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Below is an in-depth analysis and side-by-side comparison of Manchu Wok vs Johnny Rockets including start-up costs and fees, business experience requirements, training & support and financing options.
Start-Up Costs and Fees |
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Investment | $476,050 - $787,500 | $581,000 - $877,000 |
Franchise Fee | $30,000 | $49,000 |
Royalty Fee | 7% | 5% |
Advertising Fee | 1% | - |
Year Founded | 1981 | 1986 |
Year Franchised | 1989 | 1987 |
Term Of Agreement | 5 years | 10 years w/two 5-year options |
Term Of Agreement | 5 years | 10 years w/two 5-year options |
Renewal Fee | $3K per year | - |
Business Experience Requirements |
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Experience | You and/or a business partner(s) must have at least two years restaurant owner/operator experience. You and/or a business partner(s) must have a net worth of $500 thousand per unit, and available liquid capital of $200 thousand per unit, or more, (net worth of $1.5 million per unit, and available liquid capital of $500 thousand per unit, or more, outside of the U.S.), in order to qualify for development of up to five units. Development of six units or more will be considered on a case by case basis, pending your net worth and available liquid capital. |
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Financing Options |
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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 |
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Training | - | - |
Support | Newsletter, Meetings, Toll-free phone line, Grand opening, Security/safety procedures, Field operations/evaluations, Purchasing cooperatives | Meetings, Grand opening, Field operations/evaluations |
Marketing | Co-op advertising, Ad slicks, National media, Regional advertising | National media, Regional advertising |
Operations |
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) |
Franchisees required to buy multiple units/master licenses; 95% of all franchisees own more than one unit Number of employees needed to run franchised unit: 48 - 53
Absentee ownership of franchise is NOT allowed. (98% of current franchisees are owner/operators) |
Expansion Plans |
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US Expansion | - | - |
Canada Expansion | No | No |
International Expansion | Yes | Yes |
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.