About Tim Ho Wan Franchise
Tim Ho Wan is a globally celebrated dim sum restaurant chain originally founded in Hong Kong and widely known as one of the most affordable Michelin starred restaurants in the world.
The brand has been franchising in the United States since 2020 and is backed by Tim Ho Wan Holdings Pte.
Ltd.
Tim Ho Wan Franchise Cost & Fees
Minimum Investment
$3.2M
Average Investment
$3.5M
Maximum Investment
$3.8M
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $86,009 USD | One-time payment upon signing |
| Royalty Fee | 3% of Gross Sales of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 3% of Gross Sales per month | National brand fund |
| Total Investment Range | $3,195,009 – $3,825,208 | Includes build-out, inventory, working capital |
The investment range of $3.2M–$3.8M reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (3% of Gross Sales) and marketing fee (3% of Gross Sales per month) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $86,009 | $86,009 |
| Security Deposit | $63,000 | $75,600 |
| Leasehold Improvements; Furniture, Fixtures, and Equipment; Signage | $1,600,000 | $1,920,000 |
| Rent – Three Months | $95,000 | $114,000 |
| Staff – Pre-Opening and Three Months | $663,000 | $796,000 |
| Opening Inventory and Supplies | $285,000 | $342,000 |
| Grand Opening Advertising | $15,000 | $18,000 |
| Insurance | $40,000 | $48,000 |
| Licenses and Permits | $10,000 | $20,000 |
| Computer System | $38,000 | $45,600 |
| Additional Funds - 3 months | $300,000 | $360,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | As determined by franchisor |
| Technology Fee | $6,200 per year |
| Audit Fee | Cost of audit and inspection, including vendor fees, travel expenses, room and board, and compensation of our employees |
| Stamp Duties | 50% of the direct costs incurred |
| Interim Operations Fee | Our then-current fee (currently, no fee, but if imposed up to 25% of Gross Sales) |
| Interest on Late Payments | Maximum rate permitted by law or 15% per annum |
| On-Site Support | Our direct costs and expenses |
| Correction of Deficiencies | Our direct costs and expenses |
| Indemnification | Our direct costs and expenses |
| Costs and Attorneys’ Fees | Our direct costs and expenses |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | No mandatory training specified |
| Additional Training | Franchisor may provide guidance on marketing, development, and operation via email, telephone, internet, personal visits, or written instructions. On-site support or employee training can be provided upon mutual agreement, with the franchisee covering all associated expenses. Support services may also be obtained from Honeybee. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Non-exclusive |
| Exclusive Territory | No |
| Territory Size | United States |
| Description | Franchisee's Development Area is the United States, with no limitation on the number of restaurants, subject to site approval. The franchisor and its affiliates retain the right to compete within the territory through other franchisees, company-owned outlets, or other distribution channels and brands, except for developing or operating Tim Ho Wan restaurants by other parties within the Development Area after the agreement date. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years |
| Renewal Conditions | No right to renewal; any renewal is subject to franchisor's sole approval and state law. |
| Transfer Fee | As determined by franchisor |
| Transfer Conditions | Transfers of the agreement, restaurant assets, or profit-sharing rights require prior written consent from the franchisor. Approval is subject to franchisor's criteria, including payment of a transfer fee or reimbursement of costs. The franchisor has a right of first refusal on proposed transfers. |
| Termination for Cause | Franchisor may terminate for various curable defaults (e.g., payment obligations, legal violations, other agreement breaches with cure periods) and non-curable defaults (e.g., material misrepresentation, felony, unauthorized transfer, restrictive covenant violations, ownership/voting control below 70%, abandonment, bankruptcy). |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | No |
| Participation Details | Franchisee is solely responsible for the management, direction, and control of all restaurants, including hiring, training, and supervision of personnel. However, prior written approval from the franchisor is required before engaging any third-party management company to operate, develop, or manage any restaurant. |
| Required Suppliers | Franchisor may require use of only certain specific goods and services and may mandate purchases from designated vendors, which may include franchisor or its affiliates. Franchisee must obtain franchisor approval for suppliers. |
| Supply Restrictions | Currently, no exclusive or approved suppliers are designated for the United States, but franchisee must obtain franchisor approval for proposed suppliers. |
| Franchisor Revenue from Suppliers | None disclosed |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | The franchisor's affiliate, Tim Ho Wan Ventures Pte. Lte. (THWV), has subscribed for up to $3,500,000 of capital in the joint venture entity (franchisee) and may offer additional financing, including equity or shareholder loans, as determined by the franchisee's board of directors. The franchisor itself does not offer or guarantee financing. |
Tim Ho Wan Franchise Earnings — Item 19
Tim Ho Wan 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.
Tim Ho Wan 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.
Tim Ho Wan Litigation & Risk Flags
Clean Litigation RecordTim Ho Wan 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.
Tim Ho Wan System Growth
Total Units
6
Franchised
6
Company-Owned
0
Tim Ho Wan currently operates 6 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 | 0 | 6 |
| 2023 | 0 | 0 | 6 |
| 2024 | 0 | 0 | 6 |
Transfers: 1 | Closures: 0
State Registrations
Registered in 14 states: CA, HI, IL, IN, MD, MI, MN, NY, ND, RI, SD, VA, WA, WI
Franchisor Financials (Item 21)
Revenue
$1.8M
Net Income
$471K
Total Assets
$20.9M
Audited by Wu Hoover & Co. LLP for year ending December 31.
Tim Ho Wan Franchise — FAQ
The total investment to open a Tim Ho Wan franchise ranges from $3,195,009 to $3,825,208, per their Franchise Disclosure Document. This includes the initial franchise fee of $86,009 USD. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
Tim Ho Wan charges a royalty fee of 3% of Gross Sales of gross sales, plus a 3% of Gross Sales per month contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the Tim Ho Wan 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 Tim Ho Wan to ensure you have the most up-to-date version.
Tim Ho Wan 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.
Tim Ho Wan has been franchising since 2020. The FDD shows an investment range of $3,195,009-$3,825,208, a 3% of Gross Sales royalty, and no 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 $86,009 USD and the total investment ranges from $3,195,009 to $3,825,208 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 Tim Ho Wan and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with Tim Ho Wan or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com