Panda Express, the United States’ largest Asian fast-food chain, is now an American culinary staple with over 2,400 restaurants across the country and system-wide sales of more than $5 billion annually. Hailed for its signature Orange Chicken and fusion-inspired entrees, Panda Express takes a substantial market share of the booming $27 billion U.S. Asian fast-casual restaurant market.
Established in 1983 by Andrew and Peggy Cherng, Panda Express has expanded as a brand leader due to a unique blend of company-owned operations, limited franchising, and rigorous quality control. With an average unit volume (AUV) of $1.7 million to more than $2.5 million, it’s little wonder why entrepreneurs nationwide are clamoring to get a piece of the Panda pie. However, understanding the Panda Express franchise cost is essential before taking the leap into this high-performing fast-food opportunity.
But here’s the catch—Panda Express doesn’t provide traditional franchise opportunities. Rather, the company exists mostly as corporate-owned ventures with only a few opportunities for licensed locations in non-traditional spaces like airports, college campuses, hospitals, and military bases.
In this step-by-step guide, we’ll take you through the precise cost of starting an authorized Panda Express, the distinction between a franchise and a license, and the blueprint for how you can join forces with this extremely lucrative brand—if you qualify.
Is Panda Express a Franchise?
Unlike what most wannabe restaurateurs assume, Panda Express does not provide conventional franchises to the public. The company is a corporate-owned company with a few exceptions in off-traditional sites. Some of these sites include universities, airports, military establishments, and other captive audience environments. Panda Express employs a license model rather than a franchise model in these instances.
Therefore, if you want to own a Panda Express in an average shopping mall or high street, the deal simply does not exist under their present business plan. But if you work or run a place in an unconventional venue, like a food court in a university campus or airport terminal, then you might qualify to join under a license deal with Panda Restaurant Group.
Panda Express Franchise vs. License: Core Difference
It is important to understand the distinction between franchising and licensing.
Franchise: A business model in which a franchisor allows a franchisee to use its systems, support, and brand in exchange for a fee and ongoing royalties.
License (Panda Express Model): You have a Panda Express location inside your current building (university, airport, etc.) through a legal agreement, but you are not a franchisee. The management is still with Panda Restaurant Group.
As of 2025, Panda Express operates over 2,400 U.S. units, but well over 90% of them are company-owned. The rest are licensed, primarily in non-traditional locations.
How Much Does Opening a Licensed Panda Express Franchise Cost?
Even though Panda Express doesn’t franchise like most fast food chains, some information is available through public filings and operator disclosures. Based on these, here’s a ballpark look at what you might spend if you’re able to license a location:
| Category | Estimated Cost (USD) |
| Licensing Fee | $25,000 – $50,000 |
| Build-Out & Leasehold Improvements | $250,000 – $400,000 |
| Equipment & Kitchen Setup | $150,000 – $250,000 |
| Initial Inventory | $20,000 – $30,000 |
| POS System & Software | $15,000 – $25,000 |
| Training & Onboarding | $10,000 – $20,000 |
| Working Capital (3-6 months) | $50,000 – $100,000 |
| Total Estimated Investment | $520,000 – $875,000 |
Note: These figures are estimated and based on comparable industry data, as Panda Express doesn’t release an FDD (Franchise Disclosure Document) like traditional franchisors.
Why Panda Express Isn’t Open to Public Franchising?
The brand is owned and operated by the Panda Restaurant Group, led by founders Andrew and Peggy Cherng. Their approach to growth is very intentional. Here’s why they stick with company ownership:
- Consistency: They want every store to reflect the same quality, service, and speed.
- In-House Training: They invest heavily in their people through programs like the University of Panda.
- Brand Control: By owning the restaurants, they maintain full control over their reputation and operations.
This level of control has worked in their favor—it’s a key reason Panda Express remains profitable, steadily growing, and a profitable business opportunity for investors.
If You Qualify: How the Licensing Process Works
If you manage or operate a non-traditional venue—like a college food court or airport terminal—you might be eligible to partner with Panda Express under a licensing model. Here’s a rough outline of how that process typically works:
Step 1: Express Interest
You’ll need to reach out via Panda Express’s corporate website or through food service partners.
Step 2: Initial Screening
They’ll assess your venue, business experience, and whether the location aligns with their goals.
Step 3: Proposal Phase
If approved, you’ll move into a business planning phase. This includes discussions around financials, store layout, and logistics.
Step 4: Training & Setup
Your staff will be trained by Panda, and you’ll build the store according to their specs.
Step 5: Grand Opening
Once you’re up and running, Panda provides continued support to help keep things smooth.
Why Do People Still Want to Partner with Panda Express?
Even with these limitations, Panda Express continues to attract investor interest—and it’s easy to see why.
- Revenue Potential: High-traffic stores can bring in over $1.5 million annually, which is huge for fast casual.
- Popular Brand: Loved across generations and especially strong among Gen Z and millennials.
- Operational Support: Their corporate training and systems are top-tier.
- Ongoing Innovation: From plant-based options to tech upgrades, they stay ahead of the curve.
Pros and Cons of Opening a Panda Express Outlet
Pros:
- Strong brand recognition
- High revenue potential
- Streamlined supply chain
- Support and training from a proven operator
- High foot traffic in non-traditional venues
Cons:
- Not available for traditional franchising
- High initial investment
- Limited availability of eligible locations
- Licensing restrictions and operational compliance
What If You Can’t Franchise Panda Express? Here Are Some Alternatives
If you’re excited about fast-casual Asian cuisine but can’t work with Panda Express, don’t worry—there are great alternatives that do offer franchising:
1. Teriyaki Madness
- Startup Cost: $327K – $678K
- Franchise Fee: $45,000
- Royalty: 6%
- Known for build-your-own teriyaki bowls, this brand is growing fast and offers great franchisee support.
2. Genghis Grill
- Startup Cost: $350K – $900K
- Franchise Fee: $40,000
- Focuses on Mongolian stir-fry with customer interaction. A fun concept with growing brand recognition.
3. Pick Up Stix
- Startup Cost: $300K – $600K
- Offers a similar American-Chinese food vibe with dine-in and takeout flexibility.
These brands are perfect for entrepreneurs who want in on the Asian fast-casual trend but need a more accessible entry point.
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Final Thoughts
Panda Express is a major force in the fast food world—great food, loyal customers, and strong business fundamentals. But unless you operate a unique venue, and are prepared for the Panda Express franchise cost involved, it’s unlikely that you’ll be able to open one through a standard franchise model.
That said, if you run a qualifying location, the potential rewards are excellent. And if you don’t, brands like Teriyaki Madness or Genghis Grill might be a smarter, more accessible way to dive into the Asian fast-casual market.
Either way, make sure you do your research, talk to other franchisees, and speak with a franchise attorney before moving forward.
FAQs
1.Can I buy a Panda Express franchise?
Not in the usual sense. Nearly all of Panda Express’s locations remain company-owned. You may have a chance if you operate a college, airport, or institutional venue.
2.What’s the startup cost to open a Panda Express?
If you qualify for a license, expect to invest between $350K to $1.5M, depending on the location and size.
3.Can I open one in my local area?
If you don’t operate a non-traditional site, you probably won’t be eligible. Panda doesn’t franchise to the general public.
4. Are there other Asian food franchises I can consider?
Yes—Teriyaki Madness, Genghis Grill, and Pick Up Stix are great options with proven models and lower barriers to entry.
5. Is Panda Express a good investment if I qualify?
Absolutely. Their stores are consistently profitable, and their brand loyalty is strong. The challenge is getting approved in the first place.
