Heuk Hwa DangFranchise Cost, Revenue & Review 2026
Data from FDD filing
FranchiseVerdict summary · 2026
A Heuk Hwa Dang franchise requires a total initial investment of $304K – $505K, including a $40K franchise fee and an ongoing 5.0% royalty[2]. The 2025 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 2025 FDD issuance
Overview
- Investment
- $304K – $505K
- 60th pct Service Resta…
- Avg gross sales
- N/A
- 59th pct Service Resta…
- Royalty
- 5.0%
- 13th pct Service Resta…
- Units
- 4
- 17th pct Service Resta…
- SBA default
- N/A
Quick verdict · Quick-Service Restaurants · color = vs category peers
Green = >15% above Quick-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
Bottom line
- Total investment $304K – $505K including a $40K franchise fee, 5.0% 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 90/100.
- 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
- Wunam F&C USA, Inc.
- Parent company
- Wunam F&C Co., Ltd.[cite: 6].
- Ultimate parent
- Wunam F&C Korea
- CEO title
- Chief Executive Officer
- Ms. Eunhee Nam
- CEO experience
- 2019 yrs
- Years in role or industry
- Founder active
- Yes
- Original founder still leading the business
- Incorporated in
- California[cite: 6, 84].
- HQ
- 3435 Wilshire Blvd., Suite 460, Los Angeles, CA 90010[cite: 1, 6].
- Auditor
- Dow & Sohn CPAs
- Audited financials
- Franchisor revenue
- $143K
- vs $101K prior year
Overview
About
Heuk Hwa Dang Outlets offering premium tea and dessert menu items, including brown sugar bubble teas, smoothies, ice creams, coffees, and Taiwanese sandwiches, as well as on-premises dining and carry-out services[cite: 5, 6].
- CEO
- Ms. Eunhee Nam
- Headquarters
- CA
- Founded
- 2019
- FDD year
- 2025
- States available
- 3
FDD Item 7 · 2025 filing · 12 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Feenot refundable | $40K | $40K | |
| Real Estate Security/Deposits and Initial Rentnot refundable | $5K | $35K | |
| Construction and remodelingnot refundable | $170K | $250K | |
| Design and architecturenot refundable | $6K | $8K | |
| Equipment, Furniture and Fixturesnot refundable | $45K | $55K | |
| Opening Inventorynot refundable | $13K | $18K | |
| Insurancenot refundable | $5K | $15K | |
| Opening Promotion and Grand Openingnot refundable | $5K | $10K | |
| Cash Registers/Other Office Equipmentnot refundable | $3K | $10K | |
| Initial Training Expensesnot refundable | $0 | $4K | |
| Business Licenses, Utility Deposits, Prepaid Feesnot refundable | $2K | $10K | |
| Additional Funds - 3 monthsnot refundable | $10K | $50K | |
| Total initial investment | $304K | $505K |
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
- $304K – $505K
- Near category avg vs category
- Liquid capital req'd
- $10K – $50K
- Better than avg vs category
- Franchise fee
- $40K – $40K
- Below avg, review vs category
- Royalty
- 5.0%
- percentage_of_gross · typical 6–8%
- Ad fund
- 1.0%
- typical 3–5%
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 5.0% of gross sales |
| Marketing / ad fund | 1.0% of gross sales |
| Technology fee | $250 |
| Transfer fee | $15K |
| Renewal fee | $10K |
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
vs Quick-Service Restaurants averages
How Heuk Hwa Dang Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 4
- Opened
- 2
- Last reporting year
- Closed
- 2
- Turnover rate
- 50.0%
- Company-owned
- 2
- Corporate units in the system
3-year detail · Item 20
- Transfers (3yr)
- 0
- Projected new
- 1
- Franchisor's next-year forecast
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 7 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
Litigation (Item 3)
No litigation required to be disclosed
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Dow & Sohn CPAs
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Kickbacks from required suppliers: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: Yes
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 5 years |
|---|---|
| Renewal term | 1 year |
| Allowed renewalsℹ | 1 |
| Territory type | Radius[cite: 31, 32]. |
| Protected territory | No |
| Exclusive territoryℹ | No |
| 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 | Los Angeles, California |
| Governing law | California[cite: 38, 39]. |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation required to be disclosed
Items 10, 11
Training & Operations
- Classroom training
- 11 hrs
- On-the-job training
- 30 hrs
- Training location
- On-site and off-site
- Ongoing training
- Required
- POS system
- Credit Card Services, Inc. (d.b.a. NavyZ)[cite: 28, 29].
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Credit Card Services, Inc. (d.b.a. NavyZ)[cite: 28, 29].
Item 20 · call current owners
Franchisee Contacts
10 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Heuk Hwa Dang · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Heuk Hwa Dang franchise?
The total investment to open a Heuk Hwa Dang franchise ranges from $304K – $505K, with an initial franchise fee of $40K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Heuk Hwa Dang franchise owners earn?
Heuk Hwa 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 Heuk Hwa Dang's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Heuk Hwa 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 Heuk Hwa Dang franchise locations are there?
As of their most recent FDD filing, Heuk Hwa Dang has 4 total units in the United States, including 2 franchised units and 2 company-owned units. 2 new units were opened in the latest reporting year.
Is Heuk Hwa Dang a good franchise to buy?
FranchiseVerdict rates Heuk Hwa Dang as a F-grade franchise with a risk score of 90 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.