Nan Xiang Xiao Long Bao Franchise
Cost, fees, owner earnings, closure rate and litigation for a Nan Xiang Xiao Long Bao franchise — pulled from the franchisor's own public FDD (2026), not its sales material.
Disclosure honesty
Nan Xiang Xiao Long Bao discloses little or no owner-earnings data (Item 19) — the franchisor won't put real profit in writing.
What their own earnings claim actually says
No financial performance representations disclosed. Franchisor explicitly states it does not make any representations about franchisee financial performance.
What a Nan Xiang Xiao Long Bao franchise actually costs to run
| Fee | Disclosed | Where it comes from |
|---|---|---|
| Initial franchise fee | $60,000 | Item 5 — paid up front, before you open |
| Royalty | 5% of gross sales | Item 6 — charged on revenue, not profit |
| Advertising fund | 3% of gross sales | Item 6 — brand marketing, spent at the franchisor's discretion |
| Total recurring fees | 8% of gross sales | Before rent, labor, food or debt service |
| Total initial investment | $1,180,000 – $1,894,000 | Item 7 — franchisor's own low/high estimate |
Up to 5% royalty + 3% total advertising (1% Brand Fund + 2% Local Advertising). Non-uniform legacy rates exist.
Royalty and ad-fund percentages are charged on gross sales — an owner pays them whether or not the location is profitable.
Nan Xiang Xiao Long Bao system size and owner turnover
| Total outlets | 10 |
| Ceased operations | 0 |
| Terminated by franchisor | 0 |
| Transferred to new owners | 0 |
| Closure rate | 0.0% of outlets |
Zero franchised outlets; system relies entirely on company-owned operations. High risk indicator.
From Item 20 of the FDD 2026. Terminations and ceased operations are the franchisor's own count of owners who stopped — the number the sales pitch leaves out.
Is Nan Xiang Xiao Long Bao worth it? — how it compares to 164 similar franchises
| Ongoing fees | 8% of sales | lower than most (median 8%) |
| Startup cost | from $1,180,000 | pricier than 84% of peers |
| Disclosure honesty | Grade F | less honest than most of the category |
| Closure rate | 0.0% of outlets | better than most (median 1.3%) |
| Disclosed lawsuits | 0 | fewer than most |
Benchmarked against every quick service restaurants franchise we've graded from public FDDs — the context the franchisor's pitch never gives you.
Owner take-home for a Nan Xiang Xiao Long Bao
The franchisor's framing: No financial performance representations disclosed. Franchisor explicitly states it does n… We reconstruct what an owner actually keeps, from their own FDD.
- Reconstructed owner P&L — net take-home after royalty, ad fund, rent, labor & debt
- Break-even timeline + cash-on-cash ROI
- Full fee stack + required-purchase markups
- Decoded real failure / closure rate
- How it ranks vs comparable franchises
- Validation-call playbook — the exact questions to ask
See a full sample report → · 30-day guarantee
Nan Xiang Xiao Long Bao franchise — frequently asked
- How much does a Nan Xiang Xiao Long Bao franchise cost?
- The FDD lists a total initial investment of about $1,180,000–$1,894,000, including a $60,000 initial franchise fee.
- How much do Nan Xiang Xiao Long Bao franchise owners make?
- Nan Xiang Xiao Long Bao discloses little or no earnings data (Item 19) — meaning the franchisor won't put real owner profit in writing. That's a red flag worth questioning.
- What are the Nan Xiang Xiao Long Bao franchise fees?
- Nan Xiang Xiao Long Bao's FDD discloses a $60,000 initial franchise fee, a 5% royalty on gross sales, a 3% advertising-fund contribution, for roughly 8% of gross sales in recurring fees before rent, labor, or debt service. Up to 5% royalty + 3% total advertising (1% Brand Fund + 2% Local Advertising). Non-uniform legacy rates exist.
- What is the Nan Xiang Xiao Long Bao franchise profit margin?
- Nan Xiang Xiao Long Bao discloses no Item 19 earnings representation, so no profit margin can be derived from the FDD at all. Any margin figure quoted elsewhere is an estimate, not a disclosure.
- What is the Nan Xiang Xiao Long Bao franchise failure rate?
- Zero franchised outlets; system relies entirely on company-owned operations. High risk indicator.
- How many Nan Xiang Xiao Long Bao locations are there?
- Nan Xiang Xiao Long Bao's FDD reports 10 total outlets, with 0 that ceased operations in the most recent reporting year and 0 transferred to new owners. Item 20 is where system health shows up before the marketing does.
- Does Nan Xiang Xiao Long Bao have complaints or lawsuits?
- Nan Xiang Xiao Long Bao discloses no material litigation in Item 3 of the filing we reviewed. That's a positive signal, though it covers only what the franchisor is required to report.
- Is a Nan Xiang Xiao Long Bao franchise worth it?
- It depends on the numbers, not the pitch. Nan Xiang Xiao Long Bao scores F on disclosure honesty, carries about 8% of sales in ongoing fees. Get the real owner take-home before you sign.
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Source: WI DFI Franchise Registration (2026). FranchiseValidate is independent and not affiliated with Nan Xiang Xiao Long Bao or its franchisor. Figures are extracted from the franchisor's own public disclosure document; verify against the current FDD before any decision.