Pixiu Malahongtang franchise
2024 filing · April 2, 2024Growing
Pixiu Malahongtang at a glance
A Korean-style Chinese restaurant serving malatang spicy soup, mala stir-fry hot pot, dumplings and fried rice. At the end of 2023 there were 4 Pixiu Malahongtang locations in the US, 3 franchised and 1 company-owned.
The business
- Franchisor
- Pixiu F&C USA, Inc
- The company that sells the franchises
- Franchisor based in
- Buena Park, California
- Typical size
- 1,500–3,000 sq ft
What you pay
- Cost to open
- $333K–$615K
- Fee, build-out and opening working capital
- Franchise fee
- $40,000
- Paid once, when you sign
- Royalty
- 5%
- 5% of gross sales, paid monthly, plus a 1% marketing fee
- Brand fund
- None now
- 1% of gross sales, not charged at present
- Renewal fee
- See terms
- 50% of the then- current initial franchise fee
- Agreement length
- 5 years
Where it is
- US locations, 2023
- 4
- Franchised and company-owned
- Franchised
- 3
- Company-owned
- 1
- Change in 3 years
- +3
- Franchised locations, 2021–2023
- States
- 3
- Most in California, Oregon and Texas
Support and records
From Pixiu F&C USA, Inc’s 2024 filing; revenue and net loss from its audited financial statements, page 164; SBA status from the SBA Franchise Directory, October 28, 2026.
Franchisor revenue is the company that sells the franchises (royalties, fees and anything else it earns), not what a location makes.
Where it ranks
Pixiu Malahongtang among all franchises with the same figure.
| Figure | Pixiu Malahongtang | Among all franchises |
|---|---|---|
| Cost to open, midpointHalfway between the low and high estimate | $474,000 | Costs more than 62% of franchises |
| Franchise feePaid once, when you sign | $40,000 | Lower than 46% of franchises |
| RoyaltyShare of sales paid to the franchisor | 5% | Lower than 69% of brands with a set rate |
| US locationsFranchised and company-owned | 4 | Fewer than 74% of franchises |
How much a Pixiu Malahongtang franchise costs
Opening one Pixiu Malahongtang costs an estimated $333,000 to $615,000. That covers the franchise fee and everything else needed to open, through the first months of working capital.
The biggest costs are construction and leasehold improvements ($170,000 to $250,000) and equipment, furniture and fixtures ($35,000 to $75,000). Here is every line of the estimate as filed:
| What it pays for | Range | Low | High |
|---|---|---|---|
| Initial Franchise Fee | $40,000 | ||
| Real Estate Security/Deposits and Initial Rent | $12,000 | $60,000 | |
| Construction and leasehold improvements | $170,000 | $250,000 | |
| Design and architecture | $6,000 | $8,000 | |
| Equipment, Furniture and Fixtures | $35,000 | $75,000 | |
| Opening Inventory | $15,000 | $40,000 | |
| Insurance | $5,000 | $15,000 | |
| Opening Promotion and Grand Opening | $5,000 | $10,000 | |
| POS System/Other Office Equipment | $3,000 | $20,000 | |
| Initial Training Expenses | $500 | $5,000 | |
| Business Licenses, Utility Deposits, Prepaid Fees | $1,500 | $10,000 | |
| Pre-opening Payroll | $10,000 | $12,000 | |
| Additional Funds – 3 months | $30,000 | $70,000 | |
| Total | $333,000 | $615,000 | |
Source: Pixiu F&C USA, Inc, 2024 filing, page 15
Pixiu Malahongtang franchise fee
The franchise fee is $40,000. You pay it when you sign the franchise agreement.
Source: Pixiu F&C USA, Inc, 2024 filing, page 9
Royalty and ongoing fees
| Royalty | 5% of gross sales, paid monthly, plus a 1% marketing fee. |
|---|---|
| Brand or marketing fund | 1% of gross sales, not charged at present. |
| POS, Computer or Information Systems Fee | Up to $250 per month (not currently assessed) |
| Renewal Fee | 50% of the then- current initial franchise fee |
The typical franchise royalty is 6% of sales, plus 2% for marketing. See franchise fees and royalties to compare.
Source: Pixiu F&C USA, Inc, 2024 filing, page 10
Other fees as filed, from pages 11–14. The filing lists every fee, including late fees and audit costs.
Sales and earnings
No figures Pixiu Malahongtang does not share sales or profit figures for its locations. Talking to current and former franchise owners is the usual way to learn what a location earns.
Source: Pixiu F&C USA, Inc, 2024 filing, page 40
- Estimate Estimated yearly sales per location
- $750K–$1.3M
Estimated from the sales that 292 comparable franchises file, matched on industry, format, cost to open, fees and size.
How Pixiu Malahongtang compares
Of the 813 restaurant franchises on this site, Pixiu Malahongtang is the 309th cheapest to open and the 580th largest by number of locations.
| Figure | Pixiu Malahongtang | Typical restaurant brand | Typical franchise |
|---|---|---|---|
| Cost to open, low end | $333K | $408K | $222K |
| Cost to open, high end | $615K | $866K | $477K |
| Franchise fee | $40K | $35K | $40K |
| Royalty | 5% | 5% | 6% |
| US locations | 4 | 14 | 21 |
| Closed or left per year | 0% | 4.9% | – |
| Shares earnings figures | No | 474 of 813 | 2,147 of 3,352 |
Typical is the median across the 813 brands in restaurant franchises; typical franchise, across every brand here.
Locations opened and closed
| Year | Franchised | Company-owned | Opened | Closed |
|---|---|---|---|---|
| 2021 | 0 (0) | 1 | 0 | 0 |
| 2022 | 1 (+1) | 1 | +1 | 0 |
| 2023 | 3 (+2) | 1 | +2 | 0 |
Closed or left counts terminations, non-renewals, locations bought back by the franchisor and locations that stopped operating.
See which brands grew most in the fastest-growing franchises rankings.
More in the guides: franchise failure rates.
Source: Pixiu F&C USA, Inc, 2024 filing, page 41
Where Pixiu Malahongtang locations are
At the end of 2023, Pixiu Malahongtang had franchised locations in 3 states. The most are in California, Oregon and Texas.
- California1
- Oregon1
- Texas1
| State | Franchised |
|---|---|
| California | 1 |
| Oregon | 1 |
| Texas | 1 |
Source: Pixiu F&C USA, Inc, 2024 filing, page 41
Who owns Pixiu Malahongtang?
Pixiu Malahongtang franchises are sold by Pixiu F&C USA, Inc. It is a subsidiary of Pixiu F&C Company.
From Pixiu F&C USA, Inc’s 2024 filing, page 6.
Lawsuits and bankruptcy
| Lawsuits and regulatory actions | None. The filing says no litigation has to be disclosed. |
|---|---|
| Bankruptcy | None. The filing says no bankruptcy has to be disclosed. |
Franchisors must disclose lawsuits and bankruptcies involving the company, its parents and affiliates, and its executives. Many cases are routine disputes with franchisees over fees or contracts; read the descriptions in the filing and ask current owners about anything that worries you.
Source: Pixiu F&C USA, Inc, 2024 filing, litigation on page 8, bankruptcy on page 9
Pixiu Malahongtang filings
The figures on this page come from Pixiu F&C USA, Inc’s 2024 filing, issued April 2, 2024, on record with the NASAA Electronic Filing Depository.
| Filing | Issued | Registry | On this page |
|---|---|---|---|
| 2024 filing | April 2, 2024 | NASAA depository | Costs, fees and locations, 2021–2023 |
Each link opens the filing as a PDF. See the newest filings across all brands.
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