FranchiseVerdict
Brooklyn Dumpling Shop logo
FV-00397·CAUTIONExcellent86

Brooklyn Dumpling Shop

Food & Beverage - Full ServiceFranchising since 2021Website
Investment
$373K – $722K
50th pct Full Service
Avg revenue
57th pct Full Service
Royalty
6.0%
54th pct Full Service
Units
3
16th pct Full Service
SBA default

Bottom line

  • Total investment $373K – $722K including a $45K franchise fee, 6.0% ongoing royalty.
  • No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
  • Rated CAUTION with a risk score of 77/100.
  • 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
BDS FRANCHISING, LLC
Incorporated in
New Jersey
HQ
2 University Plaza, Suite 100, Hackensack, New Jersey 07601
Auditor
DA Advisory Group
Audited financials
Franchisor revenue
$0
vs $280K prior year

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 Brooklyn Dumpling Shop 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: $373K–$722K
Working capital
$
FDD reports $15K–$27K

Unlevered ROIC · per unit

20%

Below typical band (30–60%)

0%30–60% Yale band80%

Store EBITDA · annual
$113K
EBITDA margin
15.0%
Total invested
$568K
Payback
61 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

Brooklyn Dumpling Shop franchisees operate quick-service restaurants specializing in dumplings and Asian noodle dishes, typically handling day-to-day food preparation, counter service, inventory management, and local marketing in a protected territorial area. The business model appears focused on casual dining with likely high labor intensity for food production and modest table service.

CEO
Stratis Morfogen
Founded
2021
FDD year
2023
States available
2

Item 7 · what it costs

The Vitals

Total investment
$373K – $722K
All-in to open one unit
Liquid capital
$15K – $27K
Cash you must have on hand
Franchise fee
$45K
Royalty
6.0%
Percentage of Gross Revenue · typical 6–8%
Ad fund
2.0%
typical 3–5%
Total fee load
8.0%
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
3
Opened
2
Last reporting year
Closed
0
Turnover rate
0.0%
Company-owned
1
Corporate units in the system
% franchised
67%
vs corporate-owned
2021
2+2
Franchised units
2022
0
Franchised units
2023
0
Franchised units

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

Item 20 · 18 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 · 18 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

77
Risk · 0-100
CAUTION77 / 100

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.

Score breakdown · what drove the 77 / 100 rating

  1. 01MINOROnly 3 operating units indicates minimal system scale and severely limits validation sample size
  2. 02MINORMultiple employment-related lawsuits (FLSA violations) suggest systemic labor compliance or wage-and-hour issues affecting franchisee operations
  3. 03HIGHTrademark infringement/unfair competition litigation involving officers/principals raises brand integrity and leadership credibility concerns
  4. 04MEDNo Item 19 (average unit volumes) disclosed — unable to assess realistic revenue potential or ROI on $373K-$722K investment
  5. 05MINORNo average net income data prevents franchisee from calculating true profitability or break-even timeline
  6. 06HIGHGoing Concern status = False suggests parent company may face financial viability questions
  7. 07MED6% royalty on undisclosed revenues creates ongoing cost burden with no baseline performance metrics
  8. 08MINORUnknown unit growth trajectory indicates stagnant or declining franchise interest despite protected territories

Severity inferred from the FDD text · not a regulatory classification

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

Contract & Territory Detail

Territory
Radius
Protected territory
Yes
Initial term
10 years
Renewal term
10 years
Online sales rights
Restricted
Franchisor can compete
Yes
Hire a manager?
Allowed
Litigation count
6
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
New Jersey

Item 11

Training & Operations

Classroom training
84 hrs
On-the-job training
90 hrs
POS system
Tray
Operating tech stack

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

22 numbers

Locked
(804) 371-••••
VA
(347) 714-••••
NY
(808) 586-••••
HI

One-time purchase · CSV download · Validation questions included

FDD download

Brooklyn Dumpling Shop · FDD (2023) PDF

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