KPOT Hot Pot & Barbecue Franchise Cost, Revenue & Review 2026
Formerly known as KPOT Korean BBQ & Hot Pot
Data from FDD filing
Analysis by FranchiseVerdict Research · Methodology
KPOT is a full-service restaurant franchise combining all-you-can-eat Asian hot pot and Korean barbecue at tabletop cook stations. Franchisees run the restaurants, managing large dining rooms, specialty supply chains, and service staff.
FranchiseVerdict summary · 2026
A KPOT Hot Pot & Barbecue franchise requires a total initial investment of $733K – $1.9M, including a $50K franchise fee and an ongoing 5.0% royalty[2]. The 2024 FDD does not disclose unit-level revenue (no Item 19). FranchiseVerdict grade: C (Average), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2024 FDD issuance
Overview
- Investment
- $733K – $1.9M
- 30th pct Service Resta…
- Avg gross sales
- N/A
- Royalty
- 5.0%
- 7th pct Service Resta…
- Units
- 54
- 27th 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 $733K – $1.9M including a $50K franchise fee, 5.0% ongoing royalty.
- RETURNSAudited FY2023 (KPOT Franchise LLC, year ended Dec 31, 2023). Total revenues $3,106,583 comprised of royalty fee $2,076,390, marketing fee $672,103, initial franchise fee $296,542, license fee $60,000, professional fee $1,548. Member's deficit of $1,353,584.
- RISKVerdict C (Average), verdict score 43/100 (higher is better).
- GROWTHSystem growing at 3800.0% CAGR over 3 years with 54 total units. Strong expansion trajectory.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- KPOT Franchise LLC
- Parent company
- KPOT Enterprises, LLC
- CEO title
- Manager
- Su Li
- Incorporated in
- NJ
- HQ
- 19 Quail Run, Randolph, New Jersey 07869
- Auditor
- Wei & Co., LLP
- Audited financials
- Franchisor revenue
- $3.1M
- vs $647K prior year
Affiliated brands
- Snap Back Holding
- KPot
- Corigo Express
- KPOT Distribution
Other brands the franchisor or its parent operates (Item 1).
Overview
About
- CEO
- Su Li
- Headquarters
- NJ
- Founded
- 2021
- FDD year
- 2024
- States available
- 17
Can you afford it, and what does the money buy?
Entry cost runs 14% above the typical full-service restaurants franchise.
Source: FDD 2024 · Items 5–7
FDD Item 7 · 2024 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $50K | $50K |
| Working capital (3–6 mo) | $75K | $150K |
| Equipment, build-out, other | $608K | $1.7M |
| Total initial investment | $733K | $1.9M |
Source: KPOT Hot Pot & Barbecue 2024 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
- $733K – $1.9M
- Top 40% of category vs category
- Liquid capital req'd
- $75K – $150K
- Top 40% of category vs category
- Franchise fee
- $50K – $50K
- Top 40% of category vs category
- Royalty
- 5.0%
- percentage · typical 6–8%
- Ad fund
- Flat $2,000 per month (Brand Development Fee); may increa…
- Total fee load
- 5.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 5.0% of gross sales |
| Technology fee | $1K |
| Training fee | $3K |
| Transfer fee | $15K |
| Renewal fee | $5K |
| Inventory (initial) | $50K – $100K |
| Total fee load | 5.0% of rev |
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
KPOT Hot Pot & Barbecue 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 KPOT Hot Pot & Barbecue unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
5%
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: 2024 FDD
Financial Performance
Audited FY2023 (KPOT Franchise LLC, year ended Dec 31, 2023). Total revenues $3,106,583 comprised of royalty fee $2,076,390, marketing fee $672,103, initial franchise fee $296,542, license fee $60,000, professional fee $1,548. Member's deficit of $1,353,584.
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 5.0% — 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.
Operator retention
System expanding at 3800.0% CAGR over 3 years across 54 units — operators are staying and new ones are joining.
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 KPOT Hot Pot & Barbecue Compares
Is the system healthy?
Source: FDD 2024 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 54
- Opened
- 32
- 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
- 15
- Corporate units in the system
- % franchised
- 72%
- vs corporate-owned
3-year detail · Item 20
- Opened (3yr)
- 32
- 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 · 17 states 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.
17
states with franchisees (per FDD Item 12)
Fast growth in a small system. Newer franchisors expanding quickly may not yet have the support infrastructure of larger systems.
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
KPOT's explosive 457% unit growth, absence of financial disclosures, questionable going concern status, and high capital requirements create meaningful profitability uncertainty despite the protected territory advantage.
Litigation (Item 3)
No litigation is required to be disclosed in Item 3.
Largest disclosed settlement: $50,000
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Wei & Co., LLP
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 43 / 100 verdict
- 01MEDNo Item 19 financial performance data disclosed — impossible to validate ROI claims or average unit economics
- 02MINORHypergrowth of 457% YoY unit expansion suggests potential market saturation risk and quality control challenges
- 03HIGHGoing Concern status is FALSE, indicating potential financial instability at corporate level despite rapid growth
- 04MEDHigh initial investment range ($733K-$1.9M) with no disclosed average revenue creates opacity on breakeven timeline
- 05MED54 total units is still a nascent system — limited historical data on franchisee long-term profitability
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 5.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2024 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 20 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | protected |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory radius | 5 mi |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 15 mi |
| Right of first refusalℹ | Yes |
| RoFR response window | 30 days |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Termination groundsℹ | 1 |
| Curable defaultsℹ | 2 |
| Mandatory arbitration | Yes |
| Arbitration location | Morris County, New Jersey |
| Jury trial waiver | Yes |
| Governing law | NJ |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation is required to be disclosed in Item 3.
Items 10, 11
Training & Operations
- Classroom training
- 0 hrs
- On-the-job training
- 61 hrs
- Training location
- Union, NJ (affiliate's restaurant)
- Ongoing training
- Required
- Field support
- 7 hrs/yr
- On-site visits per year
- Time to open
- 21 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 KPOT Hot Pot & Barbecue franchise?
The total investment to open a KPOT Hot Pot & Barbecue franchise ranges from $733K – $1.9M, with an initial franchise fee of $50K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do KPOT Hot Pot & Barbecue franchise owners earn?
KPOT Hot Pot & Barbecue 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 KPOT Hot Pot & Barbecue 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 KPOT Hot Pot & Barbecue FDD and qualifies whose outlets they describe.
What is KPOT Hot Pot & Barbecue's franchise failure rate?
SBA 7(a) loan charge-off data is not available for KPOT Hot Pot & Barbecue (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 KPOT Hot Pot & Barbecue franchise locations are there?
As of their most recent FDD filing, KPOT Hot Pot & Barbecue has 54 total units in the United States, including 39 franchised units and 15 company-owned units. 32 new units were opened in the latest reporting year.
Is KPOT Hot Pot & Barbecue a good franchise to buy?
FranchiseVerdict rates KPOT Hot Pot & Barbecue as a C-grade franchise with a verdict score of 43 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 KPOT Hot Pot & Barbecue, you can request corrections or provide updated information.
Other Full-Service Restaurants franchises
Compare similar franchise opportunities in the Full-Service Restaurants category
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.