Gyu-Kaku Franchise Cost, Revenue & Review 2026
- Investment
- $2.3M – $2.6M
- Disclosed sales
- not disclosed
- SBA charge-off
- 0.0%
- on 12 loans
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Gyu-Kaku is a Japanese barbecue restaurant franchise where guests grill premium meats and vegetables at tabletop grills. Franchisees run the full-service restaurants, managing specialized kitchen prep, service, and high-cost protein inventory.
FranchiseVerdict summary · 2026
A Gyu-Kaku franchise requires a total initial investment of $2.3M – $2.6M, including a $50K franchise fee and an ongoing 5.0% royalty[2]. This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. SBA 7(a) loans show a 0.0% charge-off rate across 12 loans[1]. FranchiseVerdict grade: A (Strongest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: medium - issued 12 to 24 months ago; a newer filing is likely on file
Evidence: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✓ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored5 of 5 headline figures on this page cite a page of the filing.
Overview
- Investment
- $2.3M – $2.6M
- 38th pct Service Resta…
- Avg gross sales
- N/A
- Royalty
- 5.0%
- 8th pct Service Resta…
- Units
- 60
- 28th pct Service Resta…
- SBA charge-off
- 0.0%
- % of SBA 7(a) loans not repaid · median varies by category
Quick verdict · Full-Service Restaurants · color = vs category peers
Green = favorable by >10% vs Full-Service Restaurants median · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $2.3M – $2.6M including a $50K franchise fee, 5.0% ongoing royalty.
- RETURNSThis franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that.
- RISKVerdict A (Strongest tier), verdict score 83/100 (higher is better). SBA loan charge-off rate of 0.0% across 12 loans (well below the franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- GROWTHNegative: net -4 franchised outlets in the latest year (0 opened, 4 closed); 4 signed but not yet open (Item 20).
- FLAGItem 4 discloses a bankruptcy of an officer or of a company an officer ran, not of the franchisor. Review Item 4 for details.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Reins USA Franchise Company, Inc.
- Parent company
- Reins International (USA) Co., Ltd.
- Ultimate parent
- Colowide Co., Ltd.
- FDD Item 1, page 6 of the 2025 FDD
- CEO title
- Chief Executive Officer and Secretary
- Ryo Tozu
- Incorporated in
- CA
- HQ
- 20000 Mariner Avenue, Suite 500, Torrance, California 90503
- Auditor
- Premier Kaikei LLP
- Audited financials
- Franchisor revenue
- $5.9M
- vs $7.2M prior year
- Management churn noted
- Frequent turnover
- Item 2 disclosed frequent executive changes
Independent franchisee associations
- Franchise Advisory Council (FAC)
Franchisee-led councils or alliances disclosed in Item 20. Indicates operator voice.
Overview
About
- CEO
- Ryo Tozu
- Headquarters
- CA
- Founded
- 2008
- FDD year
- 2025
- States available
- 14
Can you afford it, and what does the money buy?
Entry cost runs 257% above the typical full-service restaurants franchise.
Source: FDD 2025 · Items 5–7
Full Item 7 breakdown17 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Feenot refundable | $50K | $50K | |
| Constructionnot refundable | $965K | $1.1M | |
| Construction Assistancenot refundable | $45K | $47K | |
| Equipment, Furniture, Fixtures and Signagenot refundable | $998K | $1.1M | |
| Computers and Telecommunicationsnot refundable | $23K | $29K | |
| Initial Opening Assistance by Franchisornot refundable | $7K | $22K | |
| Pre-Opening Labornot refundable | $27K | $32K | |
| Travel and Living Expensesnot refundable | $11K | $24K | |
| Professional Fees - Architectsnot refundable | $65K | $65K | |
| Legal / Professional Feesnot refundable | $3K | $3K | |
| Opening Inventorynot refundable | $13K | $16K | |
| Opening Suppliesnot refundable | $16K | $20K | |
| Insurance Deposits and Premiumsnot refundable | $3K | $3K | |
| Market Introductionnot refundable | $13K | $15K | |
| Licenses, Permits and Depositsnot refundable | $5K | $7K | |
| Miscellaneous Expendituresnot refundable | $10K | $20K | |
| Additional Funds - 3 monthsnot refundable | $15K | $60K | |
| Total initial investment | $2.3M | $2.6M |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $2.3M – $2.6M
- Top 40% of category vs category
- Liquid capital req'd
- $15K – $60K
- Top 40% of category vs category
- Franchise fee
- $50K – $50K
- Top 40% of category vs category
- Royalty
- 5.0%
- Tiered by sales volume · typical 6–8%
- Ad fund
- 1.5%
- typical 3–5%
- Total fee load
- 6.5%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 5.0% of gross sales |
| Marketing / ad fund | 1.5% of gross sales |
| Transfer fee | $10K |
| Renewal fee | $5K |
| Inventory (initial) | $13K – $16K |
| Total fee load | 6.5% of rev |
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
Gyu-Kaku makes no financial performance representation in Item 19 of its FDD - a voluntary item under the FTC Franchise Rule - so no unit revenue figures are disclosed. The return models need a revenue figure to start from, and the operating costs that turn gross sales into a profit are in no FDD. Enter your own and the calculator runs on your assumptions — nothing here is modelled until you do.
Returns model · single-unit ROIC
What would one Gyu-Kaku unit return on the cash you put in?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for annual revenue, COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2025 FDD
Financial Performance
No financial performance representation
This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that.
Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Fee burden
Total ongoing fee load of 6.5% (near the Full-Service Restaurants median).
Disclosure
This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Operator retention
System roughly stable (0.0% 3-year CAGR) with 60 units.
Multi-unit rate
Only 10% of franchisees own multiple units. Could indicate challenging economics or a young system where operators haven't had time to expand.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Full-Service Restaurants medians
How Gyu-Kaku Compares
Category median of published Full-Service Restaurants brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
Is the system healthy?
Source: FDD 2025 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 60
- Opened
- 0
- Last reporting year
- Closed
- 4
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 6.7%
- Company-owned
- 32
- Corporate units in the system
- % franchised
- 47%
- vs corporate-owned
- Multi-unit owners
- 10.0%
- Net growth (3-yr)
- +6.3%
- Net unit change over 3 years
- 3-yr CAGR
- +0.0%
- Compounded over last 3 years
Last fiscal year · Item 20 exits and transfers
- Terminated
- 0
- Not renewed
- 0
- Reacquired
- 3
- Franchisor bought back
- Signed, not yet open
- 4
- 0.07 per open outlet · Item 20 Table 5
- Projected new
- 6
- Franchisor's next-year forecast
- Transfer rate
- 1.7%
- Owners selling to other franchisees
- Continuity rate
- 87.5%
- Units that stayed open
- Ceased ops
- 8.3%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 15 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator. Not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
Where the owners are · Item 20 owner list
27 current owners across 14 states; 3 former (terminated, transferred or not renewed) listed separately.
- CA 8
- FL 3
- NY 3
- NC 2
- TX 2
- GA 1
- KS 1
- LA 1
- MD 1
- MN 1
- OH 1
- PA 1
- +2 more states
Counts only, from the list the franchisor prints in Item 20. Names and phone numbers are for your own due diligence and are not shown here.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 12
- Loan volume
- $17.7M
- Median loan
- $1.2M
- 50th percentile
- Charge-off rate
- 0.0%
- on 12 loans · rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 100.0%
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 10
- Defaults
- 0
- Typical loan rate
- 7.3%
- avg rate to borrowers
- Franchised industry avg
- 13.2%
- brand beats franchise avg ↓
- Jobs supported
- 548
- 3.1 per loan
- Lender concentration
- 17%
- top lender's share
Borrower mix: 78% went to startups / new businesses, 22% to established operators
Franchise vs independent — in full-service restaurants, franchised businesses charge off at 13.2% vs 9.7% for independents — franchising is associated with 36% higher SBA default risk in this category.
Top lenders financing Gyu-Kaku franchisees
Showing 3 of 10 lenders. The full breakdown — every lender, state distribution, interest rates & risk ratings — is in the SBA Lending Report below.
Explore lender portfolios on Bank Reports or regional data on State Reports.
Lender network · 7(a) + 504
SBA Lending Report
Full lending analysis for Gyu-Kaku from SBA 7(a) FOIA data.
- Principal loss rate
- 0.0%
- Avg SBA guarantee
- 74%
- Avg interest rate
- 7.25%
- Lender concentration
- 16.7%
- Job velocity
- 3.1 per $100K
- NAICS benchmark
- 7.4%
- NAICS 722511
- Jobs supported
- 548
Top SBA lendersTop lender holds 17% of loans
| # | Lender | Loans | Volume | Default % |
|---|---|---|---|---|
| 1 | Florida Capital Bank, National Association | 2 | $3.0M | N/A |
| 2 | First National Bank of Pennsylvania | 2 | $3.9M | 0.0% |
| 3 | JPMorgan Chase Bank, National Association | 1 | $350K | 0.0% |
| 4 | East West Bank | 1 | $700K | 0.0% |
| 5 | Capital Bank, National Association | 1 | $350K | 0.0% |
| 6 | The Huntington National Bank | 1 | $1.0M | 0.0% |
| 7 | Milestone Bank | 1 | $1.9M | N/A |
| 8 | The Central Trust Bank | 1 | $1.5M | 0.0% |
| 9 | Bank of Oak Ridge | 1 | $3.9M | N/A |
| 10 | Open Bank | 1 | $1.1M | 0.0% |
Geographic failure vector
| State | Loans | Defaults | Rate |
|---|---|---|---|
| CACalifornia | 2 | 0 | 0.0% |
| FLFlorida | 2 | 0 | -- |
| NCNorth Carolina | 2 | 0 | 0.0% |
| KSKansas | 1 | 0 | 0.0% |
| NVNevada | 1 | 0 | 0.0% |
| NYNew York | 1 | 0 | -- |
| OHOhio | 1 | 0 | 0.0% |
| TXTexas | 1 | 0 | -- |
| VAVirginia | 1 | 0 | 0.0% |
SBA 7(a) lending trend
Borrower profile
Source: SBA 7(a) + 504 FOIA loan-level data, matched by FranchiseVerdict
With a 0.0% charge-off rate across 12 loans, banks have historically viewed this brand favorably for lending.
What could kill this investment?
SBA loans charge off at 0.0% — 100% below the 16.0% national norm, i.e. lower lender-observed risk.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Gyu-Kaku presents HIGH RISK due to contracting unit base (-12.5% YoY), absent profitability disclosure, and capital-intensive model with unproven returns in a niche culinary category.
Why this reads harsher than the A grade: the grade weighs financial health, unit economics, unit growth, scale, legal, and transparency across the whole filing, while this summary lists individual flags without that weighting. The flags are worth checking with current owners; neither is investment advice.
Litigation (Item 3)
Subject: officers or affiliates. The franchisor is not a named party in these cases.
No litigation required to be disclosed in Item 3
Bankruptcy (Item 4)
Subject: an officer. An officer’s own bankruptcy or a company an officer ran, not the franchisor’s
Officer Motoo Noda (CFO) was serving as CFO of Jamgle Jam USA, Inc. when it filed Chapter 7 bankruptcy on October 24, 2023 (Case No. 8:23-bk-12188-TA). Court determined no assets; case closed March 28, 2024.
Audited financials (Item 21)
Yes · Premier Kaikei LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Eleven months ended December 31, 2024 (fiscal year end changed from Jan 31 to Dec 31 in 2024); franchise revenues 5,717,969 plus miscellaneous revenue 182,290. Prior full year ended Jan 31, 2024 total revenues 7,202,744.
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 83 / 100 verdict
- 01MINORUnit count declining 12.5% YoY (60 units) indicates system contraction and potential demand weakness
- 02MINORNo average revenue or net income disclosure (Item 19) prevents ROI validation and suggests weak unit economics
- 03MEDJapanese izakaya concept is niche with limited addressable market and high operational complexity (tableside grilling, specialized labor)
- 04MEDNo disclosed litigation but declining footprint may reflect unresolved franchisee disputes or brand performance issues
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 6.5% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2025 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 2 |
| Territory type | No territory protection |
| Protected territory | No |
| Exclusive territoryℹ | No |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 10 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 10 days |
| Curable defaultsℹ | 4 |
| Mandatory arbitration | Yes |
| Arbitration location | Los Angeles County, California |
| Jury trial waiver | No |
| Governing law | State where Licensed Restaurant is located |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation required to be disclosed in Item 3
Items 10, 11
Training & Operations
- Classroom training
- 46 hrs
- On-the-job training
- 304 hrs
- Training location
- Los Angeles, California
- Ongoing training
- Required
- Time to open
- 10 mo
- From signing to launch
- Site selection
- Franchisee selects, franchisor must approve
- Franchisor financing
- Not offered
- Item 10
- POS system
- Aloha (NCR)
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Aloha (NCR)
Item 20 · call current owners
Franchisee Contacts
30 owners to call
Name · phone · city · state. Extracted from FDD Item 20
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Gyu-Kaku franchise?
The total investment to open a Gyu-Kaku franchise ranges from $2.3M – $2.6M, with an initial franchise fee of $50K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Gyu-Kaku franchise owners earn?
Gyu-Kaku makes no financial performance representation in Item 19 of its FDD - a voluntary item under the FTC Franchise Rule - so no unit revenue figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Who owns Gyu-Kaku?
Gyu-Kaku is franchised by Reins USA Franchise Company, Inc.. Its parent company is Reins International (USA) Co., Ltd.. The ultimate parent named in the FDD is Colowide Co., Ltd.. Source: FDD Item 1, 2025 filing.
What is Item 19 in the Gyu-Kaku FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the Gyu-Kaku FDD and qualifies whose outlets they describe.
What is Gyu-Kaku's franchise failure rate?
Based on SBA 7(a) loan data, Gyu-Kaku has a charge-off rate of 0.0% across 12 loans, meaning 0.0% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many Gyu-Kaku franchise locations are there?
As of their most recent FDD filing, Gyu-Kaku has 60 total units in the United States, including 28 franchised units and 32 company-owned units.
Is Gyu-Kaku a good franchise to buy?
FranchiseVerdict rates Gyu-Kaku as a A-grade franchise with a verdict score of 83 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
For franchisors
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.