|
Below is an in-depth analysis and side-by-side comparison of HuHot Mongolian Grill vs Manchu Wok including start-up costs and fees, business experience requirements, training & support and financing options.
Start-Up Costs and Fees |
||
Investment | $984,000 - $1,219,000 | $476,050 - $787,500 |
Franchise Fee | $40,000 | $30,000 |
Royalty Fee | 5% | 7% |
Advertising Fee | 0.5% | 1% |
Year Founded | 1999 | 1981 |
Year Franchised | 2001 | 1989 |
Term Of Agreement | 15 years | 5 years |
Term Of Agreement | 15 years | 5 years |
Renewal Fee | - | $3K per year |
Business Experience Requirements |
||
Experience | # Have a proven track record of business ownership & restaurant ownership that can contribute to the development of our brand # Have local knowledge and expertise in the areas of consumer preferences, real estate, government regulations, labor, and distribution issues in the area in which you'll be franchising # Have access to adequate capital # Philosophically aligned | |
Financing Options |
||
In-House/3rd Party | In-House/3rd Party | |
Franchise Fees | No/No | No/No |
Start-up Costs | No/No | No/No |
Equipment | No/No | No/No |
Inventory | No/No | No/No |
Receivables | No/No | No/No |
Payroll | No/No | No/No |
Training & Support |
||
Training | - | - |
Support | Grand opening, Internet, Security/safety procedures, Field operations/evaluations | Newsletter, Meetings, Toll-free phone line, Grand opening, Security/safety procedures, Field operations/evaluations, Purchasing cooperatives |
Marketing | Co-op advertising, Ad slicks, Regional advertising | Co-op advertising, Ad slicks, National media, Regional advertising |
Operations |
50% of all franchisees own more than one unit Number of employees needed to run franchised unit: 50 Absentee ownership of franchise is allowed. (50% of current franchisees are owner/operators) |
20% of all franchisees own more than one unit Number of employees needed to run franchised unit: 12 Absentee ownership of franchise is allowed. (90% of current franchisees are owner/operators) |
Expansion Plans |
||
US Expansion | - | - |
Canada Expansion | No | No |
International Expansion | No | Yes |
HuHot Mongolian Grills, L.L.C. started with a Mongolian BBQ grill called Mongos Mongolian Grill in Missoula, Montana in June 1999. Since then, the concept has proven to be very successful and the company plans to rapidly expand. The name HuHot (the ancient capital of inner-Mongolia) was chosen for future and franchised restaurants. It’s trampling old notions of full-service dining. Warming lamps and steam tables lie smashed in its wake. At HuHot, diners customize their own meals by choosing from dozens of fresh vegetables, meats, noodles and sauces.
Conceived and founded in 1980, Manchu Wok grew into a national chain across Canada and into the United States over the next nine years. Ownership changed in 1989, and expansion continued with a focus on the United States. Manchu Wok now has close to 150 stores, of which more than 70 percent are franchised.