AFC

Item 7 lays out the startup costs clearly: initial franchise fee of $6,250, with total investment ranging $45,004 to $151,404 depending on counter type (Zenshi, AFC Food Service, or Wild Blue) and location setup. Ongoing fees hit 8-11% of gross sales as franchisor compensation (listed as 9.5% royalty), plus $100/month web access, $100-$500 quarterly account fees, and insurance equivalents of $58-$417/month. The model's twist: hosts like grocers manage payments, splitting sales before your cut—ideal for low-overhead operations in high-traffic spots but reliant on strong host partnerships. No Item 19 means no validated revenue or profit figures, forcing buyers to scrutinize alternatives like existing franchisee talks for real earnings potential.

System vitality shines with 3,572 franchised locations (190 corporate) as of 2025 FDD, up 61% from 2,217 in 2024, fueled by 274 transfers and 87 projected new units. Yet, 208 terminations and 30 non-renewals flag execution risks, often tied to litigation over terminations, contract breaches, and discrimination claims. This rapid scale under Zensho Holdings suggests sushi's enduring appeal, but high transfer activity and disputes underscore the need to probe location quality and host contracts before investing.