17 Substantial Fees Every Panda Express Franchisee Needs to Know About

Detailed Information on Panda Express’ Initial Franchise Fee, Royalty Fee + 15 Other Fees (Items 5 and 6, 2026 FDD)

1.  Initial License Fee:  $25,000

• The Initial License Fee offered for new licensees is $25,000, including for captive venue locations. All licensees must pay an Initial License Fee, even if the licensee is a joint venture company formed with Panda Express’ Affiliate.

• Panda Express may negotiate different fee amounts and other terms as it considers appropriate, subject to applicable law. Initial License Fees received in the U.S. in 2025 ranged from $12,500 to $25,000, with the $12,500 amount having been previously negotiated with multi-restaurant licensees opening new restaurants under existing agreement terms (which provide for a generally shorter term than Panda Express’ current 10-year initial term).

• Your Initial License Fee is fully earned and payable within 5 days of your receipt of Panda Express’ written authorization for your Restaurant you propose. No Initial License Fee is due until Panda Express gives you a written authorization for your Restaurant, regardless of when the License Agreement is executed. The fee is entirely non-refundable.

• Panda Express may negotiate different fee amounts and other terms as it considers appropriate, subject to applicable law. Initial License Fees received from licensees will be included in Panda Express’ general operating funds. In addition to the Initial License Fees, Panda Express or any Affiliate of Panda Express may receive as reimbursement, payments for goods, such as initial inventory, or furniture, fixtures, equipment, and supplies before your Restaurant opens.

2.  Royalty:  each Royalty Period you pay Panda Express 8% or as otherwise established, unless it is less than the minimum Royalty amount, which is currently $4,000. If the percentage Royalty amount is less, then you must pay the minimum Royalty amount for that Restaurant for that Royalty Period, unless otherwise negotiated between you and Panda Express.

• Due Date:  The 15th day of each month for all Royalty Periods completed in the preceding calendar month.

• Payments for each Restaurant start with the Royalty Period in which operations first begin.

• No minimum Royalty is due for a specific Restaurant in any Royalty Period in which your Restaurant is closed due to a force majeure event.

• The minimum Royalty for a specific Restaurant is prorated for any Royalty Period in which your Restaurant is closed because of holidays or breaks at the venue location, which has been approved by the owner or lessor of the venue (such as a spring break or summer break period at a university site).

• Panda Express can adjust the minimum Royalty amount once a year according to the change in the prior year’s Consumer Price Index. Panda Express has to give you advance written notice before an adjustment can be made.

• Panda Express has in the past deferred receipt of Royalties during the 1st year of operations (which are later due and payable in subsequent years) for Panda Express Restaurants in certain military locations, and may choose to do so currently.

3.  Initial Training Fees:  there is no fee for initial training and Panda Express does not limit the number of persons who can attend as of the date of the current Disclosure Document; but under the License Agreement Panda Express can charge up to $1,000 for each attendee beyond 8, per Restaurant

• Due Date:  Before training or as incurred.

• You must pay Panda Express $50-$100 for uniforms for each associate who attends.

• You are responsible for all fees, transportation, salary, living, incidental, and other expenses of attendance for all training programs.

• Panda Express can adjust the initial training fee cap once a year according to changes in the prior year’s Consumer Price Index.

4.  Opening Operational Assistance:  $500 per whole or partial 8-hour day

• Due Date:  Before training or as incurred.

• If Panda Express believes it necessary, it will provide you with opening operational assistance for the opening of your Restaurant, including on-site opening assistance for a time period Panda Express determines based on your experience and availability of trained personnel.

• You are responsible for Panda Express’ personnel’s expenses, including travel, lodging, food, and incidental expenses.

5.  Remedial Training Fees & Fees for On-Site Consultations Requested by You:  $500 per whole or partial 8-hour day

• Due Date:  Before training or as incurred.

• Panda Express charges a fee for remedial training provided to you and/or your personnel. You are responsible for Panda Express’ personnel’s expenses, including travel, lodging, food, and incidental expenses.

• Panda Express can adjust the amount of the remedial training fee once a year according to changes in the prior year’s Consumer Price Index.

6.  Online Training/Continuous Education:  $250 to $500

• Due Date:  Before training or as incurred.

• Amount varies by the number of people being trained.

7.  Inspections/Quality Control Programs:  the current charge is $177.24 per quarterly food safety inspection, subject to 4% annual increase. Refused Entry Fee of $177.24 will be charged if you refuse the above inspection. Current charges for customer service satisfaction surveys range from $20 to $22 per store per month. The current charges for Mystery Shopper services range from $19.75 to $100, in addition to $11 to $14 meal reimbursement per service.

• Due Date:  As incurred.

• The current inspection program(s) are currently conducted by a third-party company. Panda Express or PRG are billed by the third party for charges for all Panda Express Restaurants, and licensees reimburse Panda Express or PRG as applicable for their portion of the related cost.

• The cost of customer satisfaction surveys is subject to change by the vendor.

• You will be responsible for cost of food you provide to guests that redeem a coupon for completing a survey.

• Panda Express can add new inspection programs and quality control measures at a future date.

8.  Transfer Fee:  a non-refundable transfer fee of $10,000 per transferred Restaurant, plus Panda Express’ actual out of pocket costs associated with the transfer, including attorneys’ fees. This amount is due even if transfer is not completed for any reason.

• Due Date:  Payable upon application for transfer.

• If you own multiple locations, the cumulative transfer fee will not exceed $30,000 per transfer transaction.

• Panda Express can adjust the Restaurant transfer fee and the cumulative transfer fee once a year according to changes in the prior year’s Consumer Price Index.

9.  Inspection or Audit Costs:  the Royalties on the understated amount, with interest, plus the cost of the inspection or audit, if applicable

• Due Date:  On demand.

• Reasonable audit/inspection costs are payable if the amount of the understatement exceeds 3%.

10.  Interest on Late Payments; Bank Charges:  10% per annum, or, if lower, the maximum lawful rate. Actual amount of any bank fees/charges for dishonored payments.

• Due Date:  On demand.

11.  Successor Restaurant Fee:  $10,000 per Restaurant

• Due Date:  When you elect a successor operating term for a specific Restaurant.

• Panda Express can adjust the successor Restaurant fee amount once a year according to changes in the prior year’s Consumer Price Index.

12.  Management Fees and Costs:  7% of Gross Volume, per Restaurant managed by Panda Express, plus Panda Express’ actual costs

• Due Date:  If you do not cure an operating default, and Panda Express elects to manage your Restaurant(s).

• Panda Express can discontinue providing management services on no less than 10 days’ notice.

13.  Gift Card Program Participation Fees (Optional):  currently, participants pay a card cost of between $0.09 and $0.535 per card, and a transaction fee of between $0.0199 and $0.032 per transaction, depending on volume, plus their share of technical support, set-up, packing costs, fulfillment costs, and administrative costs

• Due Date:  As incurred, if you elect to participate in the gift card program.

• There could be additional item fees, such as card carriers or promotional materials that are not covered in this amount.

• You are not required to participate in this program as of the date of the current Disclosure Document.

14.  Tax Payments:  unknown

• Due Date:  On demand.

• You reimburse Panda Express for any gross receipts taxes, value added taxes, sales taxes, use taxes, personal property taxes, or any other taxes Panda Express pays on your behalf or Panda Express incurs because of payments you make.

• You also pay withholding tax if required under law.

15.  Early Termination Fee:  an amount equal to the anticipated amount of royalties you would have paid to Panda Express had you operated for the full required eight month notice period (based on the average daily Gross Revenues and related royalty fee during the full prior calendar month times the number of days to reach the required eight month notice period)

• Due Date:  On demand.

• Payable if you exercise your early termination right without providing a full eight months’ prior notice.

16.  Quarterly Promotional and Marketing Campaign Materials:  $300 to $1,000 per year

• Due Date:  As incurred.

• You must purchase approved campaign materials from Panda Express’ marketing department.

17.  Extended Producer Responsibility (EPR) Fees:  actual costs, as established by state law or regulation, a producer responsibility plan, and/or a producer responsibility or stewardship organization, plus any applicable administrative charges and other fees

• Due Date:  Upon demand.

• Payable to Panda Express or an affiliate.

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