Sarku Japan franchise

2024 filing · April 26, 2024Fewer locations

Sarku Japan at a glance

A quick-service Japanese restaurant in a mall food court with a short menu. At the end of 2023 there were 140 Sarku Japan locations in the US, 14 franchised and 126 company-owned, so most are run by the company itself.

The business

Industry: Fast food; Also listed in restaurant and food
Franchisor: SMK Franchising Inc; The company that sells the franchises
Who runs it: Manager; A trained manager can run it day to day
Franchising since: 2004; 20 years of selling franchises
Typical size: 500–700 sq ft

What you pay

Cost to open: $409K–$688K; Fee, build-out and opening working capital
Franchise fee: $30,000; Paid once, when you sign
Royalty: 6%; The greater of 6% of the prior week's net sales or a weekly share of 6% of the agreed minimum annual net sales, paid weekly, plus 2% to the marketing fund (at least $158.33 a week)
Brand fund: Yes; 2% of the prior week's net sales or $158.33, whichever is more, paid with the royalty
Territory: None; No exclusive territory
SBA Franchise Directory: Not listed; Lenders check this list before an SBA loan

Where it is

US locations, 2023: 140; Franchised and company-owned
Franchised: 14
Company-owned: 126
Change in 2 years: −8; Franchised locations, 2021–2023
States: 7; Most in Illinois, Pennsylvania and Florida

Support and records

Shares sales figures: No; Ask current owners what a location makes
Lawsuits disclosed: Yes
Bankruptcy disclosed: Yes; A related company or person
Latest filing: Apr 26, 2024; 2024 filing

From SMK Franchising Inc’s 2024 filing; SBA status from the SBA Franchise Directory, October 28, 2026.

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Where it ranks

Sarku Japan among all franchises with the same figure.

Figure	Sarku Japan	Among all franchises
Cost to open, midpointHalfway between the low and high estimate	$548,500	Costs more than 68% of franchises
Franchise feePaid once, when you sign	$30,000	Lower than 72% of franchises
RoyaltyShare of sales paid to the franchisor	6%	Higher than 35% of brands with a set rate
US locationsFranchised and company-owned	140	More than 81% of franchises

How much a Sarku Japan franchise costs

Opening one Sarku Japan costs an estimated $409,000 to $688,000. That covers the franchise fee and everything else needed to open, through the first months of working capital.

Source: SMK Franchising Inc, 2024 filing, page 18

Sarku Japan franchise fee

The franchise fee is $30,000. You pay it when you sign the franchise agreement.

Source: SMK Franchising Inc, 2024 filing, page 12

Royalty and ongoing fees

Royalty	The greater of 6% of the prior week's net sales or a weekly share of 6% of the agreed minimum annual net sales, paid weekly, plus 2% to the marketing fund (at least $158.33 a week).
Brand or marketing fund	2% of the prior week's net sales or $158.33, whichever is more, paid with the royalty.
Training Fees	Our current training fee is $5,000. This amount is subject to change.

The typical franchise royalty is 6% of sales, plus 2% for marketing. See franchise fees and royalties to compare.

Source: SMK Franchising Inc, 2024 filing, page 13

Other fees as filed, from page 15. The filing lists every fee, including late fees and audit costs.

Sales and earnings

No figures Sarku Japan does not share sales or profit figures for its locations. Talking to current and former franchise owners is the usual way to learn what a location earns.

Source: SMK Franchising Inc, 2024 filing, page 46

Estimate Estimated yearly sales per location: $800K–$1.4M

Estimated from the sales that 292 comparable franchises file, matched on industry, format, cost to open, fees and size.

How Sarku Japan compares

Of the 309 fast food franchises on this site, Sarku Japan is the 183rd cheapest to open and the 64th largest by number of locations.

Figure	Sarku Japan	Typical fast food brand	Typical franchise
Cost to open, low end	$409K	$353K	$222K
Cost to open, high end	$688K	$786K	$477K
Franchise fee	$30K	$35K	$40K
Royalty	6%	6%	6%
US locations	140	23	21
Closed or left per year	10%	5.8%	–
Change in franchised locations, 2 yrs	−36.4%	+5.2%	–
Shares earnings figures	No	189 of 309	2,147 of 3,352

Typical is the median across the 309 brands in fast food franchises; typical franchise, across every brand here.

Locations opened and closed

2 opened

3 closed or left

Franchised locations, last 2 years

2021

15 (−7)

2022

2 opened2 closed or left

15 (0)

2023

0 opened1 closed or left

14 (−1)

Year	Franchised	Company-owned	Opened	Closed
2021	15 (−7)	128	–	–
2022	15 (0)	129	+2	−2
2023	14 (−1)	126	0	−1

Closed or left counts terminations, non-renewals, locations bought back by the franchisor and locations that stopped operating.

See which brands grew most in the fastest-growing franchises rankings.

More in the guides: fast food franchise costs and franchise failure rates.

Source: SMK Franchising Inc, 2024 filing, page 47

Source filing (2024, PDF)

Where Sarku Japan locations are

At the end of 2023, Sarku Japan had franchised locations in 8 states and territories. The most are in Illinois, Pennsylvania and Florida.

Illinois3
Pennsylvania3
Florida2
New Hampshire2
California1
Connecticut1

State	Franchised
Illinois	3
Pennsylvania	3
Florida	2
New Hampshire	2
California	1
Connecticut	1
North Carolina	1
Puerto Rico	1

Source: SMK Franchising Inc, 2024 filing, page 48

Who owns Sarku Japan?

Sarku Japan franchises are sold by SMK Franchising Inc.

From SMK Franchising Inc’s 2024 filing.

Lawsuits and bankruptcy

Lawsuits and regulatory actions	Yes. The filing describes past or pending cases involving the franchisor, its affiliates or its executives on pages 9–10.
Bankruptcy	Affiliates that hold the restaurant leases went through a Canadian court-supervised restructuring, recognized in U.S. bankruptcy court, from January 2021; the plan was approved and both cases were closed by November 2021. The franchisor itself was not a debtor.

Franchisors must disclose lawsuits and bankruptcies involving the company, its parents and affiliates, and its executives. Many cases are routine disputes with franchisees over fees or contracts; read the descriptions in the filing and ask current owners about anything that worries you.

Source: SMK Franchising Inc, 2024 filing, litigation on pages 9–10, bankruptcy on page 11

Source filing (2024, PDF)