About Myungrang America Franchise
Myungrang America, LLC offers subfranchises for Myungrang Shops, specializing in freshly made Korean style hot dogs.
Franchisees develop and operate freestanding shops, food court stalls, or kiosks, preparing to order and selling a unique menu of specialty Korean style hot dogs, various fillings, toppings, and sauces, alongside a selection of specified beverages.
The concept appeals to a broad demographic, particularly those with
Myungrang America Franchise Cost & Fees
Minimum Investment
$189K
Average Investment
$357K
Maximum Investment
$525K
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $35,000 | One-time payment upon signing |
| Royalty Fee | 4% of Gross Sales of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | The amount we impose from time to time but not more than 2% of your Gross Revenue... and presently zero. If imposed, 3rd day of every calendar month beginning at least 30 days after delivering written notice to you. | National brand fund |
| Total Investment Range | $188,793 – $525,468 | Includes build-out, inventory, working capital |
The investment range of $189K–$525K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (4% of Gross Sales) and marketing fee (The amount we impose from time to time but not more than 2% of your Gross Revenue... and presently zero. If imposed, 3rd day of every calendar month beginning at least 30 days after delivering written notice to you.) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial subfranchise fee | $35,000 | $35,000 |
| Subsquent Subfranchise Agreement | $30,000 | $30,000 |
| Subfranchise Agreement security deposit | $5,000 | $5,000 |
| Subsquent Subfranchise Agreement (security deposit) | $0 | $0 |
| Real property lease security deposit and one month rent and common area maintenance charges | $8,000 | $24,000 |
| Leasehold Improvements | $60,000 | $300,000 |
| Furniture (Kiosk) | $0 | $0 |
| Furniture (Food Court) | $0 | $0 |
| Furniture (Shop) | $850 | $1,500 |
| Furnishings | $2,128 | $3,628 |
| Equipment (Kiosk) | $20,000 | $25,000 |
| Equipment (Food Court) | $25,000 | $30,000 |
| Equipment (Shop) | $25,000 | $30,000 |
| Small wares (Kiosk) | $600 | $800 |
| Small wares (Food Court) | $600 | $1,000 |
| Small wares (Shop) | $600 | $1,000 |
| Décor Item | $200 | $500 |
| Uniforms | $600 | $1,200 |
| Computer, point of sale system, credit card processor, and two printers | $1,200 | $3,000 |
| Opening inventory of nonproprietary food products, ingredients, and components, paper goods (including plates, cups with lids, napkins, and straws), utensils, and cleaning supplies | $7,060 | $7,060 |
| Opening inventory of proprietary food products and ingredients (including hot dog powder, cheddar cheese sauce, cheese mustard sauce, and breadcrumbs) | $6,400 | $9,900 |
| Branded or proprietary paper goods and food packaging (including bamboo sticks, hot dog inner bags and trays, and paper and plastic bags) | $2,290 | $3,280 |
| Two specified size Smart Televisions for digital menu displays | $2,500 | $3,000 |
| Interior Signs | $2,000 | $5,000 |
| Exterior Signs (Kiosk) | $2,000 | $3,000 |
| Exterior Signs (Food Court) | $3,000 | $4,500 |
| Exterior Signs (Shop) | $3,000 | $4,500 |
| Governmental permits and licenses | $1,500 | $5,000 |
| Utility deposits (Kiosk) | $1,500 | $2,000 |
| Utility deposits (Food Court) | $1,700 | $2,200 |
| Utility deposits (Shop) | $1,700 | $2,200 |
| Insurance premiums | $400 | $700 |
| Training period payroll and travel and living expenses | $500 | $10,000 |
| Opening advertising and promotion | $1,000 | $5,000 |
| Legal and accounting fees | $2,000 | $5,000 |
| Additional funds – 3 months | $30,000 | $60,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $2,000 transfer application fee plus $20,000 nonrefundable transfer fee |
| Renewal Fee | $15,000 |
| Audit Fee | Cost of audit, but not less than $300 |
| Branded or Proprietary Paper Goods and Food Packaging | Variable, estimated $1,890 to $3,280 per month |
| Food products and ingredients | Variable, estimated $5,400 to $9,900 per month |
| Branded uniform components | $0 to $100 as needed |
| Marketing materials | $0 to $500 per month |
| Branded merchandise | Variable, estimated $0 to $200 per month |
| Required or Requested Additional Training | $500 per day and $2,500 for a complete training course plus actual cost of travel and lodging for trainer |
| Required or Requested Additional Initial Assistance | $500 per day plus actual cost of travel and lodging for trainer |
| Late Charge | 10% of amount past due with $50 minimum |
| Insufficient Funds Fee | $100 |
| Noncompliance Fee | $150 |
| Nonperformance Assessment | 2% of Gross Revenue |
| Failure to Keep Records, Make Reports, or Provide Database Access | Royalties as determined plus costs of determination, but not less than $150 |
| Remedial Actions and Service Fee | Charges we incur plus interest and 5% of cost of corrective action, but not less than $50 |
| Collection and Enforcement Costs | Actual cost, which is variable |
| Interim Manager Payments | Currently $300 per day but may increase at any time in any amount |
| Attorneys’ Fees and Costs | Actual cost, which is variable |
| Indemnification | Variable, as incurred |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | at least 13 hours of training over a period of two to three days for up to eight hours each day |
| Classroom Training | 5 hours |
| On-the-Job Training | 8 hours |
| Training Location | Buena Park Shop and at your Myungrang Shop |
| Additional Training | We currently charge $500 a day for additional training and $2,500 for a complete training course but we may change that charge at any time. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Non-exclusive |
| Exclusive Territory | No |
| Description | You will not receive an exclusive territory. We, our affiliates, and other subfranchisees can establish and operate a Myungrang Hot Dog Shop or any other kind of business anywhere regardless of how close it is to your Myungrang Shop and even if it competes directly or indirectly with your Myungrang Shop. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years |
| Renewal Term | one additional five year term |
| Renewal Fee | $15,000 |
| Renewal Conditions | giving us written notice of the exercise of that right not less than 210 days before the expiration of the existing Subfranchise Agreement term; executing the form of Renewal Subfranchise Agreement we are then offering to renewing subfranchisees; and paying us the $15,000 renewal fee at least 30 days before the expiration of the existing term. We may refuse to permit you to renew if you have received two or more notices of default during any 12 month period or more than 10 notices of default throughout the existing term, whether or not those defaults were cured. You may not renew if you have breached and not cured or are in default. |
| Transfer Fee | $2,000 transfer application fee plus $20,000 nonrefundable transfer fee |
| Transfer Conditions | Transferee’s Owner-Operator or Shop Manager are approved and trained by us; you are not in default and do not default prior to transfer; you pay us and our affiliates and all vendors all money due, including a subfranchise transfer fee; transferee has the right to occupy the subfranchise location for the balance of the Subfranchise Agreement term; transferee signs our then-current Subfranchise Agreement modified to be for the remaining term of your Subfranchise Agreement; transferee signs all other agreements we then require subfranchisees or their owners to sign; you sign the form of General Release and Covenant Survival Acknowledgment we are then using unless law prohibits; you transfer all the agreements related to your Myungrang Shop and all of its assets to the transferee. |
| Termination for Cause | We can terminate only if during or upon completion of initial training we conclude that you, your Owner-Operator, or your Shop Manager cannot operate a Myungrang Shop to our satisfaction or if you default. |
| Non-Compete Period | During the term of the Subfranchise Agreement and for three years following the expiration or termination of the Subfranchise Agreement |
| Non-Compete Details | Neither you, anyone with a direct or indirect ownership interest in you, your Shop Manager, nor any of your affiliates or the officers, directors, managers, shareholders, members, partners, or owners of your affiliates (all the foregoing, collectively, “Your Interested Parties”) may directly or indirectly (i) own any interest in, be employed by, provide advice or consultation to, or operate any other food service facility or business that specializes in the sale of hot dogs or operates any retail food facility substantially similar to your Myungrang Shop or (ii) have any interest in any entity that directly or indirectly does any of those at any time during the term of the Subfranchise Agreement without our prior written consent. For three years following the expiration or termination, within three miles of your Myungrang Shop or any Myungrang Shop. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | You or, if you are an entity, a person who owns at least 50% of your equity (the “Owner-Operator”) who has been trained and approved by us must at all times be personally responsible for the day to day operation and administration of your Myungrang Shop. You or your Owner Operator must be personally present in and operate your Myungrang Shop at least two days a week for at least four hours a day, including weekends and the busiest hours for the business. Whenever you or your Owner-Operator is not personally present in and running your Myungrang Shop during operating hours it must be managed on a daily basis by a manager who has successfully completed our training to our satisfaction and remains qualified to be a person responsible for the day to day operation of your Myungrang Shop (a “Shop Manager”). |
| Required Suppliers | You must purchase from a vendor we designate (who may be us or one of our affiliates) the proprietary hot dog powder, cheddar cheese sauce, cheese mustard sauce, and breadcrumbs. You must purchase from a vendor we designate (who may be us or one of our affiliates) the proprietary bamboo sticks, hot dog inner bags and trays, and branded paper and plastic bags you must use to serve our proprietary Myungrang Hot Dogs from us. You must purchase the sausages, frozen potatoes, cheese, soy oil, sugar, yeast, hot chili sauce, and condiments that you must use to make our proprietary Myungrang Hot Dogs from a vendor we designate. You must purchase the brand of squid ink that we designate but may do so from any vendor from whom it is available. |
| Supply Restrictions | We pick suppliers and brands based on our subjective judgment about the quality, taste, and/or appearance of the goods and/or our evaluation of the supplier’s ability to supply goods in the quantity and at the time our subfranchisees require them. Our proprietary products are presently produced only by a supplier we designate and are sold and distributed only by us, our affiliate, or the suppliers we have selected. We will change designated suppliers, modify specifications, and grant or revoke approval for suppliers by issuing revised specification sheets or approval lists for the Operational Manual. You do not have the right to propose any suppliers, vendors, or distributors other than those we designate or approve. |
| Franchisor Revenue from Suppliers | Based on our best estimate without prior Myungrang Shop subfranchising experience, the purchases and payments described in this Item will be 59% to 77% of your total purchases in establishing your Myungrang Shop and 100% of your total purchases during your operation of your Myungrang Shop subfranchise. In 2021, our total revenue is $460,144. The revenue received by Myungrang America, LLC. from all required purchases is $362,917, which is approximately 78% of our total revenue in 2021. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | We do not offer direct or indirect financing. We do not guarantee your note, lease or obligation. |
Myungrang America Franchise Earnings — Item 19
Myungrang America 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.
Myungrang America 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.
Myungrang America Litigation & Risk Flags
Clean Litigation RecordMyungrang America 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.
Myungrang America System Growth
Total Units
6
Franchised
6
Company-Owned
0
Myungrang America currently operates 6 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 |
|---|---|---|---|
| 2019 | 1 | 0 | 1 |
| 2020 | 2 | 0 | 3 |
| 2021 | 3 | 0 | 6 |
Transfers: 0 | Closures: 0
State Registrations
Registered in 12 states: CA, FL, IL, MD, MI, NY, OR, RI, VA, WA, UT, TX
Franchisor Financials (Item 21)
Revenue
$460K
Net Income
$-62,617
Total Assets
$390K
Audited by UCMK & Associates for year ending December 31, 2021.
Myungrang America Franchise — FAQ
The total investment to open a Myungrang America franchise ranges from $188,793 to $525,468, per their Franchise Disclosure Document. This includes the initial franchise fee of $35,000. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
Myungrang America charges a royalty fee of 4% of Gross Sales of gross sales, plus a The amount we impose from time to time but not more than 2% of your Gross Revenue... and presently zero. If imposed, 3rd day of every calendar month beginning at least 30 days after delivering written notice to you. contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the Myungrang America 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 Myungrang America to ensure you have the most up-to-date version.
Myungrang America 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.
Myungrang America has been franchising since 2020. The FDD shows an investment range of $188,793-$525,468, a 4% of Gross Sales 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 $35,000 and the total investment ranges from $188,793 to $525,468 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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