Tim Ho Wan
Formerly known as Coffee & Tea
Bottom line
- Total investment $3.2M – $3.8M including a $86K franchise fee, 3.0% ongoing royalty.
- No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
- Rated MODERATE with a risk score of 65/100.
- Auditor disclosed a going-concern note — flagged doubt about the franchisor's ability to continue operations. Verify against the latest FDD.
Item 1 · who you're contracting with
The Franchisor
Yale framework · single-unit ROIC
Returns Analysis
Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.
The model · Yale framework
What would one Tim Ho Wan unit return on the cash you put in?
Unlevered ROIC · per unit
3%
Below typical band (30–60%)
Overview
About
Franchisees operate dim sum restaurants serving authentic Cantonese-style small plates, dumplings, and specialty teas. Day-to-day operations include inventory management of perishable dim sum items, managing a kitchen team skilled in handmade dumpling production, coordinating cart service or counter ordering, and maintaining high food quality and service standards to meet brand expectations.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 15 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 phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
No SBA loan data available for this brand.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Tim Ho Wan presents CAUTION-level risk: a micro-franchise system (6 units) with non-transparent unit economics, unprotected territories, and a high capital requirement that may not be justified by demonstrated franchisee profitability.
Score breakdown · what drove the 65 / 100 rating
- 01MINOROnly 6 units systemwide suggests a nascent or stalled franchise system with unproven scalability
- 02MINORNo average revenue or net income disclosure (Item 19) prevents ROI validation and obscures unit-level economics
- 03MINORUnprotected territory creates direct competition risk from other franchisees in same market
- 04MINORHigh initial investment ($3.2M–$3.8M) with low unit count indicates slow franchise growth and potential capital inefficiency
- 05MINORUnknown unit growth trajectory raises questions about franchisee satisfaction, retention, and system viability
- 06MINORModest 3% royalty may indicate franchisor is under-resourced to support franchisees at scale
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
Item 11
Training & Operations
Item 20
Franchisee Contacts
Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.
Franchisee contacts
22 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Tim Ho Wan · FDD (2025) PDF