Dae GeeFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Dae Gee franchise requires a total initial investment of $480K – $949K, including a $45K franchise fee and an ongoing 5.5% royalty[2]. Per the 2024 FDD, average unit revenue was $1.1M[2]. Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2024 FDD issuance
Overview
- Investment
- $480K – $949K
- 32nd pct Service Resta…
- Avg gross sales
- $1.1M
- 11th pct Service Resta…
- Royalty
- 5.5%
- 24th pct Service Resta…
- Units
- 6
- 15th 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
The franchisor's auditor raised doubt about continued operations. This is a serious risk signal.
36% cash-on-cash return. Above the 20% threshold most investors target.
Bottom line
- Total investment $480K – $949K including a $45K franchise fee, 5.5% ongoing royalty.
- Average unit revenue of $1.1M/year, with an estimated 36% cash-on-cash return.
- Verdict A (Top Quintile) with a risk score of 48/100.
- Auditor disclosed a going-concern note, which flagged doubt about the franchisor's ability to continue operations. Verify against the latest FDD.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Dae Gee Franchising, LLC
- Parent company
- Dae Gee Holdings, LLC
- Incorporated in
- CO
- HQ
- 7570 Sheridan Boulevard, Westminster, CO 80003
- Auditor
- Kezos & Dunlavy
- Audited financials
- Franchisor revenue
- $0
- Most recent fiscal year
- ⚠ Going-concern note
- Disclosed in FDD 2024
- Status as of 2024; may have been resolved in a later filing we don't yet have.
Overview
About
Dae Gee franchisees operate a food/beverage concept (likely Korean cuisine based on brand name) serving customers through counter-service or casual dining operations. Day-to-day responsibilities include inventory management, food preparation/quality control, staff scheduling, customer service, and local marketing—typical for a single-unit restaurant franchise.
- CEO
- Joseph Kim
- Headquarters
- CO
- Founded
- 2021
- FDD year
- 2024
- States available
- 2
FDD Item 7 · 2024 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $45K | $45K |
| Working capital (3–6 mo) | $15K | $50K |
| Equipment, build-out, other | $420K | $854K |
| Total initial investment | $480K | $949K |
Source: Dae Gee 2024 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$127K
11.5% margin
Unlevered ROIC
17%
EBITDA / total invested capital
Payback
5.9 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $480K – $949K
- Better than avg vs category
- Liquid capital req'd
- $15K – $50K
- Better than avg vs category
- Franchise fee
- $45K – $45K
- Better than avg vs category
- Royalty
- 5.5%
- percentage_of_gross · typical 6–8%
- Ad fund
- 1.0%
- typical 3–5%
- Total fee load
- 6.5%
- vs 9–13% typical
- Payback period
- 2.8 yrs
- From FDD / Item 19
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 5.5% of gross sales |
| Marketing / ad fund | 1.0% of gross sales |
| Technology fee | $125 |
| Transfer fee | $25K |
| Renewal fee | $10K |
| Total fee load | 6.5% of rev |
A 6.5% total fee load is unusually lean. More of each revenue dollar stays with the franchisee.
Financial Performance
- Avg gross sales
- $1.1M
- Per unit, per year
- Median gross sales
- N/A
- Avg net income
- $258K
- Cash-on-cash
- 36.2%
- Based on Net Income / investment midpoint
- Item 19 type
- Historical
- Sample size
- 5 units
- vs category median 13 · small
- Range (low → high)
- $573K→$1.4M
- Cohort dispersion (min → max)
- Reporting year
- 2023
- Fiscal year the figures cover
- Transparency
- 9 / 5
- vs category median 4 / 5 · above
Compared against 1264 Full-Service Restaurants brands
vs Full-Service Restaurants averages
How Dae Gee Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 6
- 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
- 4
- Corporate units in the system
- % franchised
- 33%
- vs corporate-owned
- Multi-unit owners
- 1.0%
3-year detail · Item 20
- Transfers (3yr)
- 0
- Projected new
- 5
- Franchisor's next-year forecast
- Ceased ops
- 16.7%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 3 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 loan disclosures. This brand has only 4 7(a) loans on file; statistical reliability is limited below 10 loans.
- Total loans
- 4
- Loan volume
- $3.9M
- Median loan
- $1.2M
- 50th percentile
- Charge-off rate
- N/A
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- N/A
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 3
- Defaults
- 0
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Dae Gee's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 2 lenders with concentration factor
- Per-state charge-off rates across 2 states
- Startup risk premium and job creation velocity
- 2-year lending trend
Instant access. No subscription.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Dae Gee presents caution-level risk due to micro-scale system, opaque unit growth, and unvalidated financial projections without franchisee performance disclosures.
Litigation (Item 3)
No litigation required to be disclosed
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Kezos & Dunlavy⚠ Going-concern note flagged
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
- Can negotiate own supplier terms: No
Score breakdown · what drove the 48 / 100 rating
- 01MEDOnly 6 units system-wide indicates minimal scale, limited peer support network, and unproven replicability
- 02MEDNo disclosed unit growth history despite 10-year franchise model suggests stagnation or undisclosed closures
- 03MINORHigh capital requirement ($479k-$948k) against only 6 operating units creates survivorship uncertainty
- 04MINOR27% net margin reported seems optimistic without Item 19 financial disclosures to validate claims
- 05MINORUnknown franchise fee justification ($45k) for brand with no demonstrable franchise development track record
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 |
| 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 | 25 mi |
| Right of first refusalℹ | Yes |
| RoFR response window | 30 days |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Arbitration location | Westminster, Colorado |
| Jury trial waiver | Yes |
| Governing law | Colorado |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation required to be disclosed
Items 10, 11
Training & Operations
- Classroom training
- 45 hrs
- On-the-job training
- 27 hrs
- Training location
- On-site and corporate
- Time to open
- 11 mo
- From signing to launch
- POS system
- POS system of your choice
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: POS system of your choice
Item 20 · call current owners
Franchisee Contacts
3 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Dae Gee · FDD (2024) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Dae Gee franchise?
The total investment to open a Dae Gee franchise ranges from $480K – $949K, 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 Dae Gee franchise owners earn?
According to Item 19 of the Dae Gee FDD, the average gross sales per unit is $1.1M. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Dae Gee's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Dae Gee (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 Dae Gee franchise locations are there?
As of their most recent FDD filing, Dae Gee has 6 total units in the United States, including 0 franchised units and 4 company-owned units. 2 new units were opened in the latest reporting year.
Is Dae Gee a good franchise to buy?
FranchiseVerdict rates Dae Gee as a A-grade franchise with a risk score of 48 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.
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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.