Gyu-KakuFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
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]. Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $2.3M – $4.3M
- 47th pct Service Resta…
- Avg gross sales
- N/A
- 28th pct Service Resta…
- Royalty
- 5.0%
- 7th pct Service Resta…
- Units
- 60
- 38th pct Service Resta…
- SBA default
- 0.0%
- system-wide median varies by category
Quick verdict · Full-Service Restaurants · color = vs category peers
Green = >15% above Full-Service Restaurants avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Only 0.0% of 12 SBA loans charged off, well below the 16% franchise average.
The system contracted 13% year-over-year. Investigate why units are closing.
Bottom line
- Total investment $2.3M – $4.3M including a $50K franchise fee, 5.0% ongoing royalty.
- No Item 19 financial performance data disclosed. The franchisor chose not to publish revenue figures.
- Verdict A (Top Quintile) with a risk score of 22/100. SBA loan charge-off rate of 0.0% across 12 loans (well below the franchise average, based on all SBA 7(a) franchise lending, 2010–2024).
- Bankruptcy history disclosed in the FDD. Review Item 4 for details before proceeding.
Item 1 · who you're contracting with
The Franchisor
- 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
- $6.9M
- 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
Franchisees operate upscale Japanese yakiniku (tableside grilling) restaurants featuring interactive dining where customers grill premium meats, seafood, and vegetables at tabletop burners. Day-to-day operations involve managing specialized kitchen staff trained in meat preparation, coordinating table-side service protocols, inventory management of high-cost proteins, and maintaining Japanese hospitality standards in a labor-intensive, capital-heavy restaurant environment.
- CEO
- Ryo Tozu
- Headquarters
- CA
- Founded
- 2008
- FDD year
- 2025
- States available
- 14
FDD Item 7 · 2025 filing · 32 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
- Near category avg vs category
- Liquid capital req'd
- $15K – $60K
- Better than avg vs category
- Franchise fee
- $50K – $50K
- Better than avg vs category
- Royalty
- 5.0%
- Gross Sales · 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) | $29K – $50K |
| Total fee load | 6.5% of rev |
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
vs Full-Service Restaurants averages
How Gyu-Kaku Compares
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
- 1.7%
- Company-owned
- 32
- Corporate units in the system
- % franchised
- 47%
- vs corporate-owned
- Multi-unit owners
- 10.0%
- Net growth (yr3)
- -12.5%
- Net unit change last year
- 3-yr CAGR
- +0.0%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 1
- 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.
A system losing more than 10% of its units year-over-year is a red flag. Check whether closures are concentrated in specific regions.
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
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.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
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
Jamgle Jam USA, Inc. filed Voluntary Petition for Non-Individuals under Chapter 7 of the Bankruptcy on October 24, 2023 with the U.S. Bankruptcy Court, Central District of California (Santa Ana), Bankruptcy Case No. 8:23-bk12188-TA. The Court determined the entity had no assets and ordered the case closed on 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 22 / 100 rating
- 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)
- 05MINORTiered royalty structure (5%→4.5%→4%) suggests franchisor depends on high-volume units; declining unit count threatens franchise support sustainability
- 06HIGHNo disclosed litigation but declining footprint may reflect unresolved franchisee disputes or brand performance issues
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 2 |
| Territory type | Radius or specific geographical area |
| Protected territory | Yes |
| 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 | 30 days |
| Curable defaultsℹ | 4 |
| Mandatory arbitration | Yes |
| Arbitration location | Los Angeles County, California |
| Jury trial waiver | Yes |
| Governing law | California |
| 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
- On-site and corporate
- Time to open
- 18 mo
- From signing to launch
- Site selection
- joint
- POS system
- Aloha
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Aloha
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 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 risk score of 22 out of 100, 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.
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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.