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Manchu WOK Franchise Cost, Revenue & Review 2026

Quick-Service RestaurantsAZFranchising since 2015
BAbove averageAbove average50/100Editorial grade from public filings; not investment advice.
Investment
$490K – $821K
Disclosed sales
$1.9M
gross sales, not profit
SBA charge-off
Under 10 loans (1)

Investment, fees, disclosed sales, units, SBA record and risk, as one PDF. Free; no spam; one click to unsubscribe.

FV-01565FDD 2025Data QualityExcellent91%
Owner-operator requiredNo: No territory protection

Data from FDD filing + SBA 7(a) records

Analysis by FranchiseVerdict Research · Methodology

Manchu WOK is a quick-service franchise serving wok-prepared Chinese food, often in malls and food courts. Franchisees run the locations, managing food prep, staffing, and counter service.

FranchiseVerdict summary · 2026

A Manchu WOK franchise requires a total initial investment of $490K – $821K, including a $30K franchise fee and an ongoing 7.0% royalty[2]. Per the 2025 FDD, average unit revenue was $1.9M[2]. FranchiseVerdict grade: B (Above average), an editorial assessment, not investment advice. Run a live ROI scan →

Sources, dates and evidence

FDD issued: 2025 filing · Data extracted: · Last cited check: · Staleness risk: medium - a newer filing may exist

Evidence: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✗ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored7 of 7 headline figures on this page cite a page of the filing.

Overview

Investment
$490K – $821K
74th pct Service Resta…
Avg gross sales
$1.9M
32nd pct Service Resta…
Royalty
7.0%
90th pct Service Resta…
Units
15
45th pct Service Resta…
SBA charge-off
N/A

Quick verdict · Quick-Service Restaurants · color = vs category peers

Total Investment
$490K – $821K
Median $486K
above median ↑, worse than category
Franchise Fee
$30K – $30K
Median $35K
below median ↓, better than category
Liquid Capital Req'd
$15K – $30K
Median $33K
below median ↓, better than category
Avg Revenue
$1.9M
Median $975K
above median ↑, better than category
Royalty Rate
7.0%
Median 5.5%
above median ↑, worse than category
Ongoing Fees
8.0% of rev
Median 7.5%
near median
SBA Charge-Off Rate
Under 10 loans (1)
Insufficient SBA coverage: 1 loan, rate hidden below 10
System Size
15 units
Median 18 units
below median ↓, worse than category
Turnover Rate
6.7%
Median 0.0%
Territory
None
The franchisor can open or license outlets nearby
Owner-Operator
Required
You must run it yourself
Litigation
20 cases
Review carefully

Green = favorable by >10% vs Quick-Service Restaurants median · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)

Data from public FDD filings and SBA records. Not financial advice. Methodology

Bottom line

  • COSTTotal investment $490K – $821K including a $30K franchise fee, 7.0% ongoing royalty.
  • RETURNSAverage unit revenue of $1.9M/year (median $1.1M).
  • RISKVerdict B (Above average), verdict score 50/100 (higher is better).
  • GROWTHFlat: no net change in franchised outlets in the latest year (1 opened, 1 closed) (Item 20).
  • LEGAL20 litigation matters disclosed in Item 3, higher than typical. Of the 15 listed on this page, 0 name the franchisor itself, 14 its parent, affiliates or predecessor, 1 an officer personally. Pending claims are allegations, not findings.

Item 1 · who you're contracting with

The Franchisor

Corporate structure & franchisor financials
Legal entity
MTY Franchising USA, Inc.
Parent company
MTY Franchising Inc. (MTY Canada)
FDD Item 1, page 7 of the 2025 FDD
Ultimate parent
MTY Food Group, Inc.
FDD Item 1, page 7 of the 2025 FDD
Predecessor
Manchu WOK Franchising USA Inc. (MWF); Manchu WOK (USA), Inc. (MWUSA)
Prior franchisor entity
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 (PwC), Montreal, Canada
Audited financials
Franchisor revenue
$580.3M
vs $472.1M prior year

Same owner · FDD Item 1, page 7

26 other brands on this site name MTY Food Group, Inc. as parent or ultimate parent in their own FDD.

Portfolio: MTY Food Group

Grouped by the owner's name as each filing prints it (this page: the 2025 FDD). Spelling variants of the same group may be listed apart; a brand is never grouped with an owner its filing does not name.

Overview

About

CEO
Eric Lefebvre
Headquarters
AZ
Founded
2015
FDD year
2025
States available
11

Can you afford it, and what does the money buy?

Entry cost runs 35% above the typical quick-service restaurants franchise.

Total investment (Item 7)$490K – $821KCited, not corroborated — printed on page 41 of the 2025 FDD (Item 7). Nothing else in our record independently restates or re-derives it.
Franchise fee$30,000Verified — printed on page 33 of the 2025 FDD (Item 5), and another item of the same filing prints the same figure on a labelled row, which is an independent restatement.
Royalty7.0%Cited, not corroborated — printed on page 35 of the 2025 FDD (Item 6). Nothing else in our record independently restates or re-derives it.
Ad fund1.0%Cited, not corroborated — printed on page 35 of the 2025 FDD (Item 6). Nothing else in our record independently restates or re-derives it.
Working capital$15K – $30K

Source: FDD 2025 · Items 5–7

Full Item 7 breakdown18 line items

Initial investment breakdown

Item 7 initial investment line items
Line itemLowHigh
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.

Item 7 · what it costs to open + operate

The Vitals

Total investment
$490K – $821K
Bottom third — review vs category
Liquid capital req'd
$15K – $30K
Top 40% of category vs category
Franchise fee
$30K – $30K
Top 40% of category vs category
Royalty
7.0%
typical 6–8%
Ad fund
1.0%
typical 3–5%
Total fee load
8.0%
vs 9–13% typical

Ongoing fees · Item 6

Manchu WOK: Item 6 recurring fees
FeeAmount
Royalty7.0% of gross sales
Marketing / ad fund1.0% of gross sales
Training fee$6K
Transfer fee$10K
Renewal fee$15K
Inventory (initial)$8K – $10K
Total fee load8.0% of rev

What do units actually make?

Average unit sales run 94% above the quick-service restaurants norm.

Avg gross sales$1.9MCited, not corroborated — printed on page 75 of the 2025 FDD. Nothing else in our record independently restates or re-derives it.
Median gross sales$1.1MCited, not corroborated — printed on page 75 of the 2025 FDD. Nothing else in our record independently restates or re-derives it.
Item 19 typegross sales
Sample size15 outlets

Source: FDD 2025 · Item 19

Single-unit · not modelled

Returns at a glance

An FDD discloses gross sales, not profit, and the operating costs that turn one into the other are in no filing. We publish no modelled return for Manchu WOK until someone supplies them — yours, in the models below.

—

Not modelled yet

An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.

Total invested capital · disclosed

$678K

Item 7 initial investment plus working capital, as filed — the one figure here that needs no assumption.

ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
Blue values = direct from FDD (Item 7 investment, Item 19 revenue, Item 6 fees)Not set = no filing supplies it and we will not substitute one. Enter your own

What one unit earns on your invested capital

Model A · Single-Unit Return

Computes unlevered return on invested capital (ROIC) for a single franchise unit, read against the 30–60% reference band · Yale SOM, Post-MBA Path Exhibit 2 (2023). Below that band a passive index fund likely outperforms; above it the franchisor has pricing power you're subsidizing.

Note: Item 19 revenue is what the franchisor discloses, and it is the top line only — gross sales are not profit. No FDD discloses the operating costs that turn one into the other, so those fields start empty and nothing is modelled until you supply them from your own lease quote, labor market and build-out budget.

Returns model · single-unit ROIC

What would one Manchu WOK unit return on the cash you put in?

From FDDNot set — you supply itYou overrode an FDD value
Revenue · per unit, per yearFDD
FDD Item 19 reports $1,895,019 per unit
Franchisor take · royalty + ad fundFDD
typ 6–8%
typ 3–5%
Operating costs · not in any FDDnot set

Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.

Total invested capital · what you put in to openFDD
FDD Item 7: $490K–$821K (midpoint used)
FDD reports $15K–$30K

Unlevered ROIC · per unit

Your modelled return on total invested capital, before any debt financing.

—

An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.


Store EBITDA · annual
—
EBITDA margin
—
Total invested
$678K
Payback
—
Single-unit only. A multi-unit portfolio gives up roughly 5–15% of this to shared services (corporate G&A) before reaching the ~10-unit break-even point.

What 25 units return when you use SBA financing

Model B · Return on Equity: Debt-Financed Acquisition

Models a 25-unit portfolio acquisition financed with an SBA 7(a) loan. Shows equity IRR (your return on cash invested), DSCR (how safely the cash flow covers debt service), and the capital stack (SBA + seller + equity breakdown).

This is the “search fund” or “entrepreneurship through acquisition” scenario: you buy an existing multi-unit operator, use leverage to amplify returns, and either operate or hire management. The 25-unit size is the typical minimum for an SBA-backed franchise portfolio acquisition to pencil as a full-time income.

What “return on equity” means here: if you put in $500K of your own cash and the business generates enough EBITDA to pay down debt and grow, your equity IRR is the annual return on that $500K, including the value created when you eventually sell. Target IRR for a search fund is typically 25–35%.

Not modelled yet

An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.

A 25-unit return is built on a per-unit EBITDA. Fill in the operating costs in Model A above and this model runs on that figure, or take the whole scenario to the full ROI workbench, where the portfolio and LBO models accept your own per-unit economics directly.

These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.

Item 19 · Source: 2025 FDD

Financial Performance

Avg gross sales
$1.9M
Per unit, per year
Median gross sales
$1.1M

Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.

Item 19 type
gross sales
Sample size
15 outlets
vs category median 19
Reporting year
2024
Fiscal year the figures cover
Source filing
FDD 2025
Disclosed in the 2025 filing, covering 2024
Transparency
4 / 10
vs category median 4 / 10 · typical
Gross sales rank32th
Item 19 reporting methods vary across brands
Investment cost rank74th
Lower investment ranks lower (better)
Royalty rate rank90th
Lower royalty = lower percentile (better)
Unit count rank45th
vs Quick-Service Restaurants peers
Risk score rank50th
Lower risk = lower percentile (better)

Compared against 781 Quick-Service Restaurants brands

Showing the headline figures — all 138 extracted fields are in the Full FDD Report · $19 →

Operator outlook

What the numbers say

Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.

Unit economics

Average unit generates $1.9M/year in gross sales. Median is $1.1M — top performers pull the average up, so a typical unit earns less. Revenue-to-investment ratio: 2.9x.

Fee burden

Total ongoing fee load of 8.0% (near the Quick-Service Restaurants median).

Disclosure

Transparency score 4/10 — this franchisor discloses detailed breakdowns (quartiles, segments, or cohort data). Buyers can model unit economics with higher confidence.

Operator retention

System contracting at -16.7% CAGR over 3 years. Investigate whether closures are franchisor-driven consolidation or franchisee exits.

Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.

vs Quick-Service Restaurants medians

How Manchu WOK Compares

Metric
Manchu WOK
Category median
vs median
Investment
$655K
$486Kmiddle half $342K–$748K · n=780
Above median, worse than category
Revenue
$1.9M
$975Kmiddle half $664K–$1.4M · n=284
Above median, better than category
Unit Count
15
18middle half 5–79 · n=755
Below median, worse than category

Category median of published Quick-Service Restaurants brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.

Is the system healthy?

Total units15Cited, not corroborated — printed on page 76 of the 2025 FDD. Nothing else in our record independently restates or re-derives it.
3-yr growth-16.7% (worth scrutinizing)
Turnover rate6.7% (favorable vs category)

Source: FDD 2025 · Item 20

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 (3-yr)
-16.7%
Net unit change over 3 years
3-yr CAGR
-16.7%
Compounded over last 3 years

Last fiscal year · Item 20 exits and transfers

Terminated
0
Not renewed
0
Transferred
0
Reacquired
0
Franchisor bought back
Signed, not yet open
0
0.00 per open outlet · Item 20 Table 5
Projected new
0
Franchisor's next-year forecast
Ceased ops
6.7%
Units that stopped operating
2022
18
Franchised units
2023
15-3
Franchised units
2024
15±0
Franchised units

Year-over-year franchised unit counts and net change. Source: FDD Item 20.

Item 20 · 4 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).

AK
ME
VT
NH
MA
RI
CT
NY
NJ
PA
DE
MD
DC
WA
OR
CA
NV
ID
MT
WY
UT
CO
AZ
NM
ND
SD
NE
KS
OK
TX
MN
IA
MO
AR
LA
WI
IL
MS
TN
MI
IN
KY
AL
OH
WV
GA
VA
NC
SC
FL
HI
Active operators · 4 states
No contacts on file

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.

Where the owners are · Item 20 owner list

5 current owners across 4 states.

  • CA 2
  • AL 1
  • NY 1
  • TX 1

Counts only, from the list the franchisor prints in Item 20. Names and phone numbers are for your own due diligence and are not shown here.

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
Under 10 loans (1)
Insufficient SBA coverage: 1 loan, rate hidden below 10

Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated

Repayment rate (PIF)
Under 10 loans (1)
5-yr charge-off
Under 10 loans (1)
Loans approved 2021+
Active lenders
1
Defaults
N/A

Explore lender portfolios on Bank Reports or regional data on State Reports.

What could kill this investment?

SBA charge-offUnder 10 loans (1)
Verdict score50/100 (higher is better)
Litigation20 cases
Auditor going-concern doubtNo (favorable vs category)

Source: SBA 7(a) FOIA · FDD Items 3, 21

Risk analysis

FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21

Risk & Legal

BAbove average50Verdict score 50/100
Moderate confidence±10 pts
4060

Litigation (Item 3)

Subject: the franchisor is a named party (plaintiff).

All litigation involves affiliates and predecessors (Extreme Pita, Kahala Franchising, Famous Dave's, Wetzel's Pretzels, Papa Murphy's, BF Acquisition/Triune, SweetFrog, Blimpie, Maui Wowi). No active litigation directly naming MTY Franchising USA/Manchu Wok as defendant. Two FY2024 suits filed by Kahala Franchising and Cold Stone Leasing as plaintiff.

Largest disclosed settlement: $585,000

Bankruptcy (Item 4)

None disclosed

Audited financials (Item 21)

Yes · PricewaterhouseCoopers (PwC), Montreal, Canada

Franchisor revenue (Item 21)

Yr 1: $580.3MYr 2: $472.1MNon-royalty: $5.7M

Franchisor entity revenue (not unit-level)

Item 19 reports average and median annual gross sales for all 15 franchised Manchu Wok stores in the US that were existing outlets open the full fiscal year (Dec 1, 2023-Nov 30, 2024). Gross sales = total revenue from sales of goods/services less sales tax, discounts, allowances and returns. Prepared from weekly franchisee sales reports; not audited by franchisor. 8 of 15 stores (53%) met or exceeded both the average and median. Franchisor-level audited revenue figures are consolidated MTY Franchising USA, Inc. amounts (in thousands), not Manchu Wok brand-specific.

ⓘ These are the parent company's consolidated financials (the parent guarantees the franchisor), not this brand's standalone results — the figure reflects the whole corporate group, not this brand alone.

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 50 / 100 verdict

  1. 01MINOROnly 15 units with unknown/stagnant growth trajectory suggests system contraction or stability crisis
  2. 02HIGH21 disclosed litigation actions involving predecessors/affiliates reveal pattern of breach of contract and misrepresentation claims
  3. 03MEDNet income not disclosed despite $1.89M average revenue — likely unprofitable unit economics or hidden losses
  4. 04MINORNo protected territory exposes franchisees to direct competition from other Manchu WOK locations and company-owned stores
  5. 05MINORHigh 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

Showing the headline figures — all 138 extracted fields are in the Full FDD Report · $19 →

Full litigation history from the FDD (Items 3 and 4) →

Litigation case detail20 matters · Item 3

Litigation cases

Parent, affiliates and predecessor

Concluded (12)

  • Pretzelsdallas1, Inc. v. Wetzel’s Pretzels, L.L.C.

    settled

    Brought by a franchisee · Wetzel’s Pretzels, L.L.C. · filed 2019 · American Arbitration Association (Los Angeles, California) · 01-19-0002-9326

    “Pretzelsdallas1, Inc. v. Wetzel’s Pretzels, L.L.C.; Los Angeles, California; AAA Case No.01-19- 0002-9326. On or about July 19, 2017, we entered into a franchise agreement with Pretzelsdallas1, Inc. (then known as Triple Scoops, Inc.). On or about September 11, 2019, Pretzelsdallas1, Inc., (“Claimant/Counter Respondent”) a franchisee, filed a demand for arbitration”Page 28 of the 2025 FDD, Item 3

    Outcome:“On September 24, 2021, the parties entered into a settlement agreement, in which a mutual release of all claims was agreed to, and Respondent/Counter Claimant paid Claimant/Counter Respondent the sum of $125,000. The matter was subsequently dismissed with prejudice.”

  • Desert Ribs, L.L.C., Famous Gracie, L.L.C., Famous Freddie, L.L.C., Famous George, L.L.C. and Famous Charlie, L.L.C. v. Famous Dave’s of America, Inc.

    settled

    Brought by a franchisee · Famous Dave’s of America, Inc. · filed 2016-03-14 · American Arbitration Association, Minneapolis, Minnesota · 01 16 0000 8549

    “Desert Ribs, L.L.C., Famous Gracie, L.L.C., Famous Freddie, L.L.C., Famous George, L.L.C. and Famous Charlie, L.L.C. v. Famous Dave’s of America, Inc., American Arbitration Association, Minneapolis, Minnesota, Case No. 01 16 0000 8549. On March 14, 2016, the franchisees for the Famous Dave’s® Restaurants in Chandler, Peoria, Mesa and Gilbert, Arizona (“Claimants”)”Page 26 of the 2025 FDD, Item 3

    Outcome:“Upon the dismissal of the MFA claims, Claimants voluntarily dismissed their remaining claims against Famous Dave’s and entered into a confidential settlement agreement and mutual release (the “Settlement Agreement”), dated August 22, 2016, with Famous Dave’s.”

  • SFF, L.L.C. v. Carmel Village Yogurt Company L.L.C.

    dismissed

    Brought against a franchisee · SFF, L.L.C. · filed 2016-08-29 · City of Richmond, Virginia Circuit Court · CL16-3927

    “SFF, L.L.C. v. Carmel Village Yogurt Company L.L.C.; City of Richmond, Virginia Circuit Court; Case No. CL16-3927. On August 29, 2016, SFF, L.L.C. (“Plaintiff”) filed a lawsuit against three sweetFrog franchisee entities, Carmel Village Yogurt Company L.L.C. (“Defendant Carmel YC”),”Page 25 of the 2025 FDD, Item 3

    Outcome:“Plaintiff paid Defendant Carmel YC $25,000; (iii) Plaintiff reinstated Defendant Huntersville YC’s and Defendant Mooresville YC’s terminated franchise agreements; and (iv) Plaintiff granted Defendant Anto the right to develop a new sweetFrog shop at a mutually acceptable location on or before November 8, 2018. The case was dismissed with prejudice on December 15, 2016.”

  • Famous Dave’s of America, Inc. v. Allan Gantes; John Gantes; M Mart 1, L.L.C.; Kurt Schneiter; Shoreline FD Investors, L.L.C.; SR El Centro FD, Inc. SR Long Beach FD, Inc.; SR Palmdale FD, Inc.; SR Restaurant Holdings Group, Inc.; SR Simi Valley FD, Inc.; SR Tracey FD, Inc.

    settled

    Brought against a franchisee · Famous Dave’s of America, Inc. · filed 2015-07-24 · Superior Court of the State of California, County of Los Angeles, Central Division · BC589329

    “Famous Dave’s of America, Inc. v. Allan Gantes; John Gantes; M Mart 1, L.L.C.; Kurt Schneiter; Shoreline FD Investors, L.L.C.; SR El Centro FD, Inc. SR Long Beach FD, Inc.; SR Palmdale FD, Inc.; SR Restaurant Holdings Group, Inc.; SR Simi Valley FD, Inc.; SR Tracey FD, Inc.; Superior Court of the State of California, County of Los Angeles, Central Division, Case No. BC589329.”Page 27 of the 2025 FDD, Item 3

    Outcome:“On September 29, 2018, the parties agreed to enter into a confidential settlement agreement and a mutual release of claims (the “El Centro Settlement Agreement”), which contained the following material terms: (i) SR Defendants received $75,000 towards the payment of their attorney’s fees”

  • KOHO, Inc. v. Kahala Franchising, L.L.C.

    settled

    Brought by a franchisee · Kahala Franchising, L.L.C. · filed 2015 · Superior Court of the State of California for the County of Los Angeles · BC572565

    “KOHO, Inc. v. Kahala Franchising, L.L.C.; Superior Court of the State of California for the County of Los Angeles; Case No.: BC572565. On or about February 17, 2015, Koho, Inc. (“Koho”) filed a Complaint against Kahala Franchising, L.L.C. (“Kahala”) alleging: (i) breach of contract; (ii) unjust enrichment; and (iii) declaratory relief.”Page 23 of the 2025 FDD, Item 3

    Outcome:“territory for the sum of $75,000 and forgave the remaining damages owed in the amount of $130,000.” (page 24)

  • Purav Enterprises, L.L.C., Balwant Bahia, and Paramjit Samra v. The Extreme Pita Franchising USA, Inc., EP Development, Inc., and Feisal Ramjee

    settled

    Brought by a franchisee · The Extreme Pita Franchising USA, Inc. (heading: 'predecessor in interest to MTY Franchising USA, Inc.'; Item 1 says MTY Franchising USA was formerly known by that name) · filed 2015-06-22 · Superior Court of the State of Washington for King County · 15-2-15120-7

    “Purav Enterprises, L.L.C., Balwant Bahia, and Paramjit Samra v. The Extreme Pita Franchising USA, Inc., EP Development, Inc., and Feisal Ramjee ; Superior Court of the State of Washington for King County, Case No. 15-2-15120-7. On June 22, 2015, Purav Enterprises, L.L.C., Balwant Bahia, and Paramjit Samra (collectively “Plaintiffs”), filed a complaint against The Extreme Pita Franchising USA, Inc.”Page 22 of the 2025 FDD, Item 3

    Outcome:“The parties entered into a settlement agreement on March 11, 2016, in which Defendants paid Plaintiffs the sum of $20,000. The matter was dismissed on March 16, 2016.” (page 23)

  • Rob & Bud’s Pizza, L.L.C. v. Papa Murphy’s International, Inc. and Papa Murphy’s International, L.L.C.

    settled

    Brought by a franchisee · Papa Murphy’s International, L.L.C. · filed 2015-04-17 · United States District Court for the Western District of Washington (as printed) · 5:15-cv-05090-TLB

    “Rob & Bud’s Pizza, L.L.C. v. Papa Murphy’s International, Inc. and Papa Murphy’s International, L.L.C.; United States District Court for the Western District of Washington, Case No. 5:15-cv- 05090-TLB. In spring 2015, Papa Murphy’s sent a notice of default to plaintiff for alleged defaults under the plaintiff’s franchise agreements.”Page 30 of the 2025 FDD, Item 3

    Outcome:“The case was dismissed with prejudice as part of a settlement with plaintiff in this case and the LMP case under which Papa Murphy’s purchased plaintiff’s nine Papa Murphy’s stores at an agreed upon value of the stores’ assets plus $500,000.”

  • DTD Pizza LLC, Brian Watson, Alton Spears, LMP Enterprises LLC, ... and Papa's of Tennessee, LLC. v. Papa Murphy’s International LLC, et al. (Case No. 14-2-00904-0) and Mitch and Kristen Brink, Brink Holdings Inc., ... and Red Rust, LLC, v. Papa Murphy’s International LLC, et al. (Case No. 14-2-0174

    settled

    Brought by a franchisee · Papa Murphy’s International, L.L.C. (with related Papa Murphy's entities, directors and executives) · filed 2014 · Washington Superior Court, Clark County · 14-2-00904-0 (consolidated; the second action was 14-2-01743-3)

    “Washington Superior Court, Clark County, Case No. 14-2-01743-3. These two related actions were commenced in April 2014 and June 2014, respectively, by separate groups of current and former franchisees against us, certain members of our board of managers and executive team, and others in Washington Superior Court (Clark County), alleging misrepresentations involving financial performance”Page 29 of the 2025 FDD, Item 3

    Outcome:“Each of the plaintiff groups =entered into settlements with Papa Murphy’s in which they dismissed all of their claims against defendants with prejudice and the action was dismissed in June 2020.”

  • Texas Nrgize #1, Inc. v. Kahala Franchising, L.L.C. and Kahala Holdings, L.L.C.

    settled

    Brought by a franchisee · Kahala Franchising, L.L.C. and Kahala Holdings, L.L.C. · filed 2014 · 67th Judicial District Court, Tarrant County, Texas; removed to U.S. District Court for the Northern District of Texas; transferred to U.S. District Court for the District of Arizona, Phoenix Division · 067-272652-14; 4:14-cv-544-Y; CV15-0337 PHX DGC

    “Texas Nrgize #1, Inc. v. Kahala Franchising, L.L.C. and Kahala Holdings, L.L.C.; 67th Judicial District Court, Tarrant County, Texas; Civil Action No.: 067-272652-14 subsequently removed to United States District Court for the Northern District of Texas; Case No.: 4:14-cv-544-Y. On or about June 18, 2014, Texas Nrgize #1, Inc., an Nrgize franchisee (“Plaintiff”), filed a Petition”Page 24 of the 2025 FDD, Item 3

    Outcome:“In December 2015, the parties executed a settlement agreement in which Defendant paid Plaintiff the sum of $35,000. The parties filed a Stipulation to Dismiss With Prejudice on December 18, 2015.” (page 25)

  • Urquieta Sweet Frog, L.L.C. and Ana Urquieta v. SweetFrog Enterprises, L.L.C. d/b/a SFF, L.L.C.

    settled

    Brought by a franchisee · SFF, L.L.C. (successor in interest to SweetFrog Enterprises, L.L.C.) · filed 2014-12-23 · American Arbitration Association · 01 14 0001 8086

    “Urquieta Sweet Frog, L.L.C. and Ana Urquieta v. SweetFrog Enterprises, L.L.C. d/b/a SFF, L.L.C., American Arbitration Association; Case No. 01 14 0001 8086. On December 23, 2014, Urquieta Sweet Frog, L.L.C. and Ana Urquieta, a former sweetFrog franchisee and its owner (collectively “Plaintiffs”), filed a Demand for Arbitration against SweetFrog Enterprises, L.L.C. (“Defendant”).”Page 25 of the 2025 FDD, Item 3

    Outcome:“This matter was settled in December of 2015. Under the settlement, Defendant agreed to pay Plaintiffs $300,000 and the parties executed mutual releases.”

  • Fresh Enterprises, L.L.C. v. Ledang Investment Group, L.L.C., Vincent Tienn Le, Ho Tien Le and Hue This Dang

    settled

    Brought against a franchisee · Fresh Enterprises, L.L.C. (successor in interest to BF Acquisition, L.L.C.) · filed 2013-07-02 · Superior Court of the State of California, County of Santa Clara; arbitrated before the American Arbitration Association · 1-13-CV-257219; AAA 72-20-1400-0126

    “Fresh Enterprises, L.L.C. v. Ledang Investment Group, L.L.C., Vincent Tienn Le, Ho Tien Le and Hue This Dang Superior Court of the State of California, County of Santa Clara, Case No. 1-13- CV-257219. On July 2, 2013, Fresh Enterprises, L.L.C., as successor-in-interest to Baja Fresh Westlake Village, Inc. (“Plaintiff”), filed a complaint against Ledang Investment Group, L.L.C.;”Page 26 of the 2025 FDD, Item 3

    Outcome:“On February 2, 2015, the Arbitrator issued an award in favor of Cross Claimants Ledang in the amount of $660,620.84. The parties entered into a Settlement and Release Agreement on July 20, 2015, under which Counter Defendants paid the Cross Claimants Ledang the sum of $585,000 and the matter was dismissed with prejudice.”

  • State of Maryland Determination

    concluded

    Government or regulatory action · Triune, LLC (predecessor of affiliate BF Acquisition Holdings, L.L.C.) · filed 2012 · Office of the Attorney General of Maryland (Maryland franchise regulator) · 2012-0073

    “State of Maryland Determination; Case Number 2012-0073. In February 2012, the State of Maryland alleged that during the period January 1, 2009 to November 26, 2009, Triune, LLC (“Triune”): (i) did not retain signed acknowledgements of receipt reflecting the dates that its Franchise Disclosure Document was delivered to certain Maryland residents and non-residents;”Page 32 of the 2025 FDD, Item 3

    Outcome:“Without admitting or denying the allegations, in September 2012, Triune voluntarily entered into a Consent Order with the Office of the Attorney General of Maryland and agreed to: (i) not violate the Maryland Law in the future; (ii) pay the Office of the Attorney General the sum of $50,000 as a civil penalty;”

Status not stated in the filing (2)

  • Cold Stone Creamery Leasing Company, Inc. v. JRF, Inc.

    Brought against a franchisee · Cold Stone Creamery Leasing Company, Inc. · Iowa District Court for Dallas County · SCSC050015

    “Suit for Forcible Entry and Detainer Cold Stone Creamery Leasing Company, Inc. v. JRF, Inc.; Iowa District Court for Dallas County; Case No.: SCSC050015.”Page 33 of the 2025 FDD, Item 3
  • Kahala Franchising, L.L.C. v. All About Food, Inc. and Chu Yup Lee a/k/a Michale Lee

    Brought against a franchisee · Kahala Franchising, L.L.C. · Circuit Court of the Nineteenth Judicial Circuit Lake County, Illinois · 2024LA00000001

    “Lawsuits Filed by Franchisor Kahala Franchising, L.L.C. Against Franchisees During Fiscal Year December 1, 2023 through November 30, 2024 Suit for Breach of Contract Kahala Franchising, L.L.C. v. All About Food, Inc. and Chu Yup Lee a/k/a Michale Lee; In the Circuit Court of the Nineteenth Judicial Circuit Lake County, Illinois; Case No.: 2024LA00000001.”Page 33 of the 2025 FDD, Item 3

Officers and directors (individuals, not the company)

Concluded (1)

  • In re: Restaurants Acquisition I, L.L.C. (Giuliano vs. W. Craig Barber et. al.

    settled

    Third-party plaintiff · W. Craig Barber (printed as 'our Chief Executive Officer') and Robert Langford ('our Chief Concept Officer – Family Restaurant Division'); section heading: VI BrandCo, L.L.C. · filed 2017 · United States Bankruptcy Court for the District of Delaware · 15-12406 (KG)

    “In re: Restaurants Acquisition I, L.L.C. (Giuliano vs. W. Craig Barber et. al. United States Bankruptcy Court for the District of Delaware on December 2, 2015 (Case No. 15-12406 (KG)). On December 1, 2017, the Chapter 7 trustee in the Restaurants Acquisition I, L.L.C. (“RAI”) bankruptcy proceeding filed suit in the United States Bankruptcy Court”Page 28 of the 2025 FDD, Item 3

    Outcome:“On March 6, 2019, Barber and Langford each settled with the Chapter 7 trustee by each agreeing to pay to the trustee and estate separate payments totaling $150,000 each over a three-year period.”

This list shows 15 of the 20 matters Item 3 discloses; the rest are in the filing.

Item 3 lists the litigation the franchisor must disclose; a matter against a parent, an affiliate or a named officer is not a matter against the franchisor, and pending claims are allegations, not findings.

What are you signing up for?

Ongoing fees run about 8.0% of sales (royalty + ad fund), before rent and labor.

Initial term10 yrs
Renewal term5 yrs
TerritoryNone (caution)
Initial training160 hrs

Source: FDD 2025 · Items 11, 12, 17

FDD Items 12, 15, 17 · continued from Risk & Legal

Contract & Territory Detail

Initial term10 years
Renewal term5 years
Territory typeNo territory protection
Protected territoryNo
Exclusive territoryℹNo
Online sales rightsℹRestricted
Franchisor can competeYes
Hire a manager?Allowed
Owner-operatorRequired
Non-compete (years)ℹ1 year
Non-compete (miles)ℹ3 mi
Right of first refusalℹYes
RoFR response window30 days
Transfer requires consentYes
Mandatory arbitrationYes
Jury trial waiverYes
Governing lawArizona
Litigation count20
View Item 3 litigation summary

All litigation involves affiliates and predecessors (Extreme Pita, Kahala Franchising, Famous Dave's, Wetzel's Pretzels, Papa Murphy's, BF Acquisition/Triune, SweetFrog, Blimpie, Maui Wowi). No active litigation directly naming MTY Franchising USA/Manchu Wok as defendant. Two FY2024 suits filed by Kahala Franchising and Cold Stone Leasing as plaintiff.

Items 10, 11

Training & Operations

Classroom training
40 hrs
On-the-job training
120 hrs
Training location
Training restaurant, KTEC (Kahala Training & Education Center) in Scottsdale, AZ, virtually, or other designated location
Ongoing training
Required
Time to open
6 mo
From signing to launch
Site selection
Franchisee selects; franchisor must approve
Franchisor financing
Not offered
Item 10
POS system
Vivonet Point of Sale (POS)
Operating tech stack

Items 5 & 11

Franchisor Support

✓Site selection assistance
✓Grand opening support
✓Lease negotiation help

Technology: Vivonet Point of Sale (POS)

Item 20 · call current owners

Franchisee Contacts

5 owners to call

Name · phone · city · state. Extracted from FDD Item 20

Unlock 5 contacts · $49
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205985••••AL
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530291••••CA
718917••••NY
214358••••TX
760362••••CA

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.

Who owns Manchu WOK?

Manchu WOK is franchised by MTY Franchising USA, Inc.. Its parent company is MTY Franchising Inc. (MTY Canada). The ultimate parent named in the FDD is MTY Food Group, Inc.. Source: FDD Item 1, 2025 filing.

What is Item 19 in the Manchu WOK FDD?

The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the Manchu WOK FDD and qualifies whose outlets they describe.

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 B-grade franchise with a verdict score of 50 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. 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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If you represent Manchu WOK, you can request corrections or provide updated information.

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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.