Vons ChickenFranchise Cost, Revenue & Review 2026
Data from FDD filing
FranchiseVerdict summary · 2026
A Vons Chicken franchise requires a total initial investment of $294K – $568K, including a $35K franchise fee and an ongoing 3.0% royalty[2]. The 2026 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 2026 FDD issuance
Overview
- Investment
- $294K – $568K
- 17th pct Service Resta…
- Avg gross sales
- N/A
- 28th pct Service Resta…
- Royalty
- 3.0%
- 1st pct Service Resta…
- Units
- 25
- 30th pct Service Resta…
- SBA default
- N/A
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
The system contracted 21% year-over-year. Investigate why units are closing.
Bottom line
- Total investment $294K – $568K including a $35K franchise fee, 3.0% 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 98/100.
- System contracting at -35.3% CAGR over 3 years. Investigate whether closures are franchisor-driven (consolidation) or franchisee-driven (economics).
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Vons Chicken F&B, Inc.
- Parent company
- B.A.G. Vons Co., Ltd.
- CEO title
- Chief Executive Officer and Director
- Mr. Jae-Hag Ryu
- Incorporated in
- CA
- HQ
- 3435 Wilshire Blvd., Suite 3005, Los Angeles, CA 90010
- Auditor
- Dow & Sohn CPAs
- Audited financials
- Franchisor revenue
- $83K
- vs $39K prior year
Affiliated brands
- that owns and operates a Vons Chicken Restaurant
Other brands the franchisor or its parent operates (Item 1).
Overview
About
Franchisees operate quick-service chicken restaurants focusing on fried and prepared chicken products. Day-to-day operations include inventory management, food preparation, customer service, staffing, and local marketing compliance with brand standards.
- CEO
- Mr. Jae-Hag Ryu
- Headquarters
- CA
- Founded
- 2020
- FDD year
- 2026
- States available
- 2
FDD Item 7 · 2026 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $35K | $35K |
| Working capital (3–6 mo) | $25K | $50K |
| Equipment, build-out, other | $234K | $483K |
| Total initial investment | $294K | $568K |
Source: Vons Chicken 2026 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $294K – $568K
- Better than avg vs category
- Liquid capital req'd
- $25K – $50K
- Better than avg vs category
- Franchise fee
- $20K – $35K
- Better than avg vs category
- Royalty
- 3.0%
- Gross Sales · typical 6–8%
- Ad fund
- 1.0%
- typical 3–5%
- Total fee load
- 4.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 3.0% of gross sales |
| Marketing / ad fund | 1.0% of gross sales |
| Technology fee | $250 |
| Training fee | $100 |
| Transfer fee | $5K |
| Renewal fee | $15K |
| Total fee load | 4.0% 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 Vons Chicken Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 25
- Opened
- 0
- Last reporting year
- Closed
- 6
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 24.0%
- Company-owned
- 3
- Corporate units in the system
- % franchised
- 88%
- vs corporate-owned
- Net growth (yr3)
- -21.4%
- Net unit change last year
- 3-yr CAGR
- -35.3%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 1
- Closed (3yr)
- 3
- Transfers (3yr)
- 2
- Projected new
- 5
- Franchisor's next-year forecast
- Transfer rate
- 8.0%
- Owners selling to other franchisees
- Ceased ops
- 28.0%
- 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.
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
Vons Chicken is a rapidly contracting franchise system with regulatory violations, zero financial transparency, and a 21.4% unit decline indicating systematic franchisee failure.
Litigation (Item 3)
Washington DFI enforcement action (Consent Order S-23-3500-23-CO01, April 2023) against Vons Chicken California, Inc. and Chul Soo Han for offering/selling franchises without registration and failing to furnish franchise disclosure documents to two franchisees. Settled via consent order with $2,000 in costs paid. No admission or denial of allegations.
Largest disclosed settlement: $35,000
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Dow & Sohn CPAs
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 98 / 100 rating
- 01MINORUnit count collapsed 21.4% YoY (from ~32 to 25 units), indicating severe system contraction and franchisee failure rate
- 02MINORNo Item 19 financial disclosure (avg revenue/net income not provided), making ROI assessment impossible and preventing informed investment decisions
- 03MINORRegulatory violation in April 2023: affiliate sold franchises in Washington without registration, demonstrating compliance failures and legal exposure
- 04MINORNo protected territory despite $294K-$568K investment, exposing franchisees to direct brand competition and cannibalization
- 05MINOR25-unit system is critically small with minimal operational infrastructure, limiting support quality and brand leverage
- 06MINOR5-year term is short for recouping $294K-$568K initial investment, compounded by high failure rate
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 | 5 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 1 |
| Territory type | Radius |
| Protected territory | No |
| Exclusive territoryℹ | No |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 10 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Arbitration location | Los Angeles County, California |
| Jury trial waiver | Yes |
| Governing law | California |
| Litigation count | 1 |
View Item 3 litigation summary
Washington DFI enforcement action (Consent Order S-23-3500-23-CO01, April 2023) against Vons Chicken California, Inc. and Chul Soo Han for offering/selling franchises without registration and failing to furnish franchise disclosure documents to two franchisees. Settled via consent order with $2,000 in costs paid. No admission or denial of allegations.
Items 10, 11
Training & Operations
- Classroom training
- 17 hrs
- On-the-job training
- 63 hrs
- Training location
- On-site and corporate
- Ongoing training
- Required
Items 5 & 11
Franchisor Support
Item 20 · call current owners
Franchisee Contacts
33 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Vons Chicken · FDD (2026) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Vons Chicken franchise?
The total investment to open a Vons Chicken franchise ranges from $294K – $568K, 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 Vons Chicken franchise owners earn?
Vons Chicken 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 Vons Chicken's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Vons Chicken (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 Vons Chicken franchise locations are there?
As of their most recent FDD filing, Vons Chicken has 25 total units in the United States, including 22 franchised units and 3 company-owned units.
Is Vons Chicken a good franchise to buy?
FranchiseVerdict rates Vons Chicken as a F-grade franchise with a risk score of 98 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.