Myungrang Korean Hot Dog Shop Franchise Cost, Revenue & Review 2026
Data from FDD filing
Analysis by FranchiseVerdict Research · Methodology
Myungrang Korean Hot Dog Shop is a quick-service franchise serving Korean-style corn dogs with fusion toppings. Franchisees run compact shops, managing made-to-order frying, staffing, and counter service.
FranchiseVerdict summary · 2026
A Myungrang Korean Hot Dog Shop franchise requires a total initial investment of $196K – $525K, including a $35K franchise fee and an ongoing 4.0% royalty[2]. The 2025 FDD does not disclose unit-level revenue (no Item 19). FranchiseVerdict grade: B (Above average), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2025 FDD issuance
Overview
- Investment
- $196K – $525K
- 22nd pct Service Resta…
- Avg gross sales
- N/A
- Royalty
- 4.0%
- 3rd pct Service Resta…
- Units
- 10
- 37th pct Service Resta…
- SBA charge-off
- N/A
Quick verdict · Quick-Service Restaurants · color = vs category peers
Green = favorable by >10% vs Quick-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 $196K – $525K including a $35K franchise fee, 4.0% ongoing royalty.
- RETURNSFY2024 total revenues of $554,712 comprised Sales $287,560 (product purchases by franchisees), Royalty income $125,527, and Sub-franchise fee income $141,625. Other income of $30,141 is reported below operating expenses. Franchisor recorded a net loss of $(43,682) for FY2024.
- RISKVerdict B (Above average), verdict score 51/100 (higher is better).
- DATANo 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
Corporate structure & franchisor financials
- Legal entity
- Myungrang America, LLC
- Parent company
- Myungrang Sidae Restaurant Youth Cooperative Association
- CEO title
- Manager
- Andrew Joh
- CEO experience
- 9 yrs
- Years in role or industry
- Founder active
- Yes
- Original founder still leading the business
- Incorporated in
- CA
- HQ
- 22632 Golden Springs Dr. #105, Diamond Bar, CA 91765
- Auditor
- Ocean Crest Advisors
- Audited financials
- Franchisor revenue
- $555K
- vs $583K prior year
Independent franchisee associations
- Franchise Advisory Council (FAC)
Franchisee-led councils or alliances disclosed in Item 20. Indicates operator voice.
Overview
About
- CEO
- Andrew Joh
- Headquarters
- CA
- Founded
- 2019
- FDD year
- 2025
- States available
- 7
Can you afford it, and what does the money buy?
Entry cost runs 45% below the typical quick-service restaurants franchise.
Source: FDD 2025 · Items 5–7
Full Item 7 breakdown34 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial subfranchise fee | $35K | $35K | |
| Subfranchise Agreement security deposit | $5K | $5K | |
| Real property lease security deposit and one month rent and common area maintenance chargesnot refundable | $8K | $24K | |
| Leasehold Improvementsnot refundable | $60K | $300K | |
| Furniture - Kiosknot refundable | — | — | |
| Furniture - Food Courtnot refundable | — | — | |
| Furniture - Shopnot refundable | $850 | $2K | |
| Furnishingsnot refundable | $2K | $4K | |
| Equipment - Kiosknot refundable | $20K | $25K | |
| Equipment - Food Courtnot refundable | $25K | $30K | |
| Equipment - Shopnot refundable | $25K | $30K | |
| Small wares - Kiosknot refundable | $600 | $800 | |
| Small wares - Food Courtnot refundable | $600 | $1K | |
| Small wares - Shopnot refundable | $600 | $1K | |
| Decor Itemnot refundable | $200 | $500 | |
| Uniformsnot refundable | $600 | $1K | |
| Computer, point of sale system, credit card processor, and two printersnot refundable | $1K | $3K | |
| Opening inventory of nonproprietary food products, ingredients, components, paper goods, utensils, and cleaning suppliesnot refundable | $4K | $7K | |
| Opening inventory of proprietary food products and ingredientsnot refundable | $6K | $10K | |
| Branded or proprietary paper goods and food packagingnot refundable | $2K | $3K | |
| Total initial investment | $250K | $594K |
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
- $196K – $525K
- Top 40% of category vs category
- Liquid capital req'd
- $30K – $60K
- Middle of category vs category
- Franchise fee
- $35K – $35K
- Middle of category vs category
- Royalty
- 4.0%
- percentage · typical 6–8%
- Ad fund
- 0.0%
- typical 3–5%
- Total fee load
- 6.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 4.0% of gross sales |
| Marketing / ad fund | 0.0% of gross sales |
| Transfer fee | $20K |
| Renewal fee | $15K |
| Inventory (initial) | $11K – $20K |
| Total fee load | 6.0% of rev |
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
Myungrang Korean Hot Dog Shop 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 Myungrang Korean Hot Dog Shop unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
33%
Within 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: 2025 FDD
Financial Performance
FY2024 total revenues of $554,712 comprised Sales $287,560 (product purchases by franchisees), Royalty income $125,527, and Sub-franchise fee income $141,625. Other income of $30,141 is reported below operating expenses. Franchisor recorded a net loss of $(43,682) for FY2024.
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 6.0% — below the Quick-Service Restaurants average of 7.9%.
Disclosure
Franchisor chose not to disclose financial performance representations. You will need to gather unit economics directly from existing franchisees.
Operator retention
Net unit growth of +42.9% over 3 years (1 opened, 4 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 Quick-Service Restaurants averages
How Myungrang Korean Hot Dog Shop Compares
Is the system healthy?
Source: FDD 2025 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 10
- Opened
- 1
- Last reporting year
- Closed
- 4
- 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
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (3-yr)
- +42.9%
- Net unit change over 3 years
- 3-yr CAGR
- -16.7%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 6
- Closed (3yr)
- 0
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 1
- Reacquired (3yr)
- 0
- Franchisor bought back
- Transfer rate
- 10.0%
- Owners selling to other franchisees
- Ceased ops
- 40.0%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 6 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.
Available to sell in · Item 12
- California
- Hawaii
- Michigan
- Minnesota
- North Dakota
- Rhode Island
- South Dakota
States where the franchisor is registered to sell new franchises (FDD registration filings).
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
Myungrang presents HIGH RISK: a rapidly contracting franchise system with going concern status, zero financial transparency, no territory protection, and a 29% YoY unit collapse that signals fundamental unit-level or operational problems.
Litigation (Item 3)
No litigation required to be disclosed in Item 3. Settlement agreement between parent MS and LTK (not a formal litigation) noted in Item 1.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Ocean Crest Advisors
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 51 / 100 verdict
- 01MEDSystem contracting sharply: 28.6% unit decline YoY (10 units remaining) suggests franchisee dissatisfaction or poor unit economics
- 02HIGHGoing concern status: Franchisor financial instability raises questions about support, marketing fund viability, and system longevity
- 03MINORNo territory protection: Franchisees vulnerable to cannibalization; franchisor can open competing units nearby without restriction
- 04MINORWeak franchise fee ($35k) relative to total investment suggests front-loaded costs borne by franchisee, not franchisor
- 05MINOR10-year term with 28.6% attrition indicates poor unit retention and potential franchisee ROI challenges
- 06MEDSpecialty product (Korean hot dogs) has narrow addressable market and limited menu diversification
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 6.0% 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 | 10 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 1 |
| Territory type | none |
| Protected territory | No |
| Exclusive territoryℹ | No |
| Online sales rightsℹ | Granted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 3 years |
| Non-compete (miles)ℹ | 3 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination groundsℹ | 4 |
| Curable defaultsℹ | 1 |
| Mandatory arbitration | No |
| Arbitration location | Los Angeles County, California |
| Jury trial waiver | No |
| Governing law | CA |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation required to be disclosed in Item 3. Settlement agreement between parent MS and LTK (not a formal litigation) noted in Item 1.
Items 10, 11
Training & Operations
- Classroom training
- 5 hrs
- On-the-job training
- 8 hrs
- Training location
- Buena Park Shop and franchisee's Myungrang Shop
- Ongoing training
- Optional
- Time to open
- 6 mo
- From signing to launch
- Site selection
- franchisor approval required
- Franchisor financing
- Not offered
- Item 10
- POS system
- VelaPOS / Cocard
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: VelaPOS / Cocard
Item 20 · call current owners
Franchisee Contacts
11 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Myungrang Korean Hot Dog Shop · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Myungrang Korean Hot Dog Shop franchise?
The total investment to open a Myungrang Korean Hot Dog Shop franchise ranges from $196K – $525K, with an initial franchise fee of $35K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Myungrang Korean Hot Dog Shop franchise owners earn?
Myungrang Korean Hot Dog Shop 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 Myungrang Korean Hot Dog Shop 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 Myungrang Korean Hot Dog Shop FDD and qualifies whose outlets they describe.
What is Myungrang Korean Hot Dog Shop's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Myungrang Korean Hot Dog Shop (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 Myungrang Korean Hot Dog Shop franchise locations are there?
As of their most recent FDD filing, Myungrang Korean Hot Dog Shop has 10 total units in the United States, including 10 franchised units and 0 company-owned units. 1 new units were opened in the latest reporting year.
Is Myungrang Korean Hot Dog Shop a good franchise to buy?
FranchiseVerdict rates Myungrang Korean Hot Dog Shop as a B-grade franchise with a verdict score of 51 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?
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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.