Paik's Noodle Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$349,000 - $474,000
Total US Locations
20
Business Summary
Paik's Noodle restaurants are quick-casual establishments that specialize in Korean-style Chinese noodle dishes and other complementary food and beverages. These restaurants use proprietary sauces and are typically located in strip shopping centers, shopping malls, or as free-standing units. Paik's Noodle also operates under the brand name "Hong Kong Ban Jum."
Corporate History
Noodle J-1, Inc., the franchisor for Paik's Noodle, was formed as a California corporation on May 31, 2012. It began offering Paik's Noodle (also known as Hong Kong Ban Jum) franchises in California in September 2014. The company has no predecessors. Its parent company is The Born Korea Co., Ltd., which was incorporated in Korea in 1994 and has never offered Paik's Noodle or any other franchises in the United States. Noodle J-1, Inc. also franchises other restaurant brands including Saemaeul, Hanshin Pocha, and Bornga.
Financial Overview
Investment Range
$349,000 - $474,000
Franchise Fee (High)
$35,000
Royalty %
4%
Equipment Costs (Low)
$220,000
Equipment Costs (High)
$270,000
Working Capital
$57,500
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Noodle J-1, Inc.'s financial statements indicate a strong financial position with a net income of $769,218 in 2023 and $538,517 in 2022. The company also shows growing retained earnings, reaching $1,160,908 in 2023, and a healthy cash balance of over $2.6 million. A significant change occurred on May 1, 2023, when the company ceased its direct involvement in restaurant management and now primarily focuses on selling franchises.
Financing Details
Paik's Noodle does not offer any direct or indirect financing to its franchisees. This means that franchisees will need to secure their own funding and the franchisor will not guarantee any notes, leases, or other financial obligations for the franchisee.
Performance Metrics
Total US Locations
20
Franchised Units
20
Corporate Units
0
Avg Square Footage
2,250
Franchising Since
2014
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Paik's Noodle has no litigation to report, as stated in Item 3 of its Franchise Disclosure Document. No legal actions, lawsuits, or disputes are required to be disclosed.
Bankruptcy History
Paik's Noodle has no bankruptcy history to report for the franchisor or its key management personnel, as stated in Item 4 of its Franchise Disclosure Document.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew their Paik's Noodle franchise, franchisees must submit a written request between 6 to 12 months before the agreement expires. They must have maintained substantial compliance with the franchise agreement throughout its term and agree to materially remodel, refurbish, and renovate their restaurant to meet the franchisor's then-current standards. Additionally, franchisees are required to sign the franchisor's current renewal franchise agreement, pay a renewal fee equal to 50% of the current initial franchise fee, and sign a general release of claims.
Training & Support Program
Franchisor Assistance
Paik's Noodle provides extensive assistance to its franchisees, starting before the restaurant opens. This includes reviewing and accepting the chosen location, providing a sample layout and specifications, and making proprietary and non-proprietary products available. The franchisor also shares its operational know-how through manuals, and approves signs and advertising materials. Once the restaurant is open, Paik's Noodle offers ongoing assistance and supervision during the initial and grand openings, continues to ensure product availability, reviews and approves advertising, and furnishes support services which can be on-site, off-site, or by telephone. They also provide ongoing initial training programs, offer advanced and refresher training for managers, and periodically update their operations manual.
Initial Training Hours
73
Training Location
Franchisee's franchised restaurant or other designated locations
Ongoing Support
After opening, Paik's Noodle offers ongoing support through various channels. This includes providing assistance and supervision during the initial and grand openings, ensuring continuous availability of proprietary and non-proprietary products, and furnishing specifications for required items. The franchisor also reviews and approves all proposed advertising and promotional materials. Ongoing support services are provided as deemed advisable, delivered on-site, off-site, by telephone, or through other means, with telephone consultations available Monday through Friday from 9:00 a.m. to 6:00 p.m. (Los Angeles, California time). Paik's Noodle provides ongoing initial training programs and offers advanced and refresher training for managers, in addition to periodically updating the Operations Manual to incorporate new developments and system changes.
Franchise Requirements
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
retail
Owner Participation
hands-on
Territory Type
limited
Territory Size Requirements
Paik's Noodle defines its franchise territories, called "Areas of Protection," on a case-by-case basis. The size is approximately 0.25 miles from the restaurant if located within a Central Business District. For locations outside a Central Business District, the Area of Protection will be about 1 mile from the restaurant. The franchisor considers factors such as current and projected market demand, demographics, population, median household income, competitor presence, traffic patterns, and future development plans when determining the territory size.
Staffing Notes
Paik's Noodle requires franchisees to personally supervise their restaurant's operation, unless written permission is granted otherwise. Each restaurant must employ at least one certified manager who will handle day-to-day management, exercise on-premises supervision, and actively participate in the direct operation. If a franchisee operates multiple Paik's Noodle restaurants, each must have its own certified manager. Franchisees must notify the franchisor immediately if a certified manager leaves due to death, disability, or termination of employment, and must designate a successor or acting manager within 30 days. All certified managers must be approved by the franchisor, meet specified credentials, and successfully complete the Initial Training Program and any additional or on-site training required by the franchisor.