KyochonFranchise Cost, Revenue & Review 2026
Data from FDD filing
FranchiseVerdict summary · 2026
A Kyochon franchise requires a total initial investment of $544K – $1.1M, including a $40K franchise fee and an ongoing 4.5% 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
- $544K – $1.1M
- 35th pct Service Resta…
- Avg gross sales
- N/A
- 28th pct Service Resta…
- Royalty
- 4.5%
- 6th pct Service Resta…
- Units
- 5
- 13th 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
Franchised units fell from 1 to 0 over 3 years. Investigate why operators are leaving.
The franchisor's auditor raised doubt about continued operations. This is a serious risk signal.
Bottom line
- Total investment $544K – $1.1M including a $40K franchise fee, 4.5% 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 95/100.
- 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
- Kyochon Franchise LLC
- Parent company
- Kyochon USA Inc.
- Incorporated in
- CA
- HQ
- 3699 Wilshire Blvd., Suite 1240, Los Angeles, CA 90010
- Auditor
- CCH Accountancy & Co.
- Audited financials
- Franchisor revenue
- $5.1M
- vs $4.4M prior year
- ⚠ Going-concern note
- Disclosed in FDD 2025
- Auditor flagged doubt about continued operations. Verify against the latest FDD before deciding.
Independent franchisee associations
- Franchise Advisory Council (FAC)
Franchisee-led councils or alliances disclosed in Item 20. Indicates operator voice.
Overview
About
Kyochon franchisees operate Korean fried chicken quick-service restaurants, managing food preparation, inventory, staffing, and customer service. Day-to-day responsibilities include quality control of signature chicken recipes, kitchen operations, delivery/takeout order fulfillment, and building local brand awareness in competitive fast-casual segments.
- CEO
- Young Gon Kim
- Headquarters
- CA
- Founded
- 1991
- FDD year
- 2025
- States available
- 2
FDD Item 7 · 2025 filing · 19 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Feenot refundable | $40K | $40K | |
| Initial Deposit | $20K | $20K | |
| Grand Opening Marketingnot refundable | $10K | $15K | |
| Site Design Assistance Feenot refundable | $3K | $3K | |
| Site Review Fee | $2K | $4K | |
| Architectural Design Development and Permitting | $15K | $30K | |
| Lease: Initial Rent / Deposits | $7K | $20K | |
| Leasehold Improvement / Remodeling | $200K | $500K | |
| Furniture, Equipment and Fixtures | $75K | $200K | |
| Initial Training Fee | $17K | $20K | |
| Opening Inventory and Supplies, Uniforms | $10K | $20K | |
| Insurance | $4K | $12K | |
| Computer System (POS) | $7K | $10K | |
| Computer System Service Fees | $4K | $10K | |
| Signage | $10K | $15K | |
| Utility Deposit, Business Licenses | $5K | $10K | |
| Professional Fees | $5K | $10K | |
| Additional Funds - 3 months | $60K | $150K | |
| Multi-Unit Fee (for 5 Stores)not refundable | $200K | $200K | |
| Total initial investment | $694K | $1.3M |
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
- $544K – $1.1M
- Better than avg vs category
- Liquid capital req'd
- $60K – $150K
- Near category avg vs category
- Franchise fee
- $40K – $40K
- Better than avg vs category
- Royalty
- 4.5%
- Gross Revenue · typical 6–8%
- Ad fund
- 3.0%
- typical 3–5%
- Total fee load
- 7.5%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 4.5% of gross sales |
| Marketing / ad fund | 3.0% of gross sales |
| Transfer fee | $20K |
| Renewal fee | $5K |
| Total fee load | 7.5% of rev |
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
vs Full-Service Restaurants averages
How Kyochon Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 5
- Opened
- 0
- Last reporting year
- Closed
- 0
- Turnover rate
- 0.0%
- Company-owned
- 4
- Corporate units in the system
- % franchised
- 20%
- vs corporate-owned
- Net growth (yr3)
- +0.0%
- Net unit change last year
3-year detail · Item 20
- Transfers (3yr)
- 0
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 11 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
Kyochon presents meaningful risk due to an underdeveloped 5-unit system, absent financial transparency, high capital requirements relative to unknown returns, and unprotected territory—making validation with existing franchisees critical before investment.
Litigation (Item 3)
0 case reference(s): 3 pending, 0 settled.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · CCH Accountancy & Co.⚠ Going-concern note flagged
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 95 / 100 rating
- 01MEDOnly 5 units system-wide suggests extremely limited operating history and unproven scalability
- 02MEDNo average revenue or net income disclosure (missing Item 19) prevents realistic ROI assessment
- 03MEDHigh investment range ($543.5K–$1.09M) with no disclosed earnings creates payback period uncertainty
- 04MINORUnprotected territory creates direct competition risk from other franchisees in same market
- 05MINOR3-year term is unusually short and may indicate franchisor uncertainty or franchisee protection concerns
- 06MINORMinimal unit count makes it impossible to validate franchise model viability or franchisee satisfaction rates
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 |
|---|---|
| Renewal term | 1 year |
| Territory type | Radius |
| 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 | 60 days |
| Termination notice | 30 days |
| Curable defaultsℹ | 2 |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | California |
| Litigation count | 0 |
View Item 3 litigation summary
0 case reference(s): 3 pending, 0 settled.
Items 10, 11
Training & Operations
- Classroom training
- 18 hrs
- On-the-job training
- 72 hrs
- Training location
- On-site and corporate
Items 5 & 11
Franchisor Support
Item 20 · call current owners
Franchisee Contacts
12 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Kyochon · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Kyochon franchise?
The total investment to open a Kyochon franchise ranges from $544K – $1.1M, 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 Kyochon franchise owners earn?
Kyochon 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 Kyochon's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Kyochon (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 Kyochon franchise locations are there?
As of their most recent FDD filing, Kyochon has 5 total units in the United States, including 1 franchised units and 4 company-owned units.
Is Kyochon a good franchise to buy?
FranchiseVerdict rates Kyochon as a F-grade franchise with a risk score of 95 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.