Potato CornerFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Potato Corner franchise requires a total initial investment of $242K – $829K, including a $30K franchise fee and an ongoing 7.0% royalty[2]. The 2024 FDD does not disclose unit-level revenue (no Item 19). Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2024 FDD issuance
Overview
- Investment
- $242K – $829K
- 13th pct Service Resta…
- Avg gross sales
- N/A
- 28th pct Service Resta…
- Royalty
- 7.0%
- 42nd pct Service Resta…
- Units
- 38
- 34th pct Service Resta…
- SBA default
- 0.0%
- system-wide median varies by category
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 27 to 26 over 3 years. Investigate why operators are leaving.
Bottom line
- Total investment $242K – $829K including a $30K franchise fee, 7.0% ongoing royalty.
- No Item 19 financial performance data disclosed. The franchisor chose not to publish revenue figures.
- Verdict A (Top Quintile) with a risk score of 51/100.
- 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
- Legal entity
- PCJV USA, LLC
- Parent company
- GK Capital Group, LLC
- CEO title
- President & Chief Operating Officer
- Guy Koren
- Incorporated in
- DE
- HQ
- 8657 Hayden Place, Culver City, California 90232
- Auditor
- AP tax group
- Audited financials
- Franchisor revenue
- $1.8M
- vs $2.0M prior year
- Management churn noted
- Frequent turnover
- Item 2 disclosed frequent executive changes
Overview
About
Franchisees operate quick-service retail locations selling seasoned potato-based snacks and related food items, typically in high-traffic venues (malls, food courts, street locations). Day-to-day operations involve food preparation, inventory management, staffing, and point-of-sale transactions with minimal customization or service complexity.
- CEO
- Guy Koren
- Headquarters
- CA
- Founded
- 2010
- FDD year
- 2024
- States available
- 11
FDD Item 7 · 2024 filing · 33 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Utility Deposits, Fees & Licenses | $4K | $20K | |
| Pre-Construction Cost (Architect, Plans, Permits) | $12K | $30K | |
| Leasehold/Construction | $60K | $400K | |
| Exterior Signage | $10K | $35K | |
| POS System and Software; Back Office Computer, Printer and Related Hardware and Software | $14K | $20K | |
| Equipment, Smallwares, Interior Signage, Graphics & Art | $40K | $80K | |
| Software License Fee | $2K | $3K | |
| Opening Inventory - Non-Proprietary Products | $8K | $15K | |
| Opening Inventory - Trade Secret Food Ingredients and Potato Corner Proprietary Products | $5K | $10K | |
| Office Equipment & Supplies | $500 | $3K | |
| Grand Opening Marketing | $1K | $5K | |
| Franchised Location (Security Deposit / 3 months' Rent) | $20K | $60K | |
| Insurance - Liability & Workers Compensation (initial deposit) | $1K | $6K | |
| Legal Fees / Organizational Expenses | $3K | $8K | |
| Training Expenses (Travel and Living Expenses) | $2K | $10K | |
| On-Site Opening Assistance Fee | $0 | $5K | |
| Initial Franchise Feenot refundable | $30K | $30K | |
| Additional Funds (3 months) | $30K | $90K | |
| Development Fees (Multi-Unit Development Agreement)not refundable | $15K | $180K | |
| Additional Legal Fees (Multi-Unit Development Agreement) | $1K | $5K | |
| Total initial investment | $449K | $1.4M |
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
- $242K – $829K
- Better than avg vs category
- Liquid capital req'd
- $30K – $90K
- Better than avg vs category
- Franchise fee
- $5K – $30K
- Better than avg vs category
- Royalty
- 7.0%
- Gross Sales · typical 6–8%
- Ad fund
- 1.0%
- typical 3–5%
- Total fee load
- 8.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 7.0% of gross sales |
| Marketing / ad fund | 1.0% of gross sales |
| Technology fee | $600 |
| Transfer fee | $24K |
| Renewal fee | $24K |
| Total fee load | 8.0% 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 Potato Corner Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 38
- Opened
- 4
- Last reporting year
- Closed
- 2
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 5.3%
- Company-owned
- 11
- Corporate units in the system
- % franchised
- 71%
- vs corporate-owned
- Net growth (yr3)
- +3.8%
- Net unit change last year
- 3-yr CAGR
- +0.0%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 2
- Projected new
- 6
- Franchisor's next-year forecast
- Transfer rate
- 5.3%
- Owners selling to other franchisees
- Ceased ops
- 5.3%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 22 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 loan disclosures. This brand has only 7 7(a) loans on file; statistical reliability is limited below 10 loans.
- Total loans
- 7
- Loan volume
- $1.3M
- Median loan
- $199K
- 50th percentile
- Charge-off rate
- 0.0%
- rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 100.0%
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 5
- Defaults
- 0
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Potato Corner's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 3 lenders with concentration factor
- Per-state charge-off rates across 2 states
- Startup risk premium and job creation velocity
- 4-year lending trend
Instant access. No subscription.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Potato Corner presents meaningful risk due to stagnant growth, absent financial disclosures, questionable corporate stability, regulatory history, and internal disputes—making ROI validation impossible.
Litigation (Item 3)
Three matters disclosed: (1) State of California Citation and Stipulation (File Org ID 96348) - December 10, 2016 - Administrative action for franchise law violations (2011-2014) resulting in $20,000 penalty, monitoring requirements, and compliance training. All requirements satisfied as of September 27, 2019. (2) Cinco Corporation, et al. v. Guy Koren, et al. - Los Angeles County Superior Court No. BC701075 - filed April 10, 2018. (3) PCJV USA, LLC, et al. v. Cinco Corporation, et al. - Los Angeles County Superior Court No. BC701075 - filed May 8, 2018. Cases 2 and 3 involved disputes among past and present members, managers, and officers. Settled via Settlement and Release Agreement and Membership Interest Purchase Agreement with GKCG acquiring all membership interests in Cinco and PC Trading. Dismissed with prejudice.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · AP tax group
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 rating
- 01MEDStagnant unit growth (3.8% YoY) suggests limited system expansion and potential market saturation
- 02MEDNo Item 19 financial disclosure (Avg Revenue and Net Income not disclosed) prevents validation of profitability claims and ROI projections
- 03HIGHGoing Concern status is FALSE, indicating potential financial instability or operational challenges at corporate level
- 04MINORHistory of regulatory violations (2016 California citation for notice/registration compliance between 2011-2014) demonstrates past disclosure lapses
- 05HIGHInternal litigation (2018 ownership dispute involving Cinco Corporation) raises governance and capital structure questions
- 06MEDHigh investment range ($242,200-$829,000) combined with undisclosed earnings creates significant financial risk with unclear payback period
- 07MINOR7% royalty on gross sales (not net profit) creates ongoing burden regardless of unit profitability
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 | 10 years |
| Territory type | Radius |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory radius | 1 mi |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 2 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 10 days |
| Mandatory arbitration | Yes |
| Arbitration location | Los Angeles County, California |
| Jury trial waiver | Yes |
| Governing law | California |
| Litigation count | 2 |
View Item 3 litigation summary
Three matters disclosed: (1) State of California Citation and Stipulation (File Org ID 96348) - December 10, 2016 - Administrative action for franchise law violations (2011-2014) resulting in $20,000 penalty, monitoring requirements, and compliance training. All requirements satisfied as of September 27, 2019. (2) Cinco Corporation, et al. v. Guy Koren, et al. - Los Angeles County Superior Court No. BC701075 - filed April 10, 2018. (3) PCJV USA, LLC, et al. v. Cinco Corporation, et al. - Los Angeles County Superior Court No. BC701075 - filed May 8, 2018. Cases 2 and 3 involved disputes among past and present members, managers, and officers. Settled via Settlement and Release Agreement and Membership Interest Purchase Agreement with GKCG acquiring all membership interests in Cinco and PC Trading. Dismissed with prejudice.
Items 10, 11
Training & Operations
- Classroom training
- 8 hrs
- On-the-job training
- 72 hrs
- Training location
- Affiliate-Owned Restaurant in Southern California and/or corporate office
- Ongoing training
- Required
Items 5 & 11
Franchisor Support
Item 20 · call current owners
Franchisee Contacts
37 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Potato Corner · FDD (2024) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Potato Corner franchise?
The total investment to open a Potato Corner franchise ranges from $242K – $829K, with an initial franchise fee of $30K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Potato Corner franchise owners earn?
Potato Corner 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 Potato Corner's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Potato Corner (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 Potato Corner franchise locations are there?
As of their most recent FDD filing, Potato Corner has 38 total units in the United States, including 27 franchised units and 11 company-owned units. 4 new units were opened in the latest reporting year.
Is Potato Corner a good franchise to buy?
FranchiseVerdict rates Potato Corner as a A-grade franchise with a risk score of 51 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.