Manchu Wok
Manchu Wok franchises offer Chinese and Asian-style cuisine in various locations. Known for its diverse menu, the brand requires an initial investment of $453,000 to $756,500. Operates in the quick-service restaurant sector.
About Manchu Wok
Manchu Wok Inc. is a Canadian fast food restaurant chain that specializes in Chinese fusion cuisine. The brand operates 57 locations across eight Canadian provinces and 13 in the US. The chain operates in shopping malls, airports and some US military installations. It is owned by Canada-based MTY Food Group.
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Manchu Wok franchise FAQ
How much does it cost to open one — the total initial investment?
The total investment necessary to begin operation of a Manchu WOK Restaurant franchised business ranges from $490,050 to $820,500. This amount includes payments that range from $453,000 to $756,500 that must or may be paid to the franchisor or its affiliates. [p.1]
What is the initial franchise fee?
The initial franchise fee is $30,000 [p.33], which is not refundable except if the Franchise Agreement is terminated because you do not successfully complete the Initial Training [p.294]. This fee constitutes part of the franchisor's general operating funds and will be amortized over the term of the franchise agreement once the restaurant has opened [p.135].
What are the ongoing royalty and advertising fees?
The franchisee must pay a fee to promotional funds, which is collected by the company for promotional and advertising purposes [p.139]. Additionally, the franchisee is generally not obligated to spend more than 5% of their gross sales in any twelve-month period on marketing fees, regional cooperative marketing fees, and advertising under the lease [p.176].
How long is the initial franchise agreement, and can I renew it?
This isn't specified in the excerpts.
Can I sell or transfer my franchise, and what does that require?
According to the FDD, in Minnesota, you can transfer your franchise as long as the franchisor's consent is not unreasonably withheld [p.285]. However, specific procedures for transfers are not detailed in these excerpts.
On what grounds can the franchisor terminate the agreement?
The franchisor may terminate the agreement on any grounds available by law [p.289]. Additionally, under Virginia law, a franchisor cannot cancel a franchise without reasonable cause [p.296], and specific terms for termination or default must comply with the Virginia Retail Franchising Act.
What financial requirements — net worth and liquid capital — do I need to qualify?
This isn't specified in the excerpts.
Do I get an exclusive or protected territory?
No, you will not receive an exclusive territory. You may face competition from other franchisees, outlets owned by the franchisor, or other competitive brands controlled by the franchisor [p.61].
What training and ongoing support does the franchisor provide?
The franchisor provides initial training under the supervision of Mr. Tony Lei and other corporate employees with experience ranging from 5 to 20 years in related fields [p.56]. This training includes classroom sessions and on-the-job training at a Manchu WOK restaurant, supervised by the store manager [p.56]. Additionally, ongoing support involves retraining or providing new methods as deemed necessary by the franchisor [p.188].
How many franchised outlets are there, and how many have closed or been terminated?
As of November 30, 2024, there were 15 franchised stores open in the United States. However, the number of closed or terminated stores is not specified in the provided excerpts. [p.75]
Does the franchisor share any financial performance or earnings information?
The franchisor may provide financial performance information if there is a reasonable basis for it and if it is included in the disclosure document [p.74]. However, other than the financial performance representation specified in Item 19, the franchisor does not make any financial performance representations, nor do they authorize their employees or representatives to make such representations [p.75].
What am I restricted to selling, and where must I buy supplies?
You are restricted to serving retail customers at your Restaurant premises for personal carry-out consumption and delivery service that complies with the franchisor's standards. You must buy any items bearing the franchisor's marks, such as plates, cups, napkins, take-out bags, etc., only from the franchisor's approved suppliers [p.190]. For other supplies, you may purchase them from any supplier of your choosing, provided that in some cases where specific approved products are available from more than one source, you must still buy only the approved item with no substitutions [p.46].