About Manchu Wok Franchise
Manchu Wok is a Chinese quick service restaurant franchise that has been franchising since 2015, backed by MTY Food Group, Inc.
The brand operates food court style locations that serve freshly prepared Chinese dishes such as stir fried noodles, fried rice, orange chicken, and a rotating selection of entrees and sides.
Manchu Wok locations are commonly found in shopping malls, food courts, and high traffic retail environments.
Manchu Wok Franchise Cost & Fees
Minimum Investment
$490K
Average Investment
$655K
Maximum Investment
$821K
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $30,000 | One-time payment upon signing |
| Royalty Fee | 7% of weekly gross sales (Traditional) or 6% of weekly gross sales (Non-Traditional) of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 1% of weekly gross sales | National brand fund |
| Total Investment Range | $490,050 – $820,500 | Includes build-out, inventory, working capital |
The investment range of $490K–$821K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (7% of weekly gross sales (Traditional) or 6% of weekly gross sales (Non-Traditional)) and marketing fee (1% of weekly gross sales) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee (1) | $30,000 | $30,000 |
| Leasehold Improvements and Design Costs incl. signage (2) | $220,000 | $340,000 |
| Equipment, Fixtures, and Furnishings (2) | $89,000 | $126,000 |
| POS System & Installation (3) | $4,000 | $10,000 |
| Construction Deposit (4) | $30,000 | $30,000 |
| Development Construction Fee (5) | $2,500 | $15,000 |
| Lease Administration Fee | $8,000 | $8,000 |
| Security Deposit (6) | $15,000 | $75,000 |
| Sublease Fee (6) | $500 | $2,500 |
| Rent (7) | $15,000 | $75,000 |
| Nonfood, Inventory and Supplies | $15,000 | $20,000 |
| Initial Food, Inventory and Other Costs (8) | $8,000 | $10,000 |
| Grand Opening, Marketing and Promotion Fee (9) | $10,000 | $10,000 |
| Initial Training Expenses (10) | $5,900 | $7,500 |
| Architect Fees | $18,000 | $25,000 |
| Business License, and Permits (11) | $150 | $500 |
| Additional Funds, (incl. insurance and Initial phase of 3 months) (12) | $15,000 | $30,000 |
| Digital Menu System(13) | $4,000 | $6,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $10,000 |
| Renewal Fee | $15,000 |
| Technology Fee | $49 to $70 per month (Digital Menu Software Monthly Service Fee and POS System Software Subscription) |
| Audit Fee | Varies (based on understatement of gross sales, interest, and full cost of inspection/audit) |
| Regional Cooperative Marketing Contribution | Your proportionate share of regional and local advertising and public relations programs will not exceed an amount that, when added to the amount you pay for your Marketing Fee, is greater than 5% of your gross sales over any 12 month period. |
| Security Deposit on Lease or Sublease (if applicable) | Equal to three month’s gross rent on the Premises unless the primary lease requires a higher amount. |
| Lease Administration Fee (if applicable) | $8,000 |
| Rent | $5,000 to $25,000 per month |
| Sublease Fee (if applicable) | $500 to $2,500 |
| Special Assistance Fee | $500 a day per person providing assistance plus all associated costs and expenses. |
| Transfer Escrow Fee | As charged by third-party escrow agent. |
| Development Construction Fees | The greater of: $2,500 or 3% of the total development cost for Manchu WOK store construction projects in North America, up to a maximum of $15,000. |
| Training for Replacement Manager | $3,000 plus attendees’ travel, lodging and food expenses, as well as all other expenses. |
| Relocation Charge | $500 |
| Administration Fee for Franchisee Programs | Up to 15% of gross costs |
| Supplemental or Refresher Training | $3,000 plus attendees’ travel, lodging and food expenses, as well as all other expenses. |
| Interest | Charged on all outstanding amounts from due date at a rate of the lesser of: (i) bank prime plus 5% per year; or (ii) the highest rate permitted by law |
| Supplier Inspection | Varies |
| Indemnification | An amount equal to our damages, losses or expenses |
| Dishonored Check Fee | $25 for each check or draft returned for non-sufficient funds |
| Damages for Breach of Non-Compete Obligations under the Franchise Agreement | Will vary under the circumstances. |
| Non-participation Fee | $100 per day if you fail or refuse to participate in any required national, local, regional, seasonal, promotional or other program, initiative and campaign or in any new or modified product or service test or offering. |
| Document Administration Fee | $500 |
| Early Termination Fee | The average monthly Royalty and Advertising Fees paid for any consecutive 12 month period within the preceding 48 month period multiplied by the number of months remaining in the term of the Franchise Agreement, and the product is divided by 2. |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | 20 working days, 8 hours per day (Initial Training) |
| Classroom Training | 40 hours (New Owner Training) |
| On-the-Job Training | 120 hours (In-Store Training) |
| Training Location | Training restaurant, KTEC (Kahala Training & Education Center) in Scottsdale, AZ, virtually, or other designated location |
| Additional Training | Supplemental Training, Refresher Training, management seminars, conventions, and refresher courses may be provided and required. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Non-exclusive |
| Exclusive Territory | No |
| Description | The franchise is granted for a specific approved location (street front, shopping mall food court, or non-traditional location). The franchisor will not open or operate, or grant a third party the right to operate, another Manchu WOK Restaurant at your Approved Location, provided you are not in default. The franchisor reserves all other rights, including establishing other systems, selling similar products under different trademarks, and distributing products through other channels (e.g., retail grocery stores, internet). |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years or term of sublease (excluding extensions/renewals) |
| Renewal Term | 5 years |
| Renewal Fee | $15,000 |
| Renewal Conditions | Franchisor reserves the right to offer a successor franchise agreement upon expiration of the term, with terms and conditions that may differ substantially from the original agreement. |
| Transfer Fee | $10,000 |
| Transfer Conditions | Requires franchisor's prior written consent (not unreasonably withheld). Conditions include: no existing default, settlement of all outstanding accounts, general release of claims, transferee executes assignment and guarantee (or new franchise agreement), transferee completes training, compliance with bulk sales legislation, new Lease Addendum if applicable, and use of third-party escrow agent if required. |
| Termination for Cause | Franchisor may terminate if franchisee defaults on the Franchise Agreement, including failure to complete initial training, meet development obligations, pay amounts owed, cure lease defaults, furnish reports, engage in detrimental conduct, or commit acts of bankruptcy/insolvency. |
| Non-Compete Period | 18 months after termination or expiration |
| Non-Compete Details | During the term and for 18 months after termination/expiration, franchisee and guarantor may not directly or indirectly be connected with any restaurant business or retail food outlet specializing in Chinese/Asian-style food or similar to Manchu WOK, located at the Premises or within 3 miles of the Premises or any Manchu WOK System outlet. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | At least two people who completed Initial Training must operate the restaurant, one of whom must be the Manager. If the franchisee is an individual, they must be the Manager. If a corporation, a shareholder with at least 10% equity must be designated as Manager. The Manager must devote full-time efforts to on-premises supervision. |
| Required Suppliers | Franchisees must buy all Approved Products (food and beverage ingredients, packaging, serving materials, paper goods, utensils, supplies, uniforms, marketing/promotional materials, fixtures, equipment) only from franchisor-approved suppliers. Proprietary Products and packaging bearing trademarks must be purchased only from the franchisor, its affiliates, or approved suppliers. |
| Supply Restrictions | Franchisees may not sell any products not approved in writing. The franchisor may designate specific suppliers, including itself or affiliates, as approved or exclusive for any particular item. The franchisor reserves the right to appoint only one supplier for any particular item. The franchisor may limit the number of approved suppliers and designate sources for certain products. |
| Franchisor Revenue from Suppliers | The franchisor expects to receive vendor allowances from suppliers/distributors, averaging 1% to 5% of franchisees' purchases in the most recent fiscal year (ended November 30, 2024). MTY USA and its subsidiaries earned $1,845,877 from POS help desk support maintenance services and POS equipment sales out of $51,714,322 in total revenues from product, service sales, and vendor allowances. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | We do not offer direct or indirect financing. We do not guarantee your note, lease or other obligations. |
Manchu Wok Franchise Earnings — Item 19
Average Revenue
$1.9M
Median Revenue
$1.1M
Sample Size
15 units
Past financial performance does not guarantee future results. Individual results will vary.
Manchu Wok Litigation & Risk Flags
Clean Litigation RecordManchu Wok has no pending litigation actions listed in their FDD. There is also no bankruptcy history disclosed.
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Manchu Wok System Growth
Total Units
15
Franchised
15
Company-Owned
0
Manchu Wok currently operates 15 franchised locations and 0 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2022 | 0 | 3 | 18 |
| 2023 | 0 | 3 | 15 |
| 2024 | 1 | 1 | 15 |
Transfers: 0 | Closures: 7
State Registrations
Registered in 4 states: CA, IL, IN, NY
Franchisor Financials (Item 21)
Revenue
$597.5M
Net Income
$-12,556,000
Total Assets
$1448.4M
Audited by PricewaterhouseCoopers LLP for year ending November 30.
Manchu Wok Franchise — FAQ
The total investment to open a Manchu Wok franchise ranges from $490,050 to $820,500, per their Franchise Disclosure Document. This includes the initial franchise fee of $30,000. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
Manchu Wok charges a royalty fee of 7% of weekly gross sales (Traditional) or 6% of weekly gross sales (Non-Traditional) of gross sales, plus a 1% of weekly gross sales contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the Manchu Wok Franchise Disclosure Document free on this page. The FDD is a public document filed with state franchise registries. Always also request the current FDD directly from Manchu Wok to ensure you have the most up-to-date version.
According to the Item 19 financial performance representation in their FDD, Manchu Wok franchise owners report average revenue of $1.9M and median revenue of $1.1M. This is based on a sample of 15 units. Past performance does not guarantee future results.
Manchu Wok has been franchising since 2015. The FDD shows an investment range of $490,050-$820,500, a 7% of weekly gross sales (Traditional) or 6% of weekly gross sales (Non-Traditional) royalty, and includes an Item 19 earnings disclosure. There is no pending litigation. Review the full FDD and contact current franchisees listed in Item 20 before making any investment decision.
The franchise fee is $30,000 and the total investment ranges from $490,050 to $820,500 depending on location size and market. Contact the franchisor directly for current net worth and liquid capital requirements, territory availability, and application details.
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Data Source & Disclaimer: This website is for informational purposes only. It is not an offer to sell or buy a franchise. This profile is based on publicly available FDD data sourced from state franchise registry filings. All information is for research purposes only and does not constitute legal, financial, or investment advice. Data may be outdated or contain errors. Always obtain the current FDD directly from Manchu Wok and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with Manchu Wok or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com