Phở HòaFranchise Cost, Revenue & Review 2026
Data from FDD filing
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). Verdict grade: F. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $391K – $759K
- 27th pct Service Resta…
- Avg gross sales
- N/A
- 28th pct Service Resta…
- Royalty
- 4.0%
- 3rd pct Service Resta…
- Units
- 17
- 26th pct Service Resta…
- SBA default
- N/A
Quick verdict · Full-Service Restaurants · color = vs category peers
Green = >15% above Full-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
Franchising since 1992. Systems this mature have refined operations and brand recognition.
The system contracted 18% year-over-year. Investigate why units are closing.
Bottom line
- Total investment $391K – $759K including a $30K franchise fee, 4.0% ongoing royalty.
- No Item 19 financial performance data disclosed. The franchisor chose not to publish revenue figures.
- Verdict F (Bottom Quintile) with a risk score of 100/100.
- No 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
- 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
- Audited financials
- Franchisor revenue
- $1.2M
- vs $1.1M prior year
Overview
About
Franchisees operate quick-service Vietnamese phở restaurants, managing food preparation, ordering, inventory, and front-of-house customer service. Day-to-day involves managing kitchen staff, maintaining quality consistency, handling lunch and dinner rushes, and executing the brand's menu and operational procedures.
- CEO
- Quoc Phan
- Headquarters
- CA
- FDD year
- 2025
- States available
- 8
FDD Item 7 · 2025 filing · 11 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
- Better than avg vs category
- Liquid capital req'd
- $30K – $45K
- Better than avg vs category
- Franchise fee
- $30K – $30K
- Better than avg vs category
- Royalty
- 4.0%
- percentage_of_gross · typical 6–8%
- Ad fund
- $500 per month (not yet imposed)
- 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 |
| Total fee load | 4.0% of rev |
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
vs Full-Service Restaurants averages
How Phở Hòa Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 17
- Opened
- 1
- Last reporting year
- Closed
- 4
- Terminated
- 1
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 23.5%
- Company-owned
- 3
- Corporate units in the system
- % franchised
- 82%
- vs corporate-owned
- Multi-unit owners
- 40.0%
- Net growth (yr3)
- -17.6%
- Net unit change last year
- 3-yr CAGR
- -22.2%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 0
- 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.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
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
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 100 / 100 rating
- 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
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 5 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 2 |
| Territory type | Radius |
| Protected territory | Yes |
| Exclusive territoryℹ | Yes |
| Territory radius | 3 mi |
| Online sales rights | 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 |
| Jury trial waiver | Yes |
| Governing law | California |
| 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
- Ongoing training
- Required
- Field support
- 40 hrs/yr
- On-site visits per year
- POS system
- Toast POS
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Toast POS
Item 20 · call current owners
Franchisee Contacts
27 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 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 F-grade franchise with a risk score of 100 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.