Pho Hoa
Pho Hoa offers authentic Vietnamese noodle soups and casual dining dishes in sit-down restaurants, appealing to health-conscious customers with fresh ingredients. Known for its proprietary recipes, Pho Hoa franchises require an initial investment of $332,600 - $680,180.
About Pho Hoa
Phở Hòa is a phở restaurant chain based in Sacramento, California, United States. It was founded in San Jose, California, in 1983. As of 2017, it has more than 70 locations across the United States, Canada, Indonesia, Malaysia, the Philippines, South Korea, and Taiwan.
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Pho Hoa franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operation of a Phở Hòa® restaurant franchise ranges from $332,600 to $680,180. This includes an Initial Franchise Fee of $43,720 to $51,220 that must be paid before the Opening Date [p.1].
What is the initial franchise fee?
The initial franchise fee is $30,000 [p.92]. This fee is paid in full upon execution of the Agreement, with any previously paid deposit being deducted from this amount.
What are the ongoing royalty and advertising fees?
Ongoing royalty payments are based either on a flat monthly rate or a percentage of franchisee sales, depending on the franchise agreement. Additionally, franchisees pay a marketing fee that is also based on a flat monthly rate or a percentage of franchisee sales, though these fees are not included in revenue and are remitted to the Company's parent for advertising, marketing, and brand awareness [p.234, p.222].
How long is the initial franchise agreement, and can I renew it?
The initial franchise agreement has an initial term of five years, with two additional five-year renewal periods available at your option, subject to certain requirements established by the company [p.234, p.78].
Can I sell or transfer my franchise, and what does that require?
This isn't specified in the excerpts.
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the agreement based on grounds stated in the Franchise Agreement, provided these grounds constitute 'reasonable cause' as defined under Virginia law [p.208]. Additionally, any other franchise agreements between the parties for Phở Hòa® Restaurants owned by the franchisee will remain in effect unless specific termination grounds also apply to those agreements [p.111].
What financial requirements — net worth and liquid capital — do I need to qualify?
This isn't specified in the excerpts. The FDD does not provide specific details on net worth or liquid capital requirements for franchisees. [p.149] mentions minimum financial requirements but doesn't detail them.
Do I get an exclusive or protected territory?
Yes, if you locate your Phở Hòa® restaurant outside of a Metropolitan Urban Core Area, you will receive an exclusive territory. Your territory will cover approximately a 3-mile radius from the front door of your restaurant, and no other Phở Hòa® franchise will be allowed in that area [p.43, p.44]. However, if your location is within a Metropolitan Urban Core Area, you do not receive an exclusive territory and may face competition [p.43].
What training and ongoing support does the franchisor provide?
The franchisor provides initial training as part of the franchise agreement [p.48], including a 'Basic Training' program that senior managers must complete, and ServSafe certification is required for those with restaurant-level supervisory duties. Additionally, the franchisor may conduct periodic continuing training programs to address changes in the system or other relevant topics [p.105]. However, specific details on the content, location, and frequency of these ongoing training sessions are not fully specified in the excerpts provided.
How many franchised outlets are there, and how many have closed or been terminated?
This isn't specified in the excerpts. The provided FDD does not give a total number of franchised outlets nor does it specify exactly how many have closed or been terminated. However, it does list names and contact information for franchisees who had their units terminated or ceased operations [p.242].
Does the franchisor share any financial performance or earnings information?
The franchisor may provide actual records of an existing outlet if you are considering purchasing it. However, they do not make any representations about future financial performance or past financial performance of company-owned or franchised outlets, and they authorize their employees or representatives to make no such representations either orally or in writing [p.54].
What am I restricted to selling, and where must I buy supplies?
You are required to sell Proprietary Products as specified by the franchisor, which can be modified or added to at any time [p.49]. For Non-Proprietary Products, you may purchase from any supplier capable of meeting the franchisor's specifications and quality standards [p.10]. You must buy or lease certain items from the franchisor or a limited group of suppliers designated by them, which might be more expensive than other options [p.3].