About GENGHIS GRILL® Franchise
Genghis Grill is a fast casual restaurant franchise specializing in build your own stir fry bowls and Asian inspired cuisine.
Franchising since 2023 under Craveworthy LLC, the brand offers a unique interactive dining experience where customers create custom stir fry bowls from a selection of fresh proteins, vegetables, sauces, and spices, all cooked to order on a large open grill.
The initial franchise fee is $30,000.
GENGHIS GRILL® Franchise Cost & Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $30,000 | One-time payment upon signing |
| Royalty Fee | Greater of: 6% of total “Gross Sales” or $500 of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 2.5% of Gross Sales (Brand Development Fee) + 1.5% of Gross Sales (Local Marketing Contribution) | National brand fund |
| Total Investment Range | $400,000 – $1,180,500 | Includes build-out, inventory, working capital |
The investment range of $400K–$1.2M reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (Greater of: 6% of total “Gross Sales” or $500) and marketing fee (2.5% of Gross Sales (Brand Development Fee) + 1.5% of Gross Sales (Local Marketing Contribution)) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $30,000 | $30,000 |
| Architect/Engineering Fees | $10,000 | $20,000 |
| Business Licenses & Permits | $1,000 | $10,000 |
| Liquor License | $0 | $50,000 |
| Rent - First 3 Months | $12,000 | $60,000 |
| Leasehold Improvements | $150,000 | $400,000 |
| Furniture, Fixtures & Décor | $20,000 | $50,000 |
| Equipment | $80,000 | $250,000 |
| Smallwares | $14,000 | $25,000 |
| Insurance | $3,000 | $12,500 |
| Miscellaneous Opening Costs | $5,000 | $20,000 |
| Training Costs: Travel and Living Expenses While Training | $10,000 | $30,000 |
| Opening Inventory | $15,000 | $15,000 |
| Signage | $5,000 | $50,000 |
| Professional Fees | $3,000 | $15,000 |
| Uniforms | $2,000 | $8,000 |
| Computer, Point of Sale System and Annual Maintenance Contract, and Office Equipment and Supplies | $15,000 | $30,000 |
| Grand Opening Advertising | $10,000 | $15,000 |
| Additional Funds – First 3 Months | $15,000 | $90,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | 50% of then-current standard initial franchise fee ($2,500 if less than a controlling interest is transferred) |
| Renewal Fee | $5,000 |
| Technology Fee | Currently $750 per month |
| Audit Fee | Cost of audit (including the charges of any independent accountants and the travel expenses, room and board and compensation of our employees) plus interest from due date (Payable only if audit shows an understatement of at least 2% of Gross Sales for any month) |
| Late Fee | $250 per occurrence, plus any bank charges |
| Additional Initial Training Program | Currently $2,500 per attendee, plus our costs and expenses |
| Supplemental or Refresher Training | Currently $100 - $1,000 per day plus our costs and expenses not to exceed $5,000 |
| Income and Sales Taxes | We may collect from you the cost of all taxes arising from our licensing of intellectual property to you in the state where your Restaurant is located, as well as any related assessment. |
| Approved Supplier/Product Testing Fee | Currently, $500 per request plus the costs and expenses we incur (up to $5,000) |
| Relocation Fee | $3,000 |
| Remodeling Expenses | Will vary under circumstances |
| Costs and Attorneys’ Fees | Will vary under circumstances |
| Interest Expenses | Lesser of 18% per year or the maximum rate permitted by law |
| Insurance Reimbursement | Cost of insurance plus late charges and administrative fee |
| Operating Assistance | Currently, $250 per day plus our costs and expenses |
| Management Fee | 3% of Gross Sales plus our costs and expenses |
| Quality Assurance Audits | $250 per inspection |
| Mystery Shopper Program Expenses | Cost of third-party mystery shopper services |
| Annual Conference | Our then-current conference fee (between $500-$1,000 per attendee) |
| Reimbursement of Designated Programs and Promotions | Costs of marketing, advertising and promotional programs we establish |
| Taxes | Varies |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | 4 weeks |
| Classroom Training | 40 hours |
| On-the-Job Training | 120-160 hours |
| Training Location | Certified training restaurant (Dallas, Texas or alternative designated location) and franchisee's Restaurant. Virtual classroom training is online. |
| Additional Training | The franchisor may require the Operating Principal and any key management personnel to attend supplemental and refresher training programs (up to 7 days each calendar year) and any annual conferences. Fees for these programs may be charged (currently $100 - $1,000 per day, not to exceed $5,000), plus travel, lodging, meals, and wages expenses. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Protected |
| Exclusive Territory | No |
| Territory Size | Minimum 1/8th-mile radius in urban cities, up to two-mile radius in suburban areas. |
| Description | You will receive a "Protected Territory" surrounding the Restaurant location, delineated by a mile-radius or other boundaries determined by the franchisor. The size depends on population density, zip codes, counties, median household income, and economic development. In urban areas, it's a minimum 1/8th-mile radius; in suburban areas, up to a two-mile radius. During the term, if in compliance, no other franchised or company-owned GENGHIS GRILL® restaurants will be established in the Protected Territory, except at "Non-Traditional Venues" (e.g., malls, airports, stadiums, etc.). The franchisor retains rights to operate or grant others rights outside the Protected Territory and at Non-Traditional Venues within it, and to sell products through dissimilar channels. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years |
| Renewal Term | Two (2) additional terms of five (5) years each |
| Renewal Fee | $5,000 |
| Renewal Conditions | Provide 60-180 days written notice, comply with all material provisions of current agreements, complete new/refresher training, sign new agreement (potentially with materially different terms), remodel/modernize premises to current standards or secure new approved location, pay renewal fee, and sign a general release of claims. |
| Transfer Fee | 50% of then-current standard initial franchise fee ($2,500 if less than a controlling interest is transferred) |
| Transfer Conditions | All monetary obligations satisfied, transferee approved (meets managerial, financial, business standards, good reputation, credit rating, aptitude), transferee assumes obligations or signs new agreement, transferee and key personnel complete initial training, lessor consents to assignment/sublease, transfer fee paid, general release signed, franchisor approves material provisions of assignment/sale, franchisee/Principal Owners sign post-termination non-compete. |
| Termination for Cause | Franchisor may terminate if franchisee defaults, including: bankruptcy/insolvency, unauthorized transfer, failure to complete initial training or open on time, material misrepresentation/omission (e.g., understating Gross Sales by >2%), conviction of felony/moral turpitude crime, abandonment, acts prejudicial to goodwill/Marks, failure to pay amounts due (10-day cure), insufficient funds (3+ times in 12 months), violation of in-term restrictive covenants, failure to comply with laws/regulations (15-day cure), selling unauthorized products, liquor license revocation/suspension (10-day cure), purchasing from unapproved supplier (15-day cure), failure to maintain insurance (5-day cure), 3+ material breaches in 12 months (even if cured), or non-curable breach. |
| Non-Compete Period | During term of franchise + two (2) years after expiration/termination |
| Non-Compete Details | During the term, franchisee/Operating Principal/Principal Owners cannot directly or indirectly engage in, be connected with, or assist any "Competing Business" (similar to GENGHIS GRILL® Restaurant, offering stir-fry cuisine, Mongolian barbecue, or Asian foods) or divert business. Post-termination, the same restrictions apply within the former Restaurant site, a 10-mile radius of the former site, within the Protected Territory, or a 10-mile radius of the Protected Territory for two years. Exceptions for publicly traded securities (<1% ownership) and other Genghis Grill franchises. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | The franchisee must designate an approved individual as the "Operating Principal" who successfully completes required training. The Operating Principal is responsible for day-to-day Restaurant operations on a full-time basis, cannot engage in other significant management responsibilities, and must continuously use best efforts to promote the business. The Restaurant must always be under the direct, on-site supervision of the Operating Principal or a certified manager. Each individual owning 10% or more interest in the franchisee entity ("Principal Owner") must sign a Guaranty and Assumption of Obligations. |
| Required Suppliers | Franchisees must operate according to the franchisor's System and specifications, purchasing or leasing all products, services, supplies, fixtures, equipment, inventory, computer hardware and software, and real estate from designated suppliers, approved suppliers, or the franchisor/affiliates. This includes proprietary equipment, uniforms, promotional items, menu items, grocery items, alcoholic and non-alcoholic beverages, and third-party delivery services. |
| Supply Restrictions | Franchisees must purchase proprietary GENGHIS GRILL® equipment, inventory, products, services, or merchandise from the franchisor or approved suppliers. This includes all restaurant equipment, uniforms, proprietary apparel, promotional items, smallwares, paper products, menu items (vegetables, fruits, meats, oils, spices, sauces, salad dressings, soups, desserts, coffees), alcoholic and non-alcoholic beverages, restaurant fixtures, cash registers or point of sale systems, gift and loyalty cards, computer systems, and furniture. Third-party delivery services must also be from approved suppliers. The franchisor or affiliates may be the designated or sole source for certain items. |
| Franchisor Revenue from Suppliers | The franchisor (directly or through an affiliate) may derive revenue from rebates or other payments from suppliers based on sales of products, advertising materials, and other items to franchisees, and from other service providers. Currently, a system-wide rebate is received from The Coca-Cola Company and Dr. Pepper/Seven Up, Inc. for using their products. The predecessor received $123,248.53 from Coca-Cola and $48,394.92 from Dr. Pepper/Seven Up in 2022. These payments may range from less than 1% up to 10% or more of the total purchase price of those items. The franchisor intends to contribute such rebates to the Brand Development Fund but is not obligated to do so and may use them for any purpose. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | We do not offer direct or indirect financing. We do not guarantee your note, lease or obligation. |
GENGHIS GRILL® Franchise Earnings — Item 19
Past financial performance does not guarantee future results. Individual results will vary.
GENGHIS GRILL® Litigation & Risk Flags
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
GENGHIS GRILL® System Growth
GENGHIS GRILL® currently operates 20 franchised locations and 29 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2020 | 0 | 3 | 21 |
| 2021 | 0 | 0 | 21 |
| 2022 | 1 | 2 | 20 |
Transfers: 1 | Closures: 4
State Registrations
Registered in 14 states: California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, Wisconsin
Franchisor Financials (Item 21)
Audited by MONIS J. SIDDIQUI, CPA P.C. for year ending June 21, 2023.
GENGHIS GRILL® Franchise — FAQ
Similar Food & Beverage Franchises
Interested in GENGHIS GRILL®?
Get free info on this franchise. We will send you a detailed FDD report by email.