Cho Dang Franchise Cost, Revenue & Review 2026
Data from FDD filing
Analysis by FranchiseVerdict Research · Methodology
Cho Dang is a Korean cafe franchise serving traditional Korean beverages, tofu-based drinks, and snacks. Franchisees run the shops, managing drink and food prep, inventory, and counter service.
FranchiseVerdict summary · 2026
A Cho Dang franchise requires a total initial investment of $364K – $610K, including a $90K franchise fee and an ongoing 4.0% 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
- $364K – $610K
- 17th pct Service Resta…
- Avg gross sales
- N/A
- Royalty
- 4.0%
- 2nd pct Service Resta…
- Units
- 3
- 5th pct Service Resta…
- SBA charge-off
- N/A
Quick verdict · Full-Service Restaurants · color = vs category peers
Green = favorable by >10% vs Full-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 $364K – $610K including a $90K franchise fee, 4.0% ongoing royalty.
- RETURNSAudited financial statements of Cho Dang Franchise, Inc. (the franchisor), single entity, balance sheet as of April 30, 2023. Figures in whole US dollars; reconciles (assets 358,746 = liabilities 70,000 + stockholder's equity 288,746). Company formed Nov 14, 2022, so only one period presented (no prior-year comparative). Statement of Income shows total revenues of 100,000 and net loss of (11,250). Auditor firm name not legible in OCR signature block (signed June 13, 2023, Irvine, CA).
- RISKVerdict D (Below average), verdict score 30/100 (higher is better).
- DATANo 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
Corporate structure & franchisor financials
- Legal entity
- Cho Dang Franchise, Inc.
- CEO title
- Chief Executive Officer
- Sunim Kim
- Incorporated in
- CA
- HQ
- 12245 Artesia Blvd., Cerritos, CA 90703
- Auditor
- HAN & Associates CPAs
- Audited financials
- Franchisor revenue
- $100K
- Most recent fiscal year
Overview
About
- CEO
- Sunim Kim
- Headquarters
- CA
- Founded
- 2022
- FDD year
- 2023
- States available
- 1
Can you afford it, and what does the money buy?
Entry cost runs 58% below the typical full-service restaurants franchise.
Source: FDD 2023 · Items 5–7
Full Item 7 breakdown13 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
- Top 40% of category vs category
- Liquid capital req'd
- $30K – $70K
- Top 40% of category vs category
- Franchise fee
- $90K – $90K
- Top 40% of category vs category
- Royalty
- 4.0%
- percentage · 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 |
| Training fee | $5K |
| Transfer fee | $45K |
| Renewal fee | $45K |
| Inventory (initial) | $5K – $15K |
| Total fee load | 6.0% of rev |
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
Cho Dang 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 Cho Dang unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
17%
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
Audited financial statements of Cho Dang Franchise, Inc. (the franchisor), single entity, balance sheet as of April 30, 2023. Figures in whole US dollars; reconciles (assets 358,746 = liabilities 70,000 + stockholder's equity 288,746). Company formed Nov 14, 2022, so only one period presented (no prior-year comparative). Statement of Income shows total revenues of 100,000 and net loss of (11,250). Auditor firm name not legible in OCR signature block (signed June 13, 2023, Irvine, CA).
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 6.0% — below the Full-Service Restaurants average of 7.6%.
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 Full-Service Restaurants averages
How Cho Dang Compares
Is the system healthy?
Source: FDD 2023 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 3
- Opened
- 0
- 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
- 3
- Corporate units in the system
- % franchised
- 0%
- vs corporate-owned
3-year detail · Item 20
- Opened (3yr)
- 0
- 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 12 · 1 state reported
The Territory Map
FDD Item 12 reports the state count, but the specific list isn't in our current data. The map will appear once we re-extract from the FDD or enough franchisee contacts are available.
1
states with franchisees (per FDD Item 12)
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
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
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
Score breakdown · what drove the 30 / 100 verdict
- 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
What are you signing up for?
Ongoing fees run about 6.0% 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 | 5 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 1 |
| Territory type | protected |
| Protected territory | No |
| Exclusive territoryℹ | No |
| Territory radius | 5 mi |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 10 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Arbitration location | Orange County, California |
| Jury trial waiver | Yes |
| Governing law | CA |
| 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
- Cerritos, CA (corporate restaurant) or other designated location
- Ongoing training
- Required
- Time to open
- 6 mo
- From signing to launch
- Site selection
- franchisee with franchisor approval
- Franchisor financing
- Not offered
- Item 10
Items 5 & 11
Franchisor Support
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 $90K. 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 Item 19 in the Cho Dang 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 Cho Dang FDD and qualifies whose outlets they describe.
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.
Is Cho Dang a good franchise to buy?
FranchiseVerdict rates Cho Dang 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?
If you represent Cho Dang, you can request corrections or provide updated information.
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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.