Risk Score
Pending analysis
Investment Range
$334,500 - $682,000
Franchise Fee
$32,000
Total US Locations
8
Business Summary
Urban Wok Global Fusion, LLC grants franchises for a global fusion stir-fry eatery concept where customers can build their own freshly made-to-order stir-fries. The restaurants also offer various appetizers and operate in a modern, urban environment, utilizing Urban Wok Global Fusion, LLC's distinctive operating procedures, designs, recipes, and customer service standards.
Corporate History
Urban Wok Global Fusion, LLC was formed as a limited liability company in Minnesota on October 6, 2021. It began offering franchises as of November 23, 2021. Its parent company, Urban Wok, LLC, was formed earlier on February 3, 2015, and owns the "Urban Wok" trademarks, which it exclusively licenses to Urban Wok Global Fusion, LLC.
Financial Overview
Investment Range
$334,500 - $682,000
Franchise Fee (Low)
$32,000
Franchise Fee (High)
$40,000
Royalty %
7%
Marketing %
1%
Equipment Costs (Low)
$175,000
Equipment Costs (High)
$450,000
Working Capital
$60,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
The franchisor's financial condition, as noted in the FDD's special risks section, raises questions about Urban Wok Global Fusion, LLC's ability to provide services. The independent auditor's report indicates that there are conditions or events that raise substantial doubt about Urban Wok Global Fusion, LLC's ability to continue as a going concern. The company reported a net loss of $44,079 in 2023 and $152,770 in 2022, with a member's equity deficit of $18,528 in 2023.
Financing Details
Urban Wok Global Fusion, LLC does not offer any direct or indirect financing to its franchisees. Additionally, Urban Wok Global Fusion, LLC does not guarantee any notes, leases, or obligations on behalf of its franchisees.
Performance Metrics
Total US Locations
8
Franchised Units
7
Corporate Units
1
Avg Square Footage
1,800
Franchising Since
2021
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Urban Wok Global Fusion, LLC has no litigation to report, as stated in Item 3 of its Franchise Disclosure Document. No litigation is required to be disclosed.
Bankruptcy History
Urban Wok Global Fusion, LLC has no bankruptcy history to disclose, as stated in Item 4 of its Franchise Disclosure Document.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew their franchise agreement, Urban Wok Global Fusion, LLC franchisees must be in full compliance with the current agreement, have committed no more than three defaults during the current term, and provide written notice at least six months before the term ends. They must also sign a new franchise agreement with potentially different terms, maintain the right to occupy their current premises or secure approval for a new location, remodel their business to meet current standards, sign a general release of claims, and comply with all then-current qualifications and training requirements, including additional training.
Training & Support Program
Franchisor Assistance
Urban Wok Global Fusion, LLC provides extensive support to its franchisees. Before opening, Urban Wok Global Fusion, LLC helps with site selection and approves the location, provides prototypical plans for design and signage, and offers a list of required equipment and supplies. Franchisees receive a 14-day initial management training program in Saint Paul, Minnesota, and at their location. During the grand opening, Urban Wok Global Fusion, LLC offers up to ten days of on-site assistance. Ongoing support includes optional and mandatory additional training programs (up to three days per year, plus an annual business meeting), remedial on-site training upon request, individualized assistance via phone, video, email, or mail, provision of advertising and promotional materials, and regular inspections to ensure standards are met. Urban Wok Global Fusion, LLC also administers a Brand Fund for system-wide advertising, maintains a website with franchisee listings, and specifies a point-of-sale and computer system that franchisees must use.
Initial Training Hours
224
Training Location
Saint Paul, Minnesota and Franchisee location
Ongoing Support
After opening, Urban Wok Global Fusion, LLC franchisees receive various forms of ongoing support. This includes mandatory and optional additional training programs, up to three days per year, and attendance at an annual business meeting or convention, also up to three days annually. Urban Wok Global Fusion, LLC may also provide remedial on-site training and assistance upon request or when deemed appropriate. Individualized assistance is available via telephone, video conference, electronic mail, or postal service. Franchisees also receive samples or digital artwork for advertising and promotional materials and undergo periodic inspections to ensure their business meets Urban Wok Global Fusion, LLC's standards.
Franchise Requirements
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
retail
Owner Participation
absentee-allowed
Territory Type
limited
Territory Size Requirements
Urban Wok Global Fusion, LLC's franchise territories are defined as a portion of a town, city, or county, identified by contiguous zip codes. The size is determined individually based on factors like minimum numbers of households, average home prices, and household incomes. The minimum territory granted is either a two-mile radius or an area with a population of 50,000 people, whichever is less.
Staffing Notes
Urban Wok Global Fusion, LLC requires that each franchised outlet be directly supervised by a general manager. This general manager can be the franchisee or another individual appointed by the franchisee and approved by Urban Wok Global Fusion, LLC. The general manager must complete the initial management training program and any other required training courses, devote full-time to their role, and not have interests in competing businesses. All personnel with access to Urban Wok Global Fusion, LLC's proprietary and confidential information must sign a Confidentiality/Non-Competition Agreement. Urban Wok Global Fusion, LLC provides standards for employee qualifications and training but does not directly assist with employee hiring and training.