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Below is an in-depth analysis and side-by-side comparison of Edo Japan vs Little Sheep Hot Pot including start-up costs and fees, business experience requirements, training & support and financing options.
Start-Up Costs and Fees |
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Investment | $400,000 - $550,000 | $500,000 - $1,200,000 |
Franchise Fee | $35,000 | $50,000 |
Royalty Fee | 6% | 6% |
Advertising Fee | 3% | - |
Year Founded | 1977 | 1999 |
Year Franchised | 1986 | 2003 |
Term Of Agreement | 10 years | - |
Term Of Agreement | 10 years | - |
Renewal Fee | 25% of franchise fee | - |
Business Experience Requirements |
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Experience | - | - |
Financing Options |
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In-House/3rd Party | In-House/3rd Party | |
Franchise Fees | No/No | -/- |
Start-up Costs | No/No | -/- |
Equipment | No/No | -/- |
Inventory | No/No | -/- |
Receivables | No/No | -/- |
Payroll | No/No | -/- |
Training & Support |
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Training | 5 weeks - Basic Operation of the Business. - Regional Managers visit at least once every quarter to support and guide the Franchisees | For our franchisees (two persons at most) soup base and broth formulation and preparation food preparation and presentation management of the dining area and the kitchen financial control POS system inventory control etc. training workshops in various forms at irregular intervals to facilitate communication and learning for all of our franchisees. |
Support | Newsletter, Grand opening, Field operations/evaluations | After the grand opening of the franchised restaurant, we will visit its business and operation from time to time. Then, based on the inspections results, we will make proper suggestions and require corrections when necessary to enhance the franchisee's profitability. We will supply the Little Sheep proprietary soup condiments, designate some of the meat, food and beverage, constructive materials and equipment suppliers, and also assist franchisees with the purchase of dishware, uniforms, and some of the key materials as part of our franchising support. |
Marketing | Regional advertising | By establishing the System Marketing Fund (1% of total sales of each store, including the corporate affiliates and franchisees), we will consolidate all marketing resources for the most optimized result. It will continue to enhance the brand image through advertisement, promotion, PR event and brand image exposure in order to boost the restaurant's recognition and credibility. Moreover, we will also facilitate various marketing activities to support franchisee's own marketing programs. |
Operations | - 33% of all franchisees own more than one unit - Number of employees needed to run franchised unit: 10 - 15 - Absentee ownership of franchise is allowed. (97% of current franchisees are owner/operators) | - |
Expansion Plans |
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US Expansion | - | - |
Canada Expansion | No | - |
International Expansion | Yes | - |
Yum China Holdings, Inc. is China's leading restaurant company with a vision of making every life taste beautiful. From a single restaurant in 1987, the company now operates over 7,500 restaurants over 1,100 cities and towns spanning every province and autonomous region across mainland China.