Urban Wok
Urban Wok offers a build-your-own stir-fry concept in an urban setting, known for its global fusion cuisine. Part of the quick-service restaurant industry, it requires significant investment for both single and multi-unit operations.
Urban Wok franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment to begin operating a single Urban Wok franchise ranges from $334,500 to $682,000. This includes an initial franchise fee and other necessary expenses but excludes costs like travel and personal expenses for trainees [p.1].
What is the initial franchise fee?
The initial franchise fee is forty thousand dollars ($40,000.00) [p.10, p.59]. This payment is fully earned by the franchisor at the time you sign the Franchise Agreement and is not refundable under any circumstances [p.10, p.59].
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is 7% of gross revenue, used to develop the brand and provide support for franchisees [p.158], while Franchisees must spend at least 1% of their monthly gross revenue on Local Advertising in their territory [p.76]. Franchisors may also collect up to 2% of gross revenue for national advertising through the Brand Fund [p.77].
How long is the initial franchise agreement, and can I renew it?
The initial franchise agreement term is typically ten years [p.158]. You have the right to enter into a new franchise agreement for one additional term equal to ten years upon the expiration of the initial term, subject to certain conditions [p.56].
Can I sell or transfer my franchise, and what does that require?
The FDD does not explicitly cover selling or transferring your franchise. However, it states that the franchisor will not unreasonably withhold consent to the transfer of the franchise [p.170]. For more detailed information on this topic, you may need to refer to specific sections of the Franchise Agreement or contact the franchisor directly.
On what grounds can the franchisor terminate the agreement?
This isn't specified in the excerpts.
What financial requirements — net worth and liquid capital — do I need to qualify?
This isn't specified in the excerpts. The provided FDD does not detail specific net worth or liquid capital requirements for qualifying as a franchisee.
Do I get an exclusive or protected territory?
No, you do not receive an exclusive territory. You may face competition from other franchisees, outlets owned by the company, or other channels of distribution or competitive brands that the company controls [p.32]. However, if you sign a Multi-Unit Development Agreement, the company will not open another Urban Wok outlet in your development area until the expiration or sooner termination of your agreement, though they retain rights to sell their products through alternative channels [p.33].
What training and ongoing support does the franchisor provide?
The franchisor provides initial management training through materials like the operations manual, digital presentations, web-based instruction, and hands-on training. Additionally, upon reasonable request or as deemed appropriate by the franchisor, they offer on-site remedial training with trained representatives who will assist franchisee personnel at the Franchised Business location [p.7]. The cost for initial training of up to two franchisee partners and one general manager is included in the Initial Franchise Fee, while additional trainees incur a fee of $400 per person per day [p.32-36].
How many franchised outlets are there, and how many have closed or been terminated?
This isn't specified in the excerpts.
Does the franchisor share any financial performance or earnings information?
The franchisor does not provide any representations about future or past financial performance of franchises or company-owned outlets, except that if you are purchasing an existing outlet, they may provide actual records of that outlet's performance. Additionally, the franchisor can only supplement the information provided in Item 19 under specific conditions, such as providing actual records of a particular outlet being considered for purchase. [p.45]
What am I restricted to selling, and where must I buy supplies?
You are required to offer and sell all products and services that are part of the System, as well as any new items incorporated into the System by the franchisor in the future [p.36]. You may only offer products and services that have been previously approved by the franchisor [p.36]. Additionally, you must purchase or lease items from the franchisor or a limited group of suppliers designated by them, which may be more expensive than other options [p.3].