Panda Express Franchise FDD, Profits & Costs (2025)
Panda Express, the largest family-owned American Chinese food chain in the U.S., was founded in 1983 by Andrew and Peggy Cherng. Headquartered in Rosemead, California, it has become a household name, known for its convenient and flavorful Chinese-inspired dishes.
Focused on high-quality food, Panda Express emphasizes fresh ingredients and health-conscious options.
The franchise began expanding through franchising in 2011, targeting international locations and non-traditional venues like casinos, college campuses, airports, and theme parks.
This strategy has broadened its audience and solidified its place in the fast-casual dining sector.
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Initial Investment
It costs on average between $510,000 – $3,268,000 to start a Panda Express franchised restaurant.
This includes costs for construction, equipment, inventory, and initial operating expenses. The exact amount depends on various factors, including the type of restaurant you choose, the location, and whether the franchisee chooses to lease or purchase the property.
| Type of Expenditure | Amount |
|---|---|
| Initial License Fee | $25,000 |
| Lease of Premises (Initial 3 months’ rent) | $10,000 – $425,000 |
| Leasehold Improvements | $100,000 – $1,500,000 |
| Furniture, Fixtures, Equipment and Supplies | $120,000 – $650,000 |
| Initial Inventory | $11,000 – $18,000 |
| Computer Hardware and Software | $16,500 – $27,000 |
| Non-resettable cash register(s) | $6,000 – $8,000 |
| Insurance (annual premium) | $90,000 – $150,000 |
| Expenses Incurred During Initial Training | $13,000 – $29,000 |
| Architectural and Design Fees | $35,000 – $120,000 |
| Construction Supervision | $20,000 – $150,000 |
| Sales Tax Deposits | $4,500 – $10,000 |
| Telephone, Fax and other Communication Related Fees | $500 – $1,000 |
| Licenses and Permits | $1,500 – $60,000 |
| Payroll and Related Taxes | $39,000 – $65,000 |
| Additional Funds (3 months) | $18,000 – $30,000 |
| TOTAL | $510,000 – $3,268,000 |
Average Revenue (AUV)
A Panda Express franchised restaurant makes on average $1,128,000 in revenue (AUV) per year.
Here is the extract from the FDD showing how much revenue Panda Express franchised Licensed restaurants made on average in 2023:
This compares to $823,000 yearly revenue for similar restaurant Asian franchises. Here are 10 competitors to Panda Express in the Asian-style restaurant franchise industry:
The most profitable franchises to own in 2025
We have compiled the list of the top 400 franchises across 9 industries. Download the report below.
Panda Express Franchise Disclosure Document
Frequently Asked Questions
How many Panda Express locations are there?
As of the latest data, Panda Express has approximately 2,398 locations in the U.S. California leads with 603 locations, representing about 25% of all Panda Express restaurants nationwide.
Unlike most fast-food chains, Panda Express is primarily company-owned, with very few franchise-owned outlets.
What is the total investment required to open a Panda Express franchise?
The total investment required to open a Panda Express franchise ranges from $510,000 – $3,268,000 for a single restaurant.
What are the ongoing fees for a Panda Express franchise?
For a Panda Express franchise, the franchisees are required to pay a royalty fee of 8% of gross sales and an advertising fee of 2% of gross sales. These fees help maintain the brand’s marketing efforts and support ongoing operations at franchise locations.
What are the financial requirements to become a Panda Express franchisee?
To become a Panda Express franchisee, you need a minimum net worth of at least $1 million and liquid assets of at least $500,000. These financial qualifications are necessary for those looking to open a licensed Panda Express outlet.
How much can a Panda Express franchise owner expect to earn?
The average gross sales for a Panda Express franchise are approximately $1.13 million per location. Assuming a 15% operating profit margin, $1.13 million yearly revenue can result in $169,500 EBITDA annually.
Whilst EBITDA does not necessarily represent the owner’s pay, it can serve as a proxy for how much the owner can pay herself/himself as dividends.
Who owns Panda Express?
Panda Express is owned by Panda Restaurant Group, Inc., a privately held company. It was founded by Andrew Cherng and his father, Master Chef Ming-Tsai Cherng, in 1983. Andrew’s wife, Peggy Cherng, later joined the business and played a significant role in the company’s expansion through her expertise in operations and technology.
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