. Rose first entered the world of franchising as a franchise broker, where he helped individuals identify, evaluate, and buy franchises that matched their long-term goals of either leaving the corporate world or adding an additional income stream to their portfolio.
“There are so many things people love about franchising – passive income, tangibility, high-yield cash returns – but most people don’t have six or seven figures of cash lying around, nor the time to manage the business or the right skill sets to get started,” said Rose. “So, the idea was to create an alternative investing platform that would allow anyone to invest in franchise ownership for as little as $500. If you are smaller than the type of franchisee that private equity is willing to fund, it is hard to get that expansion capital. We saw a way to fill that gap while also investing in great operators building a great brand.”
Now, FranShares is ready to utilize this game-changing funding platform to support existing Teriyaki Madness franchisees who are ready to expand.
“Having been in the franchise world for almost 10 years, I’ve seen thousands of brands, but Teriyaki Madness isn’t your average concept,” said Rose. “For one, the Asian food category doesn’t have any huge staple brands that are offering the same quality – made-to-order dishes, sauces made from scratch, convenience. When you look at unit-level performance, Teriyaki Madness has superior returns. In addition, Haith and the experienced leadership team have a solid track record of success in franchising. Teriyaki Madness is in a high-growth position, with hundreds of locations in development, but plenty of available territory still out there. It was really a no-brainer for me.”
In other words, the partnership is a match made in teriyaki heaven. Through FranShares, the Teriyaki Madness system will be able to access an initial round of $12 million, offering qualified operators – who have already opened multiple units and proven their capacity to run a profitable business under the rules of the franchise system – additional multi-unit contracts. Haith says this capital will help Teriyaki Madness expand its footprint even more aggressively.
“This is no chump change,” said Haith. “Our successful franchisees are going to be able to aggressively expand in a financial environment that is currently more challenging to operators. As opposed to relying on banks or private equity, this is a great way to grow, and we are excited for what the future holds.”
Rose says the goal is to be able to look back in five years and feel pride that FranShares helped Teriyaki Madness franchisees build their franchise empires.
“These are people who have worked their butts off,” said Rose. “They are ready to expand, and they deserve to have access to the same opportunities that larger franchisees have. We are excited to help those great operators build generational wealth and spread the joy of Teriyaki Madness to more people … while our shareholders realize outsized returns.”