Risk Score
Pending analysis
Investment Range
$296,400 - $664,400
Franchise Fee
$30,000
Min Cash Required
$27,000
Total US Locations
59
Business Summary
Cupbop Franchise, LLC operates Cupbop® restaurants that offer Korean-style barbecue rice cups, salads, chicken wings, potstickers, and other food and beverage products. These restaurants are typically located in strip shopping centers or free-standing buildings and provide services such as carry-out, off-premises indoor event catering, and on-premises dining.
Corporate History
Cupbop Co., the parent company of Cupbop Franchise, LLC, started operating food trucks in May 2013. In November 2014, Cupbop Franchise, LLC was formed as a Utah limited liability company. Cupbop Co. then opened its first storefront restaurant in May 2016 through a wholly-owned affiliate and has operated Cupbop® restaurants in non-traditional locations since March 2014. Cupbop Franchise, LLC began offering franchises in March 2017.
Financial Overview
Investment Range
$296,400 - $664,400
Franchise Fee (Low)
$30,000
Franchise Fee (High)
$40,000
Minimum Cash Required
$27,000
Royalty %
6%
Marketing %
2%
Equipment Costs (Low)
$180,000
Equipment Costs (High)
$475,000
Working Capital
$45,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Cupbop Franchise, LLC's financial statements for 2024 and 2023 received an unqualified opinion from independent auditors, indicating that they present fairly the company's financial position and cash flows. The company reported net income of $1,025,858 in 2024 and $781,503 in 2023. However, the company's Member's Equity significantly decreased from $892,301 in 2023 to $21,942 in 2024, and its cash balance decreased from $47,807 to $17,068 in the same period. These changes are primarily attributed to substantial distributions paid to its member, totaling $1,806,007 in 2024 and $357,331 in 2023.
Financing Details
Cupbop Franchise, LLC does not offer any direct or indirect financing to its franchisees. Cupbop also does not guarantee any notes, leases, or other obligations for its franchisees.
Performance Metrics
Total US Locations
59
Franchised Units
30
Corporate Units
29
Avg Square Footage
1,600
Franchising Since
2017
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Cupbop Franchise, LLC has no litigation to report in Item 3 of its Franchise Disclosure Document. The company states that no litigation is required to be disclosed in this item.
Bankruptcy History
Cupbop Franchise, LLC reports that it has no bankruptcy history that is required to be disclosed in Item 4 of its Franchise Disclosure Document.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew their franchise agreement, Cupbop franchisees must provide written notice of their election to acquire a successor franchise between 180 and 220 days before their current agreement expires. They must maintain possession of their premises, agree to remodel and/or expand the restaurant to comply with Cupbop's then-current standards for new locations, pay a successor franchise fee of $10,000, and sign Cupbop's then-current franchise agreement and any ancillary agreements. Franchisees and their owners must also sign general releases of all claims against Cupbop and its affiliates.
Training & Support Program
Franchisor Assistance
Before opening, Cupbop Franchise, LLC provides franchisees with site selection criteria, approves the lease, gives mandatory and suggested specifications for restaurant layouts, and provides food products, specifications, and suppliers. Franchisees also gain access to the Brand Standards Manual and receive guidelines for their grand opening advertising program. Cupbop provides initial training for two individuals, which must be completed successfully before the restaurant opens. After opening, Cupbop sends a representative to assist during the initial opening period for 8 to 24 hours, depending on whether it's the franchisee's first, second, or third+ restaurant. Ongoing assistance includes advice based on operations and inspections, recommendations on standards and procedures, purchasing, marketing, and administrative procedures. Franchisees have continuous access to updates for the Brand Standards Manual and System Standards. Cupbop also offers ongoing training and refresher courses as deemed appropriate and maintains an advertising fund for marketing and public relations programs.
Initial Training Hours
116
Training Location
Our Office in Draper, Utah and/or Cupbop store locations
Ongoing Support
After opening, Cupbop Franchise, LLC provides a representative for assistance during the initial opening period for 8 to 24 hours, depending on the number of restaurants the franchisee operates. Cupbop offers advice based on operations, reports, evaluations, and inspections, including recommendations on standards, operating procedures, purchasing, advertising, and administrative procedures through its Brand Standards Manual and other materials. Franchisees may request additional training or assistance, for which fees may apply. Cupbop continually updates the Brand Standards Manual and System Standards, providing franchisees with ongoing access. The franchisor also offers ongoing training and refresher courses as deemed appropriate and maintains and administers an advertising fund for system-wide advertising, marketing, and public relations programs.
Franchise Requirements
Industry Experience Required
No
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Retail
Owner Participation
Supervisory
Territory Type
Protected