Tim Ho WanFranchise Cost, Revenue & Review 2026
Data from FDD filing
FranchiseVerdict summary · 2026
A Tim Ho Wan franchise requires a total initial investment of $3.2M – $3.8M, including a $86K franchise fee and an ongoing 3.0% royalty[2]. The 2025 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 2025 FDD issuance
Overview
- Investment
- $3.2M – $3.8M
- 48th pct Service Resta…
- Avg gross sales
- N/A
- 28th pct Service Resta…
- Royalty
- 3.0%
- 1st pct Service Resta…
- Units
- 6
- 15th 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
The franchisor's auditor raised doubt about continued operations. This is a serious risk signal.
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.
- Verdict B (Above Average) with a risk score of 60/100.
- Auditor disclosed a going-concern note, which flagged doubt about the franchisor's ability to continue operations. Verify against the latest FDD.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Tim Ho Wan International Pte. Ltd.
- Incorporated in
- Singapore
- HQ
- 101 Thomson Road #08-07, United Square, Singapore 307591
- Auditor
- Wuhoover & Co. LLP
- Audited financials
- Franchisor revenue
- $2.0M
- vs $1.8M prior year
- ⚠ Going-concern note
- Disclosed in FDD 2025
- Auditor flagged doubt about continued operations. Verify against the latest FDD before deciding.
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.
- CEO
- Yeong Sheng Lee
- FDD year
- 2025
- States available
- 5
FDD Item 7 · 2025 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $86K | $86K |
| Working capital (3–6 mo) | $300K | $360K |
| Equipment, build-out, other | $2.8M | $3.4M |
| Total initial investment | $3.2M | $3.8M |
Source: Tim Ho Wan 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
- $3.2M – $3.8M
- Near category avg vs category
- Liquid capital req'd
- $300K – $360K
- Near category avg vs category
- Franchise fee
- $86K – $86K
- Near category avg vs category
- Royalty
- 3.0%
- Gross Sales · typical 6–8%
- Ad fund
- -n/d
- Total fee load
- 3.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 3.0% of gross sales |
| Total fee load | 3.0% 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 Tim Ho Wan Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 6
- Opened
- 0
- Last reporting year
- Closed
- 0
- Turnover rate
- 0.0%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (yr3)
- +0.0%
- Net unit change last year
- 3-yr CAGR
- +0.0%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 1
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 5 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.
Available to sell in · Item 12
- New York
States where the franchisor is registered to sell new franchises (FDD registration filings).
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
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.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Wuhoover & Co. LLP⚠ Going-concern note flagged
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Must buy proprietary products: No
Score breakdown · what drove the 60 / 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
| Initial term | 10 years |
|---|---|
| Allowed renewalsℹ | 0 |
| Protected territory | No |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | Delaware |
| Litigation count | 0 |
Items 10, 11
Training & Operations
- Classroom training
- 0 hrs
- On-the-job training
- 0 hrs
- Training location
- On-site and corporate
- Site selection
- franchisor
- POS system
- NCR / Aloha
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: NCR / Aloha
Item 20 · call current owners
Franchisee Contacts
6 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Tim Ho Wan · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Tim Ho Wan franchise?
The total investment to open a Tim Ho Wan franchise ranges from $3.2M – $3.8M, with an initial franchise fee of $86K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Tim Ho Wan franchise owners earn?
Tim Ho Wan 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 Tim Ho Wan's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Tim Ho Wan (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 Tim Ho Wan franchise locations are there?
As of their most recent FDD filing, Tim Ho Wan has 6 total units in the United States, including 6 franchised units and 0 company-owned units.
Is Tim Ho Wan a good franchise to buy?
FranchiseVerdict rates Tim Ho Wan as a B-grade franchise with a risk score of 60 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.
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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.