Nan Xiang Xiao Long Bao Franchise Cost, Revenue & Review 2026
Data from FDD filing
Analysis by FranchiseVerdict Research · Methodology
Nan Xiang Xiao Long Bao is a Chinese restaurant franchise specializing in Shanghai-style soup dumplings and dim sum. Franchisees run the restaurants, managing the kitchen, dining service, and staffing.
FranchiseVerdict summary · 2026
A Nan Xiang Xiao Long Bao franchise requires a total initial investment of $1.2M – $1.9M, including a $60K franchise fee and an ongoing 5.0% royalty[2]. The 2026 FDD does not disclose unit-level revenue (no Item 19). FranchiseVerdict grade: C (Average), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2026 FDD issuance
Overview
- Investment
- $1.2M – $1.9M
- 34th pct Service Resta…
- Avg gross sales
- N/A
- Royalty
- 5.0%
- 7th pct Service Resta…
- Units
- 10
- 14th pct Service Resta…
- SBA charge-off
- N/A
Quick verdict · Full-Service Restaurants · color = vs category peers
Green = favorable by >10% vs Full-Service Restaurants avg · 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 $1.2M – $1.9M including a $60K franchise fee, 5.0% ongoing royalty.
- RETURNSAudited financial statement is a balance sheet only as of February 11, 2026; franchisor (Nan Xiang Franchisor, LLC) was formed January 2026 and has no income statement or revenue. Total assets $50,000 (cash), no liabilities, members' equity $50,000.
- RISKVerdict C (Average), verdict score 39/100 (higher is better).
- DATANo Item 19 financial performance representation. Without franchisor-disclosed revenue data, you'll need to gather unit economics directly from existing franchisees.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Nan Xiang Franchisor LLC
- Parent company
- 213 Management Group Inc.
- CEO title
- Chief Executive Officer
- Xing Yan (Eddie) Zheng
- Incorporated in
- NV
- HQ
- 109 North 5th Street, Saddle Brook, NJ 07663
- Auditor
- Muhammad Zubairy, CPA PC
- Audited financials
- Management churn noted
- Frequent turnover
- Item 2 disclosed frequent executive changes
Overview
About
- CEO
- Xing Yan (Eddie) Zheng
- Headquarters
- NJ
- Founded
- 2026
- FDD year
- 2026
- States available
- 6
Can you afford it, and what does the money buy?
Entry cost runs 32% above the typical full-service restaurants franchise.
Source: FDD 2026 · Items 5–7
Full Item 7 breakdown17 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Feenot refundable | $60K | $60K | |
| Opening Support Feenot refundable | $240K | $240K | |
| Construction and Leasehold Improvements | $500K | $1.0M | |
| Furniture, Fixtures, and Equipment | $150K | $170K | |
| Signs | $10K | $15K | |
| Technology Systems | $5K | $10K | |
| Initial Supply of Proprietary Items | $50K | $60K | |
| Other Initial Inventory | $5K | $8K | |
| Rent (3 Months) and Lease Deposits | $60K | $150K | |
| Utility Deposits | $6K | $12K | |
| Insurance Deposits and Premiums | $5K | $12K | |
| Travel and Lodging for Initial Training | $3K | $5K | |
| Grand Opening Advertising | $12K | $17K | |
| Professional Fees | $4K | $10K | |
| Business Licenses and Permits | $15K | $35K | |
| Printing, Stationary, and Office Supplies | $6K | $10K | |
| Additional Funds - First 3 Months of Operation | $50K | $80K | |
| Total initial investment | $1.2M | $1.9M |
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
- $1.2M – $1.9M
- Top 40% of category vs category
- Liquid capital req'd
- $50K – $80K
- Top 40% of category vs category
- Franchise fee
- $60K – $60K
- Top 40% of category vs category
- Royalty
- 5.0%
- percentage · typical 6–8%
- Ad fund
- 1.0%
- typical 3–5%
- Total fee load
- 6.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 5.0% of gross sales |
| Marketing / ad fund | 1.0% of gross sales |
| Technology fee | $200 |
| Transfer fee | $10K |
| Renewal fee | $50K |
| Inventory (initial) | $5K – $8K |
| Total fee load | 6.0% of rev |
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
Nan Xiang Xiao Long Bao did not disclose financial performance in FDD Item 19. The ROIC and return models require Item 19 revenue. Without it all inputs are estimates. You can still run the calculator with your own assumptions by entering an expected revenue figure.
Returns model · single-unit ROIC
What would one Nan Xiang Xiao Long Bao unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
6%
Below the 30–60% attractive-franchise band
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: 2026 FDD
Financial Performance
Audited financial statement is a balance sheet only as of February 11, 2026; franchisor (Nan Xiang Franchisor, LLC) was formed January 2026 and has no income statement or revenue. Total assets $50,000 (cash), no liabilities, members' equity $50,000.
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Fee burden
Total ongoing fee load of 6.0% — below the Full-Service Restaurants average of 7.6%.
Disclosure
Franchisor chose not to disclose financial performance representations. You will need to gather unit economics directly from existing franchisees.
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 Full-Service Restaurants averages
How Nan Xiang Xiao Long Bao Compares
Is the system healthy?
Source: FDD 2026 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 10
- Opened
- 0
- Last reporting year
- Closed
- 0
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 0.0%
- Company-owned
- 10
- Corporate units in the system
- % franchised
- 0%
- vs corporate-owned
3-year detail · Item 20
- Opened (3yr)
- 0
- Closed (3yr)
- 0
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 0
- Reacquired (3yr)
- 0
- Franchisor bought back
- Projected new
- 8
- Franchisor's next-year forecast
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 12 · 6 states reported
The Territory Map
FDD Item 12 reports the state count, but the specific list isn't in our current data. The map will appear once we re-extract from the FDD or enough franchisee contacts are available.
6
states with franchisees (per FDD Item 12)
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
No SBA loan data available for this brand.
What could kill this investment?
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
High-investment, unproven niche concept with no financial transparency, micro-scale system, and franchisor stability concerns creates substantial financial and operational risk.
Litigation (Item 3)
No litigation required to be disclosed in Item 3
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Muhammad Zubairy, CPA PC
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 39 / 100 verdict
- 01MEDNo Item 19 financial performance data disclosed — impossible to validate ROI claims or break-even timeline
- 02HIGHGoing Concern status is FALSE, indicating potential financial instability at franchisor level
- 03MEDOnly 10 units system-wide suggests minimal scale, limited support infrastructure, and unproven model
- 04MEDHigh initial investment ($1.18M–$1.89M) with no disclosed average revenue creates severe risk/reward imbalance
- 05MEDNo disclosed unit growth trajectory — unclear if system is expanding, stagnant, or contracting
- 06MINORSpecialty concept (xiaolongbao) limits addressable market and customer base compared to broad-appeal cuisines
- 07MEDUp to 5% royalty on undisclosed revenue base makes ongoing cost burden unpredictable
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 6.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2026 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 1 |
| Territory type | protected |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory radius | 3 mi |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 25 mi |
| Right of first refusalℹ | Yes |
| RoFR response window | 60 days |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Curable defaultsℹ | 8 |
| Mandatory arbitration | Yes |
| Arbitration location | Within 50 miles of Saddle Brook, NJ |
| Jury trial waiver | No |
| Governing law | NJ |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation required to be disclosed in Item 3
Items 10, 11
Training & Operations
- Classroom training
- 120 hrs
- On-the-job training
- 260 hrs
- Training location
- Flushing, NY or other designated training facility
- Ongoing training
- Required
- Time to open
- 18 mo
- From signing to launch
- Site selection
- Franchisee selects; franchisor approves
- Franchisor financing
- Not offered
- Item 10
Items 5 & 11
Franchisor Support
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Nan Xiang Xiao Long Bao franchise?
The total investment to open a Nan Xiang Xiao Long Bao franchise ranges from $1.2M – $1.9M, with an initial franchise fee of $60K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Nan Xiang Xiao Long Bao franchise owners earn?
Nan Xiang Xiao Long Bao does not disclose average franchise owner earnings in their FDD Item 19. Not all franchisors are required to make financial performance representations. We recommend asking existing franchisees directly about their financial experience.
What is Item 19 in the Nan Xiang Xiao Long Bao 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 Nan Xiang Xiao Long Bao FDD and qualifies whose outlets they describe.
What is Nan Xiang Xiao Long Bao's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Nan Xiang Xiao Long Bao (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 Nan Xiang Xiao Long Bao franchise locations are there?
As of their most recent FDD filing, Nan Xiang Xiao Long Bao has 10 total units in the United States, including 0 franchised units and 10 company-owned units.
Is Nan Xiang Xiao Long Bao a good franchise to buy?
FranchiseVerdict rates Nan Xiang Xiao Long Bao as a C-grade franchise with a verdict score of 39 out of 100 (higher is better), 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
Are you the franchisor?
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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.