Brooklyn Dumpling Shop Franchise Cost, Revenue & Review 2026
- Investment
- $373K – $722K
- Disclosed sales
- not disclosed
- SBA charge-off
- Not SBA-matched
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]. This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. FranchiseVerdict grade: D (Below average), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: high - issued more than two years ago
Evidence: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✗ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored5 of 5 headline figures on this page cite a page of the filing.
Overview
- Investment
- $373K – $722K
- 60th pct Service Resta…
- Avg gross sales
- N/A
- Royalty
- 6.0%
- 48th pct Service Resta…
- Units
- 3
- 14th 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 median · 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.
- RETURNSThis franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that.
- RISKVerdict D (Below average), verdict score 35/100 (higher is better).
- GROWTHNegative, pipeline stalled: 11 agreements signed but not yet open against 3 open outlets (Item 20).
- FLAGItem 4 discloses a bankruptcy of an officer or of a company an officer ran, not of the franchisor. Review Item 4 for details.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- BDS Franchising, LLC
- Ultimate parent
- Brooklyn Dumpling Shop LLC
- FDD Item 1, page 8 of the 2023 FDD
- 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
- Most recent fiscal 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 13% above the typical quick-service restaurants franchise.
Source: FDD 2023 · Items 5–7
Full Item 7 breakdown20 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 | $373K | $722K |
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%
- 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 makes no financial performance representation in Item 19 of its FDD - a voluntary item under the FTC Franchise Rule - so no unit revenue figures are disclosed. The return models need a revenue figure to start from, and the operating costs that turn gross sales into a profit are in no FDD. Enter your own and the calculator runs on your assumptions — nothing here is modelled until you do.
Returns model · single-unit ROIC
What would one Brooklyn Dumpling Shop unit return on the cash you put in?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for annual revenue, COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
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
No financial performance representation
This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that.
Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
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 median).
Disclosure
This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
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 medians
How Brooklyn Dumpling Shop Compares
Category median of published Quick-Service Restaurants brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
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
- N/A
- Company-owned
- 1
- Corporate units in the system
- % franchised
- 67%
- vs corporate-owned
Last fiscal year · Item 20 exits and transfers
- Terminated
- 0
- Not renewed
- 0
- Transferred
- 0
- Reacquired
- 0
- Franchisor bought back
- Signed, not yet open
- 11
- 3.67 per open outlet · Item 20 Table 5
- 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.
Where the owners are · Item 20 owner list
6 current owners across 4 states.
- NY 3
- CT 1
- FL 1
- NJ 1
Counts only, from the list the franchisor prints in Item 20. Names and phone numbers are for your own due diligence and are not shown here.
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
Litigation (Item 3)
Subject: officers or affiliates. The franchisor is not a named party in these cases.
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.
Bankruptcy (Item 4)
Subject: an officer. An officer’s own bankruptcy or a company an officer ran, not the franchisor’s
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)
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).
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 35 / 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
- 06MED6% royalty on undisclosed revenues creates ongoing cost burden with no baseline performance metrics
- 07MINORUnknown 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 territory |
| 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
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 makes no financial performance representation in Item 19 of its FDD - a voluntary item under the FTC Franchise Rule - so no unit revenue figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Who owns Brooklyn Dumpling Shop?
Brooklyn Dumpling Shop is franchised by BDS Franchising, LLC. The FDD names no parent company. The ultimate parent named in the FDD is Brooklyn Dumpling Shop LLC. Source: FDD Item 1, 2023 filing.
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 35 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. 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
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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.