Edo Japan restaurant
Edo Japan restaurant
Over the past year the average yearly sales in street stores were approximately 1.1 million. Our highest street locations range from 1.7 million to 2.2 million. Of course, sales depend on a lot on variables like population, average age, demographics, visibility, access, restaurant competition, etc.
- 1100 to 1400 square feet is ideal
- 15 – 25 seats
Edo Japan has extensive experience in Real Estate, with a department at the home office dedicated solely to the selection and negotiation of new restaurant locations. Each location requires the approval of our President and always involves the valued opinion of the operations team. We look at the following key components:
- rent rates
- market demographics
- traffic counts
- accessibility, visibility, and convenience
- results from other restaurants
Each location is reviewed thoroughly before a commitment is made – always keeping the franchisee’s best interests in mind. While we are doing our assessment of the location you will also be required to do the same and we will compare notes afterwards to make sure we are all in agreement regarding the key components.
Edo will tender to several contractors for construction to ensure that we are getting professional work and competitive pricing. If you have a preferred contractor with proven restaurant builds, we will allow them to bid on the project along with the other contractors.
Edo handles the selection of suppliers and has standards in place for the ingredients and products. We have a strong and nationally recognized group of partner companies that form our distribution chain and distribute through a national program with Gordon Food Services. Our suppliers must be used for consistency of product and food safety.
Yes, 5 weeks comprehensive training required and to be completed in one of our training stores with certified Edo Japan trainers.
A minimum two people (Franchisee and one other Manager) must go through training. If the Franchisee is not the operating person, then the operating person and one other Manager must go through 5 weeks training. The hands-off Franchisee must still go through a minimum 3-week training to be educated about the Edo Japan procedures.
As well we highly recommend hiring 1-2 grill people in advance to train for three weeks.
We also help train store level staff and support the opening of the location.
A minimum of $240k of unencumbered cash is required and is collected prior to your loan and prior to construction. The total investment is approx. $575k-$650k and is dependent on the total costs related to the opening of a specific location. All the details will be shared with franchisee in advance. As well, the franchise fee is $35k.
Edo Japan does not provide financing. However, we have a great business relationship with TD and RBC. We can connect you with Business Manager if you need assistance with financing. We will require evidence of the amount of loan you have been approved for by your bank.
6% royalties and 3% marketing fee. Both are % of gross sales and paid monthly.
- Food/Paper/Bev/market goods: 32-33%
- Cost of Labor: 25% to 30%
- Rent: Avg rent is typically $75,000-$90,000 per year. Small towns approximately $50,000 year. Premium locations in downtown Vancouver/Toronto will most often be over $100,000.
This ranges a lot based on total sales, rent, Skip/Uber Eats sales, labour rates, etc. You will need to do a sales projection and we will provide approximate rent cost to help determine profit.
- The VP of Franchising or Director of Operations will help you determine if this is the best business for you. Priority #1 is to ensure you fully understand Edo Japan’s expectations and if this is the right business for you based on your own expectations and experience. We will try to provide you enough information to make an informed decision.
- If still interested we will send you the following forms: full application, personal net worth statement and back check, Franchisee ownership structure.
- After we receive your completed forms, you and your partner will be contacted to continue the discussion and determine the areas that you are interested in opening an Edo.
- As part of the approval process, we might request that you spend half a day in an Edo Japan Restaurant to ensure it’s the right business for you.
- At this time, you should contact your bank to see if you will be approved for a loan. Small Canada business loans are one option. We can provide you our contact at TD or RBC if interested.
- Once approved for an Edo, we will send you a letter requesting a $7000 refundable deposit to hold an area.
- We start searching for sites in the areas discussed.
- When a site meets our criteria, we will ask you to visit the area to ensure you agree.
- Once a site is agreed upon, we start our process with the lease. The lease is reviewed with you prior to moving forward.
- We will send you the 14-day disclosure document to sign if required in your province.
- We’ll need a copy of your Certificate and Articles of Incorporation and Corporate Certificate and list of Shareholders with % of ownership. Any additional shareholders must be approved by Edo.
- You’ll complete a business plan for us and your bank.
- Dates will be established for 5 weeks training (which you and one or two others attend. As well the Regional Manager or Director will review a step-by-step countdown manual so you know exactly the steps involved to be ready to open your Edo.
- Franchisee and operating partner start 5 weeks training approximately 7-8 weeks prior to opening the restaurant. (Minimum 2 Managers/Franchisee must go through 5-week training)
- Staff training completed one week prior to opening the restaurant with support from Regional Manager. Store opens 7 or 8 days after turnover.