About Tay Ho Restaurants Franchise
Tay Ho Restaurants is a Vietnamese cuisine franchise bringing authentic pho, banh mi, and other traditional Vietnamese dishes to communities across the United States.
The brand draws its name from the Tay Ho district in Hanoi, known for its vibrant food scene, and aims to recreate that authentic dining experience in each location.
Tay Ho began franchising in 2024.
Tay Ho Restaurants Franchise Cost & Fees
Minimum Investment
$338K
Average Investment
$534K
Maximum Investment
$730K
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $30,000 | One-time payment upon signing |
| Royalty Fee | 3.5% to 5% of Gross Sales of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 1% of Gross Sales (can increase up to 2% of Gross Sales) for Advertising Fund Fee; 1% of Gross Sales (can increase up to 3% of Gross Sales) for Local Advertising; Up to 2% of Gross Sales for Cooperative Advertising. | National brand fund |
| Total Investment Range | $337,500 – $730,000 | Includes build-out, inventory, working capital |
The investment range of $338K–$730K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (3.5% to 5% of Gross Sales) and marketing fee (1% of Gross Sales (can increase up to 2% of Gross Sales) for Advertising Fund Fee; 1% of Gross Sales (can increase up to 3% of Gross Sales) for Local Advertising; Up to 2% of Gross Sales for Cooperative Advertising.) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $30,000 | $30,000 |
| Utility Deposits, Fees & Licenses | $3,000 | $9,000 |
| Pre-Construction Cost (Architect, Plans, Permits) | $10,000 | $20,000 |
| Leasehold/Construction | $50,000 | $280,000 |
| Exterior Signage | $5,000 | $18,000 |
| POS System and Software; Back Office Computer, Printer and Related Hardware and Software; Sound System; Televisions | $7,000 | $15,000 |
| Equipment/Smallwares, Hood, Interior Signage, Graphics & Art | $132,500 | $160,500 |
| Furniture and Fixtures | $7,000 | $14,000 |
| Inventory | $2,500 | $6,000 |
| Grand Opening Marketing | $10,000 | $15,000 |
| Franchised Location (Lease Deposit and First 3 Months’ Rent) | $25,000 | $40,000 |
| Insurance - Liability & Workers’ compensation (initial deposit) | $1,000 | $2,000 |
| Legal Fees/Organizational Expenses | $5,000 | $15,000 |
| Training Expenses | $7,000 | $20,000 |
| ADDITIONAL FUNDS (3 months) | $40,500 | $70,500 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | 50% of the then-current Initial Franchise Fee |
| Renewal Fee | $5,000 (Franchise Agreement); $15,000 (Area Development Agreement) |
| Technology Fee | Currently, $100 Weekly (can increase up to $300 per week) |
| Audit Fee | Cost of audit plus 1.5% interest per month (18% per year), not to exceed 10% annually in California |
| Monthly Inventory | $500 to $1,000 |
| Late Charge | $200 plus 1-1/2% on the amount outstanding per month, not to exceed the maximum interest rate allowed by law, which is currently 10% annually in California, from the date payment was due until paid in full |
| Pre-Opening Additional Initial Training Fee | $3,000 per additional trainee plus your out-of-pocket expenses, including transportation, food and lodging. |
| Post-Opening Initial Training Fee | $5,000 for each of your employees who attends Post-Opening Initial Training Programs, plus our out-of-pocket expenses, including transportation, food and lodging. |
| Post-Opening Additional/Remedial Training Program Daily Fee | $500 per person, per day, if we provide post-opening Additional Training Programs, plus our out-of-pocket expenses, including transportation, food and lodging. |
| Post-Opening On-Site Assistance | No charge for your first Tay Ho Restaurant; then, a fee established by us (currently $500 per person, per day) plus our out-of-pocket expenses, including transportation, food and lodging |
| Consultation Fee | Currently $500 per day |
| Inspection Fee | $500 per re-inspection |
| Insurance | Amount of unpaid premiums and our out of pocket costs |
| Non-Cash Payment System | All costs associated with non-cash payment systems |
| Default Reimbursement | Our costs and expenses from your default |
| Interim Management Fee | To be determined |
| New Product and Supplier Testing | Actual cost of inspection and testing; $1,000 must be paid as a deposit. |
| Post-Termination Gross Sales Fee | 5% of all revenue derived from the operation of the Competitive Business. |
| Relocation Fee | $2,500 |
| Franchise Conference Fee | $500 |
| Sanitation and Food Safety Audits | Cost of the inspection. |
| Reimbursement for Payments Made to Approved Suppliers | Varies |
| Private Offering Fee (Franchise Agreement and Area Development Agreement) | $10,000 or such greater amount as is necessary to reimburse us for our reasonable costs and expenses with reviewing the proposed offering. |
| Relocation Assessment | An amount equal to the Royalty Fees you paid for your original Tay Ho Restaurant during the last preceding calendar year plus an additional 10%. |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | Initial Training Program: 4-5 days (38 classroom hours). Hands-On Training Program: 5 days (44 on-the-job hours). On-Site Training Program: 7-14 days (80 on-the-job hours). Total: 124 on-the-job hours, 38 classroom hours. |
| Classroom Training | 38 |
| On-the-Job Training | 124 |
| Training Location | Franchisor’s corporate office or a Company-Owned Restaurant in Santa Ana, California, or another designated location, or your Franchised Location or Virtual Communications Platform. |
| Additional Training | Post-Opening Initial Training Programs for new or replacement supervisorial or managerial personnel; Post-Opening Additional and Remedial Training Programs; Annual Franchisee Conference. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Protected |
| Exclusive Territory | No |
| Territory Size | 3 to 5 mile radius |
| Description | A geographic area designated by Franchisor and accepted by Franchisee. Factors considered include demographics, population size, age and income levels, neighboring and adjacent retail tenants, road visibility, traffic patterns, and proximity of other Tay Ho Restaurants or competitors. Within this Protected Area, Franchisor will not own, operate, sell or issue a franchise to another franchisee, but reserves other rights including selling/distributing products, marketing online, and operating in non-traditional venues. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years |
| Renewal Term | 10 years |
| Renewal Fee | $5,000 |
| Renewal Conditions | Compliance with all obligations, good standing, remodeling/renovation to current standards, no more than 3 material defaults in 18 months, satisfaction of qualifications and training, execution of a General Release, payment of renewal fee, execution of then-current Franchise Agreement, and personal guarantee from owners and spouses. |
| Transfer Fee | 50% of the then-current Initial Franchise Fee |
| Transfer Conditions | Proposed transferee must qualify, complete initial training, sign then-current Franchise Agreement, be in good standing, sign a general release, and pay transfer fee. All other existing Franchise Agreements must be concurrently assigned to the same assignee. |
| Termination for Cause | Franchisor can terminate for material default, including bankruptcy/insolvency, abandonment, unapproved transfers, repeated defaults, misrepresentations, health/safety violations, trademark misuse, felony conviction, failure to pay overdue amounts, failure to meet site selection/opening requirements, false records, unauthorized use of trade secrets, failure to purchase inventory, selling unauthorized products, or engaging in fraudulent/immoral conduct. |
| Non-Compete Period | 2 years |
| Non-Compete Details | For 2 years following termination or expiration, you cannot own or have any interest in a competitive business at the Franchised Location or within 20 miles of any Tay Ho Restaurant or the Franchised Location. Violation results in a fee of 5% of revenue from the competitive business. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | You must designate a Principal Owner who owns a minimum of 10% ownership interest in Franchisee and devotes full time to the Tay Ho Restaurant. A Restaurant Manager must also be designated to oversee operations in the Principal Owner's absence. Both must successfully complete the Pre-Opening Initial Training Program, and the restaurant must be directly supervised by them or other trained managerial personnel. |
| Required Suppliers | You may only use suppliers that we have accepted and approved (“Approved Suppliers”). Currently, the Operating Company is the only Approved Supplier of the specialized rice crepe machine and stir fry machine. Currently, West Lake Food is the only Approved Supplier of specialty Vietnamese food products including, meats, egg rolls, bottle sauces, drink ingredients, and dry flour mix. |
| Supply Restrictions | Approximately 90% of your start-up expenses and 80% of your ongoing expenses, other than fees disclosed in Items 5 and 6, will be for purchases from Approved Suppliers or purchases according to our specifications. You must purchase all or nearly all of the inventory or supplies that are necessary to operate your business from the franchisor, its affiliates, or suppliers that the franchisor designates, at prices the franchisor or they set. These prices may be higher than prices you could obtain elsewhere for the same or similar goods. |
| Franchisor Revenue from Suppliers | The Operating Company will derive a profit from sales of specialized rice crepe machines and stir fry machines to franchisees. West Lake Food will derive a profit from sales of specialty Vietnamese food products to franchisees. Franchisor or its affiliates may receive rebates or allowances from certain Approved Suppliers based on the aggregate volume of items purchased by franchisees. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | We do not offer direct or indirect financing. We do not guarantee your note, lease or obligation. |
Tay Ho Restaurants Franchise Earnings — Item 19
Tay Ho Restaurants does not make an Item 19 financial performance representation in their FDD. This means they do not disclose revenue, profit, or earnings data for franchised locations. Before investing, ask the franchisor directly for franchisee contact information so you can speak with existing owners about their actual financial performance.
Tay Ho Restaurants does not include an Item 19 financial performance representation in their FDD. Contact information for current and former franchisees is listed in Item 20 of the FDD.
Tay Ho Restaurants Litigation & Risk Flags
Clean Litigation RecordTay Ho Restaurants 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.
Tay Ho Restaurants System Growth
Total Units
7
Franchised
5
Company-Owned
2
Tay Ho Restaurants currently operates 5 franchised locations and 2 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2021 | 1 | 0 | 5 |
| 2022 | 1 | 0 | 6 |
| 2023 | 1 | 0 | 7 |
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
$121K
Audited by DNJ & ASSOCIATES Certified Public Accountants for year ending December 31.
Tay Ho Restaurants Franchise — FAQ
The total investment to open a Tay Ho Restaurants franchise ranges from $337,500 to $730,000, per their Franchise Disclosure Document. This includes the initial franchise fee of $30,000. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
Tay Ho Restaurants charges a royalty fee of 3.5% to 5% of Gross Sales of gross sales, plus a 1% of Gross Sales (can increase up to 2% of Gross Sales) for Advertising Fund Fee; 1% of Gross Sales (can increase up to 3% of Gross Sales) for Local Advertising; Up to 2% of Gross Sales for Cooperative Advertising. contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the Tay Ho Restaurants 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 Tay Ho Restaurants to ensure you have the most up-to-date version.
Tay Ho Restaurants does not provide an Item 19 financial performance representation in their FDD, which means they do not disclose franchisee revenue or earnings data. Prospective investors should contact existing franchisees directly (listed in Item 20 of the FDD) to gather real-world financial performance information.
Tay Ho Restaurants has been franchising since 2024. The FDD shows an investment range of $337,500-$730,000, a 3.5% to 5% of Gross Sales royalty, and no 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 $30,000 and the total investment ranges from $337,500 to $730,000 depending on location size and market. A minimum of $40,500 in liquid capital is required. Contact the franchisor directly for current net worth and liquid capital requirements, territory availability, and application details.
Similar Food & Beverage Franchises
Interested in Tay Ho Restaurants?
Get free info on this franchise. We will send you a detailed FDD report by email.
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 Tay Ho Restaurants and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with Tay Ho Restaurants or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com