About De Jeng-IL-Master Franchise
De Jeng is a cultural education franchise from Yung De Jeng Culture Co., Ltd.
that offers Chinese calligraphy, language arts, and cultural enrichment programs.
The master franchise opportunity for the Illinois market became available in 2024, giving qualified operators the rights to develop and sub license the brand across the state.
De Jeng-IL-Master Franchise Cost & Fees
Minimum Investment
$144K
Average Investment
$159K
Maximum Investment
$174K
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $100,000 | One-time payment upon signing |
| Royalty Fee | 1.5% of the Gross Monthly Sales, minimum US$800 per month. of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | Certain percentage of Gross Monthly Sales, not yet determined. (estimated 3% when established) | National brand fund |
| Total Investment Range | $143,900 – $173,900 | Includes build-out, inventory, working capital |
The investment range of $144K–$174K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (1.5% of the Gross Monthly Sales, minimum US$800 per month.) and marketing fee (Certain percentage of Gross Monthly Sales, not yet determined. (estimated 3% when established)) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Franchise Fee | $100,000 | $100,000 |
| Refundable Security Deposit | $10,000 | $10,000 |
| Minimum Royalty Fee | $2,400 | $2,400 |
| Licenses, Permits, Fees and Deposit | $3,000 | $5,000 |
| Office Equipment & Supplies | $1,500 | $1,500 |
| Insurance | $2,000 | $5,000 |
| Advertisement | $5,000 | $10,000 |
| Additional Funds – 3 Months | $20,000 | $40,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Renewal Fee | $20,000 |
| Audit Fee | Cost of audit. |
| Store Fee | 10% of the franchise fee that you charge per each Tea Shop from your sub-franchise |
| Shortage Fee | 10% of Initial Franchise Fee × (the difference between the minimum Tea Shops of the applicable year ₋ the number of Tea Shop opened in the applicable year) |
| Post Opening Consultation Fees | US$300 per inspector per day, round trip airfare for the inspector; and local transportation, meals, three stars or above hotel accommodation of the business operation consultant(s), and other reasonable costs |
| Late Payment Interest | 5% per month or highest rate allowed by law |
| Manual Replacement Fee | US$0 |
| Liquidated Damages for All Other Violation | US$10,000 |
| Cost and Attorney Fees | Will vary under circumstances. |
| Indemnification | Will vary under circumstances. |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | 168 hours |
| Training Location | Training Room (Taiwan or Illinois) |
| Additional Training | Upon request, additional pre-opening and continuous organizational support may be offered at additional costs. This includes a US$300 per trainer per day fee, plus travel, lodging, and meal expenses for consultants. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Exclusive |
| Exclusive Territory | Yes |
| Description | Master franchisees receive an exclusive right to sub-franchise an unlimited number of Tea Shops within the designated Protected Territory, which is the state of Illinois. This exclusivity is dependent on meeting minimum Tea Shop quotas. The franchisor reserves the right to operate or license other concepts relating to the trademarks within the territory, such as selling De Jeng brand canned beverages or tea bags in supermarkets/online, but offers a right of first refusal to the master franchisee for such concepts. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 5 years |
| Renewal Term | Successive periods of two (2) years |
| Renewal Fee | $20,000 |
| Renewal Conditions | To renew, the master franchisee must provide written notice 6 months prior to term end, not be in default of any agreements, have fully performed all obligations, execute the then-current franchise agreement (which may have different terms including increased royalties or changed territory), obtain approval for lease extensions or new sites, and successfully complete any required retraining programs at their expense. |
| Transfer Conditions | Transfer of any right or obligation under the Master Franchise Agreement, or the operation/ownership of any Tea Shop to a third party, is not permitted. The franchisor entered the agreement based on the master franchisee's qualifications. |
| Termination for Cause | The franchisor may terminate with 30-days written notice for curable defaults (e.g., monetary obligations, other agreement breaches) if not cured. Non-curable defaults leading to immediate termination include change of control (unless to spouse/children/heirs and retaining >50% shares), challenging trademark validity, felony conviction or plea of guilty/no contest to a crime of moral turpitude, or committing fraud against the franchisor or affiliates. Other causes include health code violations by sub-franchisees, unauthorized sublicensing, or failure to comply with laws/regulations. |
| Non-Compete Period | 2 years after expiration or termination |
| Non-Compete Details | During the term and for two years after expiration or termination (regardless of cause), the master franchisee (including spouses and family members of owners/guarantors) cannot directly or indirectly own, manage, operate, engage in, consult with, or have an interest in any 'Competitive Business' within the Territory. A Competitive Business is defined as one where 50% or more of its sales include gourmet coffees and teas, coffee or tea-based beverages, or bubble tea. This provision may not be enforceable under Illinois law. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | The master franchisee, if an individual, must devote best efforts to operate and manage the Tea Shop(s) and promote sales, or designate an approved Principal Operator. If a corporation, partnership, or LLC, an individual Principal Operator must be named to assume primary management responsibility. The Principal Operator is not required to have a designated equity interest. Both the master franchisee or Principal Operator must complete the training program and supervise/train employees. |
| Required Suppliers | Franchisee must source all products (food supplies, utensils, cups, equipment, materials) and services from suppliers approved by the franchisor. The franchisor and its parent company, Yung De Jeng, are approved suppliers but not exclusive. For beverage syrup and proprietary teas, franchisees must purchase from designated suppliers. |
| Supply Restrictions | Franchisor may limit the number of potential suppliers and designate exclusive suppliers for some categories (e.g., purchasing, distribution, fountain/packaged beverage products, POS equipment, internet access). Franchisees cannot use unapproved advertising materials. Proposed locations and lease/purchase agreements require franchisor approval. |
| Franchisor Revenue from Suppliers | The franchisor and its affiliate may derive revenue from required purchases. The parent company, Yung De Jeng, had US$0 revenue in 2023 from required purchases by U.S. master franchisees. The franchisor reserves the right to receive revenue from suppliers without restriction. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | The franchisor does not offer direct or indirect financing, nor does it guarantee any notes, leases, or obligations. |
De Jeng-IL-Master Franchise Earnings — Item 19
De Jeng-IL-Master does not make an Item 19 financial performance representation in their FDD. This means they do not disclose revenue, profit, or earnings data for franchised locations. Before investing, ask the franchisor directly for franchisee contact information so you can speak with existing owners about their actual financial performance.
De Jeng-IL-Master does not include an Item 19 financial performance representation in their FDD. Contact information for current and former franchisees is listed in Item 20 of the FDD.
De Jeng-IL-Master Litigation & Risk Flags
Clean Litigation RecordDe Jeng-IL-Master has no pending litigation actions listed in their FDD. There is also no bankruptcy history disclosed.
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
De Jeng-IL-Master System Growth
Total Units
0
Franchised
0
Company-Owned
0
De Jeng-IL-Master currently operates 0 franchised locations and 0 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2021 | 0 | 0 | 0 |
| 2022 | 0 | 0 | 0 |
| 2023 | 0 | 0 | 0 |
Transfers: 0 | Closures: 0
State Registrations
Registered in 3 states: CA, IL, NY
De Jeng-IL-Master Franchise — FAQ
The total investment to open a De Jeng-IL-Master franchise ranges from $143,900 to $173,900, per their Franchise Disclosure Document. This includes the initial franchise fee of $100,000. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
De Jeng-IL-Master charges a royalty fee of 1.5% of the Gross Monthly Sales, minimum US$800 per month. of gross sales, plus a Certain percentage of Gross Monthly Sales, not yet determined. (estimated 3% when established) contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the De Jeng-IL-Master Franchise Disclosure Document free on this page. The FDD is a public document filed with state franchise registries. Always also request the current FDD directly from De Jeng-IL-Master to ensure you have the most up-to-date version.
De Jeng-IL-Master does not provide an Item 19 financial performance representation in their FDD, which means they do not disclose franchisee revenue or earnings data. Prospective investors should contact existing franchisees directly (listed in Item 20 of the FDD) to gather real-world financial performance information.
De Jeng-IL-Master has been franchising since 2024. The FDD shows an investment range of $143,900-$173,900, a 1.5% of the Gross Monthly Sales, minimum US$800 per month. royalty, and no Item 19 earnings disclosure. There is no pending litigation. Review the full FDD and contact current franchisees listed in Item 20 before making any investment decision.
The franchise fee is $100,000 and the total investment ranges from $143,900 to $173,900 depending on location size and market. Contact the franchisor directly for current net worth and liquid capital requirements, territory availability, and application details.
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Data Source & Disclaimer: This website is for informational purposes only. It is not an offer to sell or buy a franchise. This profile is based on publicly available FDD data sourced from state franchise registry filings. All information is for research purposes only and does not constitute legal, financial, or investment advice. Data may be outdated or contain errors. Always obtain the current FDD directly from De Jeng-IL-Master and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with De Jeng-IL-Master or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com