Manchu WOKFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Manchu WOK franchise requires a total initial investment of $490K – $821K, including a $30K franchise fee. Per the 2025 FDD, average unit revenue was $1.9M[2]. Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $490K – $821K
- 80th pct Service Resta…
- Avg gross sales
- $1.9M
- 52nd pct Service Resta…
- Royalty
- N/A
- Units
- 15
- 42nd pct Service Resta…
- SBA default
- N/A
Quick verdict · Quick-Service Restaurants · color = vs category peers
Green = >15% above Quick-Service Restaurants avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
21 legal cases disclosed in the FDD. Read Item 3 before signing.
Bottom line
- Total investment $490K – $821K including a $30K franchise fee.
- Average unit revenue of $1.9M/year (median $1.1M).
- Verdict A (Top Quintile) with a risk score of 34/100.
- 21 litigation matters disclosed in Item 3, higher than typical. Review the summary for patterns (franchisor-initiated vs. franchisee-initiated).
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- MTY Franchising USA, Inc.
- Parent company
- MTY Franchising Inc.
- Ultimate parent
- MTY Food Group, Inc.
- CEO title
- Chief Executive Officer
- Eric Lefebvre
- CEO experience
- 14 yrs
- Years in role or industry
- Incorporated in
- TN
- HQ
- 9311 East Via de Ventura, Scottsdale, Arizona 85258
- Auditor
- PricewaterhouseCoopers LLP
- Audited financials
- Franchisor revenue
- $597.5M
- vs $606.6M prior year
Overview
About
Franchisees operate quick-service Chinese restaurants featuring wok-prepared dishes, typically located in malls or street-front locations. Day-to-day operations include food preparation, staffing, inventory management, and point-of-sale transactions, with royalty obligations based on weekly gross sales.
- CEO
- Eric Lefebvre
- Headquarters
- AZ
- Founded
- 2001
- FDD year
- 2025
- States available
- 7
FDD Item 7 · 2025 filing · 18 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Fee | $30K | $30K | |
| Leasehold Improvements and Design Costs incl. signagenot refundable | $220K | $340K | |
| Equipment, Fixtures, and Furnishingsnot refundable | $89K | $126K | |
| POS System & Installationnot refundable | $4K | $10K | |
| Construction Depositnot refundable | $30K | $30K | |
| Development Construction Feenot refundable | $3K | $15K | |
| Lease Administration Feenot refundable | $8K | $8K | |
| Security Depositnot refundable | $15K | $75K | |
| Sublease Feenot refundable | $500 | $3K | |
| Rentnot refundable | $15K | $75K | |
| Nonfood, Inventory and Suppliesnot refundable | $15K | $20K | |
| Initial Food, Inventory and Other Costsnot refundable | $8K | $10K | |
| Grand Opening, Marketing and Promotion Feenot refundable | $10K | $10K | |
| Initial Training Expensesnot refundable | $6K | $8K | |
| Architect Feesnot refundable | $18K | $25K | |
| Business License, and Permitsnot refundable | $150 | $500 | |
| Additional Funds (incl. insurance and Initial phase of 3 months)not refundable | $15K | $30K | |
| Digital Menu Systemnot refundable | $4K | $6K | |
| Total initial investment | $490K | $821K |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$284K
15.0% margin
Unlevered ROIC
42%
EBITDA / total invested capital
Payback
29 mo
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $490K – $821K
- Below avg, review vs category
- Liquid capital req'd
- $15K – $30K
- Better than avg vs category
- Franchise fee
- $30K – $30K
- Better than avg vs category
- Royalty
- Traditional 7% of weekly gross sales; Non-Traditional: 6%…
- Ad fund
- 1.0%
- typical 3–5%
- Total fee load
- 8.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Marketing / ad fund | 1.0% of gross sales |
| Transfer fee | $10K |
| Renewal fee | $15K |
| Total fee load | 8.0% of rev |
Financial Performance
- Avg gross sales
- $1.9M
- Per unit, per year
- Median gross sales
- $1.1M
- Item 19 type
- gross_sales
- Sample size
- 15 units
- vs category median 28
- Reporting year
- 2024
- Fiscal year the figures cover
- Transparency
- 4 / 5
- vs category median 4 / 5 · typical
Compared against 453 Quick-Service Restaurants brands
vs Quick-Service Restaurants averages
How Manchu WOK Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 15
- Opened
- 1
- Last reporting year
- Closed
- 1
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 6.7%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (yr3)
- +0.0%
- Net unit change last year
- 3-yr CAGR
- -16.7%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 0
- Projected new
- 0
- Franchisor's next-year forecast
- Ceased ops
- 6.7%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 30 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator. Not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA loan disclosures. This brand has only 1 7(a) loan on file; statistical reliability is limited below 10 loans.
- Total loans
- 1
- Loan volume
- $275K
- Median loan
- $275K
- average
- Charge-off rate
- N/A
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- N/A
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 1
- Defaults
- 0
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Manchu WOK's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 1 lenders with concentration factor
- Per-state charge-off rates across 1 states
- Startup risk premium and job creation velocity
- 1-year lending trend
Instant access. No subscription.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Manchu WOK presents HIGH RISK: a contracting 15-unit system with undisclosed profitability, active going concern issues, extensive litigation history, and unprotected territories — indicating structural franchisor problems that jeopardize franchisee ROI.
Litigation (Item 3)
Two concluded franchisee litigation matters: (1) Purav Enterprises, L.L.C., Balwant Bahia, and Paramjit Samra v. The Extreme Pita Franchising USA, Inc. et al. (Washington Superior Court, Case No. 15-2-15120-7) - alleged FIPA violations, misrepresentation, and unregistered broker activity; settled March 11, 2016 for $20,000. (2) KOHO, Inc. v. Kahala Franchising, L.L.C. (California Superior Court, Case No. BC572565) - breach of contract and unjust enrichment claims; Kahala prevailed at bench trial with $205,000 attorney's fee award; settled June 19, 2017 with Kahala repurchasing Area Developer territory for $75,000 and forgiving $130,000 in damages.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · PricewaterhouseCoopers LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 34 / 100 rating
- 01MINOROnly 15 units with unknown/stagnant growth trajectory suggests system contraction or stability crisis
- 02HIGHGoing Concern = False indicates franchisor financial distress and potential inability to support franchisees
- 03HIGH21 disclosed litigation actions involving predecessors/affiliates reveal pattern of breach of contract and misrepresentation claims
- 04MEDNet income not disclosed despite $1.89M average revenue — likely unprofitable unit economics or hidden losses
- 05MINORNo protected territory exposes franchisees to direct competition from other Manchu WOK locations and company-owned stores
- 06MINORHigh initial investment ($490K-$821K) paired with 7% royalty on gross (not net) creates unsustainable payback period
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 5 years |
| Protected territory | No |
| Exclusive territoryℹ | No |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 1.5 years |
| Right of first refusalℹ | Yes |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | Arizona |
| Litigation count | 21 |
View Item 3 litigation summary
Two concluded franchisee litigation matters: (1) Purav Enterprises, L.L.C., Balwant Bahia, and Paramjit Samra v. The Extreme Pita Franchising USA, Inc. et al. (Washington Superior Court, Case No. 15-2-15120-7) - alleged FIPA violations, misrepresentation, and unregistered broker activity; settled March 11, 2016 for $20,000. (2) KOHO, Inc. v. Kahala Franchising, L.L.C. (California Superior Court, Case No. BC572565) - breach of contract and unjust enrichment claims; Kahala prevailed at bench trial with $205,000 attorney's fee award; settled June 19, 2017 with Kahala repurchasing Area Developer territory for $75,000 and forgiving $130,000 in damages.
Items 10, 11
Training & Operations
- Classroom training
- 40 hrs
- On-the-job training
- 120 hrs
- Training location
- On-site and at franchisor location
- Ongoing training
- Required
- POS system
- Vivonet
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Vivonet
Item 20 · call current owners
Franchisee Contacts
30 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Manchu WOK · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Manchu WOK franchise?
The total investment to open a Manchu WOK franchise ranges from $490K – $821K, with an initial franchise fee of $30K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Manchu WOK franchise owners earn?
According to Item 19 of the Manchu WOK FDD, the average gross sales per unit is $1.9M. The median is $1.1M. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Manchu WOK's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Manchu WOK (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
How many Manchu WOK franchise locations are there?
As of their most recent FDD filing, Manchu WOK has 15 total units in the United States, including 15 franchised units and 0 company-owned units. 1 new units were opened in the latest reporting year.
Is Manchu WOK a good franchise to buy?
FranchiseVerdict rates Manchu WOK as a A-grade franchise with a risk score of 34 out of 100, based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
For franchisors
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.