Happy Lemon
Food & Beverage · Coffee & Beverage
- Active units
- 106
- Royalty
- 6.0%
Franchised, year-end 2025
of weekly Net Sales
About Happy Lemon
Happy Lemon Tutors is a renowned brand in Hong Kong that aims to combine joy and education. Founded by BEng. Charles Kwan, our mission is to bring fun, interactive, and effective learning experiences to students across the city. We understand the challenges faced by students in Hong Kong, such as large class sizes and a lack of spoken English at home. To address these concerns, we specialize in providing enjoyable, interactive one-to-one private classes and small group lessons. Our team of dedicated Native English Teachers has been positively impacting the lives of Hong Kong students for years. In 2017, Charles Kwan recognized the need for a new approach to English classes, and after gaining valuable experience working in local schools, he developed a better, more engaging way to learn. We believe that learning should not only be educational but also fun! If you're searching for a brand that prioritizes individual attention and a personalized learning experience, Happy Lemon Tutors is the answer. Contact us today to find out more about our courses, events, and how we can help you or your child excel in English and Chinese.
Key terms
- Franchise fee
$46k
- Multiple Franchise Agreements
If you sign 3 Franchise Agreements at the same time: first $45,900; second $40,900; third $35,900
- Brand fund
1.0% of Net Sales
- Footprint
500 – 1,000 sq ft
- Veteran discount
Not offered
Brand Percentile Rankings
Rankings compare brands in the same operating year. Fee and investment figures come from the FDD (2026 filing).
Growth
- Total locations106
Franchised units open at year-end
- New openings7
Gross new units opened during the calendar year
- 1-year unit growth rate0.0%
Net unit growth versus prior year
- 3-year unit CAGR0.0%
Compound annual growth rate of unit count over the trailing 3 years
- Unit growth ratio1.0×
Cumulative opens / closures through year-end
Unit economics
- Annual unit volume (Median)—
Per FDD Item 19 disclosure
- Annual unit volume (25th percentile)$261k
Gross Revenues include all charges/revenues earned, less sales tax and actual customer refunds, adjustments and credits.
- Annual unit volume (75th percentile)$655k
Gross Revenues include all charges/revenues earned, less sales tax and actual customer refunds, adjustments and credits.
- 1-year Median AUV growth rate—
Year-over-year change in median AUV
- Store-level EBITDA Margin—
Median unit-level EBITDA / AUV
Investment profile
- Estimated initial investment$352k
Midpoint of estimated initial investment range
↓ Lower is better - Time to open—
Midpoint of average time from agreement to opening
- Royalty rate6.0%
Percent of net sales paid to the franchisor
↓ Lower is better - Sales-to-investment ratio—
Median AUV / estimated initial investment midpoint
- Cash-on-cash returns—
Median unit-level EBITDA / estimated initial investment midpoint. Steady-state estimate; year 1 returns will be lower as the unit ramps to median volumes.
Franchisee healthLocked
- Unit closure ratio
- Transfer vs. closure ratio
- Percent multi-unit franchisees
- Litigation rate
- EBITDA multiple on sales & transfers
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Location footprint
Showing 96 of 121 mapped locations
Sources
Financial and operating figures are sourced from the brand's Franchise Disclosure Documents. Brand percentile rankings are based on comparisons to other brands that include the same metrics in their Franchise Disclosure Documents.