About Thai Express Franchise
Thai Express is a fast casual restaurant franchise specializing in authentic Thai cuisine served quickly at accessible prices.
The brand offers a menu of pad thai, curries, stir fries, and other traditional Thai dishes prepared fresh to order.
Thai Express has been franchising since 2015 under MTY Food Group, Inc., one of North America's largest restaurant franchise companies.
Thai Express Franchise Cost & Fees
Minimum Investment
$486K
Average Investment
$718K
Maximum Investment
$950K
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $30,000 | One-time payment upon signing |
| Royalty Fee | 6% of Gross Sales of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 5% of Gross Sales (3% Marketing Fund Contributions + 2% Local Advertising Expense) | National brand fund |
| Total Investment Range | $486,050 – $949,700 | Includes build-out, inventory, working capital |
The investment range of $486K–$950K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (6% of Gross Sales) and marketing fee (5% of Gross Sales (3% Marketing Fund Contributions + 2% Local Advertising Expense)) 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 |
| Electricity, Water, Gas, Telephone and Landlord’s Deposits (2) | $7,000 | $10,000 |
| Lease Deposit plus three months’ rent (2) | $17,500 | $52,500 |
| Store Design Fees and Plans (3) | $10,000 | $25,000 |
| Permits (4) | $1,000 | $3,000 |
| Landlord Capital Contribution / Construction Chargeback (5) | $0 | $0 |
| Store Construction, Leaseholds and Fixtures (6) | $153,000 | $345,000 |
| Exhaust (7) | $45,000 | $88,000 |
| Equipment Package (8) | $132,000 | $220,000 |
| Furniture (9) | $22,000 | $49,000 |
| Signs (10) | $7,000 | $21,000 |
| Menu Box (11) | $10,000 | $18,500 |
| Opening Uniform Package (12) | $700 | $1,200 |
| Small Wares (13) | $10,000 | $13,000 |
| Opening Promotion and Advertising (14) | $750 | $5,000 |
| Grand Opening Marketing fee (15) | $10,000 | $10,000 |
| Security system (does not include monitoring cost) (21) | $0 | $3,000 |
| Training Attendance (16) | $500 | $2,500 |
| Insurance | $850 | $3,500 |
| POS System (20) | $3,500 | $14,000 |
| Additional Funds – First 3 months (17) | $25,250 | $35,500 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $15,000 |
| Renewal Fee | 50% of the then-current Initial Franchise Fee |
| Technology Fee | Up to $200 per month |
| Audit Fee | $2,000 - $3,500 |
| Manager Training or Retraining Costs | $500 to $1,500 |
| Transfer Escrow Fee | As charged by third-party escrow agent |
| Transfer Advertising Requirement | $5,000 |
| Relocation Fee | $500 |
| POS Help Desk Phone Support Maintenance Service Fee | Up to $55 per month |
| Non-participation Fee | $100 per day |
| Early Termination Damages | The average monthly Royalty and Marketing Fund Contributions 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. |
| Administrative Fee | 15% of expenses incurred by us to remedy any default by you |
| Interest on Overdue Amount due to Thai Express | Prime Rate plus 5% |
| Security Monitoring Costs | Up to - $100 per month |
| Costs and Attorneys’ Fees | Will vary under circumstances |
| Indemnification | Will vary under circumstances |
| Renovating and remodeling expense | $30,000 to $85,000 |
| Cash Register Service Fees | Up to $180 per month |
| Taxes on Fees | Varies by State |
| Liquidated Damages for failure to open | Loss of the Initial Franchise Fee |
| Liquidated Damages for Deviation from system | $350 for Second Deviation, $600 for Third Deviation, $1,500 for any additional deviations in a calendar year |
| Damages for Breach of Non-Compete Obligations | Will vary under the circumstances |
| Late Payment Fee and Default Interest | The Default Rate plus a late charge of greater of five percent (5%) of the unpaid amount or $100 for each late payment |
| Late Report Fee | $100 per report, per week or part thereof |
| Collection Costs | All collection costs including, but not limited to, reasonable attorneys' fees |
| Non-Sufficient Funds Fee | $50 for each electronic funds transfer returned; $25 for each check or draft returned |
| Draft draw charge | $100 per day |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | Approximately 200 hours |
| Classroom Training | 40 |
| On-the-Job Training | 160 |
| Training Location | Online, KTEC (Kahala Training & Education Center) in Scottsdale, AZ, or franchisee’s restaurant location |
| Additional Training | The franchisor may require franchisees and their personnel to attend additional training, re-training sessions, or seminars periodically. These may be mandatory or optional, with fees charged for optional programs. Franchisees are responsible for all associated travel, living, and compensation costs. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Non-exclusive |
| Exclusive Territory | No |
| Description | The franchise is granted for a specific Licensed Location, which is identified on Schedule A of the Franchise Agreement. Franchisees must operate only from this approved location and require written permission to relocate. There is no exclusive territory, and franchisees may face competition from other Thai Express franchisees, company-owned outlets, or other competitive brands controlled by the franchisor or its affiliates. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years |
| Renewal Term | one (1) five (5) year renewal term |
| Renewal Fee | 50% of the then-current Initial Franchise Fee |
| Renewal Conditions | To renew, the franchisee must give 120 days' notice, not be in default, be in compliance with the current Franchise Agreement and Confidential Manual, have received no more than 3 default notices during the term (or 2 in the last 5 years), have suitable premises, sign a new Franchise Agreement (which may have materially different terms and higher fees), pay a renewal fee, remodel/refurbish if necessary, and be current on all financial obligations. A general release is also required. |
| Transfer Fee | $15,000 |
| Transfer Conditions | Transfer requires franchisor's written consent, which will not be unreasonably withheld if the franchisee is in full compliance. The assignee must qualify as a franchisee, sign a new Franchise Agreement (which may have different terms and higher fees), provide personal guarantees, and complete training. The franchisee must pay a transfer fee ($15,000) and legal fees, and may be required to spend $5,000 on advertising for the transition. The franchisor has a right of first refusal. |
| Termination for Cause | The franchisor can terminate for various defaults, including breach of lease, material breach of other agreements, failure to submit reports on time (two or more occasions), operating in a hazardous manner, failure to pay amounts due, selling unauthorized products, selling merchandise of poor taste, failure to comply with standards/procedures, failure to complete training, failure to pay liquidated damages, or failure to participate in the group insurance plan. |
| Non-Compete Period | 2 years |
| Non-Compete Details | During the term, franchisees and guarantors cannot be involved in any business substantially selling Thai food items. After termination or expiration, for two years, they cannot be involved in such a business within 10 miles of the former restaurant or any Thai Express franchise. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | If the franchisee is an individual, they must personally supervise the operation of the Thai Express Restaurant and complete the training program. If the franchisee is a business entity, shareholders or partners are not required to personally supervise, but one must attend and complete the training. A Designated Manager, who has completed training, must provide direct, on-site supervision. The franchisor strongly recommends full-time involvement, noting that less involvement may lead to lower sales and higher costs. Owners with 5% or greater interest (and their spouses) must sign a personal guarantee. |
| Required Suppliers | Franchisees must purchase all required products and services from suppliers or distributors identified and approved by the franchisor, or directly from the franchisor, to maintain consistent quality and standards. This includes food and beverages, promotional items, uniforms, smallwares, computer software and hardware, telephone equipment, furnishings, fixtures, and equipment. |
| Supply Restrictions | Neptune Equipment, an affiliate of MTY USA, is an approved supplier for certain equipment, menu boards, furniture, wall graphics, computer hardware, and smallwares. Kahala Management, another affiliate, is the sole approved service provider for POS system phone support maintenance. Franchisees are required to purchase POS Help Desk Phone Support Maintenance from Kahala Management. Franchisees may propose alternative suppliers, but they must meet franchisor specifications and standards, and the franchisor reserves the right to approve or disapprove them. |
| Franchisor Revenue from Suppliers | The franchisor receives vendor allowances from approved suppliers, ranging from 1% to 5% of franchisee purchases. For the year ending November 30, 2024, MTY USA and its subsidiaries derived $51,714,322 from sales of products, services, and vendor allowances, representing approximately 8.5% of its total consolidated recognized revenue. Neptune Equipment earned $1,670,243 from franchisee purchases, and MTY USA earned $1,845,877 from POS help desk support maintenance and POS equipment sales. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | Yes |
| Description | The franchisor does not offer direct or indirect financing or guarantee franchisee obligations, except potentially for site leases or if a franchisee purchases a corporate-owned restaurant 'as-is' from an affiliate. In such cases, the franchisor or its affiliates may finance up to 100% of the purchase price, at their sole discretion. Financing terms for corporate-owned restaurants include an annual interest rate between 0% and 12%, repayable in equal monthly installments over 12 to 60 months. A first-position lien on all equipment is required as security. Franchisees (and their spouses, if applicable) must personally guarantee the debt. Upon default, the interest rate may increase to 18%, and the franchisor has rights to accelerate payment, collect costs and attorneys' fees, terminate the franchise, and take back the restaurant assets without compensation. |
Thai Express Franchise Earnings — Item 19
Thai Express does not make an Item 19 financial performance representation in their FDD. This means they do not disclose revenue, profit, or earnings data for franchised locations. Before investing, ask the franchisor directly for franchisee contact information so you can speak with existing owners about their actual financial performance.
Thai Express does not include an Item 19 financial performance representation in their FDD. Contact information for current and former franchisees is listed in Item 20 of the FDD.
Thai Express Litigation & Risk Flags
2 Pending Actions ListedReview the full FDD for details on pending litigation.
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Thai Express System Growth
Total Units
6
Franchised
5
Company-Owned
1
Thai Express currently operates 5 franchised locations and 1 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2022 | 2 | 2 | 8 |
| 2023 | 0 | 1 | 7 |
| 2024 | 0 | 2 | 5 |
Transfers: 0 | Closures: 5
State Registrations
Registered in 9 states: CA, IL, IN, NY, ND, WA, MI, MN, VA
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.
Thai Express Franchise — FAQ
The total investment to open a Thai Express franchise ranges from $486,050 to $949,700, 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.
Thai Express charges a royalty fee of 6% of Gross Sales of gross sales, plus a 5% of Gross Sales (3% Marketing Fund Contributions + 2% Local Advertising Expense) contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the Thai Express 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 Thai Express to ensure you have the most up-to-date version.
Thai Express does not provide an Item 19 financial performance representation in their FDD, which means they do not disclose franchisee revenue or earnings data. Prospective investors should contact existing franchisees directly (listed in Item 20 of the FDD) to gather real-world financial performance information.
Thai Express has been franchising since 2015. The FDD shows an investment range of $486,050-$949,700, a 6% of Gross Sales royalty, and includes an Item 19 earnings disclosure. There are 2 pending litigation action(s). 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 $486,050 to $949,700 depending on location size and market. A minimum of $25,250 in liquid capital is required. 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 Thai Express and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with Thai Express or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com