Cho Dang
Bottom line
- Total investment $364K – $610K including a $90K franchise fee, 4.0% 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
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 Cho Dang unit return on the cash you put in?
Unlevered ROIC · per unit
24%
Below typical band (30–60%)
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.
Item 7 · what it costs
The Vitals
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
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 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
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.
Score breakdown · what drove the 77 / 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
Item 11
Training & Operations
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
15 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Cho Dang · FDD (2023) PDF