Kyochon Franchise Cost, Revenue & Review 2026
- Investment
- $544K – $1.1M
- Disclosed sales
- not disclosed
- SBA charge-off
- Not SBA-matched
Data from FDD filing
Analysis by FranchiseVerdict Research · Methodology
Kyochon is a Korean fried chicken franchise serving crispy hand-brushed chicken and wings. Franchisees run the restaurants, managing food prep, staffing, and service.
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]. This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. FranchiseVerdict grade: B (Above average), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: medium - issued 12 to 24 months ago; a newer filing is likely on file
Evidence: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✗ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored4 of 5 headline figures on this page cite a page of the filing; the rest are marked “Not cited” beside the figure.
Overview
- Investment
- $544K – $1.1M
- 25th pct Service Resta…
- Avg gross sales
- N/A
- Royalty
- 4.5%
- 6th pct Service Resta…
- Units
- 5
- 8th 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 median · 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 $544K – $1.1M including a $40K franchise fee, 4.5% ongoing royalty.
- RETURNSThis franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that.
- RISKVerdict B (Above average), verdict score 54/100 (higher is better).
- GROWTHFlat: no net change in franchised outlets in the latest year (0 opened, 0 closed); 4 signed but not yet open (Item 20).
- DATAThis franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Kyochon Franchise LLC
- Parent company
- Kyochon USA Inc.
- FDD Item 1, page 9 of the 2025 FDD
- Ultimate parent
- Kyochon F&B, Co., Ltd.
- FDD Item 1, page 9 of the 2025 FDD
- CEO title
- Chief Executive Officer / Chief Financial Officer
- Young Gon Kim
- Incorporated in
- CA
- HQ
- 3699 Wilshire Blvd., Suite 1240, Los Angeles, CA 90010
- Auditor
- CCH Accountancy & Co.
- Audited financials
- Franchisor revenue
- $4.4M
- vs $5.1M prior year
Independent franchisee associations
- Franchise Advisory Council (FAC)
Franchisee-led councils or alliances disclosed in Item 20. Indicates operator voice.
Overview
About
- CEO
- Young Gon Kim
- Headquarters
- CA
- Founded
- 2021
- FDD year
- 2025
- States available
- 14
Can you afford it, and what does the money buy?
Entry cost runs 20% above the typical full-service restaurants franchise.
Source: FDD 2025 · Items 5–7
The filing's Item 7 TOTAL row prints $543,500 to $1,088,500. Its own line items add to $493,500 to $1,088,500. The total is shown as the franchisor printed it; the lines are listed as printed. Filing's arithmetic: the 18 printed lines sum to $493,500 / $1,088,500 while the printed TOTAL (13) is $543,500 to $1,088,500.
Full Item 7 breakdown18 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Fee | $40K | $40K | |
| Initial Deposit | $20K | $20K | |
| Grand Opening Marketing | $10K | $15K | |
| Site Design Assistance Fee | $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 | |
| Total initial investment | $494K | $1.1M |
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
- Top 40% of category vs category
- Liquid capital req'd
- $60K – $150K
- Top 40% of category vs category
- Franchise fee
- $40K – $40K
- Top 40% of category vs category
- Royalty
- 4.5%
- typical 6–8%
- Ad fund
- 0.0%
- 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 | 0.0% |
| Technology fee | $0 |
| Training fee | $17K |
| Transfer fee | $20K |
| Renewal fee | $5K |
| Inventory (initial) | $10K – $20K |
| Total fee load | 7.5% of rev |
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
Kyochon makes no financial performance representation in Item 19 of its FDD - a voluntary item under the FTC Franchise Rule - so no unit revenue figures are disclosed. The return models need a revenue figure to start from, and the operating costs that turn gross sales into a profit are in no FDD. Enter your own and the calculator runs on your assumptions — nothing here is modelled until you do.
Returns model · single-unit ROIC
What would one Kyochon unit return on the cash you put in?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for annual revenue, COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
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: 2025 FDD
Financial Performance
No financial performance representation
This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that.
Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
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 7.5% (near the Full-Service Restaurants median).
Disclosure
This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Operator retention
Net unit growth of +100.0% over 3 years (0 opened, 0 closed).
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 medians
How Kyochon Compares
Category median of published Full-Service Restaurants brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
Is the system healthy?
Source: FDD 2025 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 5
- Opened
- 0
- 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
- N/A
- Company-owned
- 4
- Corporate units in the system
- % franchised
- 20%
- vs corporate-owned
- Net growth (3-yr)
- +100.0%
- Net unit change over 3 years
Last fiscal year · Item 20 exits and transfers
- Terminated
- 0
- Not renewed
- 0
- Transferred
- 0
- Reacquired
- 0
- Franchisor bought back
- Signed, not yet open
- 4
- 0.80 per open outlet · Item 20 Table 5
- Projected new
- 1
- Franchisor's next-year forecast
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 12 · 14 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.
14
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
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)
Subject: officers or affiliates. The franchisor is not a named party in these cases.
No litigation required to be disclosed.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · CCH Accountancy & Co.
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Financial statements are those of the franchisor's parent and guarantor, Kyochon USA Inc. (consolidated, audited), not the franchisor Kyochon Franchise LLC itself. Net Sales for FYE 12/31/2024 was $4,398,306 (down from $5,138,008 in 2023). other_revenue is miscellaneous income $41,351 plus interest income $18,669 = $60,020.
ⓘ These are the parent company's consolidated financials (the parent guarantees the franchisor), not this brand's standalone results — the figure reflects the whole corporate group, not this brand alone.
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Kickbacks from required suppliers: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 54 / 100 verdict
- 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
What are you signing up for?
Ongoing fees run about 7.5% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2025 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 3 years |
|---|---|
| Renewal term | 1 year |
| Territory type | Protected territory |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory radius | 1 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 | 25 mi |
| Right of first refusalℹ | Yes |
| RoFR response window | 60 days |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Curable defaultsℹ | 1 |
| Mandatory arbitration | Yes |
| Arbitration location | Los Angeles County, California |
| Jury trial waiver | Yes |
| Governing law | CA |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation required to be disclosed.
Items 10, 11
Training & Operations
- Classroom training
- 18 hrs
- On-the-job training
- 72 hrs
- Training location
- Franchisee's store or other designated location
- Ongoing training
- Optional
- Time to open
- 14 mo
- From signing to launch
- Site selection
- franchisee
- Franchisor financing
- Not offered
- Item 10
Items 5 & 11
Franchisor Support
Item 20 · call current owners
Franchisee Contacts
1 owners to call
Name · phone · city · state. Extracted from FDD Item 20
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 makes no financial performance representation in Item 19 of its FDD - a voluntary item under the FTC Franchise Rule - so no unit revenue figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Who owns Kyochon?
Kyochon is franchised by Kyochon Franchise LLC. Its parent company is Kyochon USA Inc.. The ultimate parent named in the FDD is Kyochon F&B, Co., Ltd.. Source: FDD Item 1, 2025 filing.
What is Item 19 in the Kyochon 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 Kyochon FDD and qualifies whose outlets they describe.
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 B-grade franchise with a verdict score of 54 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. 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.