Yeung's Lotus Express Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$295,000 - $1,403,500
Franchise Fee
$20,000
Total US Locations
26
Business Summary
Yeung's Lotus Express operates fast-food restaurants, often in shopping mall food courts, that specialize in Chinese-themed food items, beverages, and promotional products. The restaurants feature a counter-service model with a distinctive design and layout, including tiled walls, steam tables, and a full kitchen. New locations primarily use the 'Wok A Holic' brand, while existing 'Yeung's Lotus Express' restaurants are encouraged to rebrand.
Corporate History
Yeung's Lotus Express Franchise Corp. was incorporated in Florida on May 2, 1997, and operates under the names 'Yeung's Lotus Express' and 'Wok A Holic'. An affiliated company, Chinese Cafes of America, Inc. (CCA), has operated a similar Chinese food business since 1987. Another affiliate, International Restaurant Management Group, Inc. (IRMG), began operating Wok A Holic restaurants in 2016. In 2020, Yeung's Lotus Express Franchise Corp. started rebranding its restaurants to Wok A Holic, with IRMG transferring all rights to the Wok A Holic trade name. The company has been offering and selling franchises since 1998.
Financial Overview
Investment Range
$295,000 - $1,403,500
Franchise Fee (Low)
$20,000
Franchise Fee (High)
$30,000
Royalty %
5%
Equipment Costs (Low)
$166,000
Equipment Costs (High)
$650,000
Working Capital
$15,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
The financial statements for Yeung's Lotus Express Franchise Corp. indicate a financially stable company. The auditors have issued an unqualified opinion, meaning the financial statements are presented fairly in all material respects, and no substantial doubt about the company's ability to continue as a going concern was identified. The company demonstrates consistent profitability with net income increasing each year from 2021 to 2023. It also shows strong working capital, with current assets significantly exceeding current liabilities in both 2022 and 2023, and consistent positive cash flow from operating activities.
Financing Details
Yeung's Lotus Express Franchise Corp. does not directly or indirectly offer financing for any part of the initial investment. However, the franchisor or a related company may lease the restaurant premises and then assign or sublease them to the franchisee. The franchisor does not guarantee any franchisee notes, leases, or obligations.
Performance Metrics
Total US Locations
26
Franchised Units
12
Corporate Units
14
Avg Square Footage
750
Franchising Since
1998
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Yeung's Lotus Express Franchise Corp. has no litigation or bankruptcy information that is required to be disclosed in Item 3 of its Franchise Disclosure Document.
Bankruptcy History
Yeung's Lotus Express Franchise Corp. has no bankruptcy information that is required to be disclosed 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, Yeung's Lotus Express franchisees must not be in default of their agreement, have a record of satisfactory inspections, provide written notice of their intent to renew, and pay a renewal fee equal to half of the then-current initial franchise fee. Franchisees are also required to sign a general release and upgrade their restaurant to meet the current brand standards. The renewal will involve signing a new franchise agreement with the terms then in use, which may differ from their original agreement.
Training & Support Program
Franchisor Assistance
Yeung's Lotus Express provides various forms of assistance to its franchisees. Before opening, the franchisor helps with site approval and counseling, offers guidance for lease negotiation, and provides assistance with preparing architectural plans and construction arrangements. They also help with securing government approvals and permits, and with ordering and supervising the installation of equipment and initial inventory. The franchisor may also, at its discretion, sublease the premises to the franchisee. Franchisees receive opening assistance for 6 days (2 days before and 4 days after opening). The franchisor loans an Operating Manual, provides standard menu formats, uniform specifications, and lists of approved suppliers, and evaluates franchisee-recommended suppliers. Initial training, lasting a minimum of 120 hours over 2.5 weeks, is provided in South Florida for the franchisee or general manager and 1-2 additional persons, including a full-time cook. After opening, Yeung's Lotus Express periodically determines quality standards, conducts inspections, develops advertising and promotional campaigns, and provides a uniform reporting system.
Initial Training Hours
120
Training Location
Training center in Coral Gables, Florida, and operating restaurants in South Florida
Ongoing Support
After opening, Yeung's Lotus Express provides ongoing support by periodically setting standards for quality, service, production, merchandising, and advertising. The franchisor conducts periodic inspections to maintain uniformity and quality control across all restaurants and develops advertising, public relations, and promotional campaigns for the brand, though there is no obligation to advertise equally for all markets or franchisees. Franchisees are provided with a uniform reporting system. While there is currently no Marketing Fund, one may be established in the future. The franchisor may also require franchisees and their trained personnel to attend periodic refresher courses, and additional training can be requested, with the franchisee covering the associated costs.
Franchise Requirements
Ideal Candidate Profile
Yeung's Lotus Express seeks qualified individuals or legal entities willing to operate a fast-food restaurant with a Chinese food theme, typically located in shopping mall food courts. The controlling shareholder or managing partner of the franchisee must personally participate in the direct operation of the business, or a trained manager must be on-site. Candidates should be prepared to operate in a competitive restaurant market and be able to support their living expenses for one year without relying on business draws, as recommended by the franchisor. A manager must complete the franchisor's initial training and obtain a ServSafe Food Safety Certification or equivalent, as required by local laws.
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
retail
Owner Participation
hands-on
Territory Type
Non-Exclusive
Territory Size Requirements
Yeung's Lotus Express grants franchises for a specific location, without an exclusive or protected territory for individual units. For area developers, territories are usually defined by political boundaries such as city limits or county lines.
Staffing Notes
Each Yeung's Lotus Express restaurant must be managed by a person trained and approved by the franchisor in the System's methods and procedures. If the franchisee is an individual, it is recommended that they serve as the trained manager. All persons attending the initial training program, including a full-time cook, must sign a Confidentiality, Non-Disclosure, and Non-Competition Agreement. The manager of the franchised business must also obtain a current ServSafe Food Safety Certification (or equivalent) and comply with any state or local food service handler licensing requirements.