About TikkaShack Franchise
TikkaShack is a fast casual restaurant franchise specializing in modern and fusion inspired Indian cuisine.
The brand operates under two distinct concepts: TIKKA SHACK, which features contemporary Indian dishes, and MASALA WOK, which offers a blend of Indian, Indo Chinese, and Chinese cuisine.
Both formats serve a wide variety of moderately priced menu items designed to appeal to diverse tastes.
TikkaShack Franchise Cost & Fees
Minimum Investment
$499K
Average Investment
$610K
Maximum Investment
$722K
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $40,000 | One-time payment upon signing |
| Royalty Fee | 5% of Gross sales of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | Currently, 1.5% of Gross Sales (Brand Development Fee); Currently, 0% of Gross Sales (Local Advertising Requirement). Total not to exceed 4% of Gross Sales. | National brand fund |
| Total Investment Range | $498,500 – $721,500 | Includes build-out, inventory, working capital |
The investment range of $499K–$722K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (5% of Gross sales) and marketing fee (Currently, 1.5% of Gross Sales (Brand Development Fee); Currently, 0% of Gross Sales (Local Advertising Requirement). Total not to exceed 4% of Gross Sales.) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $40,000 | $40,000 |
| Rent and Security and Utility Deposits | $7,500 | $10,000 |
| Leasehold Improvements | $200,000 | $350,000 |
| Furniture, Fixtures, and Equipment | $175,000 | $225,000 |
| Liquor License and Other Business Licenses and Permits | $2,500 | $5,000 |
| Initial Training Costs | $5,000 | $10,000 |
| Opening Assistance Expenses | $5,000 | $10,000 |
| POS Computer Hardware and Software | $2,500 | $5,000 |
| Initial Inventory/Supplies | $7,500 | $10,000 |
| Professional Services | $2,000 | $2,500 |
| Grand Opening Promotional Expenses | $10,000 | $12,000 |
| Insurance | $1,500 | $2,000 |
| Additional Funds for three months | $40,000 | $40,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $5,000 |
| Renewal Fee | $5,000 |
| Technology Fee | Mobile App (Tikka Shack) / Mobile App (Masala Wok): Greater of $10 per week or $40 per month, subject to annual increase not to exceed 10% of prior year’s cap. Intranet/Extranet Fee: Up to $1,000 a year, if instituted. |
| Audit Fee | $1,000 to $5,000 |
| Advertising Cooperative Contribution | As determined by the cooperative |
| Website costs | Actual cost incurred |
| Interest | 18% per year or the maximum lawful rate |
| Additional Training | Our then current rates; currently, $500 per day per trainer, plus travel and lodging expenses |
| Administrative Fee | $250 per enforcement effort (i.e., written or verbal notification and follow up), and $250 per week for each week that the issue remains unresolved |
| On-site Remedial Training | Our then current rates; currently, $500 per day per trainer, plus travel and lodging expenses |
| On-Site Training Cancellation Fee | Our then-current on-site training cancellation fee |
| Inspection and Testing | Our actual testing or inspection costs, plus reimbursement of our related travel, lodging, and salary costs for the individual(s) performing the evaluation; currently estimated between $500 and $2,500 |
| Indemnification | An amount equal to the value of all losses and expenses that we incur |
| Books and Records | Actual cost we incur |
| Insurance Fee | Reimbursement of insurance premium plus reasonable administrative fee; currently estimated between $1,500 to $2,500 |
| Enforcement Costs | Actual costs as incurred |
| Liquidated damages | An amount equal to Royalty fees and Marketing Fee Contributions for the lesser of (i) 24 months or (ii) the remaining weeks of the franchise term. |
| Default Fee | $1,500 per event of default, plus the cost of re-inspections and the costs of enforcing compliance |
| Customer Rewards, and Gift Cards | Fees for access management of customer rewards, and/or gift card system and redemption. |
| Step-In Rights | Not to exceed 10% of Gross Sales plus travel and lodging expenses for our personnel |
| Failure to submit Required Data Fee | $500 for any month you do not submit the required data |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | approximately three weeks |
| Classroom Training | 36 |
| On-the-Job Training | 99 |
| Training Location | Plano, Texas or any other designated location |
| Additional Training | We may require your Operating Principal, Restaurant Manager and/or employees to periodically attend additional training programs and seminars not to exceed six events per year. This additional training will vary in length, which we estimate could range from less than a day up to three days or more, and will be provided to you either in Plano, Texas, at your Restaurant, another location of our choice, or via electronic means such as video tapes, the Internet, webinars or other on-line communications. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Protected Area |
| Exclusive Territory | Yes |
| Territory Size | a radius of three miles |
| Description | You will not receive an exclusive territory. You may face competition from other franchisees, from outlets that we own, or from other channels of distribution or competitive brands that we control. The franchise agreement gives you the right to operate a Restaurant at a site we accept as meeting our site selection guidelines (“Location”). You must select the site for your Restaurant from within the non-exclusive Designated Area identified in Attachment C of the franchise agreement. If you are in compliance with the franchise agreement and any other agreement you have with us or our affiliates, we and our affiliates will not establish or authorize anyone except you to establish a restaurant of the type you have franchised in the geographic area identified in Attachment C of the franchise agreement (“Protected Area”) during the term of the franchise agreement. Carved out from the Protected Area will be venues within the Protected Area that we consider “Captive Markets.” We retain all other rights, including the right to develop and establish restaurants (which may feature similar or different menu items) and other businesses under a different trademark, and to franchise or license their operation. Our affiliates intend to grow the MASALA WOK system through franchising. These restaurants may compete with you in your Protected Area. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | The earlier of (a) 10 years after your Restaurant opens for business to the public, or (b) 11 years after the effective date of your franchise agreement. |
| Renewal Term | three additional consecutive five-year terms |
| Renewal Fee | $5,000 |
| Renewal Conditions | Give written notice; update required items; not be in default; pay all money owed; retain right to Location; sign then-current form of renewal franchise agreement, which may contain materially different fees than the form attached to this disclosure document; pay us a renewal fee; sign general release (See Exhibit F); comply with then-current qualifications and training requirements. |
| Transfer Fee | $5,000 |
| Transfer Conditions | All accrued monetary obligations of Franchisee and its affiliates to Franchisor and its affiliates arising under this Agreement, or any other agreement, shall have been satisfied in a timely manner, and Franchisee shall have satisfied all trade accounts and other debts of whatever nature or kind; Franchisee and its affiliates shall not be in default of this Agreement, or any other agreement with Franchisor or its affiliates, and shall have substantially and timely complied with all the terms and conditions of such agreements during their respective terms; The transferor and its principals, if applicable, shall have executed a general release and covenant not to sue, in a form prescribed by Franchisor, of any and all claims against Franchisor and its Affiliates and their respective officers, directors, shareholders, agents, and employees in their corporate and individual capacities; The transferee shall demonstrate to Franchisor’s satisfaction that it meets Franchisor’s then-current qualifications, and, at the transferee’s expense, its operating principal, restaurant manager, and any other personnel required by Franchisor shall complete any training programs then in effect for System Restaurants upon such terms and conditions as Franchisor may reasonably require; The transferee shall, at its expense and within the time period reasonably required by Franchisor, renovate, modernize and otherwise upgrade the Restaurant and, if applicable, any Restaurant delivery vehicles to conform to the then-current System image, standards and specifications; The transferee shall enter into a written agreement, in a form satisfactory to Franchisor, assuming full, unconditional, joint and several, liability for, and agreeing to perform from the date of the transfer, all obligations, covenants and agreements of Franchisee under this Agreement. If the transferee is a corporation, partnership, limited liability company or other entity, those of transferee’s principals who are designated as principals, also shall execute such agreement and guarantee the performance thereof; The transferee shall execute Franchisor’s then-current form of franchise agreement for a term ending on the expiration date of this Agreement (including any renewal terms provided by this Agreement). The new franchise agreement shall supersede this Agreement in all respects and its terms may differ from the terms of this Agreement, including higher fees, but the transferee shall not be required to pay an initial franchise fee. The transferor shall remain liable for all of its obligations to Franchisor under this Agreement incurred prior to the effective date of the transfer and shall execute any and all instruments reasonably requested by Franchisor to evidence such liability; The transfer fee identified in the Summary Pages shall be paid to the Franchisor and Franchisor shall be reimbursed for its reasonable costs and expenses associated with the transfer, including, without limitation, training costs and legal and accounting fees and costs; If transferee is a corporation, partnership, limited liability company, or other entity, the transferee shall make all of the representations, warranties, and covenants in Article 6 as Franchisor may request, and shall provide evidence satisfactory to Franchisor that such representations, warranties and covenants are true and correct as of the date of the transfer; Franchisee’s written request for consent in writing and delivery of a copy of the proposed transfer agreements, including sale terms, at least 30 days prior to the proposed transfer, and Franchisor’s determination, in its sole and reasonable discretion, that the terms of the sale will not materially and adversely affect the post transfer viability of the Franchised Business; Franchisee shall have complied with the requirements set forth in Section 14.D.; If the transfer relates to the grant a security interest in any of Franchisee’s assets, Franchisor may require the secured party to agree that, in the event of any default by Franchisee under any documents related to the security interest, Franchisor shall have the right and option (but no obligation) to be substituted as obligor to the secured party and to cure any default of Franchisee. |
| Termination for Cause | Franchisor may terminate if franchisee materially defaults under the franchise agreement, any other individual franchise agreement, or any other agreement between franchisee and franchisor or its affiliate. Termination may also occur in the event of death or permanent incapacity of an owner if transfer requirements are not met. Specific curable and non-curable defaults are detailed in the agreement. |
| Non-Compete Period | two years |
| Non-Compete Details | During the term of employment, Covenantor (franchisee/principal/manager) may not divert business to competitors or have a financial interest in a similar restaurant business in the US or any area where Franchisor operates. Post-termination, for two years, Covenantor may not divert business or have an interest in a similar restaurant business at the Location, within a 10-mile radius of the Location, or within a 10-mile radius of any System Restaurant then in existence or under construction. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | When you sign the franchise agreement, you must designate an individual to serve as your “Operating Principal.” If you are an individual, you will be the Operating Principal. If you are not an individual, your Operating Principal must maintain a direct or indirect ownership interest in you of not less than 10%, unless we consent otherwise. Unless a Restaurant Manager is appointed, your Operating Principal must devote his or her full time and best efforts to the supervision of your operations under the franchise agreement and may not engage in any other business. You may, at your option and subject to our written consent, designate a Restaurant Manager to supervise your operations under the franchise agreement. Even if we permit you to designate a Restaurant Manager to supervise your operations under the franchise agreement, your Operating Principal remains ultimately responsible for the Restaurant Manager’s performance. The Restaurant Manager must devote his or her full time and best efforts to the supervision of your operations under the franchise agreement. |
| Required Suppliers | Designated architectural firm for initial design; Square point of sale system; Franchisor or designated supplier for spice packs and sauce blends; Approved suppliers for bookkeeping services; Approved suppliers for signage and menu board. |
| Supply Restrictions | Must comply with franchisor's standards and specifications for all supplies, materials, fixtures, furnishings, equipment, products, and services. Must obtain items from approved suppliers if designated. Franchisor can designate itself or affiliates as sole approved suppliers. |
| Franchisor Revenue from Suppliers | During our fiscal year which ended December 31, 2022, neither we nor affiliates derived any revenue from franchisee purchases or leases. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | Neither we nor any of our agents or affiliates offer any direct or indirect financing to you or guarantee any note, lease, or other obligation for you. |
TikkaShack Franchise Earnings — Item 19
Average Revenue
$1.1M
Median Revenue
$1.3M
Revenue Range
$1.1M – $1.4M
Sample Size
8 units
Past financial performance does not guarantee future results. Individual results will vary.
TikkaShack Litigation & Risk Flags
Clean Litigation RecordTikkaShack 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.
TikkaShack System Growth
Total Units
15
Franchised
10
Company-Owned
5
TikkaShack currently operates 10 franchised locations and 5 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2020 | 0 | 1 | 7 |
| 2021 | 2 | 0 | 9 |
| 2022 | 2 | 1 | 10 |
Transfers: 0 | Closures: 2
State Registrations
Registered in 15 states: CA, HI, IL, IN, MD, MI, MN, NY, ND, OR, RI, SD, VA, WA, WI
Franchisor Financials (Item 21)
Revenue
$312K
Net Income
$273K
Total Assets
$306K
Audited by TPS Thayer, LLC for year ending December 31.
TikkaShack Franchise — FAQ
The total investment to open a TikkaShack franchise ranges from $498,500 to $721,500, per their Franchise Disclosure Document. This includes the initial franchise fee of $40,000. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
TikkaShack charges a royalty fee of 5% of Gross sales of gross sales, plus a Currently, 1.5% of Gross Sales (Brand Development Fee); Currently, 0% of Gross Sales (Local Advertising Requirement). Total not to exceed 4% of Gross Sales. contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the TikkaShack 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 TikkaShack to ensure you have the most up-to-date version.
According to the Item 19 financial performance representation in their FDD, TikkaShack franchise owners report average revenue of $1.1M and median revenue of $1.3M. This is based on a sample of 8 units. Past performance does not guarantee future results.
TikkaShack has been franchising since 2015. The FDD shows an investment range of $498,500-$721,500, a 5% of Gross sales 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 $40,000 and the total investment ranges from $498,500 to $721,500 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 TikkaShack and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with TikkaShack or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com