Company: CCHH
Filing Date: 2025-08-07
Form Type: DRS/A
Source: 0001213900-25-072802
Chunk: 96

Company: CCH Holdings Ltd
Filing Date: 2025-08-07
Form: DRS/A
Chunk 96
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ian on May10, 2025) and the other in Gaozhou, Guangdong Province, China; and (v) one is an outlet under the brand Banbudian Bistro in Kuala Lumpur, Malaysia. Banbudian Bistro is a brand originated in China, and we have obtained a licensing right to open company -ownedrestaurant outlets or enter into sub -franchiselicensing arrangements with third parties to open franchised restaurant outlets under such brand in Malaysia. The restaurant outlet under the brand Banbudian Bistro is operated by a licensee of ours. For the franchised restaurant outlets that are already opened as of the date of this prospectus, the licensing agreements that we entered into with licensees are mainly two types. Under licensing agreements with licensees in Malaysia (substantially in the form of Exhibit 10.3 to this prospectus), each licensee is required to pay us royalties in terms of a certain percentage of the applicable restaurant outlet’s gross monthly revenues and a monthly administrative fee. Under licensing agreements with licensees outside Malaysia (substantially in the form of Exhibit 10.4 to this prospectus), each licensee is required to pay us a master license fee as the lump sum payment upfront for obtaining right to open up a fixed number of restaurant outlets under the authorized brand in a specified scope of territory. For each restaurant outlet such licensee opens above the fixed number agreed or sub -franchisesto other third -partylicensees in such territory, a fixed outlet licensee fee shall also be paid to us. Each licensees outside Malaysia is also required to pay a certain percentage of the applicable restaurant outlet’s gross revenues with us as royalties. As of date of this prospectus, none of our licensees outside Malaysia has any sub -franchisingarrangements with other third parties and all of our franchised restaurant outlets are operated by our licensees directly. Our royalty rates are usually between 5% to 7.5% for each restaurant outlet and royalties are settled on a monthly basis. As we continue to grow our business, we also plan to enter into licensing agreements with the master license feature with licensees in Malaysia, which historically were only entered into with licensees outside Malaysia. As of the date of this prospectus, we have entered into a licensing agreement with a licensee in Malaysia, granting it a master license to open new franchised restaurant outlets under the brand Banbudian Bistro. Such licensee currently plans to open up a new restaurant outlet in Penang, Malaysia in the third quarter