Bottom line
- Total investment $337K – $782K including a $40K franchise fee, 4.0% ongoing royalty.
- Average unit revenue of $1.3M/year. Estimated payback in 4.6 years.
- Rated MODERATE with a risk score of 65/100.
- Auditor disclosed a going-concern note — flagged doubt about the franchisor's ability to continue operations. Verify against the latest FDD.
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 TaKorean unit return on the cash you put in?
Unlevered ROIC · per unit
40%
In Yale's "attractive" band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 TaKorean units return on equity?
Equity IRR · 5-yr
35.1%
4.51× MOIC
Year-1 DSCR
2.32×
EBITDA ÷ debt service
Equity required
$5.1M
on $14.4M purchase
Total debt
$9.3M
SBA $5.0M + senior + seller note
Overview
About
TaKorean franchisees operate Korean food quick-service restaurants, managing daily operations including food preparation, inventory management, customer service, and staff oversight. Franchisees are responsible for staffing, marketing locally, and maintaining brand standards across menu offerings and service quality.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 16 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
TaKorean presents material risk due to a micro-sized system with insufficient operating history, unclear financial reporting, and significant investment variability that cannot be adequately validated against comparable franchisee performance.
Score breakdown · what drove the 65 / 100 rating
- 01MEDOnly 2 units in system with unknown growth trajectory indicates extremely limited operating history and validation data
- 02MINORMassive investment range ($337K-$781.5K) with no clear explanation for 131% variance suggests inconsistent unit economics or hidden costs
- 03MINORAverage net income of $120,457 on $1.31M revenue (9.2% net margin) is below industry standards for QSR; unclear if this is pre- or post-royalty
- 04MINORAbsence of Item 19 financial performance representation limits ability to validate franchisee profitability claims
- 05MINORTwo-unit system lacks statistical significance to project franchise success or identify operational best practices
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
16 numbers
One-time purchase · CSV download · Validation questions included
FDD download
TaKorean · FDD (2023) PDF