Jung Kwan JangFranchise Cost, Revenue & Review 2026
Data from FDD filing
FranchiseVerdict summary · 2026
A Jung Kwan Jang franchise requires a total initial investment of $111K – $316K, including a $15K franchise fee and an ongoing 3.0% royalty[2]. The 2025 FDD does not disclose unit-level revenue (no Item 19). Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $111K – $316K
- 22nd pct Healthcare
- Avg gross sales
- N/A
- 48th pct Healthcare
- Royalty
- 3.0%
- 2nd pct Healthcare
- Units
- 37
- 50th pct Healthcare
- SBA default
- N/A
Quick verdict · Healthcare · color = vs category peers
Green = >15% above Healthcare 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
Franchised units fell from 36 to 33 over 3 years. Investigate why operators are leaving.
Bottom line
- Total investment $111K – $316K including a $15K franchise fee, 3.0% ongoing royalty.
- No Item 19 financial performance data disclosed. The franchisor chose not to publish revenue figures.
- Verdict A (Top Quintile) with a risk score of 48/100.
- 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
- KOREAN RED GINSENG CORP., INC.
- Parent company
- Korea Ginseng Corp. ("KGC")
- Incorporated in
- CA
- HQ
- 12750 Center Court Dr., Suite 100, Cerritos, CA 90703
- Auditor
- Ernst & Young LLP
- Audited financials
- Franchisor revenue
- $32.1M
- vs $32.3M prior year
Overview
About
Jung Kwan Jang franchisees operate Korean ginseng extract and traditional health product retail locations, likely selling concentrated extracts, supplements, and wellness beverages. Day-to-day operations involve inventory management, customer service, product demonstrations, and potentially consultative health advice to drive repeat purchases in community-based storefronts.
- CEO
- Woo Sung Chung
- Headquarters
- CA
- Founded
- 2009
- FDD year
- 2025
- States available
- 12
FDD Item 7 · 2025 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $15K | $15K |
| Working capital (3–6 mo) | $10K | $30K |
| Equipment, build-out, other | $86K | $271K |
| Total initial investment | $111K | $316K |
Source: Jung Kwan Jang 2025 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $111K – $316K
- Better than avg vs category
- Liquid capital req'd
- $10K – $30K
- Better than avg vs category
- Franchise fee
- $15K – $15K
- Better than avg vs category
- Royalty
- 3.0%
- Gross Sales · typical 6–8%
- Ad fund
- 3.0%
- typical 3–5%
- Total fee load
- 6.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 3.0% of gross sales |
| Marketing / ad fund | 3.0% of gross sales |
| Technology fee | $100 |
| Transfer fee | $8K |
| Renewal fee | $0 |
| 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 Healthcare averages
How Jung Kwan Jang Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 37
- Opened
- 2
- Last reporting year
- Closed
- 0
- Turnover rate
- 0.0%
- Company-owned
- 1
- Corporate units in the system
- % franchised
- 97%
- vs corporate-owned
- Net growth (yr3)
- +5.9%
- Net unit change last year
- 3-yr CAGR
- +9.1%
- Compounded over last 3 years
3-year detail · Item 20
- Closed (3yr)
- 0
- Terminated (3yr)
- 1
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 1
- Reacquired (3yr)
- 0
- Franchisor bought back
- Termination rate
- 3.0%
- Franchisor-initiated terminations
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 13 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
Jung Kwan Jang presents moderate-to-elevated risk due to lack of financial transparency, unprotected territories, anemic growth, and an unusually short franchise term that may not support meaningful profit recovery.
Litigation (Item 3)
0 case reference(s): 0 pending, 0 settled.
Largest disclosed settlement: $316,000
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Ernst & Young LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
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 48 / 100 rating
- 01MINORNo Item 19 financial disclosure — cannot verify average unit economics or profitability claims
- 02MINORUnprotected territory creates direct competition risk from other franchisees and company-owned locations
- 03MINORSlow unit growth of 5.9% YoY suggests market saturation or franchisee satisfaction issues
- 04MINORWide investment range ($111k-$316k) indicates unclear cost structure and unpredictable startup expenses
- 05MINORShort 3-year term limits long-term ROI potential and creates renewal uncertainty
- 06HIGHGoing Concern flag is FALSE but absence of positive disclosure raises transparency concerns
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 | 3 years |
|---|---|
| Protected territory | No |
| 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 |
| RoFR response window | 15 days |
| Termination notice | 60 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
- 16 hrs
- On-the-job training
- 40 hrs
- Training location
- On-site and corporate
- Franchisor financing
- Offered
- Item 10
- POS system
- SkySoft
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: SkySoft
Item 20 · call current owners
Franchisee Contacts
34 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Jung Kwan Jang · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Jung Kwan Jang franchise?
The total investment to open a Jung Kwan Jang franchise ranges from $111K – $316K, with an initial franchise fee of $15K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Jung Kwan Jang franchise owners earn?
Jung Kwan Jang 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 Jung Kwan Jang's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Jung Kwan Jang (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 Jung Kwan Jang franchise locations are there?
As of their most recent FDD filing, Jung Kwan Jang has 37 total units in the United States, including 36 franchised units and 1 company-owned units. 2 new units were opened in the latest reporting year.
Is Jung Kwan Jang a good franchise to buy?
FranchiseVerdict rates Jung Kwan Jang 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.