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Nikko

Nikko Enterprise Corporation

Company Information

13168 Sandoval Street Santa Fe Springs, California 90670

[email protected]

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.

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FDD Effective Date Action

Franchise Rating

Franchimp Summary Rating

3/10

Investment Accessibility

3/10

Franchise System Development

Year Units at Start of Year Units Opened Units Terminated Non-Renewals Re-Acquired by Franchisor Ceased Operations Units at End of Year

Employee Contact Database

# Name Position Email Phone

Summary of Investment Costs

Upfront Franchise Fees

Minimum: $21,000 Maximum: $29,000

Upfront franchise fees are the one-time payments required to secure rights to operate under an established brand, typically ranging from $20,000 to $100,000+ depending on brand value.

These fees grant access to proprietary business systems, training programs, intellectual property rights, and often territorial exclusivity—essentially purchasing the blueprint for a proven business model.

While separate from ongoing royalties, investors should evaluate these fees against expected returns, comparing fee-to-earnings ratios across opportunities and assessing how effectively franchisors reinvest these funds into system improvements.

Total Investment Costs

Minimum: $35,000 Maximum: $50,000

Ongoing Fees

Ongoing franchise fees, typically structured as royalties ranging from 4-8% of gross sales, represent the continuous payments franchisees make to maintain brand affiliation and support services.

These recurring fees fund the franchisor's operational assistance, marketing initiatives, technology updates, and continued brand development—creating a partnership where the franchisor's revenue grows alongside the franchisee's success. In addition to royalties, franchisees often contribute to national advertising funds (usually 1-3% of sales) and may incur technology fees, supply chain markups, or renewal fees depending on the franchise agreement.

Investors should carefully analyze these ongoing costs within their financial projections, as they directly impact profit margins and cash flow throughout the entire franchise relationship.

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