Cho DangFranchise Cost, Revenue & Review 2026
Data from FDD filing
FranchiseVerdict summary · 2026
A Cho Dang franchise requires a total initial investment of $364K – $610K, including a $95K franchise fee and an ongoing 4.0% 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
- $364K – $610K
- 24th pct Service Resta…
- Avg gross sales
- N/A
- 28th pct Service Resta…
- Royalty
- 4.0%
- 3rd 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
Started franchising in 2023. Newer systems carry more uncertainty but may offer better territories.
Bottom line
- Total investment $364K – $610K including a $95K franchise fee, 4.0% 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 89/100.
- 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
- Cho Dang Franchise, Inc.
- Incorporated in
- CA
- HQ
- 12245 Artesia Blvd., Cerritos, CA 90703
- Auditor
- HAN & Associates CPAs
- Audited financials
Overview
About
Cho Dang franchisees operate Korean beverage and food retail locations, likely specializing in traditional drinks (silken tofu drinks, Korean coffee, smoothies) and complementary snacks. Day-to-day operations include inventory management, customer service, preparation of fresh beverages, point-of-sale management, and adherence to brand standards and recipes.
- CEO
- Sunim Kim
- Headquarters
- CA
- Founded
- 2022
- FDD year
- 2023
- States available
- 1
FDD Item 7 · 2023 filing · 13 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Feenot refundable | $90K | $90K | |
| Real Estate Security/Deposits and Initial Rentnot refundable | $5K | $35K | |
| Construction and leasehold improvementsnot refundable | $170K | $250K | |
| Design and architecturenot refundable | $6K | $8K | |
| Equipment, Furniture and Fixturesnot refundable | $35K | $75K | |
| Opening Inventorynot refundable | $5K | $15K | |
| Insurancenot refundable | $5K | $15K | |
| Opening Promotion and Grand Openingnot refundable | $3K | $10K | |
| Cash Registers/Other Office Equipmentnot refundable | $3K | $15K | |
| Initial Training Expensesnot refundable | $0 | $5K | |
| Business Licenses, Utility Deposits, Prepaid Feesnot refundable | $2K | $10K | |
| Pre-opening Payrollnot refundable | $10K | $12K | |
| Additional Funds - 3 monthsnot refundable | $30K | $70K | |
| Total initial investment | $364K | $610K |
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
- $364K – $610K
- Better than avg vs category
- Liquid capital req'd
- $30K – $70K
- Better than avg vs category
- Franchise fee
- $95K – $105K
- Near category avg vs category
- Royalty
- 4.0%
- Gross Sales · typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 6.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 4.0% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
| Transfer fee | $3K |
| Renewal fee | $45K |
| Total fee load | 6.0% 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 Cho Dang Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 3
- Opened
- 1
- Last reporting year
- Closed
- 0
- Turnover rate
- 0.0%
- Company-owned
- 3
- Corporate units in the system
- % franchised
- 0%
- vs corporate-owned
3-year detail · Item 20
- Opened (3yr)
- 1
- Closed (3yr)
- 0
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 0
- Reacquired (3yr)
- 0
- Franchisor bought back
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 15 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
Cho Dang presents HIGH RISK due to micro-scale system (3 units), undisclosed financials, going concern issues, and insufficient data to model profitability on a $363.5K–$610K investment.
Litigation (Item 3)
0 case reference(s): 0 pending, 0 settled.
Largest disclosed settlement: $90,000
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · HAN & Associates CPAs
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Must buy proprietary products: No
- Restricted to system-approved products: No
Score breakdown · what drove the 89 / 100 rating
- 01MINOROnly 3 units in system with unknown growth trajectory suggests minimal scale and high failure risk
- 02HIGHGoing Concern status = FALSE indicates potential financial instability or viability questions at corporate level
- 03MINORNo Item 19 (average revenue/income disclosure) provided — impossible to validate ROI on $363.5K–$610K investment
- 04MINORHigh initial investment ($363.5K–$610K) combined with only 4% royalty creates pressure on franchisee profitability
- 05MINORFranchise fee ($90K) is substantial relative to only 3 existing units, suggesting reliance on new franchisee fees for corporate revenue
- 06MED5-year term is shorter than industry standard (10 years), creating renewal uncertainty and limited payback runway
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 | 5 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 1 |
| Territory type | radius |
| Protected territory | Yes |
| Territory sizeℹ | 100,000 population |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | California |
| Litigation count | 0 |
View Item 3 litigation summary
0 case reference(s): 0 pending, 0 settled.
Items 10, 11
Training & Operations
- Classroom training
- 6 hrs
- On-the-job training
- 6 hrs
- Training location
- On-site and corporate
Items 5 & 11
Franchisor Support
Item 20 · call current owners
Franchisee Contacts
15 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Cho Dang · FDD (2023) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Cho Dang franchise?
The total investment to open a Cho Dang franchise ranges from $364K – $610K, with an initial franchise fee of $95K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Cho Dang franchise owners earn?
Cho Dang 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 Cho Dang's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Cho Dang (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 Cho Dang franchise locations are there?
As of their most recent FDD filing, Cho Dang has 3 total units in the United States, including 0 franchised units and 3 company-owned units. 1 new units were opened in the latest reporting year.
Is Cho Dang a good franchise to buy?
FranchiseVerdict rates Cho Dang as a F-grade franchise with a risk score of 89 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
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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.