Brooklyn Dumpling ShopFranchise Cost, Revenue & Review 2026
Data from FDD filing
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). Verdict grade: F. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2023 FDD issuance
Overview
- Investment
- $373K – $722K
- 25th pct Service Resta…
- Avg gross sales
- N/A
- 28th pct Service Resta…
- Royalty
- 6.0%
- 26th pct Service Resta…
- Units
- 3
- 8th pct Service Resta…
- SBA default
- N/A
Quick verdict · Full-Service Restaurants · color = vs category peers
Green = >15% above Full-Service Restaurants avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
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.
- Verdict F (Bottom Quintile) with a risk score of 84/100.
- Bankruptcy history disclosed in the FDD. Review Item 4 for details before proceeding.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- BDS FRANCHISING, LLC
- Ultimate parent
- Brooklyn Dumpling Shop LLC
- CEO title
- Chief Executive Officer
- 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
- DA Advisory Group
- Audited financials
- Franchisor revenue
- $0
- Most recent fiscal year
- Management churn noted
- Frequent turnover
- Item 2 disclosed frequent executive changes
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
- Headquarters
- NJ
- Founded
- 2021
- FDD year
- 2023
- States available
- 2
FDD Item 7 · 2023 filing · 22 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
- Better than avg vs category
- Liquid capital req'd
- $15K – $27K
- Better than avg vs category
- Franchise fee
- $45K – $45K
- Better than avg vs category
- Royalty
- 6.0%
- percentage_of_gross · 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 |
| Total fee load | 8.0% of rev |
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
vs Full-Service Restaurants averages
How Brooklyn Dumpling Shop Compares
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
- Transfers (3yr)
- 0
- Projected new
- 7
- Franchisor's next-year forecast
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).
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.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
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)
Three concluded litigation matters disclosed involving officer Stratis Morfogen: (1) Michael Chow et al. v. Chak Chau et al. - 11th Circuit appeal reinstating $500,000 damages award against Morfogen for trademark infringement, trade dress infringement, false advertising and unfair competition; (2) Miro et al. v. Philippe Chow Boca, LLC et al. - settled in 2014 for $30,000 regarding FLSA and NY Labor violations for unpaid overtime and wages; (3) Tcaciuc v. (incomplete entry in source document)
Largest disclosed settlement: $30,000
Bankruptcy (Item 4)
Disclosed in last 7 years
Audited financials (Item 21)
Yes · DA Advisory Group
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 84 / 100 rating
- 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
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | Radius |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory radius | 3 mi |
| Online sales rights | 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 |
| Mandatory arbitration | Yes |
| Arbitration location | Bergen County, New Jersey |
| Jury trial waiver | Yes |
| Governing law | New Jersey |
| Litigation count | 6 |
View Item 3 litigation summary
Three concluded litigation matters disclosed involving officer Stratis Morfogen: (1) Michael Chow et al. v. Chak Chau et al. - 11th Circuit appeal reinstating $500,000 damages award against Morfogen for trademark infringement, trade dress infringement, false advertising and unfair competition; (2) Miro et al. v. Philippe Chow Boca, LLC et al. - settled in 2014 for $30,000 regarding FLSA and NY Labor violations for unpaid overtime and wages; (3) Tcaciuc v. (incomplete entry in source document)
Items 10, 11
Training & Operations
- Classroom training
- 84 hrs
- On-the-job training
- 90 hrs
- Training location
- headquarters and/or affiliate-owned outlet
- Ongoing training
- Required
- Field support
- 80 hrs/yr
- On-site visits per year
- Time to open
- 11 mo
- From signing to launch
- POS system
- Tray
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Tray
Item 20 · call current owners
Franchisee Contacts
22 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 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 F-grade franchise with a risk score of 84 out of 100, 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?
If you represent Brooklyn Dumpling Shop, you can request corrections or provide updated information.
Claim this brandOther Full-Service Restaurants franchises
Compare similar franchise opportunities in the Full-Service Restaurants category
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.