Thai Express
Thai Express offers quick-service Thai restaurants, known for authentic cuisine and diverse menu options in the food service industry.
Thai Express franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operation ranges between $360,400 and $949,700. This includes costs such as leasehold improvements, rent deposits, and initial franchise fees, but varies based on factors like location, size of the premises, and market conditions [p.1, p.43].
What is the initial franchise fee?
The initial franchise fee is $30,000 per Thai Express Restaurant you operate. This fee is deemed fully earned upon receipt and is not refundable [p.31]. Payments of this fee are deferred until the franchisor has completed all pre-opening obligations and the franchised location is open for business [p.346] and [p.339].
What are the ongoing royalty and advertising fees?
The franchisee must pay an ongoing royalty equal to six percent (6%) of Gross Sales during the Term and any Interim Period. Advertising fees are not specified in these excerpts, but they may be included under the broader category of franchise agreement fees, which can include various types of payments as defined by MTY USA's discretion [p.37].
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, you can generally sell or transfer your franchise, but it must be done with good cause [p.338]. The process may involve dealing in 'good faith' as required by the Washington Franchise Investment Protection Act [p.349], and you need to ensure that any transfer fees collected reflect the franchisor's reasonable costs for effecting a transfer [p.349].
On what grounds can the franchisor terminate the agreement?
According to [p.340], a franchisor may terminate the franchise agreement prior to its expiration only for good cause, which includes the failure of the franchisee to comply with any lawful provision of the franchise agreement and to cure such failure. This isn't specified in the excerpts for other grounds of termination.
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 do not receive an exclusive territory. The franchise agreement does not provide territorial protection, and you may face competition from other franchisees, outlets owned by the franchisor, or other distribution channels [p.63].
What training and ongoing support does the franchisor provide?
The franchisor provides a comprehensive Training Program consisting of approximately 40 hours of new owner training followed by about 160 hours of in-store training. This includes both classroom and on-the-job components, with materials such as manuals, videos, and job aids. Ongoing support is also provided through the establishment of a Marketing Fund for advertising and promotion, though the franchisee's specific benefit from these funds is not guaranteed. [p.176, p.55]
How many franchised outlets are there, and how many have closed or been terminated?
As of November 30, 2024, there were 7 franchised outlets. The FDD does not specify the number of closed or terminated outlets directly; however, it mentions that MTY Franchising USA Inc. had 9 Thai Express outlets in total (including both franchised and company-owned outlets), implying that at least 2 outlets are company-owned and not franchised. This isn't specified in the excerpts for the exact number of closed or terminated franchised outlets. [p.7]
Does the franchisor share any financial performance or earnings information?
The franchisor does not make representations about a franchisee's future financial performance or the past financial performance of company-owned or franchised outlets. However, if you are purchasing an existing outlet, they may provide actual records of that specific outlet [p.77]. Any other financial performance information received should be reported to the franchisor’s management and relevant regulatory agencies [p.77].
What am I restricted to selling, and where must I buy supplies?
You are required to sell only the Thai Express Products and services designated by the franchisor. You cannot offer or sell any other types of products or services [p.69]. Supplies and equipment used in your Thai Express Restaurant must be purchased from the franchisor or a vendor approved by them, and they must meet the standards and specifications set by the franchisor [p.69].