Thai ExpressFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Thai Express franchise requires a total initial investment of $360K – $950K, including a $30K franchise fee and an ongoing 6.0% royalty[2]. The 2025 FDD does not disclose unit-level revenue (no Item 19). SBA 7(a) loans show a 50.0% charge-off rate across 10 loans[1]. Verdict grade: F. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $360K – $950K
- 68th pct Service Resta…
- Avg gross sales
- N/A
- 59th pct Service Resta…
- Royalty
- 6.0%
- 44th pct Service Resta…
- Units
- 6
- 25th pct Service Resta…
- SBA default
- 50.0%
- system-wide median varies by category
Quick verdict · Quick-Service Restaurants · color = vs category peers
Green = >15% above Quick-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
50.0% of SBA loans charged off across 10 loans, above the 16% franchise average.
The system contracted 29% year-over-year. Investigate why units are closing.
20 legal cases disclosed in the FDD. Read Item 3 before signing.
Bottom line
- Total investment $360K – $950K including a $30K franchise fee, 6.0% 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. SBA loan charge-off rate of 50.0% across 10 loans (well above the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2024).
- 20 litigation matters disclosed in Item 3, higher than typical. Review the summary for patterns (franchisor-initiated vs. franchisee-initiated).
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- MTY Franchising USA, Inc.
- Parent company
- MTY Food Group, Inc.
- Incorporated in
- TN
- HQ
- 9311 East Via de Ventura, Scottsdale, Arizona 85258
- Auditor
- PricewaterhouseCoopers LLP
- Audited financials
- Franchisor revenue
- $597.5M
- vs $606.6M prior year
Overview
About
Thai Express franchisees operate quick-service Thai restaurants featuring noodle dishes, curries, rice bowls, and Asian fusion items. Day-to-day operations include managing front-of-house service, food preparation, inventory management, staffing, and local marketing in a QSR format. Franchisees are responsible for all lease, labor, and operating costs while paying 6% royalties to the franchisor.
- CEO
- Eric Lefebvre
- Headquarters
- AZ
- Founded
- 2001
- FDD year
- 2025
- States available
- 5
FDD Item 7 · 2025 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $30K | $30K |
| Working capital (3–6 mo) | $25K | $36K |
| Equipment, build-out, other | $305K | $884K |
| Total initial investment | $360K | $950K |
Source: Thai Express 2025 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $360K – $950K
- Below avg, review vs category
- Liquid capital req'd
- $25K – $36K
- Below avg, review vs category
- Franchise fee
- $30K – $30K
- Better than avg vs category
- Royalty
- 6.0%
- percentage_of_gross · typical 6–8%
- Ad fund
- 3.0%
- typical 3–5%
- Total fee load
- 9.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.0% of gross sales |
| Marketing / ad fund | 3.0% of gross sales |
| Technology fee | $200 |
| Training fee | $2K |
| Transfer fee | $15K |
| Renewal fee | $50 |
| Total fee load | 9.0% of rev |
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
vs Quick-Service Restaurants averages
How Thai Express Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 6
- Opened
- 0
- Last reporting year
- Closed
- 2
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 33.3%
- Company-owned
- 1
- Corporate units in the system
- % franchised
- 83%
- vs corporate-owned
- Net growth (yr3)
- -28.6%
- Net unit change last year
- 3-yr CAGR
- -37.5%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 0
- Projected new
- 12
- Franchisor's next-year forecast
- Continuity rate
- 71.4%
- Units that stayed open
- Ceased ops
- 33.3%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 33 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.
- Total loans
- 10
- Loan volume
- $3.8M
- Median loan
- $373K
- 50th percentile
- Charge-off rate
- 50.0%
- rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 50.0%
- 5-yr charge-off
- 0.0%
- Loans approved 2021+
- Active lenders
- 7
- Defaults
- 4
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Thai Express's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 7 lenders with concentration factor
- Per-state charge-off rates across 7 states
- Startup risk premium and job creation velocity
- 4-year lending trend
Instant access. No subscription.
A 50.0% charge-off rate means roughly 1 in 2 franchisees failed to repay their SBA loan. Investigate what changed.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Thai Express presents extreme risk due to rapid unit collapse, going concern status, extensive franchisor litigation, absent financial disclosures, and questionable viability of parent company (Kahala).
Litigation (Item 3)
Two concluded cases involving franchisor predecessors: (1) Purav Enterprises, L.L.C., et al. v. The Extreme Pita Franchising USA, Inc., et al. (Washington Superior Court, Case No. 15-2-15120-7) - settled March 11, 2016 for $20,000. Plaintiffs alleged FIPA violations, misrepresentation of financial performance, and unregistered broker activity. (2) KOHO, Inc. v. Kahala Franchising, L.L.C. (California Superior Court, Case No. BC572565) - settled June 19, 2017 whereby Kahala repurchased Area Developer territory for $75,000 and forgave $130,000 in damages.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · PricewaterhouseCoopers LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
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 100 / 100 rating
- 01MEDSevere unit decline of 28.6% YoY (from ~8.4 to 6 units) indicates system collapse
- 02HIGHGoing Concern status is FALSE — franchisor financial viability is questioned
- 03HIGHExtensive litigation history across multiple related brands (Kahala portfolio) involving breach of contract, misrepresentation, and registration violations
- 04MINORNo average revenue or net income disclosure — inability or unwillingness to provide Unit 19 data is major red flag
- 05MINORHigh investment range ($360K–$950K) with unproven return potential and no performance benchmarks
- 06MINORNo protected territory — franchisees face direct competition from other Thai Express locations and brand partners
- 07MED6% royalty on undisclosed revenue creates uncertainty about actual take-home profitability
- 08MINORMultiple state administrative actions suggest systemic compliance and disclosure failures by franchisor
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 | 10 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 1 |
| Protected territory | No |
| Exclusive territoryℹ | No |
| 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 | 90 days |
| Mandatory arbitration | Yes |
| Arbitration location | county where the franchised business is located |
| Governing law | Arizona |
| Litigation count | 20 |
View Item 3 litigation summary
Two concluded cases involving franchisor predecessors: (1) Purav Enterprises, L.L.C., et al. v. The Extreme Pita Franchising USA, Inc., et al. (Washington Superior Court, Case No. 15-2-15120-7) - settled March 11, 2016 for $20,000. Plaintiffs alleged FIPA violations, misrepresentation of financial performance, and unregistered broker activity. (2) KOHO, Inc. v. Kahala Franchising, L.L.C. (California Superior Court, Case No. BC572565) - settled June 19, 2017 whereby Kahala repurchased Area Developer territory for $75,000 and forgave $130,000 in damages.
Items 10, 11
Training & Operations
- Classroom training
- 40 hrs
- On-the-job training
- 160 hrs
- Field support
- 160 hrs/yr
- On-site visits per year
- POS system
- Focus POS
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Focus POS
Item 20 · call current owners
Franchisee Contacts
48 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Thai Express · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Thai Express franchise?
The total investment to open a Thai Express franchise ranges from $360K – $950K, 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 Thai Express franchise owners earn?
Thai Express 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 Thai Express's franchise failure rate?
Based on SBA 7(a) loan data, Thai Express has a charge-off rate of 50.0% across 10 loans, meaning 50.0% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many Thai Express franchise locations are there?
As of their most recent FDD filing, Thai Express has 6 total units in the United States, including 5 franchised units and 1 company-owned units.
Is Thai Express a good franchise to buy?
FranchiseVerdict rates Thai Express 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.