FranchiseVerdict
1943 Classic Wevelopment logo
FV-00021·CAUTIONExcellent81

1943 Classic Wevelopment

Food & Beverage - Full ServiceFranchising since 2024Website
Investment
$670K – $1.2M
77th pct Full Service
Avg revenue
57th pct Full Service
Royalty
5.0%
15th pct Full Service
Units
1
3rd pct Full Service
SBA default

Bottom line

  • Total investment $670K – $1.2M including a $100K franchise fee, 5.0% ongoing royalty.
  • No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
  • Rated CAUTION with a risk score of 75/100.
  • No Item 19 financial performance representation. Without franchisor-disclosed revenue data, you'll need to gather unit economics directly from existing franchisees.

Item 1 · who you're contracting with

The Franchisor

Legal entity
Wevelopment USA, Inc.
Parent company
Wevelopment Co., Ltd. ("Wevelopment Korea")
Incorporated in
California
HQ
3435 Wilshire Blvd., Suite 460, Los Angeles, CA 90010
Auditor
Dow & Sohn CPAs
Audited financials

Yale framework · single-unit ROIC

Returns Analysis

Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.

The model · Yale framework

What would one 1943 Classic Wevelopment unit return on the cash you put in?

Revenue · per unit, per year
$
Item 19 not disclosed — typing your own estimate
Franchisor take · royalty + ad fund
Royaltytyp 68%
%
Ad fundtyp 35%
%
Operating costs · category default: generic
COGS
%
Labor
%
Rent / occupancy
%
Other operating
%
Total invested capital · what you actually put in
Initial investment
$
FDD Item 7: $670K–$1.2M
Working capital
$
FDD reports $55K–$150K

Unlevered ROIC · per unit

12%

Below typical band (30–60%)

0%30–60% Yale band80%

Store EBITDA · annual
$128K
EBITDA margin
17.0%
Total invested
$1.0M
Payback
97 mo
Unit-level only. A multi-unit portfolio gives up roughly 5–15% of this to shared services (corporate G&A) before reaching the ~10-unit break-even Yale describes.

Overview

About

1943 Classic Wevelopment appears to operate a food/beverage or hospitality concept (likely Korean-inspired based on parent company). Franchisees would manage day-to-day operations including staffing, inventory, customer service, and marketing within their territory while remitting 5% royalties to the franchisor. Limited public information prevents detailed operational clarity.

CEO
Taehyun Kim
Founded
2024
FDD year
2025
States available
1

Item 7 · what it costs

The Vitals

Total investment
$670K – $1.2M
All-in to open one unit
Liquid capital
$55K – $150K
Cash you must have on hand
Franchise fee
$100K
Royalty
5.0%
Percentage of Gross Sales · typical 6–8%
Ad fund
1.0%
typical 3–5%
Total fee load
6.0%
vs 9–13% typical

Item 19

Financial Performance

This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.

Item 20 · unit dynamics

The Growth Chart

Total units
1
Opened
1
Last reporting year
Closed
0
Turnover rate
0.0%
Company-owned
0
Corporate units in the system
% franchised
100%
vs corporate-owned
2023
1+1
Franchised units
2024
0
Franchised units
2025
0
Franchised units

Year-over-year franchised unit counts and net change. Source: FDD Item 20.

Item 20 · 5 states with active franchisees

The Territory Map

Derived from franchisee contact records. Shows states with at least one current operator — not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).

AK
ME
VT
NH
MA
RI
CT
NY
NJ
PA
DE
MD
DC
WA
OR
CA
NV
ID
MT
WY
UT
CO
AZ
NM
ND
SD
NE
KS
OK
TX
MN
IA
MO
AR
LA
WI
IL
MS
TN
MI
IN
KY
AL
OH
WV
GA
VA
NC
SC
FL
HI
Registered · 5 states
Not registered

States derived from franchisee phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.

Government records

SBA Loan Data

Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.

No SBA loan data available for this brand.

FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17

Risk & Legal

75
Risk · 0-100
CAUTION75 / 100

Single-unit franchise with unresolved regulatory violations, zero financial transparency, and unproven business model—extreme execution risk for $670k+ investment.

Score breakdown · what drove the 75 / 100 rating

  1. 01MINOROnly 1 operating unit with unknown growth trajectory suggests minimal proof of concept and system viability
  2. 02MINORRegulatory violation in August 2024: parent company settled with Virginia for unlicensed franchise sales, indicating compliance failures and legal exposure
  3. 03MEDNo disclosed average revenue or net income data (no Item 19) prevents validation of ROI claims on $670k-$1.177M investment
  4. 04MINORUnprotected territory creates direct competition risk; franchisor can open units nearby without compensation to existing franchisee
  5. 05MED5-year term is relatively short; limited time to recoup $100k franchise fee + initial investment before renewal uncertainty
  6. 06MINORParent company (Wevelopment Korea) is international with settlement history; language/communication barriers and enforcement challenges likely
  7. 07HIGHGoing concern status is False, but context suggests instability; minimal unit count indicates struggling or nascent system

Severity inferred from the FDD text · not a regulatory classification

FDD Items 5, 6, 12, 17 · continued from Risk & Legal

Contract & Territory Detail

Territory
Non-exclusive
Protected territory
No
Initial term
5 years
Renewal term
5 years
Online sales rights
Restricted
Franchisor can compete
Yes
Hire a manager?
Allowed
Litigation count
1
Right of first refusal
Yes
Franchisor can buy back on resale
Mandatory arbitration
Yes
Jury trial waiver
Yes
Non-compete
2 yrs
Post-termination restriction
Owner-operator
Optional
Governing law
California

Item 11

Training & Operations

Classroom training
16 hrs
On-the-job training
27 hrs

Item 20

Franchisee Contacts

Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.

Franchisee contacts

5 numbers

Locked
(212) 416-••••
NY
(213) 487-••••
CA
(360) 902-••••
WA

One-time purchase · CSV download · Validation questions included

FDD download

1943 Classic Wevelopment · FDD (2025) PDF

Single-page checkout · instant download · CSV export of contacts available separately above