Pixiu MalahongtangFranchise Cost, Revenue & Review 2026
Data from FDD filing
FranchiseVerdict summary · 2026
A Pixiu Malahongtang franchise requires a total initial investment of $333K – $615K, including a $40K franchise fee and an ongoing 5.0% royalty[2]. The 2024 FDD does not disclose unit-level revenue (no Item 19). Verdict grade: B. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2024 FDD issuance
Overview
- Investment
- $333K – $615K
- 21st pct Service Resta…
- Avg gross sales
- N/A
- 28th pct Service Resta…
- Royalty
- 5.0%
- 7th pct Service Resta…
- Units
- 4
- 10th 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
Franchised units fell from 3 to 0 over 3 years. Investigate why operators are leaving.
Bottom line
- Total investment $333K – $615K including a $40K franchise fee, 5.0% ongoing royalty.
- No Item 19 financial performance data disclosed. The franchisor chose not to publish revenue figures.
- Verdict B (Above Average) with a risk score of 57/100.
- 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
- Pixiu F&C USA, Inc.
- Parent company
- Pixiu F&C Company ("Pixiu F&C Korea")
- Ultimate parent
- Pixiu F&C Korea
- CEO title
- CEO, CFO and Secretary
- Joon Yeon Lee
- Incorporated in
- CA
- HQ
- 6980 Beach Blvd. H-208, Buena Park, CA 90621
- Auditor
- Dow & Sohn CPAs
- Audited financials
- Franchisor revenue
- $23K
- vs $212K prior year
- Management churn noted
- Frequent turnover
- Item 2 disclosed frequent executive changes
Overview
About
Pixiu Malahongtang appears to be a beverage/tea franchise concept, likely offering specialty drinks (malahongtang suggests traditional Asian herbal/fruit drink formulations). Franchisees operate retail locations managing inventory, customer service, drink preparation, and local marketing within their protected territory.
- CEO
- Joon Yeon Lee
- Headquarters
- CA
- Founded
- 2022
- FDD year
- 2024
- States available
- 3
FDD Item 7 · 2024 filing · 13 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Feenot refundable | $40K | $40K | |
| Real Estate Security/Deposits and Initial Rentnot refundable | $12K | $60K | |
| Construction and Leasehold Improvementsnot refundable | $170K | $250K | |
| Design and Architecturenot refundable | $6K | $8K | |
| Equipment, Furniture and Fixturesnot refundable | $35K | $75K | |
| Opening Inventorynot refundable | $15K | $40K | |
| Insurancenot refundable | $5K | $15K | |
| Opening Promotion and Grand Openingnot refundable | $5K | $10K | |
| POS System/Other Office Equipmentnot refundable | $3K | $20K | |
| Initial Training Expensesnot refundable | $500 | $5K | |
| Business Licenses, Utility Deposits, Prepaid Feesnot refundable | $2K | $10K | |
| Pre-opening Payrollnot refundable | $10K | $12K | |
| Additional Funds - 3 monthsnot refundable | $30K | $70K | |
| Total initial investment | $333K | $615K |
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
- $333K – $615K
- Better than avg vs category
- Liquid capital req'd
- $30K – $70K
- Better than avg vs category
- Franchise fee
- $40K – $40K
- Better than avg vs category
- Royalty
- 5.0%
- Gross Sales · 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 | $250 |
| Training fee | $100 |
| Transfer fee | $20K |
| Renewal fee | $20K |
| Total fee load | 6.0% 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 Pixiu Malahongtang Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 4
- Opened
- 2
- 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
- 1
- Corporate units in the system
- % franchised
- 75%
- vs corporate-owned
- Net growth (yr3)
- +200.0%
- Net unit change last year
3-year detail · Item 20
- Transfers (3yr)
- 0
- Projected new
- 2
- Franchisor's next-year forecast
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 7 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.
Fast growth in a small system. Newer franchisors expanding quickly may not yet have the support infrastructure of larger systems.
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
This is a pre-revenue-stage or financially distressed franchisor with a micro-system (4 units), no financial transparency, and concerning going-concern status that represents extreme investment risk.
Litigation (Item 3)
No litigation required to be disclosed
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Dow & Sohn CPAs
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- 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 57 / 100 rating
- 01HIGHGoing Concern status is FALSE — indicates potential financial distress or instability at franchisor level
- 02MINOROnly 4 units in system with 200% YoY growth is mathematically suspicious (likely grew from 1-2 units) — extremely small, unstable base
- 03MEDNo average revenue or net income disclosure (Item 19 missing) — cannot validate ROI claims or unit economics
- 04MEDHigh investment range ($333K-$615K) with undisclosed profitability creates severe risk asymmetry
- 05MEDNascent franchise system (4 units) means limited operational track record and high failure risk
- 06MINOR5% royalty on gross sales (not net) means franchisees pay even during unprofitable months
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 | 1 |
| Territory type | Radius |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory radius | 1 mi |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 10 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Arbitration location | Orange County, California |
| 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
- 12 hrs
- On-the-job training
- 35 hrs
- Training location
- On-site and corporate
- Ongoing training
- Required
Items 5 & 11
Franchisor Support
Item 20 · call current owners
Franchisee Contacts
8 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Pixiu Malahongtang · FDD (2024) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Pixiu Malahongtang franchise?
The total investment to open a Pixiu Malahongtang franchise ranges from $333K – $615K, with an initial franchise fee of $40K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Pixiu Malahongtang franchise owners earn?
Pixiu Malahongtang 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 Pixiu Malahongtang's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Pixiu Malahongtang (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 Pixiu Malahongtang franchise locations are there?
As of their most recent FDD filing, Pixiu Malahongtang has 4 total units in the United States, including 3 franchised units and 1 company-owned units. 2 new units were opened in the latest reporting year.
Is Pixiu Malahongtang a good franchise to buy?
FranchiseVerdict rates Pixiu Malahongtang as a B-grade franchise with a risk score of 57 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.