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№ 01Buying & Selling a Business · Franchise Resale · Ontario

Buying a Manchu Wok franchise

Manchu Wok has held down mall food-court counters across Ontario for decades under MTY Food Group's banner — which means many locations still run on an older store design, and a mall's property manager can condition its consent to assign on a refreshed build-out before a new operator ever opens the till.

№ 01.1The Resale, End to End

From offer to ownership

Manchu Wok resales follow the franchisor's own approval process on top of the usual purchase mechanics — here's how the two run together.

Getting approved

01

Conditional offer & deposit

Buyer and seller sign, with a deposit held in trust and conditions built around franchisor consent and the mall's own assignment process.

1–2 weeks
02

Franchisor application & consent review

MTY Food Group reviews the incoming operator's application and financial qualification, and considers any right of first refusal.

3–6 weeks
03

Disclosure considerations

A franchise disclosure document may still be required even where the deal is framed as a private resale — Ontario courts read the resale exemption narrowly, so this gets confirmed early rather than assumed.

assessed early, in parallel

Getting to closing

04

Mall premises assignment & design review

The mall's own consent process runs alongside the franchisor's, and a longstanding counter can be conditioned on a design refresh matching the mall's current prototype before assignment is approved.

3–8 weeks
05

Training & transfer approval

The incoming owner, or a designated manager, typically completes MTY's operator training before or shortly after taking over.

1–3 weeks
06

Closing & after

Funds, keys, and signed documents change hands; we track final franchisor and property-manager sign-off through to completion.

1 day, plus a short tail
Timelines vary by franchisor approval speedWe track every deadline so nothing lapses.
№ 01.2About the System

About the Manchu Wok system

Listed on MTY Food Group's official franchise-directory recruitment page

Long-established Chinese QSR chain, prominent in Ontario food courts

№ 01.3Deal Structure

Asset sale or share sale?

This is the first real decision in a Manchu Wok resale — and it changes what you're buying, what you're taking on, and how the franchise agreement moves.

QuestionAsset purchaseShare purchase
What you buyThe counter's assets — kitchen equipment, leasehold improvements, inventory, and the benefit of the existing franchise agreement, subject to consent.The shares of the operating company — every counter it holds, and everything it owes.
Franchisor consent & ROFRRequired for this specific counter, and typically the pacing condition on the whole deal.Required for the change of control itself — MTY reviews who is actually taking over the company.
The premisesA mall food-court space, usually with a percentage-rent clause and a design-refresh requirement the mall can impose when the operator changes.Usually stays in place unless the mall's own agreement has a change-of-control clause.
Design & prototype complianceAn older counter can be conditioned on renovation to the mall's current design standard before assignment is finalized.Generally not triggered by a share sale, since the premises agreement itself doesn't change hands.
Tax angleBuyer gets a stepped-up cost base on the assets purchased.Seller may access the lifetime capital gains exemption on qualifying shares.
Typical use for a Manchu Wok counterThe default for a single food-court counter changing hands.Less common — occasionally used where an operator holds several MTY-family counters under one company.
What you buy
Asset sale

The counter's assets — kitchen equipment, leasehold improvements, inventory, and the benefit of the existing franchise agreement, subject to consent.

Franchisor consent & ROFR
Asset sale

Required for this specific counter, and typically the pacing condition on the whole deal.

The premises
Asset sale

A mall food-court space, usually with a percentage-rent clause and a design-refresh requirement the mall can impose when the operator changes.

Design & prototype compliance
Asset sale

An older counter can be conditioned on renovation to the mall's current design standard before assignment is finalized.

Tax angle
Asset sale

Buyer gets a stepped-up cost base on the assets purchased.

Typical use for a Manchu Wok counter
Asset sale

The default for a single food-court counter changing hands.

We tell you which structure fits — before you sign anything.

№ 01.5Costs & Fees

You'll know the number before we start

No open-ended hourly surprises — the cost is confirmed in writing before any work begins.

Type of workFeeHow it's confirmed
Straightforward purchase or saleStarting from $3,388.87
Our charges · taxes included
Confirmed in writing once we see the agreement.
Larger or more complex dealQuoted to scopeShort call → fixed written quote before any work begins.
Searches, filings & third-party feesAt costItemized on your invoice, not marked up.
Franchisor transfer/application fees, landlord consent costs, and a broker's success fee if the deal was listed — all confirmed once we see your agreement.
Most deals start here

An owner-run business

A single Manchu Wok food-court counter changing hands between one buyer and one seller, already at or near the mall's current design standard.

Start my file
A bit more involved

A larger or more complex deal

An older counter where the mall requires a design refresh before it will consent to assignment, or an operator holding several MTY-family counters selling as one operating company.

Book a consultation

Not sure which you are? That's our job to figure out, not yours. As a rough guide, most deals under a couple of million dollars are the first kind — above that, you're usually in Mergers & Acquisitions territory.

№ 01.6Before You Ask

Common questions

My Manchu Wok counter has an older store design — will the mall require a renovation before it lets me take over?

It's a real possibility. Some shopping centres condition their consent to assign on the counter being brought up to the mall's current design standard, which affects both your timeline and your budget. We check this with the property manager early, before it becomes a surprise closing condition.

How does percentage rent work if I'm buying a food-court counter?

Many food-court agreements charge rent as a base amount plus a percentage of sales above a threshold, which changes how you should model occupancy cost compared to a flat-rent storefront. We review the actual terms in your specific agreement rather than assuming standard mall-lease math applies.

Does buying an existing Manchu Wok counter mean I skip the disclosure document?

Not necessarily. Ontario courts have read the resale-disclosure exemption narrowly, and franchisor involvement in the resale can be enough to trigger a full disclosure requirement anyway. Whether it applies to your deal gets confirmed early, not assumed from the word 'resale.'

What happens if MTY exercises its right of first refusal after I've negotiated a deal?

It can step in and buy the counter itself, on the same terms you negotiated, instead of letting your purchase proceed. It's a standard clause in most franchise systems, and it's built into the deal timeline from the start so it doesn't surprise you late.

Does the mall need to approve the sale separately from the franchisor?

Usually, yes — the property manager's consent to assign the space runs alongside the franchisor's own approval, and the two processes don't always move at the same pace. We track both timelines so one doesn't quietly become the bottleneck.

Related

Where we close franchise resale deals

Treadstone Law is an independent law firm. We act for buyers and sellers of franchise businesses. We are not affiliated with, endorsed by, or retained by Manchu Wok or its franchisor.

Ready to begin?

Tell us about your Manchu Wok resale — we'll point you the right way and confirm the cost in writing before any work begins.

Prefer to talk first? Call 1-844-900-1070 — it’s free.
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