Brooklyn Dumpling Shop Franchise Cost, Revenue & Review 2026
Data from FDD filing
Analysis by FranchiseVerdict Research · Methodology
Brooklyn Dumpling Shop is a quick-service franchise serving dumplings and Asian dishes through an automat-style pickup format. Franchisees run the restaurants, managing food prep, staffing, and automated pickup.
FranchiseVerdict summary · 2026
A Brooklyn Dumpling Shop franchise requires a total initial investment of $373K – $722K, including a $45K franchise fee and an ongoing 6.0% royalty[2]. The 2023 FDD does not disclose unit-level revenue (no Item 19). FranchiseVerdict grade: D (Below average), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2023 FDD issuance
Overview
- Investment
- $373K – $722K
- 62nd pct Service Resta…
- Avg gross sales
- N/A
- Royalty
- 6.0%
- 46th pct Service Resta…
- Units
- 3
- 15th pct Service Resta…
- SBA charge-off
- N/A
Quick verdict · Quick-Service Restaurants · color = vs category peers
Green = favorable by >10% vs Quick-Service Restaurants avg · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $373K – $722K including a $45K franchise fee, 6.0% ongoing royalty.
- RETURNSFY2022 total revenue of $280,136 comprised franchise fees of $265,417 and rebates income of $14,719; prior year (2021) had $0 revenue. Audited statements of BDS Franchising, LLC (franchisor).
- RISKVerdict D (Below average), verdict score 30/100 (higher is better).
- FLAGBankruptcy history disclosed in the FDD. Review Item 4 for details before proceeding.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- BDS Franchising, LLC
- Parent company
- None
- Ultimate parent
- Brooklyn Dumpling Shop LLC
- CEO title
- CEO
- Stratis Morfogen
- CEO experience
- 18 yrs
- Years in role or industry
- Founder active
- Yes
- Original founder still leading the business
- Incorporated in
- NJ
- HQ
- 2 University Plaza, Suite 100, Hackensack, New Jersey 07601
- Auditor
- Raich Ende Malter & Co. LLP
- Audited financials
- Franchisor revenue
- $280K
- vs $0 prior year
- Management churn noted
- Frequent turnover
- Item 2 disclosed frequent executive changes
Overview
About
- CEO
- Stratis Morfogen
- Headquarters
- NJ
- Founded
- 2021
- FDD year
- 2023
- States available
- 16
Can you afford it, and what does the money buy?
Entry cost runs 17% below the typical quick-service restaurants franchise.
Source: FDD 2023 · Items 5–7
Full Item 7 breakdown22 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Fee | $45K | $45K | |
| Your Training Expenses | $1K | $13K | |
| Third Party Management/Leadership Training (McClaskey Excellence Institute or similar program) | $2K | $10K | |
| Premises deposits | $2K | $40K | |
| On-Site Location Evaluation | $0 | $500 | |
| Rent - 3 months | $25K | $45K | |
| Design and Architect Fees | $3K | $20K | |
| Leasehold Improvements, Construction and/or Remodeling | $50K | $185K | |
| Equipment, Furniture & Fixtures | $150K | $195K | |
| Exterior Signage | $10K | $25K | |
| Business Licenses and Permits | $500 | $2K | |
| Computer Systems | $18K | $24K | |
| Initial Inventory to Begin Operating | $20K | $35K | |
| Professional Fees | $3K | $5K | |
| Pre-Opening Assistance and Training | $10K | $10K | |
| Grand Opening Advertising | $10K | $10K | |
| Insurance | $500 | $1K | |
| Uniforms | $5K | $5K | |
| Ancillary Real Estate Costs | $5K | $25K | |
| Additional Funds - 3 months | $15K | $27K | |
| Total initial investment | $882K | $1.6M |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $373K – $722K
- Middle of category vs category
- Liquid capital req'd
- $15K – $27K
- Top 40% of category vs category
- Franchise fee
- $45K – $45K
- Bottom third — review vs category
- Royalty
- 6.0%
- percentage · typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 8.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.0% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
| Technology fee | $500 |
| Training fee | $10K |
| Transfer fee | $15K |
| Renewal fee | $5K |
| Inventory (initial) | $20K – $35K |
| Total fee load | 8.0% of rev |
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
Brooklyn Dumpling Shop did not disclose financial performance in FDD Item 19. The ROIC and return models require Item 19 revenue. Without it all inputs are estimates. You can still run the calculator with your own assumptions by entering an expected revenue figure.
Returns model · single-unit ROIC
What would one Brooklyn Dumpling Shop unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
18%
Below the 30–60% attractive-franchise band
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2023 FDD
Financial Performance
FY2022 total revenue of $280,136 comprised franchise fees of $265,417 and rebates income of $14,719; prior year (2021) had $0 revenue. Audited statements of BDS Franchising, LLC (franchisor).
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Fee burden
Total ongoing fee load of 8.0% (near the Quick-Service Restaurants average).
Disclosure
Franchisor chose not to disclose financial performance representations. You will need to gather unit economics directly from existing franchisees.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Quick-Service Restaurants averages
How Brooklyn Dumpling Shop Compares
Is the system healthy?
Source: FDD 2023 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 3
- Opened
- 2
- Last reporting year
- Closed
- 0
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 0.0%
- Company-owned
- 1
- Corporate units in the system
- % franchised
- 67%
- vs corporate-owned
3-year detail · Item 20
- Opened (3yr)
- 2
- Closed (3yr)
- 0
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 0
- Reacquired (3yr)
- 0
- Franchisor bought back
- Projected new
- 7
- Franchisor's next-year forecast
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 4 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).
States derived from franchisee contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
No SBA loan data available for this brand.
What could kill this investment?
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Extreme caution warranted: minimal unit count, unresolved litigation, missing financial disclosures, and going concern status create high failure risk for new franchisees with inadequate performance data.
Litigation (Item 3)
5 concluded actions all naming CEO Stratis Morfogen (and some others) as defendants related to prior business concepts unrelated to this franchise: trademark/unfair competition ($500K award), wage/hour settlements (FLSA/NYLL). Franchisor BDS Franchising, LLC was not a named party.
Largest disclosed settlement: $500,000
Bankruptcy (Item 4)
Disclosed in last 7 years
Officer Stratis Morfogen subject to two involuntary bankruptcy petitions (2013 dismissed 2014; 2014 petition discharged 2017) and one adversarial proceeding (dismissed 2015). Franchisor itself has no bankruptcy history.
Audited financials (Item 21)
Yes · Raich Ende Malter & Co. LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 30 / 100 verdict
- 01MINOROnly 3 operating units indicates minimal system scale and severely limits validation sample size
- 02MINORMultiple employment-related lawsuits (FLSA violations) suggest systemic labor compliance or wage-and-hour issues affecting franchisee operations
- 03HIGHTrademark infringement/unfair competition litigation involving officers/principals raises brand integrity and leadership credibility concerns
- 04MEDNo Item 19 (average unit volumes) disclosed — unable to assess realistic revenue potential or ROI on $373K-$722K investment
- 05MINORNo average net income data prevents franchisee from calculating true profitability or break-even timeline
- 06HIGHGoing Concern status = False suggests parent company may face financial viability questions
- 07MED6% royalty on undisclosed revenues creates ongoing cost burden with no baseline performance metrics
- 08MINORUnknown unit growth trajectory indicates stagnant or declining franchise interest despite protected territories
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 8.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2023 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | protected |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory radius | 3 mi |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 20 mi |
| Right of first refusalℹ | Yes |
| RoFR response window | 30 days |
| Transfer requires consent | Yes |
| Termination notice | 5 days |
| Curable defaultsℹ | 1 |
| Mandatory arbitration | Yes |
| Arbitration location | New Jersey |
| Jury trial waiver | Yes |
| Governing law | NJ |
| Litigation count | 5 |
View Item 3 litigation summary
5 concluded actions all naming CEO Stratis Morfogen (and some others) as defendants related to prior business concepts unrelated to this franchise: trademark/unfair competition ($500K award), wage/hour settlements (FLSA/NYLL). Franchisor BDS Franchising, LLC was not a named party.
Items 10, 11
Training & Operations
- Classroom training
- 84 hrs
- On-the-job training
- 90 hrs
- Training location
- Hoboken, New Jersey (or affiliate-owned location)
- Ongoing training
- Required
- Field support
- 10 hrs/yr
- On-site visits per year
- Time to open
- 10 mo
- From signing to launch
- Site selection
- Franchisee selects, franchisor approves
- Franchisor financing
- Not offered
- Item 10
- POS system
- Tray (Vendsy Inc) and Restaurant365
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Tray (Vendsy Inc) and Restaurant365
Item 20 · call current owners
Franchisee Contacts
6 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Brooklyn Dumpling Shop · FDD (2023) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Brooklyn Dumpling Shop franchise?
The total investment to open a Brooklyn Dumpling Shop franchise ranges from $373K – $722K, with an initial franchise fee of $45K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Brooklyn Dumpling Shop franchise owners earn?
Brooklyn Dumpling Shop does not disclose average franchise owner earnings in their FDD Item 19. Not all franchisors are required to make financial performance representations. We recommend asking existing franchisees directly about their financial experience.
What is Item 19 in the Brooklyn Dumpling Shop FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the Brooklyn Dumpling Shop FDD and qualifies whose outlets they describe.
What is Brooklyn Dumpling Shop's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Brooklyn Dumpling Shop (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
How many Brooklyn Dumpling Shop franchise locations are there?
As of their most recent FDD filing, Brooklyn Dumpling Shop has 3 total units in the United States, including 2 franchised units and 1 company-owned units. 2 new units were opened in the latest reporting year.
Is Brooklyn Dumpling Shop a good franchise to buy?
FranchiseVerdict rates Brooklyn Dumpling Shop as a D-grade franchise with a verdict score of 30 out of 100 (higher is better), based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
For franchisors
Are you the franchisor?
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.