Panda Express Franchise Cost, Fees and Business Opportunities
Are you interested in becoming a franchisee with Panda Express Franchise? Does Panda Express franchise? Some say, “In France, cooking is a serious form of art and a national sport”, but in the United States, one might be inspired to say it is a serious form of business.
Such an inspiration could impressively be induced on any individual who knows of Panda Group of Restaurant, a tri-legged cooperation that consist the Panda Inn, Hibachi-san, and the Panda express.
How to Start a Panda Express Franchise
This is no much surprise as everyone knows that food is a universal experience, it is a point of intersection connecting all lines of existence.
The mathematician Andrew Cherng, alongside his father who happens to be a Master Chef, Ming Tsai Cherng established in 1973 the Panda Inn, in Pasadena California, the Inn was found initially with the motive of introducing new “species” of Chinese dishes to the south of California, which had already shown favorable reception towards some other dishes like the Cantonese dish.
A second location opened about 9 years later, this time in Glendale. Sooner than a year after this event, an invitation hits the Cherngs to set up sort of pseudo “Panda-Inn” within the developing Glendale Galleria. And that was it! That was the birth of Panda Express which opened in October 1983 with the collaboration of his former schoolmate at Baker University in Baldwin city, Kansas, called Peggy Cherng, Andrew established Panda Express.
Is Panda Express a franchise?
Panda Express gained reputation for American Chinese cuisines, and become a casual restaurant chain. Having over 1900 locations currently, it stands as the largest Chinese restaurant chain in the United States, majorly found in the food court of malls, and also as independent establishments.
It is found in Casinos, Universities, Airports, Military houses etc. Its headquarter is at 1683 Walnut Grove Ave, Rosemead, California, United States; Panda Restaurant Group, in 2014, had roughly 2500 employees, and an annual sales of $2 billion. Panda express is the most popular of its three subgroups.
As at 2007, only eight locations in Japan opened under Franchise agreement that has even elapsed. Now all units are company-owned and operated. However these are requirement for anyone who intends to partner or enter into a Franchise agreement with them.
Panda Express Franchise Requirements and Costs
So how much is a Panda Express Franchise? Below are estimates of Panda Express 2016 Franchise Disclosure Document containing a sketch of cost that goes in tandem with the initial setup of a Panda Express fast food restaurant. It should be however noted that these estimates are grossly controlled by the factor of existence of a restaurant already or a new construction; and even as much controlled by size.
How much is Panda Express Franchise?
Panda Express franchise business has a policy of non-refunding of cash once paid; this is particularly emphasized in the License fee payment of $25,000 which is first paid.
As we by now know, Panda started as a fast food server in a food court, so one gets the idea that he would have to rent a place in wherever (Universities, airports, shopping malls, etc.) he chooses. Panda Express franchise price of this would range from $10,000 to $425,000 depending on the exact venue.
A crucial point to note is that Panda Express Franchise International in any tentative venue should at least be 500 square feet, preferably about 1000 square feet. In fact some units sit over 3000 square feet. Note that other Panda Express restaurant franchise startup costs are also incurred in the process of opening the franchise and these include insurance, utility, etc.
Also, the standards of Panda Express are by no means dented with compromise. One adopts the standard designs, and construction style, and will only open at the approval of the Panda Group. These and the internal fixtures like chairs, tables and counters will cost up to about $80,000 to $500,000 to set up.
How much does a panda express franchise cost on the average? Cost of equipment such as grills, refrigerator and other necessary machines for the smooth running of the establishment are also required; these would be covered by the range of $90,000 to $220,000. The approved models and brand are what have been estimated.
To franchise Panda Express, startup inventory includes food products, seasoning, sauces and marinades, beverages and miscellaneous requirements that are important would be covered by about $3,000.
It is important to obtain a non-resettable cash register, for financial records, and this cost about $7,000. Annual premium insurance plan ranges from $20,000 to $16,000. This is required of a Franchisee when buying the franchise.
About $16,000 to $21,000 would cover computer software and hardware. However, it depends on computer equipment’s you already own or not own. The computerized equipment is used to run the system.
You also get to benefit from trainings by Panda Express for you; though royalty fee can be charged for training of extra individuals affiliated to you.
Panda Express franchise in India and other locations will set a team of qualified personnel to supervise the contraction, and offer guidance and support. However, a Panda Express franchise fee of $17,000 to $50,000 is charged. The range of value is also paid for designs and architectural charges.
As on entrepreneur, you also need to budget a separate capital for financial roles when planning to buy the franchise. This covers updating of inventory, payroll, administrative expenses, costs of training and recruitments, uniform for staffs, marketing and surveys, security, and maintenance, etc., at least for the first 90 days. An amount around $60,000 to $110,000 would suffice.
Finally, a total estimate of about $370,000 to $1,550,200 would be required fee to initiate a Panda Express Franchise. It is worth noting that Panda Restaurant Group also taken part in humanitarian activities.