About Mensho Franchise
Mensho restaurants are casual dining establishments specializing in authentic craft-style ramen (Japanese style noodle) soups and other Japanese dishes.
They use fresh, seasonal ingredients and offer a selection of beer, sake, and non-alcoholic beverages.
The daily operations involve preparing fresh noodles on-site using proprietary recipes and designated noodle-making machines, serving customers, and managing third-party delivery orders.
Mensho Franchise Cost & Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $30,000 | One-time payment upon signing |
| Royalty Fee | 5% of Gross Sales of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | Currently 1% of Gross Sales (maximum of 3% of Gross Sales) | National brand fund |
| Total Investment Range | $281,000 – $1,184,000 | Includes build-out, inventory, working capital |
The investment range of $281K–$1.2M reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (5% of Gross Sales) and marketing fee (Currently 1% of Gross Sales (maximum of 3% of Gross Sales)) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $30,000 | $30,000 |
| Security Deposit | $10,000 | $10,000 |
| Training Fee | $15,000 | $15,000 |
| Lease Security Deposit, Rent (Pre-Opening Date Period), and other Payments under the lease for the Approved Location | $7,000 | $50,000 |
| Deposits and payments for licenses and permits including security deposits (excluding real estate), utility deposits, business licenses, and other pre-paid expenses | $2,500 | $5,000 |
| Architects and Design | $10,000 | $40,000 |
| Construction/Leasehold Improvements and Signage | $100,000 | $800,000 |
| Furniture, Fixtures, and Equipment | $50,000 | $90,000 |
| Computer and Security Equipment | $10,000 | $30,000 |
| Professional Fees | $3,000 | $10,000 |
| Opening Inventory and Supplies | $12,000 | $20,000 |
| Pre-Opening Labor | $10,000 | $30,000 |
| Insurance | $3,500 | $7,000 |
| Expenses During Initial Training Program | $5,000 | $15,000 |
| Grand Opening Marketing | $5,000 | $8,000 |
| Additional Funds - 3 Months (Working Capital) | $8,000 | $24,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $15,000 (Unit-Franchise Agreement); $15,000 (Area Development Agreement); $2,500 per Qualified Transfer |
| Renewal Fee | $20,000 |
| Technology Fee | Currently $215/month (POS System Subscription Fees) |
| Audit Fee | Cost of audit (including our reasonable accounting, legal fees and travel expenses), plus full amount of any underpayment and interest and late charges on any underpayment. |
| Local Marketing Obligation | Currently 2% of Gross Sales (maximum of 3% of Gross Sales) |
| Grand Opening Marketing | Minimum of $5,000 |
| Enforcement Expenses | Reasonable cost of our attorneys’ fees and expenses |
| Late Fee | 1.5% per month or the maximum rate permitted by applicable law, whichever is less |
| Remedial Work to Correct Unhealthy or Unsafe Condition | Service charge equal to 25% of the cost of the remedial or corrective work |
| Service Charge for Insurance | The cost of purchasing replacement insurance plus 25% |
| Reimbursement for Payments Made to Approved Suppliers | The trade debt plus 25% |
| Public or Private Securities Offering | Reasonable attorneys’ fees up to $20,000 per Public or Private Offering |
| Pre-Opening Additional Training | Currently $750/day for each training staff member, up to 3, plus reimbursement of our reasonable travel costs |
| Post-Opening Additional Training Fee | Currently $750/day per training staff member |
| Proprietary Products | At our current rates and payment terms that we publish periodically by bulletin or in the Manual |
| Re-inspection due to failure to pass inspection | $500 per day per re-inspection, plus our out-of-pocket expenses |
| Indemnification and Defense | All costs including attorneys’ fees; amount will vary under the circumstances |
| Alternate Supplier Testing Fee | Based on our actual cost, but not to exceed $2,500 per request, plus reimbursement of direct expenses |
| Mystery Shopper Fee | Currently estimate may be up to $500/year |
| Management Fee | Currently $750/day |
| Webmaster Fee | The then-current fee that we publish in the Manual |
| Relocation Fee | $3,000 |
| Relocation Assessment | Weekly Royalty Fees and Brand Development based on the average fees paid before closure plus an additional 10% of each average |
| Annual Meeting | Our then-current registration fee identified in the Manual, which at this time is $500/person |
| Gross-Up Fees and Taxes | Amount imposed on us |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | Initial Training Program is a multi-module, multi-day program. New Restaurant Opening training is 12 days (10 days before and 2 days after Opening Date). |
| Classroom Training | 17 hours for Primary Owner and General Manager; 16 hours for Kitchen Manager and Assistant Kitchen Manager. |
| On-the-Job Training | 32 hours for Primary Owner and General Manager; 30 hours for Kitchen Manager and Assistant Kitchen Manager. |
| Training Location | California (for management training modules and New Restaurant Opening training). |
| Additional Training | Franchisor may require Primary Owner, General Manager, Kitchen Manager, or Assistant Kitchen Manager to complete additional training (up to 10 days per 12 months) if inspection or mystery shopper reports indicate operating deficiencies. Post-opening additional training fees apply for requested or required on-site training. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Protected Area |
| Exclusive Territory | No |
| Territory Size | No smaller than a one-mile radius from the front door of the Mensho restaurant, or the Captive Venue itself if applicable. |
| Description | The Protected Area is identified by zip codes, roads, or other geographic/political demarcations. It excludes Captive Venues and restaurant properties acquired by the Company as part of a chain. The franchisor reserves the right to exploit Licensed Marks and engage in directly competitive activities within the Protected Area, including opening Mensho restaurants in Captive Venues, acquiring other restaurant chains and converting them to Mensho restaurants, and selling proprietary products through retail/wholesale channels. The Protected Area is not an exclusive territory, and franchisees may face competition from other franchisees, company-owned outlets, or other distribution channels. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years after the Opening Date |
| Renewal Term | One renewal option for 10 years |
| Renewal Fee | $20,000 |
| Renewal Conditions | Must be in good standing, sign then-current Franchise Agreement, satisfy current design/appearance standards, pay renewal fee, complete required training, and sign a general release. Must extend occupancy rights or relocate with approval. |
| Transfer Fee | $15,000 (Unit-Franchise Agreement); $15,000 (Area Development Agreement); $2,500 per Qualified Transfer |
| Transfer Conditions | Proposed buyer must apply and meet qualifications, sign then-current agreements, complete initial training, and sign a general release. Franchisor consent required, not to be unreasonably withheld. Franchisor has a right of first refusal (except for Qualified Transfers). |
| Termination for Cause | Franchisor may terminate for good cause based on material default (e.g., failure to obtain site approval within 120 days, failure to deliver lease within 180 days, failure to open within 365 days, monetary default, repeated defaults, misuse of confidential information, abandonment, imminent danger to public health/safety). |
| Non-Compete Period | During the term of the franchise and 2 years after termination/expiration |
| Non-Compete Details | During the term, franchisee and Covered Persons are forbidden from directly or indirectly engaging in a Competitive Business anywhere in the world. After termination/expiration, this restriction applies within 20 miles of any Mensho restaurant anywhere in the world for 2 years. Owning 5% or less of publicly traded stock in a Competitive Business is permitted. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | The Primary Owner (owning at least 25% of equity) must be responsible for supervising operations and compliance, and must complete the General Manager module of the Initial Training program. A full-time General Manager is required for each restaurant, who must complete specific training and pass an exam. If there is no qualified General Manager, the Primary Owner must temporarily perform the duties. For multi-unit owners, each restaurant requires a different General Manager and a separate management team (Kitchen Manager and Assistant Kitchen Manager). |
| Required Suppliers | Mensho TK (affiliate) is the exclusive supplier for Proprietary Products (tare sauce, chili paste, chili oil, noodle-making machine, proprietary flour). |
| Supply Restrictions | Franchisees must purchase Proprietary Products only from designated suppliers. Franchisor may expand the list of Proprietary Products and designate exclusive suppliers. Franchisor may also designate third-party suppliers for non-proprietary items. Franchisor may limit the total number of approved suppliers or alternative brands. Franchisees must obtain approval for alternate suppliers and pay a testing fee. |
| Franchisor Revenue from Suppliers | Mensho TK derives revenue from the sale of Proprietary Products to franchisees. Franchisor and affiliates may earn a profit on any products and services sold to franchisees and may receive rebates or other consideration from unaffiliated third-party suppliers. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | We do not offer direct or indirect financing to franchisees. We will not guarantee your promissory note, lease, or other obligation. |
Mensho Franchise Earnings — Item 19
Mensho does not include an Item 19 financial performance representation in their FDD. Contact information for current and former franchisees is listed in Item 20 of the FDD.
Mensho 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.
Mensho System Growth
Mensho currently operates 0 franchised locations and 2 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2020 | 0 | 0 | 1 |
| 2021 | 1 | 0 | 2 |
| 2022 | 0 | 0 | 2 |
| 2023 | 0 | 0 | 2 |
Transfers: 0 | Closures: 0
State Registrations
Registered in 14 states: CA, HI, IL, IN, MD, MI, MN, NY, ND, RI, SD, VA, WA, WI
Franchisor Financials (Item 21)
Audited by SKY ACCOUNTANCY CORPORATION for year ending September 30.
Mensho Franchise — FAQ
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