How to Start Panda Express Franchise In USA?

How to Start Panda Express Franchise In USA? If you want to know about this then you have come to the right place.

Do you aspire to own your own Panda Express business? One of the most well-known Chinese fast-food chains in the world, Panda Express is in high demand for franchisees.

But how does one begin a Panda Express business in the United States? What are the specifications? What is the price?

We’ll address all of your inquiries regarding opening a Panda Express franchise in this article. Additionally, we’ll offer advice on how to improve your chances of success.

How to Start Panda Express Franchise In USA?

Panda Express is a franchised chain of fast-food restaurants that serves mostly American Chinese food. Their menu has dishes like orange chicken, Kung Pao chicken, teriyaki chicken, and Beijing beef that are based on traditional Chinese food.

Panda Express’s sister business, Panda Inn, is a fancier restaurant with table service that serves similar meals. Rosemead, California is home to the headquarters of the Panda Express chain.

Panda Express Franchise

According to their FDD, Panda Express thinks that most of their franchises will work in “captive venues” like airports, hospitals, casinos, and other similar places where they have a license to do so.

In the 1970s, Chef Ming Tsai Chern and his children Andrew and Peggy Cherng came up with the idea for Panda Express. It used to be called Panda Inn, which was a more expensive sit-down restaurant.

Andrew had to give out coupons to get customers at first because the business was having trouble, but with the help of Terry and Dan Donahue, it finally did well.

With this link, they were able to take their restaurant idea to food courts and make Panda Express, which is now a well-known fast food restaurant.

At first, you could only find Panda Express in food courts, but they soon moved into stand-alone stores. Less than 2% of the Panda Express locations that are open now are in food courts.

Benefits of a Panda Express franchise

In many ways, having a Panda Express franchise is good for your business. They give you a great chance to be associated with their business.

Because Panda Express doesn’t have any direct franchisees, the success of the brand rests on your success.

They help you build ties with customers and find a great place to do business that will help your business grow. They keep coming back with new foods and tastes to keep your customers interested.

The most money is made by Panda Express franchises. Panda Express is a business that makes money and has a large net profit. The other perks that Panda Express gives are the same ones that full-time workers get.

Health, dental, and vision protection are among the benefits. They also offer other perks, such as life insurance, short-term and long-term disability, protection against cancer, and bonus pay.

Stock options, discounts on cell phones and gym memberships, discounts on mobile phones, discounts on gym memberships, scholarships, paid time off, paid breaks, paid sick time, and more.

Requirements for Starting a Panda Express Franchise

Panda Express Franchise

Before diving into the franchise application process, it’s essential to understand the requirements set by Panda Express.

These requirements may vary, so it’s crucial to contact the company directly for the most up-to-date information. Generally, here are some common requirements for starting a Panda Express franchise:

Finance Model for Panda Express

Expenses Financial Amount
Liquid Capital $60,000 – $110,000
Total Investment $377,100 – $1,884,000
Franchise Fee $25,000

As a privately held company, Panda Express empowers its staff to oversee its restaurants. Panda Express doesn’t offer any additional information on specifications.

Panda Express franchise Cost

Panda Express operates differently because it owns all of its locations corporately and does not have any directly operated franchisee locations.

License agreements place Panda Express locations on university grounds. It has certain similarities to the franchise business.

Panda Express’s initial operating costs range from $377,100 to $1,884,00. This does not include the salary of the owner of Panda Express.

A Panda Express franchise (licensed outlet) costs $25,000 up front. Before starting a Panda Express franchise, this initial license fee must be paid.

Investment Details

Lease Premises (initial 3 months rent) $ 10,000 – $ 425,000
Leasehold improvements $80,000 – $ 700,000
Furniture, Fixtures, Equipment, and Supplies $ 90,000- $ 310, 000
Initial Inventory $ 2,200 – $ 10,000
Computer Hardware and Software $14,000 – $21,000
Non-resettable cash register $6,000 – $8,000
Insurance $30,000 – $75,000
Expenses incurred  ( initial training ) $13,000 – $29,000
Architectural and design fees $17,000 – $50,000
Construction Supervision $17,000 – $70,000
Sales Tax Deposits $4,500 – $10,000
Telephone , Fax , and other communication related fees $500 – $1,000
Licensed and permits $1,500 – $30,000
Misc. Funds $0 – $10,000
Additional Funds (3 months) $60,000 – $110,000

The figure indicated above is an estimate, but there are a lot of variable expenses. Panda Express has a wide range of fees and expenses, therefore the actual cost varies.

Franchise Ongoing Cost and Fees

Panda Express charges a royalty of 8% of gross sales or a minimum of $4,000 each month. Additionally, the Panda Express owners require the franchisee to pay them a monthly salary.

Panda Express Franchise Profit

The Panda Express business model is successful. The profit of Panda Express in 2020 was $9,500,000.

Their 2022 income statement shows that they are able to generate a sizable net profit because their expenses are low in comparison to their revenue. It generates an annual profit of $184,872 and 30% of sales on average.

Profit – loss Amount ($) As % of sales
Sales $616,240 100%
COGS $ (154,060) 25%*
Labor $ (178,710) 29%*
Rent $ (49,299) 8%*
Royalty fees $ (49,299) 8% as per FDD
Adjusted EBITDA $ 184,872 30%

Cash Flow Statement

Cash Flows (operating Activities)
Net Income $ 7,948,938 $ 13,700,101
Adjustments to Reconcile Net Income to Net Cash
Provided by Operating Activities
Depreciation $ 880,596 $ 917,504
Effects of changes in operating Assets and Liabilities
Accounts Receivable $ 1,090,849 $ (246,377)
Due from Affiliate $ (9,179,635) $ (14,869,105)
Prepaid Taxes $ 337,034 $ (337,795)
Deferred revenue $ (267,799) $ 309,824
Net cash provided by Operating Activities $ 809,983 $ (525,848)
Cash Flows from Investing Activities
Purchases of property and Equipment $ (674)    —–
Cash used in investing activities $ (674)     —
Net change in cash and cash equivalents $ 809,309 $ (525,848)
Cash and cash equivalents beginning of period $ 1,545,759 $ 2,071,607
Cash and cash equivalents end of period $ 2,355,068 $ 1,545,759
Supplemental cash flow information
Foreign income taxes paid $ 162,830 $ 228,828
Property and Equipment financed with affiliate $ 507,395

Overall, Panda Express retained a net profit of 25% in liquid assets in 2020; their net income was close to $8,000,000,000. With highest maximum gross sales of $3,453,578, highest average gross sales of $1,191,246 and highest medium gross sales of $995,281, their financial performance is excellent in airport locations.

The military locations outperform airport locations in terms of overall sales ($39,026,818) and minimum gross sales ($420,343), respectively.

How to Apply for Panda Express Franchise?

To apply for a Panda Express Franchise, you need to follow the steps mentioned below:

Visit the official Panda Express website and navigate to the “Licensing Opportunities” section.

  • Fill out the franchise application form with accurate and complete information.
  • Provide details about your personal background, business experience, and financial capabilities.
  • Include any relevant documents or certifications that showcase your qualifications and readiness to run a franchise.
  • Submit the completed application online or through the designated application channel provided on the website.
  • Wait for a response from the Panda Express franchise team regarding the status of your application.
  • If your application is approved, you will be contacted to proceed with further steps in the franchise process.

It is important to note that meeting the minimum financial requirements and demonstrating a strong commitment to the Panda Express brand will significantly increase your chances of being selected as a franchisee.

Take the time to prepare a comprehensive application that highlights your passion, skills, and readiness to start a Panda Express franchise in the USA.

Panda Express Reviews

The Panda Express received a rating of 1.78 stars out of 239 reviews, suggesting customer discontent.

Customers routinely voice their complaints about popular foods (like Orange Chicken) as well as other products and services. Despite this, it is one of the very few at the time to use technology to handle orders.

They are still in control of the market and are fiercely challenging their rivals. Websites that rank restaurants place Panda Express at 265th.

Panda Express presents and perfects the foods that made them successful in this time of change, giving the impression that they are fully aware of who they are.

Their leadership is consistent, and it’s challenging to overtake them in this cutthroat world.

Opening and Closing Hours

Day Opening Hours Closing Hours
Monday 10:30 AM 9:30 PM
Tuesday 10:30 AM 9:30 PM
Wednesday 10:30 AM 9:30 PM
Thursday 10:30 AM 9:30 PM
Friday 10:30 AM 10:00 PM
 Saturday 10:30 AM 10:00 PM
Sunday 10:30 AM 9:30 PM

Important Links

Here is a list of links to important information about Panda Express restaurants, like where they are, what they serve, how to work there, and much more.

Official Website
Panda Express Menu Check here
Panda Express Locations Check here
Panda Express Gift Cards Check here
Panda Express Online Order Check here
 Panda Express contact form Check here
Panda Express Nutritional & Allergy Info Check here

Panda Express Contact Information

➥ Panda Express Corporate Office Address:

Panda Restaurant Group, Inc.
P.O. Box 1159 1683 Walnut Grove Ave
Rosemead, California 91770
United States

➥ Panda Express Corporate Phone Number: (626) 799-9898

➥ Panda Express Toll-Free Number: (800) 877-8988


Investing in a Panda Express franchise presents an exciting opportunity for individuals passionate about the food industry.

With its established brand, extensive support system, and potential for profitability, owning a Panda Express franchise allows you to be part of a successful and well-loved culinary legacy.

By adhering to Panda Express’s high standards and embracing the entrepreneurial spirit, you can embark on a rewarding journey as a franchisee.

FAQs About Panda Express Franchise

How much is a Panda Express Franchise?

The license charge for a Panda Express location is $25,000.

Do I need prior experience in the restaurant industry to become a Panda Express franchisee?

While prior experience in the restaurant industry is beneficial, it is not mandatory. Panda Express provides comprehensive training and support to help franchisees succeed.

How long does the training program for Panda Express franchisees last?

The training program for Panda Express franchisees typically lasts several weeks and covers various aspects of restaurant operations.

Can I open multiple Panda Express restaurants as a franchisee?

Yes, Panda Express offers expansion opportunities, allowing franchisees to open additional restaurants in new or existing markets.

How can I get started with the process of owning a Panda Express franchise?

To get started, visit the official Panda Express website or get in touch with their franchise development team for more information and guidance.

What ongoing fees or royalties are required as a Panda Express franchisee?

As a franchisee, you will be required to pay ongoing royalties based on a percentage of your sales. These fees contribute to the ongoing support and resources provided by Panda Express.

Why doesn’t Panda Express offer franchises?

Panda Express aims to make sure that all of its restaurants are run in accordance with a very particular operational model. The business thinks it would be challenging to keep this uniformity through franchising.

What are the benefits of owning a Panda Express franchise?

If Panda Express did provide franchises, having one would have a number of advantages. A successful company with a lot of consumer appeal is Panda Express. In addition, the business offers its franchisees substantial training & assistance.

What are the challenges of owning a Panda Express franchise?

If Panda Express did offer franchises, running one would present significant difficulties. Franchisees of Panda Express must live up to the company’s exacting standards of Excellence in order to prosper.

Additionally, opening & running a Panda Express restaurant requires a large investment.

What are the requirements for owning a Panda Express franchise?

Although Panda Express hasn’t made clear what exactly is needed to operate a franchise, it is likely that prospective franchisees require a substantial financial worth and experience in the restaurant business.

This article gives complete information about Panda Express Franchise In USA.

Visit its official website www.pandaexpress.comfor more details.

For more information about Panda Expressother menu to visit our website

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