Manchu Wok Franchise Costs, Fees & Owner Salary (2023)

INVESTMENT

$476,000

-

$788,000

LOCATIONS

18

Emily

Updated

May 2, 2024

Is

Manchu Wok

a franchise?

Yes,
Manchu Wok
currently
accepts
franchise
applications

Manchu Wok was established in 1981 and has made a significant mark in the Quick Service Restaurant (QSR) sector with its focus on Chinese cuisine. The brand embarked on franchising in 1989, expanding its reach across North America. It is recognized as one of the largest franchisors in the Chinese QSR industry in North America​​.

The headquarters of Manchu Wok is not explicitly mentioned in the provided information, but as a subsidiary of the MTY Group, it benefits from the strong support and resources of a well-established parent company in the food service industry. This backing has contributed to Manchu Wok's reputation for quality and its strong relationships with franchisees​​.

Manchu Wok differentiates itself from the competition by offering a menu that features a variety of authentic and beloved recipes from different regions of China, including Cantonese, Szechwan, Hunan, and Mandarin cuisines.

This diverse menu caters to a wide range of tastes and preferences, making Manchu Wok a go-to place for fast and fresh Chinese food. The brand is known for its signature dishes like the irresistible Orange Chicken and constantly evolves its menu to include new and delectable additions​​.

How many

Manchu Wok

franchises

are there?

In 2022, there were
18
outlets in
the United
States, of which
18
are franchises, and
0
are corporate-owned.

What are the

Manchu Wok

franchise

fees?

Advertising fee

5.00%

Initial Franchise Fee

The Initial Franchise Fee ranges from $30,000 to $35,000, which is payable when the franchise agreement is signed. This fee grants the franchisee the license to operate under the franchisor's brand and access to the franchisor's business systems and support.

Royalty Fee

Franchisees are required to pay a Royalty Fee equal to 5% of their Gross Sales. This ongoing fee provides franchisees with continued support from the franchisor and access to the brand's evolving business model and resources.

Advertising Fee

An Advertising Fee of 1.5% of Gross Sales is mandated to support collective marketing and advertising efforts that benefit the entire franchise network, promoting brand awareness and driving customer traffic.

Transfer Fee

The Transfer Fee is set at $10,000 or $15,000, depending on specific conditions outlined in the franchise agreement. This fee is charged when a franchisee wishes to transfer their franchise rights to another party.

Renewal Fee

Franchisees looking to renew their franchise agreement at the end of its term are required to pay a Renewal Fee of $10,000. This fee covers the administrative costs associated with renewing the franchise agreement.

Technology Fee

A monthly Technology Fee of $150 is charged to cover the costs associated with the use of the franchisor's proprietary technology and systems, ensuring franchisees have access to the necessary digital tools for their operations.

Note: The fees presented here can be found in the Item 5 of the Franchise Disclosure Document. For a complete list of all the fees borne by the franchisee, please consult the Franchise Disclosure Document.

How much does

it cost

to start a

Manchu Wok

franchise?

It costs between
$476,000
and
$788,000
to start a
Manchu Wok
franchise.
Type of Expenditure Amount Range
Initial Franchise Fee $30,000
Leasehold Improvements and Design Costs $210,000 - $320,000
Equipment, Fixtures, and Furnishings $85,000 - $120,000
POS System & Installation $4,000 - $8,000
Construction Deposit $30,000 - $30,000
Development Construction Fee $2,500 - $15,000
Lease Administration Fee $8,000
Security Deposit $15,000 - $75,000
Sublease Fee $500 - $2,500
Rent $15,000 - $75,000
Nonfood, Inventory and Supplies $15,000 - $20,000
Initial Food, Inventory and Other Costs $8,000 - $10,000
Grand Opening, Marketing and Promotion Fee $10,000
Initial Training Expenses $5,900 - $7,500
Architect Fees $18,000 - $20,000
Business License, and Permits $150 - $500
Additional Funds $15,000 - $30,000
Digital Menu System $4,000 - $6,000
Total $476,050 - $787,500

Note: The table above provides a snapshot of the main costs associated with starting the most common franchise format (as disclosed in the Item 7 of the Franchise Disclosure Document). For a complete overview of all the expenses involved with the various formats offered by the franchisor, please consult the Franchise Disclosure Document.

Does

Manchu Wok

provide

training

to its

franchisees?

Yes,
Manchu Wok
provides
training

The franchisor provides comprehensive training to Manchu WOK franchisees, encompassing various aspects of running a franchise, including operational procedures, food preparation techniques, and customer service. The training program is designed to equip franchisees and their designated employees with the knowledge and skills needed for the successful operation of their Manchu WOK restaurant.

Initial Training

The initial training program, known as "Initial Training," is mandatory for the franchisee and one designated employee. It includes "In-Store Training" which lasts approximately 120 hours, and "New Owner Training" which is around 40 hours. The training covers a wide range of topics essential to operating a Manchu WOK restaurant and is conducted at a location designated by the franchisor, which could include training restaurants, the Kahala Training & Education Center in Scottsdale, AZ, or virtually.

Refresher Training

For franchisees who have previously operated a Manchu WOK restaurant, "Refresher Training" is provided to update them on food preparation techniques and other operational aspects. This training is also available to two designated individuals, one of whom must be the store manager responsible for managing the restaurant.

Supplemental Training

The franchisor may also provide "Supplemental Training" to franchisees, covering new developments in the Manchu WOK Restaurant System or updates to the Confidential Manual. This training could be in-store or classroom-based and is aimed at keeping franchisees abreast of any changes or new operational strategies within the franchise system.

Does

Manchu Wok

provides

territory

protection?

The franchisor does not offer an exclusive territory for Manchu WOK franchisees. Franchisees may face competition from other franchisees, outlets owned by the franchisor, or other channels of distribution or competitive brands controlled by the franchisor.

The franchise is granted for a specific approved location, and franchisees must operate their Manchu WOK Restaurant only at this location. They are not permitted to operate at any other location or use other channels or methods of distribution, including the Internet, to conduct sales outside of their Franchise Territory.

In some instances, the Approved Location may include a portion of a facility, such as a specific terminal at an airport or an entire shopping mall, but franchisees may not move or change the location of their restaurant without franchisor approval​​.

Can a

Manchu Wok

franchise

be run as

a passive

investment?

The Manchu Wok Franchise Agreement specifies that franchisees must be actively involved in the day-to-day operations of their franchise. Specifically, if the franchise is owned by an individual, that individual must serve as the Manager.

In cases where the franchise is owned by a corporation, one of the shareholders who owns at least 10% of the corporation's shares must fulfill the role of Manager. Additionally, at least two individuals who have successfully completed the initial training must be involved in operating the Manchu WOK® Restaurant.

This requirement underscores the franchisor's expectation for franchisees to have a hands-on approach in managing their franchise, which indicates that purely passive investment may not be aligned with the operational model of Manchu Wok franchises.

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