How does a Teriyaki Madness franchise operate after opening?
Under the 2026 FDD, a retail Teriyaki Shop converts in-store and digital orders into made-to-order bowls, sides, beverages, delivery and catering. The franchisee supplies the location, people, inventory, local execution and financial controls; M.H. Franchise Company Inc. controls the menu, recipes, Approved Suppliers, Required Technology, Marketing Programs, online presence, data access and operating audits.
Data basis: M.H. Franchise Company Inc. is the legal franchisor and M.H. Enterprises, Inc. is its parent. The U.S. FDD was issued March 18, 2026. Evidence includes Items 1, 6, 8, 11, 12, 15, 16, 19 and 20, the Franchise Agreement and Operations Manual table of contents. This covers a retail Teriyaki Shop under a Single Franchise or three-shop Standard Franchise package. Item 20 reports 2023-2025 outlet status through December 31, 2025; official pages were checked July 27, 2026.
Official pages: U.S. franchise website, support, menu, app ordering, operating FAQ, and shop locator.
What does the franchisee sell, and who buys it?
The Teriyaki Madness Business sells franchisor-approved Japanese-style teriyaki dishes and related items from an Approved Location, primarily to individual meal customers and to groups ordering catering for homes, offices and events.
Approved menu scope
The current menu centers on made-to-order bowls with chicken, steak, salmon or tofu, plus bases, vegetables, appetizers, sides, sauces and beverages; catering packages the same system for groups. System Standards govern recipes, ingredients, portions, names and presentation. The franchisee cannot add an item without written approval.
Evidence: 2026 FDD, Item 1, pp. 2-4; Item 16, pp. 47-48; Exhibit C, Franchise Agreement §§6.1-6.5. Product examples are confirmed by the official menu and official catering page.
Customer and channel structure
- On-premise guest
- Orders and pays at the Teriyaki Shop for dine-in or carry-out.
- Direct digital customer
- Uses the official website or Teriyaki Madness app for scheduled pickup, Mad Dash curbside or delivery where available.
- Marketplace customer
- Orders through an Outside Delivery Provider selected or approved at the system level.
- Group or catering account
- Places a larger pickup or delivery order, including online group ordering and the Teriyaki Bar format.
- Mad Rewards or gift-card user
- Earns or redeems systemwide loyalty benefits and approved gift-card value through participating channels.
How does work move through a Teriyaki Shop?
The cycle converts an in-shop or digital request into a POS ticket, position-based preparation, customer handoff, inventory replenishment and franchisor-accessible reporting.
- Actor
- M.H. Franchise Company Inc., MH Marketing and the franchisee.
- Action
- System Marketing Programs, approved local advertising and the shop listing route demand to in-store, app, website, delivery or catering channels.
- System/asset
- Marketing Fund, System Website, approved creative and local shop page.
- Output
- A customer selects a shop, channel and order time.
- Actor
- Cashier, customer or approved digital ordering platform.
- Action
- The order, modifiers and fulfillment method are recorded; payment and any Mad Rewards, gift card or approved promotion are processed.
- System/asset
- Designated POS, credit-card processing, online ordering and gift-card/loyalty integrations.
- Output
- A paid or payable production ticket with fulfillment instructions.
- Actor
- Prep, Grill, Range and Point positions under the Shop Owner/Manager or Shift Supervisor.
- Action
- Team members cook, portion, sauce and assemble approved ingredients to the required recipe and presentation.
- System/asset
- Approved ingredients, recipes, equipment, food-safety procedures and position training.
- Output
- A completed made-to-order meal or staged catering order.
- Actor
- Point, cashier, manager, curbside runner or Outside Delivery Provider.
- Action
- The team verifies accuracy and packaging, then hands off for dine-in, pickup, Mad Dash curbside, approved delivery or catering.
- System/asset
- Order ticket, packaging, pickup area, curbside notifications and approved delivery integration.
- Output
- The customer receives the order and the transaction is finalized.
- Actor
- Shop manager and, when it intervenes, the franchisor.
- Action
- The shop handles feedback and refunds; M.H. Franchise Company Inc. may remedy an issue and require franchisee reimbursement.
- System/asset
- Customer-service standards, review procedures, POS records and customer data controls.
- Output
- A resolved complaint, documented refund or corrective operating action.
- Actor
- Manager, approved suppliers and qualified bookkeeper or accountant.
- Action
- The manager controls inventory, orders approved inputs, closes POS activity, submits reports and maintains required financial records.
- System/asset
- Approved supplier network, back-office/accounting systems, intranet and Designated Account.
- Output
- Replenished stock, complete books, franchisor-accessible data and the next operating cycle.
Evidence: 2026 FDD, Items 6, 8 and 11; Franchise Agreement §§4 and 6-10; Operations Manual TOC, pp. E-3-E-7. Cashier, Point, Grill, Range, Prep, Shift Supervisor and Shop Owner/Manager are disclosed roles; no fixed headcount is prescribed.
Can the unit be manager-run?
A manager-run structure is conditional, not automatic. The franchisee or the entity's Managing Owner must supervise day-to-day operations unless M.H. Franchise Company Inc., in its sole discretion, approves a Designated Manager.
An entity franchisee must identify a natural-person Managing Owner with at least 51% ownership and voting power. A Designated Manager may have no equity interest, but must be approved, complete required training and sign confidentiality obligations. Approval does not shift employment, compliance, reporting or financial responsibility away from the franchisee.
Functions the franchisee must staff
What is not disclosed as a fixed rule
The 2026 FDD sets no employee count, shift model, labor ratio or schedule. It requires enough competent employees and assigns all employment decisions to the franchisee. Staffing guidance on the official franchise FAQ does not replace Item 15 or Franchise Agreement §8.2.
Evidence: 2026 FDD, Item 1, p. 4; Item 15, p. 47; Exhibit C, Franchise Agreement §§8.1-8.9; official franchise FAQ.
Which operating inputs and systems are mandatory?
The unit is supplier-restricted and technology-dependent. Food, beverages, branded materials, uniforms and interior graphics must come from Approved Suppliers, while the franchisor specifies the POS, back-office, accounting, security, payment, app, online-ordering and delivery environment.
The 2026 curriculum names Revel/POS, but M.H. Franchise Company Inc. may change specifications and suppliers. The franchisee must install designated changes within 60 days, maintain connectivity and grant required data access; most upgrade frequency and cost are uncapped.
Evidence: 2026 FDD, Item 8, pp. 21-23; Item 11, pp. 32-36; Exhibit C, Franchise Agreement §§6.5-6.8, 9 and 10.7. The official support page describes POS, payroll, inventory, vendor management, cost tracking and analysis.
What does the franchisor control, and what remains with the franchisee?
M.H. Franchise Company Inc. controls the System; the franchisee controls the local company that executes it. Third-party Approved Suppliers and platforms provide the required inputs, but they do not replace either party's contractual responsibility.
Franchisee decisions
Franchisor controls
Third-party dependencies
How much territory and channel protection does a shop receive?
Each Teriyaki Shop receives an Area of Protection around its Approved Location, but not an exclusive territory. Protection limits another Teriyaki Madness Business using the Marks and System at a conventional location inside the defined area; multiple reserved channels and venues remain outside that protection.
Protected relationship
The Area of Protection generally uses about 25,000 people, adjusted for demographics, boundaries and non-resident traffic. Once established, it cannot change without franchisee consent. The Approved Location may serve outside customers and approved catering, but cannot solicit inside another shop's Area of Protection.
Reserved rights
M.H. Franchise Company Inc. reserves airports, campuses, stadiums, malls, military bases, mobile food trucks, retail or wholesale products, Internet distribution, multi-area marketing and competing marks. Catering and delivery may cross boundaries; an Outside Delivery Provider requires prior written consent.
Evidence: 2026 FDD, Item 12, pp. 40-42; Exhibit C, Franchise Agreement §§2.2-2.5 and 6.4. The Primary Search Area in a Standard Franchise Development Agreement is a non-exclusive site-search area, not the protected area for an operating Teriyaki Shop.
What does Item 20 show about the operating network?
At December 31, 2025, the U.S. system had 199 operating outlets: 197 franchised Teriyaki Shops and two company-owned outlets. The mix is therefore overwhelmingly franchise-operated, while the franchisor retains a small direct operating base.
U.S. outlet composition
Exact mutually exclusive counts from Item 20
Interpretation: The operating network depends primarily on franchisees to deliver the customer experience; the two company-owned outlets represent only 1.0% of the disclosed U.S. total.
Source: 2026 Teriyaki Madness FDD, Item 20, Tables 1 and 4, pp. 74 and 80. Reconciliation: 197 + 2 = 199; 99.0% + 1.0% = 100.0%. Item 20 also reports that franchised outlets increased from 156 to 197 during 2025, a net increase of 41.
Which operating details still require deal-specific confirmation?
The FDD defines control, but current specifications remain in the confidential Manual, Approved Supplier lists and system notices. They may change work and vendor dependencies at a proposed Teriyaki Shop.
What is the central operating model?
Teriyaki Madness is a made-to-order restaurant system serving individual guests and catering customers through the Teriyaki Shop, app, website, curbside and delivery. The franchisee must staff and supervise the unit, execute recipes and service standards, manage approved inventory, and maintain operational and financial records.
The strongest dependency is M.H. Franchise Company Inc.'s control over System Standards, Approved Suppliers, Required Technology, online presence, Marketing Programs, Customer Data and inspections. An Area of Protection does not similarly protect Internet distribution, reserved venues, competing marks, catering or delivery. The largest undisclosed question is the exact supplier and technology stack required for the proposed Teriyaki Shop.