Pho Hoa Franchise FDD, Costs & Fees (2024)

KEY FRANCHISE STATS

All you need to know about this franchise in a snapshot

Initial franchise fee
$30,000
Investment required
$333,000 - $680,000
Royalty fee
4.00%

Pho Hoa: Leading the Way in Health-Conscious Vietnamese Cuisine

Pho Hoa Noodle Soup, a well-known entity in the Vietnamese fast-casual dining scene, has distinguished itself with its health-oriented approach to traditional Vietnamese pho. Since its inception in 1983 in California, Pho Hoa has become a pioneer in the Vietnamese food industry by providing a healthier take on the classic pho noodle soup.

The key to their success lies in their broth, crafted from premium meats that are lower in calories and cholesterol, delivering a rich, authentic pho flavor while appealing to health-aware consumers.

With over 30 years of expertise, Pho Hoa has grown its presence internationally, operating in six countries and securing a place in Entrepreneur Magazine's Top 500 ranking. It also holds the #2 spot in the Asian food category on Entrepreneur’s Top Food Franchises List. This global acclaim highlights the brand's dedication to quality, consistency, and straightforward operations, which have been fundamental to its achievements.

Pho Hoa provides a versatile franchising model, including both standalone and co-branded options. The co-branded option is in collaboration with Jazen Tea, enabling franchisees to attract a broader audience. This flexibility is also evident in their business model, suitable for spaces ranging from 800 to 4,000 square feet, making it viable for diverse investors.

Initial investment

Here's what you would need to invest if you were to start this franchise. These costs are provided by the franchisor in the Franchise Disclosure Document.

Type of Expenditure Amount
Initial Franchise Fee $30,000
Personal Expenses during our Initial Training Program $2,000 - $5,650
Real Estate Costs Payable Before Opening $28,750 - $113,850
Real Estate Costs Payable After Opening During the Initial Phase $17,250 - $37,950
Leasehold Improvements $95,000 - $225,000
Restaurant Equipment, Furniture and Signs $75,000 - $130,000
Point-of Sale ("POS") and Other Software, Computer Hardware and Business Equipment $8,600 - $14,730
Opening Inventory $15,000 - $20,000
Tableware, Smallware and Supplies $5,000 - $10,000
Professional Fees $15,000 - $35,000
Other Security Deposits and Pre-Paid Expenses $9,000 - $11,000
Grand Opening Advertising $2,000
Additional Funds (for first 3 months of operations) $30,000 - $45,000
Total $332,600 - $680,180

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Number of units

2023
Franchised units

19

20

18

Company-owned units

4

3

3

Total units

23

23

21

Franchise Disclosure Document

Training 

The franchisor delivers an extensive training program for franchisees, comprising several modules and ongoing learning opportunities:

Initial Training Program

Pho Hoa's foundational training, referred to as the Basic Training, includes two key components: Management Training and Opening Training. The program's content and objectives are provided through the company's Manual and supplementary materials, with the franchisor retaining the right to adjust the Basic Training program as needed.

Management Training

This segment of the Basic Training encompasses 36 hours of classroom instruction and 60 hours of practical, on-the-job training. It is primarily conducted at the company's headquarters and surrounding locations in or near San Jose, California, or Sacramento, California.

Continuing Education

Pho Hoa may periodically provide continuing education sessions at selected locations, which may include operational Pho Hoa restaurants or other specified venues. These sessions are designed to cover new Proprietary Products, updates to the Pho Hoa System, industry trends, customer relations, personnel management, advertising strategies, and local restaurant promotions.

Territory Protection

Pho Hoa provides territory protection under specific conditions determined by the location of the restaurant. For restaurants situated in a Metropolitan Urban Core Area (as defined by the U.S. Office of Management and Budget based on census data), no exclusive territory is assigned. Examples of these areas include the Borough of Manhattan, downtown Chicago, and downtown San Francisco.

In these metropolitan areas, franchisees may encounter competition from other franchisees, company-owned outlets, or other distribution channels managed by Pho Hoa. However, for restaurants located outside of a Metropolitan Urban Core Area, an exclusive territory is assigned as part of the franchise rights. Typically, this territory spans a 3-mile radius from the restaurant’s front door, defined by roads or other geographical or political boundaries.

Within this designated territory, Pho Hoa commits not to open or grant a franchise for another Pho Hoa restaurant. Nevertheless, even with a 3-mile exclusive territory, franchisees do not possess exclusive or superior rights to serve customers within this area. There are no sales quotas or market penetration requirements linked to these territorial rights.

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