THAI EXPRESS

Item 7 lays out a hefty initial investment of $418,500 to $1,012,000 for Thai Express, covering buildout in high-traffic spots like malls, plus a $30,000 franchise fee. Ongoing fees stack up with 5% royalty, 1% ad fund, and extras like $55/month POS support and up to $150/month data fees—higher than many fast-food peers. No Item 19 earnings disclosure leaves profitability a black box, forcing reliance on sparse system data: just 7 franchised units total (5 US, 2 international) plus 2 company-owned as of late 2024, down from 3 to 2 locations year-over-year for -33% contraction. One non-renewal flags potential dissatisfaction.

SBA stats scream caution: 10 loans averaging $384,090 but a whopping 40% default rate crushes category norms (typically under 20%), suggesting units struggle post-funding. Litigation clusters around breach of contract, terminations, fee disputes, and misrepresentation claims since franchising began in 2015 from Scottsdale, AZ HQ. For investors, this combo—small scale, shrinkage, high defaults, no financials—tilts heavily risky versus established fast-food giants; only pursue if you thrive on turnarounds with deep pockets to weather extras and unknowns.