FranchiseVerdict
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FV-02907·CAUTIONExcellent81

Vons Chicken

Food & Beverage - Full ServiceFranchising since 2020Website
Investment
$294K – $568K
34th pct Full Service
Avg revenue
57th pct Full Service
Royalty
3.0%
2nd pct Full Service
Units
25
58th pct Full Service
SBA default

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.
  • Rated CAUTION with a risk score of 72/100.
  • System contracting at -3530% 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.
Incorporated in
California
HQ
3435 Wilshire Blvd., Suite 3005, Los Angeles, CA 90010
Auditor
Dow & Sohn CPAs
Audited financials
Franchisor revenue
$83K
vs $39K prior year

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 Vons Chicken unit return on the cash you put in?

Revenue · per unit, per year
$
Item 19 not disclosed — typing your own estimate
Franchisor take · royalty + ad fund
Royaltytyp 68%
%
Ad fundtyp 35%
%
Operating costs · category default: generic
COGS
%
Labor
%
Rent / occupancy
%
Other operating
%
Total invested capital · what you actually put in
Initial investment
$
FDD Item 7: $294K–$568K
Working capital
$
FDD reports $25K–$50K

Unlevered ROIC · per unit

30%

In Yale's "attractive" band (30–60%)

0%30–60% Yale band80%

Store EBITDA · annual
$143K
EBITDA margin
19.0%
Total invested
$469K
Payback
39 mo
Unit-level only. A multi-unit portfolio gives up roughly 5–15% of this to shared services (corporate G&A) before reaching the ~10-unit break-even Yale describes.

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
Founded
2020
FDD year
2026
States available
2

Item 7 · what it costs

The Vitals

Total investment
$294K – $568K
All-in to open one unit
Liquid capital
$25K – $50K
Cash you must have on hand
Franchise fee
$35K
Royalty
3.0%
Gross Sales · typical 6–8%
Ad fund
1.0%
typical 3–5%
Total fee load
4.0%
vs 9–13% typical

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

Total units
25
Opened
0
Last reporting year
Closed
6
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
2024
22-7
Franchised units
2025
28
Franchised units
2026
34
Franchised units

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).

AK
ME
VT
NH
MA
RI
CT
NY
NJ
PA
DE
MD
DC
WA
OR
CA
NV
ID
MT
WY
UT
CO
AZ
NM
ND
SD
NE
KS
OK
TX
MN
IA
MO
AR
LA
WI
IL
MS
TN
MI
IN
KY
AL
OH
WV
GA
VA
NC
SC
FL
HI
Available · 6 states
Not registered

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

72
Risk · 0-100
CAUTION72 / 100

Vons Chicken is a rapidly contracting franchise system with regulatory violations, zero financial transparency, and a 21.4% unit decline indicating systematic franchisee failure.

Score breakdown · what drove the 72 / 100 rating

  1. 01MINORUnit count collapsed 21.4% YoY (from ~32 to 25 units), indicating severe system contraction and franchisee failure rate
  2. 02MINORNo Item 19 financial disclosure (avg revenue/net income not provided), making ROI assessment impossible and preventing informed investment decisions
  3. 03MINORRegulatory violation in April 2023: affiliate sold franchises in Washington without registration, demonstrating compliance failures and legal exposure
  4. 04MINORNo protected territory despite $294K-$568K investment, exposing franchisees to direct brand competition and cannibalization
  5. 05MINOR25-unit system is critically small with minimal operational infrastructure, limiting support quality and brand leverage
  6. 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

Territory
Radius
Protected territory
No
Initial term
5 years
Renewal term
5 years
Online sales rights
Restricted
Franchisor can compete
Yes
Hire a manager?
Allowed
Litigation count
1
Right of first refusal
Yes
Franchisor can buy back on resale
Mandatory arbitration
Yes
Jury trial waiver
Yes
Non-compete
2 yrs
Post-termination restriction
Owner-operator
Required
Governing law
California

Item 11

Training & Operations

Classroom training
17 hrs
On-the-job training
63 hrs

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

33 numbers

Locked
(925) 895-••••
CA
(925) 334-••••
CA
(808) 367-••••
HI

One-time purchase · CSV download · Validation questions included

FDD download

Vons Chicken · FDD (2026) PDF

Single-page checkout · instant download · CSV export of contacts available separately above