Phở Hòa Franchise Cost, Revenue & Review 2026
Data from FDD filing
Analysis by FranchiseVerdict Research · Methodology
Pho Hoa is a Vietnamese restaurant franchise specializing in pho noodle soups and Vietnamese dishes. Franchisees run the restaurants, managing the kitchen, dining service, and staffing.
FranchiseVerdict summary · 2026
A Phở Hòa franchise requires a total initial investment of $391K – $759K, including a $30K franchise fee and an ongoing 4.0% royalty[2]. The 2025 FDD does not disclose unit-level revenue (no Item 19). FranchiseVerdict grade: D (Below average), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2025 FDD issuance
Overview
- Investment
- $391K – $759K
- 18th pct Service Resta…
- Avg gross sales
- N/A
- Royalty
- 4.0%
- 2nd pct Service Resta…
- Units
- 17
- 18th 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 $391K – $759K including a $30K franchise fee, 4.0% ongoing royalty.
- RETURNSAudited statements of South Bay Soup Corporation (the franchisor) for FY ended Dec 31, 2024 (most recent) and 2023. All figures in whole US dollars. FY2024 Total Income $1,148,852 = product sales $603,961 + royalties $504,891 + franchise fees $40,000; other_revenue is "Other income" $6,400 (excluded from Total Income). Net Income (Loss) was a loss of $(11,014). Balance sheet reconciles: total assets $506,221 = total liabilities $349,267 + stockholder's equity $156,954.
- RISKVerdict D (Below average), verdict score 33/100 (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
- South Bay Soup Corporation
- Parent company
- Aureflam Corporation
- CEO title
- President, Chief Executive Officer, Chief Financial Officer and Director
- Quoc Phan
- CEO experience
- 9 yrs
- Years in role or industry
- Incorporated in
- CA
- HQ
- 2372 Maritime Drive, Elk Grove, California 95758
- Auditor
- Katz Cassidy, An Accountancy Corporation
- Audited financials
- Franchisor revenue
- $1.1M
- vs $1.2M prior year
Overview
About
- CEO
- Quoc Phan
- Headquarters
- CA
- Founded
- 2005
- FDD year
- 2025
- States available
- 8
Can you afford it, and what does the money buy?
Entry cost runs 51% below the typical full-service restaurants franchise.
Source: FDD 2025 · Items 5–7
Full Item 7 breakdown11 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Expenses During Basic Trainingnot refundable | — | — | |
| Lease Security Deposit | — | — | |
| Rent (Pre-Opening, 6-month period)not refundable | $23K | $101K | |
| Rent (First 3 Months After Opening)not refundable | $17K | $38K | |
| Leasehold Improvementsnot refundable | — | — | |
| Restaurant Equipment, Furniture and Signsnot refundable | — | — | |
| Point-of-Sale (POS) and Other Computer Systemsnot refundable | — | — | |
| Opening Inventorynot refundable | — | — | |
| Tableware, Smallware, Supplies, and Uniformsnot refundable | — | — | |
| Professional Feesnot refundable | — | — | |
| Other Security Deposits and Pre-Paid Expenses | — | — | |
| Total initial investment | $40K | $139K |
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
- $391K – $759K
- Top 40% of category vs category
- Liquid capital req'd
- $30K – $45K
- Top 40% of category vs category
- Franchise fee
- $30K – $30K
- Top 40% of category vs category
- Royalty
- 4.0%
- percentage · typical 6–8%
- Ad fund
- Marketing Fee not yet imposed; when imposed, $500/month f…
- Total fee load
- 4.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 4.0% of gross sales |
| Transfer fee | $8K |
| Renewal fee | $8K |
| Inventory (initial) | $15K – $20K |
| Total fee load | 4.0% of rev |
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
Phở Hòa 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 Phở Hòa unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
13%
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: 2025 FDD
Financial Performance
Audited statements of South Bay Soup Corporation (the franchisor) for FY ended Dec 31, 2024 (most recent) and 2023. All figures in whole US dollars. FY2024 Total Income $1,148,852 = product sales $603,961 + royalties $504,891 + franchise fees $40,000; other_revenue is "Other income" $6,400 (excluded from Total Income). Net Income (Loss) was a loss of $(11,014). Balance sheet reconciles: total assets $506,221 = total liabilities $349,267 + stockholder's equity $156,954.
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 4.0% — 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.
Operator retention
System contracting at -22.2% CAGR over 3 years. Investigate whether closures are franchisor-driven consolidation or franchisee exits.
Multi-unit rate
40% of franchisees own multiple units, a moderate multi-unit rate.
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 Phở Hòa Compares
Is the system healthy?
Source: FDD 2025 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 17
- Opened
- 1
- Last reporting year
- Closed
- 2
- Terminated
- 1
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 57.1%
- Company-owned
- 3
- Corporate units in the system
- % franchised
- 82%
- vs corporate-owned
- Multi-unit owners
- 40.0%
- Net growth (3-yr)
- -22.2%
- Net unit change over 3 years
- 3-yr CAGR
- -22.2%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 3
- Closed (3yr)
- 5
- Terminated (3yr)
- 3
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 0
- Reacquired (3yr)
- 1
- Franchisor bought back
- Projected new
- 5
- Franchisor's next-year forecast
- Termination rate
- 5.9%
- Franchisor-initiated terminations
- Ceased ops
- 29.4%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 11 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 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
Phở Hòa shows critical distress signals: rapid unit contraction, undisclosed financials, going concern problems, and a shrinking franchisee base that questions system viability.
Litigation (Item 3)
No litigation required to be disclosed
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Katz Cassidy, An Accountancy Corporation
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
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 33 / 100 verdict
- 01MEDSystem is contracting sharply with 17.6% unit decline YoY (17 units remaining suggests system collapse from ~21 units)
- 02MEDNo Item 19 financial performance data disclosed — cannot validate if 4% royalty is sustainable or if units are profitable
- 03HIGHGoing Concern status is False — franchisor may have serious financial viability issues
- 04MINORHigh initial investment ($391K–$759K) combined with declining unit count creates survivorship risk
- 05MINOR5-year term is short; unclear if franchisor will still support system at renewal
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 4.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2025 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 5 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 2 |
| 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 | 10 mi |
| Right of first refusalℹ | Yes |
| RoFR response window | 30 days |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | No |
| Arbitration location | Elk Grove, California |
| Jury trial waiver | Yes |
| Governing law | CA |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation required to be disclosed
Items 10, 11
Training & Operations
- Classroom training
- 36 hrs
- On-the-job training
- 116 hrs
- Training location
- San Jose, California or Sacramento, California area
- Ongoing training
- Required
- Field support
- 40 hrs/yr
- On-site visits per year
- Time to open
- 6 mo
- From signing to launch
- Site selection
- Franchisee selects subject to franchisor approval
- Franchisor financing
- Not offered
- Item 10
- POS system
- Toast POS
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Toast POS
Item 20 · call current owners
Franchisee Contacts
24 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Phở Hòa · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Phở Hòa franchise?
The total investment to open a Phở Hòa franchise ranges from $391K – $759K, 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 Phở Hòa franchise owners earn?
Phở Hòa 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 Phở Hòa 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 Phở Hòa FDD and qualifies whose outlets they describe.
What is Phở Hòa's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Phở Hòa (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 Phở Hòa franchise locations are there?
As of their most recent FDD filing, Phở Hòa has 17 total units in the United States, including 14 franchised units and 3 company-owned units. 1 new units were opened in the latest reporting year.
Is Phở Hòa a good franchise to buy?
FranchiseVerdict rates Phở Hòa as a D-grade franchise with a verdict score of 33 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.