Myungrang Korean Hot Dog ShopFranchise Cost, Revenue & Review 2026
Data from FDD filing
FranchiseVerdict summary · 2026
A Myungrang Korean Hot Dog Shop franchise requires a total initial investment of $189K – $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). Verdict grade: F. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $189K – $525K
- 20th pct Retail
- Avg gross sales
- N/A
- 21st pct Retail
- Royalty
- 4.0%
- 3rd pct Retail
- Units
- 10
- 8th pct Retail
- SBA default
- N/A
Quick verdict · Retail · color = vs category peers
Green = >15% above Retail 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 12 to 10 over 3 years. Investigate why operators are leaving.
Bottom line
- Total investment $189K – $525K including a $35K franchise fee, 4.0% 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 94/100.
- Bankruptcy history disclosed in the FDD. Review Item 4 for details before proceeding.
Item 1 · who you're contracting with
The Franchisor
- 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
- $583K
- vs $555K prior year
Independent franchisee associations
- Franchise Advisory Council (FAC)
Franchisee-led councils or alliances disclosed in Item 20. Indicates operator voice.
Overview
About
Franchisees operate quick-service Korean hot dog shops specializing in fusion-style hot dogs with Korean toppings and sauces. Day-to-day operations involve food preparation, staffing, POS management, inventory control, and customer service in a limited-service format similar to fast-casual concepts. The narrow product focus (Korean hot dogs as primary SKU) requires strong traffic density and brand awareness to achieve profitability.
- CEO
- Andrew Joh
- Headquarters
- CA
- Founded
- 2019
- FDD year
- 2025
- States available
- 4
FDD Item 7 · 2025 filing · 34 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
- $189K – $525K
- Better than avg vs category
- Liquid capital req'd
- $30K – $60K
- Better than avg vs category
- Franchise fee
- $35K – $35K
- Better than avg vs category
- Royalty
- 4.0%
- Gross Sales · typical 6–8%
- Ad fund
- not more than 2% of your Gross Revenue
- Total fee load
- 6.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 4.0% of gross sales |
| Transfer fee | $22K |
| Renewal fee | $15K |
| 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 Retail averages
How Myungrang Korean Hot Dog Shop Compares
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
- 40.0%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (yr3)
- -28.6%
- Net unit change last year
- 3-yr CAGR
- -16.7%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 1
- 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 · 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.
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).
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
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)
Settlement Agreement and Release with LTK and affiliate dated July 15, 2019, regarding prohibition of Myungrang Shop or similar business operation/licensing
Bankruptcy (Item 4)
Disclosed in last 7 years
No bankruptcies required to be disclosed for Myungrang Sidae Restaurant Youth Cooperative Association or Myungrang America LLC
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: No
- Kickbacks from required suppliers: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: Yes
Score breakdown · what drove the 94 / 100 rating
- 01MEDSystem contracting sharply: 28.6% unit decline YoY (10 units remaining) suggests franchisee dissatisfaction or poor unit economics
- 02MINORNo financial disclosure: Absent Item 19 revenue/profit data makes ROI analysis impossible; cannot validate $188k-$525k investment thesis
- 03HIGHGoing concern status: Franchisor financial instability raises questions about support, marketing fund viability, and system longevity
- 04MINORNo territory protection: Franchisees vulnerable to cannibalization; franchisor can open competing units nearby without restriction
- 05MINORWeak franchise fee ($35k) relative to total investment suggests front-loaded costs borne by franchisee, not franchisor
- 06MINOR10-year term with 28.6% attrition indicates poor unit retention and potential franchisee ROI challenges
- 07MEDSpecialty product (Korean hot dogs) has narrow addressable market and limited menu diversification
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 | 10 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 1 |
| 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 |
| Jury trial waiver | Yes |
| Governing law | California |
| Litigation count | 0 |
View Item 3 litigation summary
Settlement Agreement and Release with LTK and affiliate dated July 15, 2019, regarding prohibition of Myungrang Shop or similar business operation/licensing
Items 10, 11
Training & Operations
- Classroom training
- 5 hrs
- On-the-job training
- 8 hrs
- Training location
- Franchisor's location and on-site at restaurant
- Ongoing training
- Required
- POS system
- VelaPOS computer software and Cocard hardware
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: VelaPOS computer software and Cocard hardware
Item 20 · call current owners
Franchisee Contacts
16 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 $189K – $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 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 12 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 F-grade franchise with a risk score of 94 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.
For franchisors
Are you the franchisor?
If you represent Myungrang Korean Hot Dog Shop, you can request corrections or provide updated information.
Claim this brandOther Retail franchises
Compare similar franchise opportunities in the Retail 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.