Snowfox Franchise

JFE Franchising, Inc. is a Texas-based corporation that grants franchises for operating sushi bars under the trade names “Snowfox” and “Sushibox” in various third-party-owned facilities, including supermarkets and grocery stores. Established in 2013, JFE has developed a distinctive business system encompassing operating formats, methods, procedures, menu items, recipes, trade dress, designs, and marketing standards. This Franchise Disclosure Document (FDD) provides essential information for potential franchisees, including initial investment requirements, financial performance representations, and franchisee obligations.

Key Information

1. Franchisor and Affiliates: JFE Franchising, Inc. operates under the trade names "Snowfox," "Sushibox," and "JFE." The principal business address is 2021 Bingle Road, Houston, Texas. The immediate parent company is Snowfox US Holdco, Inc., and other affiliated entities include JK959 Global, Inc., Bento Sushi Franchise, Inc., Bento Sushi USA, Inc., and Bento Sushi Franchise Ltd.

2. Business Model: Franchisees operate sushi bars as separate departments within larger retail facilities. They prepare and sell high-quality raw and cooked sushi and related products. Franchisees may also be granted rights to prepare pre-packaged sushi products for sale at satellite locations.

Investment Details

The total investment necessary to begin operating a new JFE franchise for an Inline, Endcap, or Island Sushi Bar ranges from $20,722 to $220,400. This includes $5,597 to $128,600 that must be paid to the franchisor or affiliate. The initial investment varies depending on the type and size of the sushi bar, location, and other factors.

1. Initial Franchise Fee: The initial franchise fee ranges from $1,000 to $100,000, determined by factors such as sushi bar type, display case size, store location, demographics, and store amenities.

2. Training Fee: A fee of $500 per person for a 20-hour training program.

3. Equipment and Supplies: Costs for equipment, small wares, and opening food inventory range from $3,500 to $15,000.

4. Insurance and Licenses: Commercial liability insurance and licenses/permits costs range from $218 to $4,800.

5. Additional Funds: Estimated additional funds for the first three months of operation range from $12,000 to $70,000.

Franchise Agreement Terms

1. Term and Renewal: The franchise agreement typically has a set term, with renewal options subject to conditions and fees.

2. Fees: Ongoing fees include a percentage of gross sales paid to the franchisor and store owner, training fees, insurance costs, and potential additional fees for services like opening assistance, management, and inspections.

3. Territory: The franchise agreement defines the territory within which the franchisee can operate and whether other franchisees can compete within the same area.

4. Supplier Restrictions: Franchisees must purchase certain goods, services, and equipment from approved suppliers, ensuring consistency in product quality and brand standards.

Financial Performance Representations

The FDD includes financial performance representations in Item 19, providing information on outlet sales, costs, profits, or losses. Potential franchisees are encouraged to obtain this information from current and former franchisees listed in Item 20 or Exhibits G and H. This data helps in assessing the potential financial performance of a JFE franchise.

Franchisee Obligations

1. Operational Duties: Franchisees are responsible for daily operations, including food preparation, inventory management, and customer service.

2. Training and Compliance: Franchisees must undergo initial and ongoing training, adhere to the franchisor's standards and procedures, and comply with health, safety, and employment laws.

3. Reporting and Payments: Franchisees must regularly report sales and other financial data to the franchisor and make timely payments of fees and other obligations.

Litigation and Bankruptcy History

As of the issuance date of this FDD, JFE Franchising, Inc. has no litigation or bankruptcy history required to be disclosed. This provides a level of assurance regarding the franchisor's legal and financial stability.

Franchise Support

1. Training Program: JFE provides a comprehensive training program, including 20 hours of training for franchisees and their employees, covering essential aspects of operating a sushi bar.

2. Ongoing Support: The franchisor offers ongoing support, including operational guidance, marketing support, and periodic inspections to ensure compliance with brand standards.

3. Marketing and Advertising: JFE assists franchisees with marketing strategies and materials to promote their sushi bars effectively within their local markets.

4. Technology and Systems: Franchisees are provided with designated pricing label equipment, computer systems, and software to ensure efficient operations and accurate reporting.

Special Considerations

1. State-Specific Addenda: Certain states may have additional requirements or specific provisions that affect the franchise agreement. Prospective franchisees should review the State Specific Addenda for details relevant to their location.

2. Dispute Resolution: The franchise agreement typically requires disputes to be resolved through mediation and arbitration in Harris County, Texas. This may result in additional costs for out-of-state franchisees.

3. Operating Restrictions: The franchise agreement may impose restrictions on franchisees, such as prohibitions on operating similar businesses during the term of the franchise and limitations on product offerings and marketing strategies.

4. Renewal and Termination: Franchisees should carefully review the terms for renewal and termination of the franchise agreement, including conditions for renewing the franchise and potential costs associated with termination.

Conclusion

Investing in a JFE franchise, operating under the trade names “Snowfox” and “Sushibox,” presents a promising opportunity in the sushi restaurant industry. The comprehensive Franchise Disclosure Document provides valuable information on the franchisor's business model, initial investment requirements, franchisee obligations, and support services. Potential franchisees are encouraged to thoroughly review the FDD, consult with legal and financial advisors, and conduct due diligence by speaking with current and former franchisees to make an informed decision.

For more information and to access the full Franchise Disclosure Document, interested individuals can contact JFE Franchising, Inc. at their Houston, Texas office or fill out the form on this page.