Gyu-Kaku Franchise Cost, Revenue & Review 2026
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 – $4.3M, including a $50K franchise fee and an ongoing 5.0% royalty[2]. The 2025 FDD does not disclose unit-level revenue (no Item 19). 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 →
Data last verified · figures per the 2025 FDD issuance
Overview
- Investment
- $2.3M – $4.3M
- 38th pct Service Resta…
- Avg gross sales
- N/A
- Royalty
- 5.0%
- 7th 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 avg · 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 – $4.3M including a $50K franchise fee, 5.0% ongoing royalty.
- RETURNSEleven 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.
- RISKVerdict A (Strongest tier), verdict score 84/100 (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).
- FLAGBankruptcy history disclosed in the FDD. Review Item 4 for details before proceeding.
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.
- 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 180% above the typical full-service restaurants franchise.
Source: FDD 2025 · Items 5–7
Full Item 7 breakdown32 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 | |
| Construction (3,500 sq ft)not refundable | $1.7M | $1.9M | |
| Computers and Telecommunications (3,500 sq ft)not refundable | $27K | $32K | |
| Pre-Opening Labor (3,500 sq ft)not refundable | $52K | $52K | |
| Total initial investment | $6.7M | $7.5M |
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 – $4.3M
- 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 · 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 did not disclose financial performance in FDD Item 19. The ROIC and return models require Item 19 revenue. Without it all inputs are estimates. You can still run the calculator with your own assumptions by entering an expected revenue figure.
Returns model · single-unit ROIC
What would one Gyu-Kaku unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
3%
Below the 30–60% attractive-franchise band
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
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.
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 average).
Disclosure
Franchisor chose not to disclose financial performance representations. You will need to gather unit economics directly from existing franchisees.
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 averages
How Gyu-Kaku Compares
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
- 1
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 7.1%
- 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
3-year detail · Item 20
- Opened (3yr)
- 4
- Closed (3yr)
- 1
- Terminated (3yr)
- 1
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 2
- Reacquired (3yr)
- 3
- Franchisor bought back
- 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.
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%
- 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.
Premium insight
SBA Lending Report
Deep-dive into Gyu-Kaku's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 10 lenders with concentration factor
- Per-state charge-off rates across 9 states
- Startup risk premium and job creation velocity
- 8-year lending trend
Instant access. No subscription.
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.
Litigation (Item 3)
No litigation required to be disclosed in Item 3
Largest disclosed settlement: $2
Bankruptcy (Item 4)
Disclosed in last 7 years
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)
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 84 / 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
- 03MEDHigh initial investment ($2.3M–$4.3M) combined with undisclosed profitability creates extreme uncertainty on payback period
- 04MEDJapanese izakaya concept is niche with limited addressable market and high operational complexity (tableside grilling, specialized labor)
- 05MEDNo 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 | none |
| 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
FDD download
Gyu-Kaku · FDD (2025) PDF
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 – $4.3M, 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 does not disclose average franchise owner earnings in their FDD Item 19. Not all franchisors are required to make financial performance representations. We recommend asking existing franchisees directly about their financial experience.
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 84 out of 100 (higher is better), based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. 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
Are you the franchisor?
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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.