Island Fin Poke Company Franchise Costs, Fees & Owner Salary (2023)

Island Fin Poke Company, inspired by the Hawaiian lifestyle and flavors, was founded by Mark Setterington to transport guests to a tropical island ambiance through its fresh and innovative poké recipes. Established in 2017, Island Fin Poke Company started franchising in September 2018. The company has swiftly expanded its presence, bringing a unique blend of homemade sauces, over 25 toppings, and sustainably sourced proteins to its growing family of franchises across the United States.

Island Fin Poke's headquarters are rooted in the essence of 'Ohana', the Hawaiian term for family, emphasizing community and belonging in every interaction and service offered at their locations. The franchise model of Island Fin Poke is designed with a focus on intelligent investment, featuring small, efficiently designed restaurants that range from 900 to 1,500 square feet.

This strategic design allows for a higher allocation of space to guest areas, fostering a welcoming environment while maximizing operational efficiency. Prospective franchisees have the option to own a single-unit franchise with a protected territory or to opt for area development franchises to establish a series of Island Fin Poke locations, expanding the brand's footprint and embracing the 'Ohana' spirit in new communities.

Island Fin Poke distinguishes itself in the competitive fast-food industry through its commitment to healthy, convenient meals that resonate with the growing consumer interest in wellness and nutrition. The brand's success is anchored in its dedication to delivering an exceptional dining experience characterized by deliciously healthy flavors, outstanding service, and a strong sense of community, making it America's premier poké destination​​​​​​.

Initial Franchise Fee

The initial franchise fee is set at $49,500, which is payable at the time of signing the franchise agreement. This upfront fee is a standard practice in the franchise industry, covering the cost of entry into the franchisor's system.

Royalty Fee

Franchisees are obligated to pay a royalty fee amounting to 6% of their monthly gross revenue. This fee is due on the 10th day of each month and is a common way for franchisors to earn ongoing revenue from their franchisees.

Required Minimum Expenditure for Local Marketing and Advertising

Franchisees must also allocate a minimum of 1.5% of their gross revenues towards local marketing and advertising efforts each month. These expenditures must be paid to third-party entities and all advertising materials must receive prior approval from the franchisor to ensure brand consistency.

Brand Fund Contribution

In addition to the local marketing and advertising requirement, franchisees may be asked to contribute up to 1.5% of their gross revenues to a brand fund. While there is no current mandate for this contribution, when required, payments are made directly to the brand fund on the 10th day of each month to support broader brand marketing efforts.

Social Media Marketing Fee

A social media marketing fee of $1,000 per month is also payable by the franchisee. This fee is paid monthly to a marketing agency designated by the franchisor, specifically for managing social media marketing efforts on behalf of the franchise.

Additional Training or Assistance

Should franchisees require additional training or assistance beyond what is initially provided, they will be charged at a rate of $80 per hour. This fee covers the cost of support and helpline services, with separate charges applied for any additional training that may be necessary.

Resale Fee

In the event a franchisee decides to resell their franchise, a resale fee of $17,500 is required to be paid before the transaction can proceed. This fee is in place to cover the administrative costs associated with the resale process.

Island Fin Poke provides a comprehensive training program for franchisees, covering various aspects of running the franchise, including operational, management, and customer service skills. The training program includes:

Initial Management Training Program

• Franchisees and their principals, including the general manager, are required to attend and complete the Initial Management Training Program to the franchisor's satisfaction before opening the franchised business. This program is conducted at the franchisor's headquarters or an affiliate-owned or franchised outlet, with the location determined by the franchisor.
• The program aims to ensure that franchisees have the necessary knowledge and skills to operate their business according to the franchisor's standards.
• There is no charge for up to two principals and one general manager to take the Initial Management Training Program prior to opening the Franchised Business.

Opening Assistance

• The franchisor provides on-site opening training, supervision, and assistance for up to seven days at no charge to the franchisee. This assistance is aimed at ensuring a smooth start to the franchise's operations.

Additional Training and Assistance

• The franchisor may offer both mandatory and optional additional training programs, which could include ongoing training for up to four days per year and attendance at a national business meeting or annual convention for up to three days per year.
• Franchisees are responsible for any incidental expenses incurred during these additional training programs or meetings, including travel, lodging, meals, and wages.
• Failure to attend mandatory training or meetings is considered a default of the franchise agreement.

Island Fin Poke does offer a form of territory protection to its franchisees. Upon signing the Franchise Agreement, franchisees are granted the right to operate their franchised business within a specific territory. The franchisor agrees not to operate or authorize other franchisees to operate an Island Fin Poke restaurant within this territory using the same Marks licensed to the franchisee, provided the franchisee is not in default under the agreement.

However, this territorial right is limited, as the franchisor reserves the right to open, operate, or franchise Island Fin Poke outlets just outside the borders of the franchisee's designated territory. The territory granted to a franchisee is defined after the location of the Island Fin Poke outlet is identified and approved by the franchisor.

The territory is typically defined by a group of contiguous zip codes and is determined based on factors like the number of households, average home prices, and household incomes within an area. Despite this territorial protection, franchisees should be aware that they will not receive an exclusive territory. They may face competition from other franchisees, company-owned outlets, or other distribution channels and competitive brands controlled by the franchisor.

The franchise system does allow for a form of passive investment, as the franchisee can fulfill the requirement of day-to-day supervision and management through a qualified general manager. The franchisee must designate and retain a general manager responsible for the daily operation and management of the franchised business.

This general manager must meet the franchisor's standards and criteria and is expected to devote full time and effort to the management of the franchise. Although the franchise agreement does not mandate the franchisee's personal supervision of the Island Fin Poke outlet, it is recommended.

The outlet must be under direct supervision by a qualified general manager, if not by the franchisee. However, the franchisee is still expected to ensure that the franchise operates according to the franchisor's standards and specifications, suggesting that while direct daily involvement is not mandatory, oversight and accountability from the franchisee remain important.