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How much does Omari Sushi cost?
Initial Investment Range
$3,250 to $109,055
Franchise Fee
$1,250 to $57,880
Fujisan Franchising Corp. will grant you a franchise to operate one Omari™ service kiosk serving Asian style sushi and related food products.
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Omari Sushi March 25, 2025 FDD Risk Analysis
Free FDD Library AI Analysis Date: August 19, 2025
DISCLAIMER: Not Legal Advice - For Informational Purposes Only. Consult With Qualified Franchise Professionals.
Franchisor Stability Risks
Start HereDisclosure of Franchisor's Financial Instability
High Risk
Explanation
The franchisor explicitly warns that its financial condition calls its ability to provide support into question. This is reinforced by a state addendum requiring a $437,000 surety bond due to their financial health. The company's stability appears entirely dependent on a massive, multi-million dollar receivable from an affiliate whose own financials are not disclosed. This structure creates significant, non-transparent risk to you.
Potential Mitigations
- Your accountant must analyze the franchisor's balance sheet, focusing on the concentration risk posed by the large related-party receivable.
- It is crucial for your attorney to investigate the terms and protections offered by the state-mandated surety bond.
- Discuss with your financial advisor the implications of investing in a system whose financial stability is admittedly questionable.
High Franchisee Turnover
High Risk
Explanation
The franchisor explicitly discloses that for its similar, established brand, approximately 39% of franchised outlets were terminated, transferred, or ceased operations over the last three years. This extremely high turnover rate is a critical warning sign that may indicate systemic problems, a challenging business model, or widespread franchisee dissatisfaction, representing a severe risk to your investment. This is one of the most significant risks in this FDD package.
Potential Mitigations
- A business advisor should help you analyze this high turnover rate in the context of the overall system size and industry.
- Speaking with a significant number of former franchisees from the corresponding brand is essential to understand why they left; your attorney can help structure these conversations.
- Your accountant should factor this high churn rate into your risk assessment and financial projections.
Rapid System Growth
Medium Risk
Explanation
Financial data for the franchisor's similar brand shows significant unit growth over the past two years, with over 280 new outlets opened. While growth can be positive, such a rapid pace, when combined with the franchisor's disclosed financial condition issues and very high franchisee turnover rate, may indicate that support systems are strained. This could compromise the quality of assistance available to you as a new franchisee.
Potential Mitigations
- Question the franchisor directly about their capacity and plans for scaling support infrastructure to match unit growth; a business advisor can help assess this.
- Interview a broad range of existing franchisees (new and established) about the current quality and responsiveness of franchisor support.
- Your accountant should review the franchisor's financials to assess if they have the resources to support rapid growth.
New/Unproven Franchise System
Medium Risk
Explanation
The Omari brand itself is new, with the franchisor only offering these franchises since 2024. While the company has experience since 2016 with the similar FujiSan brand, investing in a new or conversion-focused brand carries risks. These include unproven brand recognition and the possibility of encountering unforeseen operational challenges specific to the new Omari system, which could impact your business's initial performance.
Potential Mitigations
- A business advisor can help you conduct extensive due diligence on the management team's experience in both the industry and in launching new brands.
- Speak to the very first Omari franchisees, if any exist when you are reviewing, about their initial experiences.
- Your attorney can help you ask for more favorable terms to compensate for the higher risk of joining a new system.
Possible Fad Business
Low Risk
Explanation
This risk was not identified in the FDD package. Sushi kiosks located within grocery stores are a relatively established business concept. This model does not appear to be based on a short-term trend or fad, suggesting a degree of market sustainability. However, you should always assess the long-term consumer demand for this specific type of food service in your particular area.
Potential Mitigations
- Assess the long-term market demand for this type of product and service in your specific area with help from a business advisor.
- Evaluate the franchisor's plans for innovation and adaptation to stay relevant by discussing with your business advisor.
- Consider the sustainability of the business model beyond current trends with your financial advisor.
Inexperienced Management
Low Risk
Explanation
This risk was not identified in the FDD package. The officers and directors listed in Item 2 appear to have significant experience in the food service industry and with the franchisor or its affiliate, Fuji Food Products, Inc. There is no indication of a lack of relevant management experience that would pose a significant risk to the franchisee.
Potential Mitigations
- A business advisor can assist you in thoroughly vetting the management team's background and relevant experience in both the specific industry and in managing a franchise system.
- Speaking with existing franchisees about their perception of management's competence and the quality of support is a valuable step.
- You can ask your attorney to help you pose specific questions to the franchisor about the management team's experience.
Private Equity Ownership
Low Risk
Explanation
This risk was not identified in the FDD package. Item 1 does not indicate that the franchisor is owned or controlled by a private equity firm. The ownership structure appears to be a private corporation. Therefore, the specific risks associated with a private equity firm's short-term investment horizon do not seem to apply here.
Potential Mitigations
- Should you encounter a franchise owned by a private equity firm, research the firm's track record with other franchise systems with your business advisor.
- It is wise to talk to franchisees about any changes in support or system direction since an acquisition.
- An attorney can help assess any restrictions on the franchisor's right to sell the system.
Non-Disclosure of Parent/Affiliate Financials
High Risk
Explanation
The franchisor's financial stability, and thus its ability to support you, appears to be completely dependent on its affiliate, Fuji Food Products, Inc. (FFP). FFP is the primary supplier and the franchisor has a massive $32 million receivable from them. However, FFP's financial statements are not provided. This lack of disclosure about a critical parent/affiliate entity creates a significant risk, as FFP's potential instability is hidden from view.
Potential Mitigations
- Your attorney should determine if state or federal law might require the disclosure of the affiliate's financial statements under these circumstances.
- It is critical that your accountant assess the risk concentration stemming from the franchisor's financial dependence on this single, undisclosed affiliate.
- Ask the franchisor directly for the affiliate's financial statements to allow for a complete risk assessment.
Predecessor History Issues
Low Risk
Explanation
This risk was not identified in the FDD package. Item 1 does not disclose any predecessors from which Fujisan Franchising Corp. acquired the Omari or FujiSan system. The FujiSan brand, while similar, is operated by the same corporate entity, not a predecessor. Therefore, the risks associated with an undisclosed or problematic predecessor history do not appear to be present.
Potential Mitigations
- Your attorney can help you review Item 1 carefully for any mention of predecessors or business acquisitions.
- If a system was acquired from a predecessor, a business advisor can help you research the predecessor's track record and reputation.
- It is always a good practice to ask long-term franchisees about their experience under any previous ownership.
Pattern of Litigation
Medium Risk
Explanation
Item 3 discloses an Assurance of Discontinuance with the Washington Attorney General over illegal no-poach clauses. It also discloses a lawsuit by a former franchisee alleging misrepresentation and other claims, which was later dismissed. While not a large number of lawsuits, these actions, especially when viewed alongside the very high franchisee turnover rate, may suggest a potential for franchisee disputes and dissatisfaction within the system.
Potential Mitigations
- Your attorney should carefully review the details and allegations of all disclosed litigation in Item 3.
- A business advisor can help you assess whether the nature of the litigation, combined with other factors like turnover, indicates a systemic problem.
- Treat any litigation alleging fraud or misrepresentation as a significant concern requiring further investigation with your attorney.
Disclosure & Representation Risks
Example Risk: Franchisee Financial Obligations
Blue Risk
Explanation
This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.
Potential Mitigations
- Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
- Conduct regular risk assessments
- Implement monitoring and reporting systems
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Financial & Fee Risks
Example Risk: Franchisee Financial Obligations
Blue Risk
Explanation
This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.
Potential Mitigations
- Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
- Conduct regular risk assessments
- Implement monitoring and reporting systems
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Legal & Contract Risks
Example Risk: Franchisee Financial Obligations
Blue Risk
Explanation
This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.
Potential Mitigations
- Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
- Conduct regular risk assessments
- Implement monitoring and reporting systems
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Territory & Competition Risks
Example Risk: Franchisee Financial Obligations
Blue Risk
Explanation
This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.
Potential Mitigations
- Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
- Conduct regular risk assessments
- Implement monitoring and reporting systems
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Regulatory & Compliance Risks
Example Risk: Franchisee Financial Obligations
Blue Risk
Explanation
This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.
Potential Mitigations
- Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
- Conduct regular risk assessments
- Implement monitoring and reporting systems
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Franchisor Support Risks
Example Risk: Franchisee Financial Obligations
Blue Risk
Explanation
This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.
Potential Mitigations
- Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
- Conduct regular risk assessments
- Implement monitoring and reporting systems
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Operational Control Risks
Example Risk: Franchisee Financial Obligations
Blue Risk
Explanation
This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.
Potential Mitigations
- Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
- Conduct regular risk assessments
- Implement monitoring and reporting systems
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Term & Exit Risks
Example Risk: Franchisee Financial Obligations
Blue Risk
Explanation
This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.
Potential Mitigations
- Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
- Conduct regular risk assessments
- Implement monitoring and reporting systems
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Miscellaneous Risks
Example Risk: Franchisee Financial Obligations
Blue Risk
Explanation
This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.
Potential Mitigations
- Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
- Conduct regular risk assessments
- Implement monitoring and reporting systems