About MaLa Project Franchise
MaLa Project is a Chinese restaurant franchise that has been franchising since 2023, backed by Mala Holding Inc.
The brand specializes in Sichuan dry pot cuisine, where diners customize their meals by selecting proteins, vegetables, and spice levels that are tossed together in a flavorful, wok fried preparation.
MaLa Project has earned acclaim in New York City for its bold flavors and interactive dining format.
MaLa Project Franchise Cost & Fees
Minimum Investment
$547K
Average Investment
$749K
Maximum Investment
$950K
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $40,000 | One-time payment upon signing |
| Royalty Fee | 5% of your Gross Sales of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 4% of Gross Sales (2% National Marketing Contribution + 2% Local Advertising) | National brand fund |
| Total Investment Range | $547,000 – $950,000 | Includes build-out, inventory, working capital |
The investment range of $547K–$950K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (5% of your Gross Sales) and marketing fee (4% of Gross Sales (2% National Marketing Contribution + 2% Local Advertising)) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $40,000 | $40,000 |
| Lease Deposit and Payment | $42,000 | $60,000 |
| Utility Deposits | $5,000 | $15,000 |
| Initial Inventory | $10,000 | $10,000 |
| Additional Initial Inventory | $20,000 | $30,000 |
| Furniture, Fixtures, & Equipment | $130,000 | $160,000 |
| Leasehold Improvements/Buildout | $200,000 | $500,000 |
| Signage | $5,000 | $10,000 |
| Grand Opening Advertising | $5,000 | $5,000 |
| Insurance | $6,000 | $8,000 |
| Permits and Licenses | $8,000 | $10,000 |
| Accounting and Legal Fees | $1,000 | $2,000 |
| Travel and living expenses while training | $15,000 | $20,000 |
| Additional Funds – 3 months | $60,000 | $80,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $10,000 |
| Renewal Fee | $5,000 |
| Technology Fee | Up to $500 per month; currently $0 |
| Audit Fee | Understated amounts, plus interest, plus amount of audit fees and related expenses |
| Co-op Contributions | Not to exceed 1% of your Gross Sales |
| Additional Training | $2,000 per day, plus expenses |
| Annual Conference | Varies, not to exceed $300 per person, per day |
| Late fees and interest charges on late payments | $100 plus 1.5% of the amount due or the maximum rate allowed by law, whichever is greater |
| Insufficient Funds Fee | 5% or $50, whichever is greater, or maximum fee allowed by law |
| Interest (on overdue amounts) | Lower of 1.5% per month or the highest commercial interest rate allowed by law |
| Indemnification | Will vary under circumstances |
| Supplier Review Fee | Our reasonable costs and overhead |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | Approximately four weeks |
| Classroom Training | 88 hours |
| On-the-Job Training | 92 hours |
| Training Location | Franchisor's headquarters or another designated location, or in the franchisee's city and state. |
| Additional Training | The franchisor may require additional training programs or refresher courses in the future, for which franchisees will be responsible for a fee of $2,000 per day plus expenses. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Protected |
| Exclusive Territory | No |
| Territory Size | At least a two-mile radius or 50,000 people |
| Description | The franchisor designates the territory based on factors like households, traffic count, foot traffic, competition, accessibility, population density, and other demographic factors. Within this protected territory, the franchisor will not operate or license another MaLa Project franchised business, except in Non-Traditional Locations (e.g., food courts, airports, stadiums). |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years from the earlier of the opening date or lease commencement |
| Renewal Term | Two (2) additional five-year terms |
| Renewal Fee | $5,000 |
| Renewal Conditions | Franchisee must provide 180 days' written notice, be in compliance with all agreements, have no series of uncured defaults, make renovations to reflect current standards, pay the renewal fee, and sign the then-current standard Franchise Agreement and a general release of claims. |
| Transfer Fee | $10,000 |
| Transfer Conditions | Transfers require franchisor's prior written consent. Conditions include franchisee being in full compliance with the agreement, no uncured defaults, all debts and financial obligations current, provision of all transaction information and proposed transferee details, transferee meeting new franchisee requirements, signing a new franchise agreement (for the remaining term), transferee agreeing to perform maintenance/remodeling, transferee's Designated Principal completing training, and payment of a $10,000 transfer fee. |
| Termination for Cause | Termination for cause can occur without notice for events like liquidation, failure to operate for five consecutive days, unauthorized transfer, fraudulent conduct, repeated material violations, or misuse of marks. With 30 days' notice to cure, termination can occur for failure to construct/remodel within 12 months, failure to pay monies due, public health/safety threats, or selling non-approved products. |
| Non-Compete Period | 2 years after transfer, expiration, or termination |
| Non-Compete Details | During the term of the agreement, franchisees may not participate in any competing business (deriving >10% revenue from Chinese food) anywhere. After termination, expiration, or transfer, for two years, franchisees may not directly or indirectly engage in a similar competitive business within the former territory or a 25-mile radius of any MaLa Project business. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | No |
| Participation Details | Franchisees are permitted to operate as absentee owners, though on-premises supervision is recommended. If the franchisee is a business entity, a Designated Principal owning at least 10% equity must be appointed. The business must be supervised by a fully-trained manager approved by the franchisor. |
| Required Suppliers | Franchisees must purchase MaLa dry pot sauce, chili oil, pastes, chili powder, and other premade and/or prepackaged sauces and ingredients from the franchisor's affiliate, MaLa Project Greenpoint, LLC. Additionally, franchisees are required to use Toast for their POS System and QuickBooks for accounting software. |
| Supply Restrictions | Franchisees must purchase or lease certain products or services from suppliers designated and approved by the franchisor. The franchisor reserves the right to require additional items from designated sources and does not allow franchisees to contract with alternative vendors for proprietary products. |
| Franchisor Revenue from Suppliers | Neither the franchisor nor its affiliates received any revenue from required purchases by franchisees in the fiscal year ending December 31, 2022. The franchisor does not currently receive rebates based on franchisee purchases, but the franchise agreement does not prohibit it from doing so in the future. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | The franchisor does not offer direct or indirect financing and does not guarantee any franchisee's note, lease, or obligation. |
MaLa Project Franchise Earnings — Item 19
Average Revenue
$2.9M
Median Revenue
$3.4M
Revenue Range
$1.7M – $3.4M
Sample Size
3 units
Past financial performance does not guarantee future results. Individual results will vary.
MaLa Project Litigation & Risk Flags
Clean Litigation RecordMaLa Project has no pending litigation actions listed in their FDD. There is also no bankruptcy history disclosed.
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
MaLa Project System Growth
Total Units
3
Franchised
0
Company-Owned
3
MaLa Project currently operates 0 franchised locations and 3 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2020 | 0 | 0 | 2 |
| 2021 | 1 | 0 | 3 |
| 2022 | 0 | 0 | 3 |
Transfers: 0 | Closures: 0
State Registrations
Registered in 14 states: CA, HI, IL, IN, MD, MI, MN, NY, ND, RI, SD, VA, WA, WI
Franchisor Financials (Item 21)
Total Assets
$50K
Audited by MONIS J. SIDDIQUI, CPA P.A. for year ending December 31.
MaLa Project Franchise — FAQ
The total investment to open a MaLa Project franchise ranges from $547,000 to $950,000, per their Franchise Disclosure Document. This includes the initial franchise fee of $40,000. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
MaLa Project charges a royalty fee of 5% of your Gross Sales of gross sales, plus a 4% of Gross Sales (2% National Marketing Contribution + 2% Local Advertising) contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the MaLa Project Franchise Disclosure Document free on this page. The FDD is a public document filed with state franchise registries. Always also request the current FDD directly from MaLa Project to ensure you have the most up-to-date version.
According to the Item 19 financial performance representation in their FDD, MaLa Project franchise owners report average revenue of $2.9M and median revenue of $3.4M. This is based on a sample of 3 units. Past performance does not guarantee future results.
MaLa Project has been franchising since 2023. The FDD shows an investment range of $547,000-$950,000, a 5% of your Gross Sales royalty, and includes an Item 19 earnings disclosure. There is no pending litigation. Review the full FDD and contact current franchisees listed in Item 20 before making any investment decision.
The franchise fee is $40,000 and the total investment ranges from $547,000 to $950,000 depending on location size and market. Contact the franchisor directly for current net worth and liquid capital requirements, territory availability, and application details.
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Data Source & Disclaimer: This website is for informational purposes only. It is not an offer to sell or buy a franchise. This profile is based on publicly available FDD data sourced from state franchise registry filings. All information is for research purposes only and does not constitute legal, financial, or investment advice. Data may be outdated or contain errors. Always obtain the current FDD directly from MaLa Project and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with MaLa Project or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com