Urban WokFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Urban Wok franchise requires a total initial investment of $335K – $682K, including a $40K franchise fee and an ongoing 7.0% royalty[2]. Per the 2024 FDD, average unit revenue was $703K[2]. Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2024 FDD issuance
Overview
- Investment
- $335K – $682K
- 21st pct Service Resta…
- Avg gross sales
- $703K
- 5th pct Service Resta…
- Royalty
- 7.0%
- 42nd pct Service Resta…
- Units
- 8
- 18th pct Service Resta…
- SBA default
- 0.0%
- system-wide median varies by category
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
Bottom line
- Total investment $335K – $682K including a $40K franchise fee, 7.0% ongoing royalty.
- Average unit revenue of $703K/year.
- Verdict A (Top Quintile) with a risk score of 37/100.
- Revenue data based on only 1 reporting unit. Treat as directional, not definitive. Ask franchisees directly for current unit economics.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- URBAN WOK GLOBAL FUSION, LLC
- Parent company
- Urban Wok, LLC
- Incorporated in
- MN
- HQ
- 209 4th Street East, Saint Paul, Minnesota 55101
- Auditor
- REESE CPA LLC
- Audited financials
- Franchisor revenue
- $63K
- vs $124K prior year
Overview
About
Urban Wok franchisees operate fast-casual Asian noodle and wok-based restaurants, managing daily kitchen operations, front-of-house service, inventory control, and staff scheduling. Franchisees oversee food preparation quality, customer service delivery, and local marketing while adhering to Urban Wok's proprietary recipes and operational standards.
- CEO
- Mark Toth
- Headquarters
- MN
- Founded
- 2021
- FDD year
- 2024
- States available
- 3
FDD Item 7 · 2024 filing · 19 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Fee | $40K | $40K | |
| Your Training Expenses | $3K | $6K | |
| On-Site Trainer Travel Expenses | $5K | $10K | |
| Lease & Utilities deposits | $10K | $42K | |
| Architectural Plans | $8K | $8K | |
| Leasehold Improvements, Construction, Furniture, Fixtures and Equipment | $175K | $450K | |
| Construction Project Management Fee | $0 | $7K | |
| Real Estate Management Fee | $2K | $2K | |
| Signage | $10K | $12K | |
| Business Licenses and Permits | $3K | $5K | |
| Toast POS | $9K | $9K | |
| Security Systems | $3K | $5K | |
| Initial Inventory | $5K | $5K | |
| Professional Fees | $7K | $7K | |
| Grand Opening Advertising | $3K | $3K | |
| Insurance | $3K | $3K | |
| Operating Expenses / Additional Funds - 3 months | $50K | $70K | |
| Development Fee (Multi-Unit Development Agreement) | $96K | $96K | |
| Cost of first Urban Wok Franchised Business (Multi-Unit) | $295K | $642K | |
| Total initial investment | $725K | $1.4M |
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.
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$70K
10.0% margin
Unlevered ROIC
12%
EBITDA / total invested capital
Payback
8.1 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $335K – $682K
- Better than avg vs category
- Liquid capital req'd
- $50K – $70K
- Better than avg vs category
- Franchise fee
- $40K – $40K
- Better than avg vs category
- Royalty
- 7.0%
- Gross Revenue · typical 6–8%
- Ad fund
- 1.0%
- typical 3–5%
- Total fee load
- 8.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 7.0% of gross sales |
| Marketing / ad fund | 1.0% of gross sales |
| Technology fee | $250 |
| Transfer fee | $20K |
| Renewal fee | $10K |
| Inventory (initial) | $5K |
| Total fee load | 8.0% of rev |
Financial Performance
- Avg gross sales
- $703K
- Per unit, per year
- Median gross sales
- N/A
- Item 19 type
- Historical performance of affiliate-owned outlet
- Sample size
- 1 units
- vs category median 13 · small
- Range (low → high)
- $627K→$779K
- Cohort dispersion (min → max)
- Transparency tier
- limited
- Categorical assessment of disclosure depth
- Transparency
- 6 / 5
- vs category median 4 / 5 · above
Compared against 1264 Full-Service Restaurants brands
vs Full-Service Restaurants averages
How Urban Wok Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 8
- Opened
- 3
- Last reporting year
- Closed
- 0
- Turnover rate
- 0.0%
- Company-owned
- 1
- Corporate units in the system
- % franchised
- 88%
- vs corporate-owned
- Net growth (yr3)
- +40.0%
- Net unit change last year
3-year detail · Item 20
- Transfers (3yr)
- 0
Last reporting year only, multi-year history not disclosed in this brand's FDD.
Item 20 · 16 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 loan disclosures. This brand has only 4 7(a) loans on file; statistical reliability is limited below 10 loans.
- Total loans
- 4
- Loan volume
- $1.3M
- Median loan
- $178K
- 50th percentile
- Charge-off rate
- 0.0%
- 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)
- N/A
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 2
- Defaults
- 0
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Urban Wok's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 2 lenders with concentration factor
- Per-state charge-off rates across 1 states
- Startup risk premium and job creation velocity
- 3-year lending trend
Instant access. No subscription.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Urban Wok presents meaningful risk due to undisclosed profitability data, questionable corporate health (Going Concern status), and an unproven micro-franchise system with only 8 units attempting aggressive growth.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · REESE CPA LLC
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
- Restricted to system-approved products: Yes
Score breakdown · what drove the 37 / 100 rating
- 01MINORNo Item 19 (Net Income) disclosure - cannot validate profit claims against $698K avg revenue
- 02HIGHGoing Concern status is FALSE - suggests corporate financial instability or restructuring risk
- 03MINOROnly 8 units system-wide - extremely small franchise network limits support infrastructure and brand leverage
- 04MEDHigh royalty burden (7%) combined with non-disclosed net income makes profitability unclear at unit level
- 05MINORAggressive growth target (40% YoY) on tiny base suggests unproven scalability or recruitment-focused model
- 06MINORWide investment range ($334.5K-$682K spread) indicates inconsistent unit economics or build-out variability
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 | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | Zip codes / Radius / Population |
| Protected territory | Yes |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| Termination notice | 5 days |
| Mandatory arbitration | No |
| Jury trial waiver | Yes |
| Governing law | Minnesota |
| Litigation count | 0 |
Items 10, 11
Training & Operations
- Classroom training
- 112 hrs
- On-the-job training
- 112 hrs
- Training location
- On-site at franchisee's restaurant and at franchisor's location
- POS system
- Toast POS
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Toast POS
Item 20 · call current owners
Franchisee Contacts
20 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Urban Wok · FDD (2024) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Urban Wok franchise?
The total investment to open a Urban Wok franchise ranges from $335K – $682K, 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 Urban Wok franchise owners earn?
According to Item 19 of the Urban Wok FDD, the average gross sales per unit is $703K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Urban Wok's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Urban Wok (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 Urban Wok franchise locations are there?
As of their most recent FDD filing, Urban Wok has 8 total units in the United States. 3 new units were opened in the latest reporting year.
Is Urban Wok a good franchise to buy?
FranchiseVerdict rates Urban Wok as a A-grade franchise with a risk score of 37 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.