Panda Express Franchising: A Comprehensive Guide to Licensing Your Own Panda Express Location

Panda Express, the largest American-Chinese fast-food chain, has become a staple in the fast-casual dining sector. Known for its iconic Orange Chicken and other Chinese-American offerings, the brand has expanded significantly over the years. Unlike traditional franchise models, Panda Express offers a licensing opportunity to entrepreneurs who wish to open their own Panda Express locations. In this article, we will explore the Panda Express licensing model, including costs, benefits, and the application process.

Panda Express Franchising

Does Panda Express Franchise?

No — Panda Express does not offer traditional franchises like many other fast-food giants. That means individuals looking to open a stand-alone Panda Express in a strip mall or suburban plaza as a franchisee will not be able to do so.

What It Offers Instead: Licensing Agreements

Panda Express uses a licensing model to expand its brand in non-traditional venues where the company may not directly operate its own restaurants.

Where Can You License a Panda Express Location?

Panda Express allows licensing only in specific, strategic locations that meet its non-traditional venue criteria. These include:

• 🏢 Corporate campuses
• 🎰 Casinos
• 🎓 Colleges and universities
• ✈️ Airports
• 🛣 Travel centers & plazas
• 🎡 Amusement & theme parks
• 🪖 Military bases
• 🏢 Non-traditional real estate or institutional properties

These types of properties often already operate food courts or managed hospitality services, making them ideal for Panda Express’s licensing model.

Overview of Panda Express Licensing Model

Panda Express was founded in 1983 by Andrew Cherng and his father, Master Chef Ming-Tsai Cherng, and has grown to over 2,200 locations. The company operates primarily in malls, airports, and other high-traffic areas. Instead of the typical franchise model, Panda Express uses a licensing model. This means that licensees operate Panda Express locations under a licensing agreement with the company, rather than as franchisees.

While franchisees typically have more control over the business, licensed locations adhere strictly to Panda Express’s operational standards, branding, and menu offerings.

Panda Express Licensing vs Franchising: Key Differences

Feature	Traditional Franchise	Panda Express Licensing
Ownership	Independent franchisee	Licensed operator
Locations	Urban, suburban, stand-alone	Non-traditional (e.g. airports, colleges)
Control over operations	Some independence	Closely managed by Panda
Brand involvement	Moderate	High oversight & support
Accessibility	Individuals and corporations	Limited to institutional venues

Panda Express Licensing Requirements

If you’re interested in operating a Panda Express location through licensing, you’ll need to meet specific requirements:

• Initial Investment: The total investment for a Panda Express licensed location typically ranges from $350,000 to $600,000. This includes the initial licensing fee, real estate costs, equipment, and working capital.
• Licensing Fee: Panda Express charges a licensing fee, which is generally between $25,000 and $50,000, depending on the location and scale of the operation.
• Financial Stability: Potential licensees need to have a strong financial background. A minimum net worth of $1 million, with $400,000 in liquid assets, is typically required to ensure that the operator can sustain the operational demands.
• Experience: While prior experience in the restaurant industry isn’t mandatory, it can be helpful. Panda Express looks for operators who have leadership skills, are customer-focused, and can handle the fast-paced nature of the business.

Support Provided by Panda Express

Panda Express offers comprehensive support to its licensees to help them succeed:

• Training: Panda Express offers a detailed training program at Panda Express University. This program covers all aspects of restaurant operations, including food preparation, customer service, inventory management, and marketing strategies.
• Ongoing Operational Support: Licensees receive continuous support from Panda Express’s corporate team. This includes guidance on day-to-day operations, troubleshooting, and maintaining brand standards.
• Marketing and Promotions: Panda Express provides marketing support for local and national campaigns. Licensees also benefit from Panda Express’s established brand recognition and customer loyalty.

Related Article: Panda Express Rewards Program

Who Can Apply for a Panda Express License?

Entities that manage or operate qualified venues — such as hospitality companies, university dining services, or facility management groups — are eligible to apply for a license to operate a Panda Express on their property.

This is not designed for individual entrepreneurs or small business owners without access to one of the approved venue types.

Panda Express Menu and Offerings

Panda Express is known for its unique blend of Chinese-American fast food. Some of its most popular items include:

• Orange Chicken: A signature dish featuring crispy chicken in a tangy and sweet sauce.
• Beijing Beef: A stir-fried beef dish with vegetables in a savory, sweet sauce.
• Kung Pao Chicken: A spicy dish featuring chicken, peanuts, and vegetables.
• Vegetarian and Health-Conscious Options: Panda Express also offers a variety of healthier and vegetarian options, catering to a wider audience.

The brand’s diverse menu helps ensure that there is something for everyone, making Panda Express a popular choice for families, office workers, and people on the go.

Benefits of Licensing Panda Express

Panda Express is one of the most recognized Asian food brands in America. Licensing one at your institution or venue can bring:

• ⭐ Strong brand recognition
• 📈 High customer demand and foot traffic
• 🍱 Popular and diverse menu offerings
• 🤝 Ongoing support and operational training
• 📊 Robust marketing and national promotions

Profitability of Panda Express Licensed Locations

The profitability of Panda Express licensed locations can be strong, given the brand’s widespread recognition and high-quality offerings. Here’s an overview of what to expect:

• Revenue: A single Panda Express location can generate annual revenues ranging from $1.5 million to $2 million, depending on the location and customer traffic.
• Ongoing Licensing Fees: Panda Express charges a royalty fee, typically a percentage of gross sales, which is around 5%. This fee is relatively standard within the restaurant industry.

Steps to Open a Panda Express Licensed Location

Here’s an overview of the steps involved in opening a Panda Express licensed location:

1. Initial Inquiry: Begin by reaching out to Panda Express through their official website to express interest in becoming a licensee.
2. Application and Evaluation: Complete an application and submit your financial documentation. Panda Express will evaluate your qualifications, including your ability to manage and fund a licensed location.
3. Review the Licensing Agreement: If you meet the necessary qualifications, you will be provided with a Licensing Disclosure Document (LDD), which outlines the terms and responsibilities of the licensing agreement.
4. Site Selection: Panda Express will work with you to select a location that aligns with their brand standards. Typically, Panda Express locations are placed in high-traffic areas, such as shopping malls and airports.
5. Training and Launch: Once the location is ready, you will undergo training at Panda Express University. After completing the training, you can open your Panda Express location with ongoing corporate support.

Let’s explore existing Panda Express locations in US, Canada and Las Vegas to seek the deep details

Does Panda Express Offer Drive-Thru or Inline Location Partnerships?

Yes — but only for real estate development and corporate expansion, not for franchise or licensing.

Panda Express is actively looking for commercial real estate opportunities for inline stores and drive-thru units in high-traffic areas. If you’re a real estate developer or landlord with suitable land or retail space, you can contact Panda Express’s Real Estate & Licensing department via their official website.

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How to Apply for a Panda Express License

If your organization owns or operates an approved venue (e.g., college campus or military base), here’s how to begin:

1. Visit the Panda Express Official Website
   • Navigate to the “Real Estate and Licensing” section.
2. Fill Out the Licensing Inquiry Form
   • Provide information about your venue and your operational capabilities.
3. Wait for a Response
   • If your venue qualifies, a Panda Express representative will contact you to discuss the opportunity further.
4. Due Diligence & Agreement
   • If approved, you’ll enter into a licensing agreement and begin training and setup.

Conclusion: Is Panda Express a Good Business Opportunity?

While Panda Express does not franchise, its licensing model offers a fantastic opportunity for large institutions and operators in high-volume, non-traditional spaces. The brand is well-established, offers strong operational support, and continues to expand both nationally and internationally.

If you manage a venue that qualifies, adding a Panda Express location can significantly boost your food service offerings and customer satisfaction — all while partnering with one of the most loved fast-casual restaurant brands in America.

Frequently Asked Questions