Palgong Tea
Bottom line
- Total investment $148K – $186K including a $20K franchise fee, 5.0% ongoing royalty.
- No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
- Rated AVOID with a risk score of 79/100.
- No 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
Yale framework · single-unit ROIC
Returns Analysis
Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.
The model · Yale framework
What would one PALGONG TEA unit return on the cash you put in?
Unlevered ROIC · per unit
40%
In Yale's "attractive" band (30–60%)
Overview
About
Palgong Tea franchisees operate quick-service beverage retail locations specializing in Korean-style tea drinks. Daily operations include preparing specialty teas, managing POS systems, handling customer transactions, inventory management, and maintaining brand standards across the limited location network.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 5 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 phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
No SBA loan data available for this brand.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Single-unit, pre-revenue-disclosure franchise with corporate going concern issues and unproven business model poses extreme validation and profitability risk.
Score breakdown · what drove the 79 / 100 rating
- 01MINOROnly 1 existing unit—system shows no growth trajectory or scalability proof
- 02HIGHGoing Concern status is FALSE, indicating financial viability concerns at corporate level
- 03MINORNo Item 19 financial disclosure (avg revenue/net income)—impossible to validate ROI on $147,500-$185,700 investment
- 04MED5-year term is shorter than industry standard (10 years), suggesting limited franchisor commitment or high turnover
- 05MEDExtremely limited track record with single unit makes franchisee comparison and validation impossible
- 06HIGHNo disclosed litigation history doesn't mitigate systemic weakness—early-stage brand with minimal exposure
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
Item 11
Training & Operations
Item 20
Franchisee Contacts
Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.
Franchisee contacts
7 numbers
One-time purchase · CSV download · Validation questions included
FDD download
PALGONG TEA · FDD (2021) PDF