How to Finance a Gyu-Kaku Franchise: Yakiniku Build-Out Costs
By Marc Cornella
A Gyu-Kaku franchise loan pays for one of the more equipment-heavy restaurant formats a franchise buyer can choose: a full-service Japanese barbecue dining room where nearly every table has its own built-in grill and ventilation. That design shapes the budget, the build-out timeline and the way a lender looks at the deal.
Below we cover what the franchisor discloses about costs and fees, why the tabletop-grill format drives construction spending, how a Gyu-Kaku franchise loan works for a brand that is not on the SBA Franchise Directory, and what to prepare before applying.
US Professional Funding is not affiliated with, sponsored by or endorsed by Gyu-Kaku; the name is used only to describe the business. Figures from the franchisor’s website and disclosure document can change, loan programs and terms vary by lender and borrower, and every loan is subject to approval. Nothing here is legal, tax or investment advice, and buyers should review the current Franchise Disclosure Document (FDD) and franchise agreement with a qualified franchise attorney and accountant.
Gyu-Kaku Franchise Loan at a Glance
- Franchisor: Reins International (USA) Co., Ltd., based in Torrance, California.
- Initial franchise fee: $50,000, according to the franchisor’s franchise page.
- Estimated startup costs: approximately $1,215,444 to $2,606,540, per the same page.
- Royalty: tiered by annual sales: 5% on sales up to $1,500,000, 4.5% on sales from $1,500,001 to $2,000,000 and 4% on sales over $2,000,000.
- Marketing contribution: confirm the current rate in Item 6 of the FDD.
- System size: 825 locations in 15 countries as of November 2025, including about 500 in Japan and 63 in the U.S.
- Format: full-service yakiniku restaurant with tabletop grills and a streamlined kitchen.
- Net worth and liquidity: the franchisor asks candidates about both but does not publish a fixed minimum on its franchise pages.
- SBA Franchise Directory: Gyu-Kaku is not listed, so conventional financing is the primary route for most buyers.
What Is Gyu-Kaku?
Gyu-Kaku, whose name the company translates as “Horn of the Bull,” is a yakiniku restaurant. Yakiniku is Japanese-style barbecue: guests order small plates of marinated beef, pork, poultry, seafood and vegetables and grill them at their own table. The menu also includes desserts and a full drink program, including sake.
The company says the Gyu-Kaku system of restaurant operating techniques was developed in Japan in the mid-1990s, expanded throughout Japan and was later adapted and modified for the U.S. market. The franchisor’s 2023 franchise brochure describes U.S. operating experience dating to 2001. The U.S. franchisor is Reins International (USA) Co., Ltd., headquartered in Torrance, California.
As of November 2025, the company reports 825 Gyu-Kaku locations across 15 countries, about 500 of them in Japan and 63 in the U.S. Its U.S. restaurants are spread across 14 states, including California, New York, Texas, Florida, Hawaii and Washington.
How the format works. The 2023 brochure describes a full-service restaurant run with quick-service kitchen operations. Meats arrive pre-sliced and packaged with the brand’s sauces, the kitchen weighs each portion and mixes it with marinade when an order comes in, and the guest does the cooking at the table. The same brochure describes a footprint of about 3,500 square feet.
Why lenders view it the way they do. Lenders see an established international brand and a kitchen that needs fewer skilled cooks than most full-service restaurants, but also a high investment, a modest U.S. footprint and heavy specialized build-out. Underwriting therefore leans on the operator’s experience, liquidity and site.
Gyu-Kaku Franchise Costs
Initial franchise fee. The franchisor’s franchise page lists a $50,000 franchise fee. Item 5 of the current FDD states when it is due and whether different fees apply to additional restaurants.
Real estate and build-out. The franchisor’s FAQ names interior construction as one of the main costs beyond the franchise fee. Build-out is unusually involved: every grill table needs gas or electric service, and the company says its in-table roasters vent smoke through forced-air openings, so ductwork, exhaust fans and make-up air run through the whole dining room rather than only over the kitchen line.
Equipment and furniture. Equipment is the other major cost the franchisor highlights. Expect tabletop roasters, grill tables and hoods, refrigeration for raw proteins, prep and portioning equipment, dishwashing, a bar and beverage system, point-of-sale technology and dining furniture. Our article on restaurant build-out financing explains how lenders treat construction and fixtures together.
Pre-opening staff and opening costs. The franchisor’s FAQ also names pre-opening staff recruitment. Servers, bartenders, hosts and kitchen staff must be hired and trained before opening, and that payroll comes out of the startup budget along with inventory, licenses, deposits and insurance.
Working capital. Item 7 tables typically include an “additional funds” line for the first months of operation. Lenders like to see that reserve fully funded while sales ramp up.
Total investment. The franchisor’s franchise page puts estimated startup costs at approximately $1,215,444 to $2,606,540. Site size, the condition of the space and local construction costs drive where a project lands. Categories to look for in the current Item 7 table include:
- Initial franchise fee ($50,000)
- Leasehold improvements, interior construction and design fees
- Tabletop roasters, ventilation and kitchen equipment
- Furniture, fixtures, signage and technology
- Rent and security deposits
- Pre-opening hiring, training, inventory and supplies
- Additional funds for the initial operating period
The franchisor says the FDD is available on request. Match each Item 7 line to your contractor bids and equipment quotes before setting a loan amount.
Ongoing Fees and How They Affect Your Loan
Tiered royalty. Gyu-Kaku’s royalty steps down as annual sales rise: 5% on sales up to $1,500,000, 4.5% on sales from $1,500,001 to $2,000,000 and 4% on sales over $2,000,000. For underwriting, that means the effective royalty rate on a higher-volume restaurant is lower than the headline rate, but a lender will typically model the full 5% tier in a conservative case.
Marketing and technology fees. Franchise systems commonly charge a marketing contribution and may charge technology, software or online ordering fees. Check Item 6 of the current FDD for the exact rates and when they apply, and include every one in your projections.
Remodels and equipment replacement. Ask what refresh or remodel obligations the franchise agreement imposes and how often roasters and exhaust parts need replacement.
How lenders factor fees in. Lenders measure cash flow after royalties, marketing fees, rent, labor and food costs against proposed loan payments. Sales-based fees reduce cash for debt service every month, and rent on a large dining room is often the biggest fixed cost.
Franchisor Requirements for New Owners
Gyu-Kaku’s franchise inquiry form asks candidates about their net worth, the capital they have available for investment and their restaurant experience, including years in the industry and positions held. The franchisor’s pages do not publish a fixed minimum net worth or liquidity figure, so ask the development team for current requirements and check the FDD.
Given the size of the investment and the full-service format, expect strong interest in liquidity beyond the equity injection, full-service or bar management experience and a plan for an experienced general manager.
Target markets. The franchise page lists states where the company is seeking franchisees, including Texas, Pennsylvania, Idaho, Florida, Tennessee, North Carolina, Georgia, Arizona, Colorado and Washington. Availability changes, so confirm your market before investing in site work.
The process. Candidates submit an inquiry, receive the FDD on request and move through the franchisor’s review, site selection and design stages. The franchisor offers free area assessments, initial training, on-site training at the grand opening and ongoing operational and marketing support. It says opening typically takes from a few months to about one year depending on location and store size, which matters for interest during construction and lease timing.
Ways to Own a Gyu-Kaku
Opening a new restaurant. Many buyers develop a new location. Lenders underwrite these deals on projections, the build-out budget and the operator’s background, which typically means a larger equity injection and more scrutiny than an acquisition. See our overview of financing a franchise start-up.
Buying an existing franchised restaurant. When a franchisee sells, the buyer acquires an operating business with a sales history, trained staff and an existing lease. Lenders can underwrite actual results, which often makes approval more predictable. The franchisor must approve the transfer, and the buyer should review the remaining franchise and lease terms. Read about financing a franchise restaurant acquisition.
Financing Options for a Gyu-Kaku Franchise
Conventional term loans. Because the brand is not on the SBA Franchise Directory, the typical Gyu-Kaku franchise loan is built around a conventional business loan. Lenders size it to projected cash flow, the buyer’s equity and collateral, and typically require personal guarantees. Terms, amortization and covenants vary by lender and borrower, and every request is subject to underwriting.
SBA 7(a) loans. The SBA 7(a) program is widely used for franchises, but SBA lenders generally require a brand to appear on the SBA Franchise Directory. See the SBA section below.
SBA 504 loans. The 504 program finances owner-occupied real estate and long-lived fixed assets, follows the same directory requirement and rarely fits a leased restaurant, so it is seldom practical here.
Equipment financing. Tabletop roasters, ventilation components, refrigeration, bar equipment and point-of-sale hardware can often be financed separately, with the equipment itself as collateral. That can reduce the size of the main loan and preserve cash. Learn more about restaurant equipment financing and leasing.
Working capital and lines of credit. A large full-service restaurant carries significant payroll, weekly protein purchases and rent. A line of credit or working capital loan can cover pre-opening hiring, the ramp-up period and seasonal swings. Explore restaurant working capital options.
Seller financing on resales. When buying an existing restaurant, a seller may agree to carry part of the price. Any seller note must be acceptable to the senior lender, is typically subordinate to it and may be limited by the lender’s policies.
SBA Loans for Gyu-Kaku Franchisees
The SBA Franchise Directory lists brands whose franchise agreements have been reviewed for SBA eligibility, and SBA lenders generally require a listing before making an SBA-guaranteed franchise loan. A listing approves no borrower; it only clears the franchise relationship for review.
Gyu-Kaku is not on the SBA Franchise Directory. In plain English, SBA 7(a) and 504 loans are generally not available for a Gyu-Kaku franchise as things stand, so buyers should plan on conventional financing. That is not a judgment about the brand. Directory status can change, so confirm it with your lender when you apply. If the brand were added, the SBA 7(a) program maximum is currently $5 million, though program rules can change.
How Lenders Evaluate a Gyu-Kaku Deal
Personal credit and financial history. Expect a review of credit, tax returns and a personal financial statement, plus personal guarantees.
Net worth and liquidity. Lenders look at the equity you bring and the reserves left after closing. With startup costs reaching into seven figures, post-closing liquidity is often a deciding factor.
Industry and management experience. Full-service restaurant and bar management experience carries weight. If you are new to restaurants, a seasoned general manager with a written role in the business plan helps.
Business plan and projections. Build projections on the specific site: seat count, table turns for a grill-at-the-table dining experience, lunch and dinner dayparts, alcohol mix, protein costs and labor. Apply the tiered royalty correctly and include every Item 6 fee. Show a ramp-up period rather than assuming mature sales from day one.
The FDD and franchise agreement. Lenders review the term, renewal and transfer provisions, any development obligations and the franchisor’s financing disclosures. Our article on how lenders read a Franchise Disclosure Document covers the items that matter most.
Site and lease. The lease, with renewals, should cover the loan term, and the space must support the concept’s ventilation. Lenders also weigh the landlord’s improvement allowance.
Historical financials for resales. For an existing restaurant, expect to provide several years of profit and loss statements, sales reports and tax returns.
Equipment and Ventilation Deep Dive
The tabletop grill is the heart of the Gyu-Kaku experience and the main reason its build-out differs from a typical casual restaurant. Each roaster needs a fuel or power connection, and the company’s design uses forced-air openings to pull smoke away from guests. That requires ductwork and exhaust capacity sized for the whole dining room, plus make-up air so the space stays comfortable.
For a Gyu-Kaku franchise loan, that means more of the budget is leasehold improvements that stay with the building and offer little resale collateral. Separate quotes for movable equipment (roasters, refrigeration, dish machines, bar equipment, point-of-sale hardware) from fixed improvements (ductwork, hoods, gas lines, finishes) so the deal can be split between a term loan and equipment financing. Mechanical engineering and permitting can also lengthen construction, so budget for interest and rent before opening. A former restaurant space rarely has ventilation built for grilling across the whole dining room, so get an engineering review before assuming savings.
Multi-Unit Growth and Development Agreements
Operators who want more than one restaurant may sign a development agreement committing to open several locations on a schedule. Review development fees, opening deadlines and territory rights in the FDD, and ask whether additional restaurants carry a different franchise fee.
Financing additional restaurants. Lenders generally finance each restaurant as it is developed rather than the whole schedule up front. Once the first location has a track record, its cash flow can support the next, but the owner still needs fresh equity and reserves for each opening. Our article on multi-unit franchise financing explains how these deals are structured.
Real-World Scenarios
An experienced restaurant operator opening a first Gyu-Kaku. A buyer who already runs casual dining restaurants opens a Gyu-Kaku in a target market. The lender relies on that operating history, structures a conventional term loan for the build-out, and the buyer finances roasters and kitchen equipment separately to preserve cash.
A first-time owner buying an existing restaurant. A buyer with a management background but no restaurant ownership experience purchases a franchised Gyu-Kaku from a retiring owner. The lender underwrites the restaurant’s sales history, requires the current general manager to stay through a transition period, and the seller agrees to a small subordinate note.
Common Mistakes to Avoid
- Assuming SBA financing is available for a brand that is not on the SBA Franchise Directory
- Underestimating dining-room ventilation and mechanical costs for tabletop grilling
- Assuming a former restaurant space will cut build-out costs without an engineering review
- Modeling only the lowest royalty tier instead of the full tiered schedule
- Leaving out pre-opening payroll for a full-service staff
- Signing a lease shorter than the loan term or without renewal options
- Spending reserves on construction overruns and opening with thin working capital
For more pitfalls, read the restaurant loan mistakes that cost owners the most.
Next Steps to Finance Your Gyu-Kaku Franchise
Step 1: Confirm market availability. Check that your target market is open and request the current FDD from the franchisor.
Step 2: Review the FDD with advisors. Study Items 5, 6, 7, 10, 17 and 19 with a franchise attorney and accountant.
Step 3: Assess your capital. Total your liquid funds and determine how much equity you can commit while keeping reserves after closing.
Step 4: Talk with a financing specialist early. Learn how conventional lenders will size a loan for this brand. Our conventional loan calculator can help with early payment estimates, which are for planning only and are not an offer or approval.
Step 5: Secure a site and get real bids. Have a contractor and mechanical engineer price the build-out, especially ventilation, before finalizing the budget.
Step 6: Build site-specific projections. Use the seat count, dayparts, tiered royalty and every Item 6 fee.
Step 7: Apply and coordinate timelines. Submit your loan request with financial statements, tax returns, projections, the lease and franchise documents, and align closing with franchisor approval and construction.
Gyu-Kaku Franchise Loan FAQs
How much does it cost to open a Gyu-Kaku franchise?
The franchisor’s franchise page estimates startup costs at approximately $1,215,444 to $2,606,540.
What is the Gyu-Kaku franchise fee?
The franchise page lists a $50,000 franchise fee. Check Item 5 of the current FDD for payment timing and any development fees.
What royalty does Gyu-Kaku charge?
The royalty is tiered by annual sales: 5% on sales up to $1,500,000, 4.5% on sales from $1,500,001 to $2,000,000 and 4% on sales over $2,000,000.
How much net worth or liquid capital do I need?
The franchisor asks about both but publishes no fixed minimum. Lenders will expect enough liquidity for the equity injection plus reserves.
Can I get an SBA loan for a Gyu-Kaku?
Gyu-Kaku is not listed on the SBA Franchise Directory, and SBA lenders generally require a listing, so most buyers use conventional financing. Confirm current directory status with your lender.
Can I finance the tabletop grills separately?
Often, yes. Roasters, refrigeration and kitchen equipment can usually be financed or leased, while ductwork is typically part of the main loan.
Can I buy an existing Gyu-Kaku restaurant?
Yes, when a franchisee sells and the franchisor approves the transfer. Lenders can then underwrite actual sales history.
Can a first-time restaurant owner get a Gyu-Kaku franchise loan?
It is possible, but lenders and the franchisor weigh restaurant experience heavily for a full-service concept. A strong general manager, solid liquidity and a detailed plan make a first-time owner’s Gyu-Kaku franchise loan request stronger.
Does Gyu-Kaku offer financing?
Review Item 10 of the current FDD for any financing the franchisor offers. Most buyers arrange their own loans.
Does the FDD include financial performance information?
Review Item 19 of the current FDD to see whether it includes financial performance representations, and rely on actual financial statements when buying an existing restaurant.
Final Thoughts
A Gyu-Kaku restaurant pairs a full-service dining room with a build-out few concepts require. Buyers who budget carefully for ventilation, apply the tiered royalty correctly and plan on conventional financing from the start are in the strongest position.
US Professional Funding helps franchise owners and buyers finance new restaurants, acquisitions, equipment and working capital. Learn more about our franchise financing and restaurant financing solutions.
