3/10

Franchimp Summary Rating

3 /10
Higher than 72% of peers

Franchise Summary

Description
Nikko is a franchise dedicated to producing high-quality outdoor and recreational products, including camping and fishing gear, known for their durability and innovation. The brand not only focuses on customer satisfaction but also engages in community-building activities to promote outdoor experiences and environmental conservation.
Company Background
Nikko is a franchisee of Nikko's Gourmet Foods, and they specialize in selling authorized food products through supermarkets, grocery stores, or other facilities owned by third parties. They provide their customers with the ability to maintain a healthy lifestyle while still enjoying delicious foods like breads and desserts.
Franchise Opportunity
Owning a food franchise can be risky and costly. Nikko offers the best solution for anyone who wants to own their own business, but doesn't want to deal with the hassles of running it themselves. Our store locations are in supermarkets, grocery stores, or other facilities that we find for you. You don't have to worry about finding customers because our sales team will help you build your customer base from day one. We offer an affordable way to become your own boss without having to manage all of the details involved in owning and operating a restaurant or retail location yourself. With Nikko's help, you can focus on what really matters - building relationships with customers and growing your revenue!
Corporate Structure
We are the franchisor for the Nikko system. Our principal business address is 13168 Sandoval Street, Santa Fe Springs, California 90670. Our parent entity is Nikko Enterprise Corporation (“NEC”), whose principal business address is 13168 Sandoval Street, Santa Fe Springs, California 90670. NEC provides our franchisees with the necessary equipment, proprietary food ingredients and other products necessary to prepare Nikko menu items. Otherwise, we are not controlled by, controlling, or under common control with any other entity that that provides goods or services to our franchisees. Our affiliate entity Muginoho International, Inc. (“MII”), whose principal business address is 20695 South Western Avenue, Suite 120, Torrance, California 90501, has been offering “Beard Papa’s” cream puff franchises since December 2004. Otherwise, neither NEC nor any other company we are controlled by, we control, or is under common control with us, offers franchises in any line of business.
Investment and Franchisee Fees
The total investment necessary to begin operation of a Nikko franchised business is $35,000 to $50,000. This includes $21,000 to $29,000 that must be paid to the franchisor or its affiliates.

Management Team

# Name Position

Nikko Franchise System Development in 2018

FAQ

How much investment do I need to start my own Nikko business?
Franchisees typically require at least $35,000 to $50,000 investment to get their Nikko business started
What are the initial franchise fees for Nikko?
Franchisees typically need to pay at least $21,000 in fees directly to Nikko in order to earn the right to launch their business
How much money can I make with a Nikko franchise? What are the average revenues for a typical Nikko business?
We haven’t done the math on how much revenue a typical Nikko brings in each year. We estimate that other franchisees in the Food & Beverage industry generate $1,201,697 revenue, so we would expect Nikko to generate a similar amount
How long do I need to commit to running a Nikko unit? What is my contractual commitment?
The standard length for an initial franchise contract is 10 years. Renewals are also generally 10 years

Accessibility

3 /10
The Franchisor's investment costs ranges from $513,394 to $880,343 which is Much Higher than the $0 to $0 average in the Food Retail (Grocery, Specialty Foods) industry
What determines the investment cost?
Item 7 of the Franchise Disclosure Document lays out the full list of initial investment costs, including the fee payable to the franchisor, security deposits, equipment, professional fees etc

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