Risk Score
Pending analysis
Investment Range
$192,000 - $698,000
Franchise Fee
$20,000
Total US Locations
29
Business Summary
TKK Fried Chicken offers a franchise opportunity to operate a quick-service restaurant that specializes in Asian style crispy fried chicken and sweet potato fries. TKK Fried Chicken restaurants offer a menu of super crispy fried chicken, signature sweet potato fries, and soft drinks. All food items are prepared following specific recipes using ingredients and equipment supplied or specified by TKK Franchising LLC. Franchisees can also offer take-out and delivery services.
Corporate History
The TKK Fried Chicken brand originated in Taipei City, Taiwan, with the first restaurant opening in 1974. The company TKK International Inc. was formed in Taiwan in July 1974 and owns the TKK Fried Chicken trademarks in the U.S. TKK Franchising LLC, a New York limited liability company, was formed in September 2018 and began offering TKK Fried Chicken franchises in December 2018. Its parent company, TKK USA Inc., was formed in July 2017. An affiliate, TKK New York LLC, opened the first TKK Fried Chicken restaurant in the U.S. in New York City in November 2018.
Financial Overview
Investment Range
$192,000 - $698,000
Franchise Fee (Low)
$20,000
Franchise Fee (High)
$37,500
Royalty %
5%
Marketing %
2%
Equipment Costs (Low)
$115,000
Equipment Costs (High)
$520,000
Working Capital
$12,500
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
TKK Franchising LLC's financial condition, as reflected in its financial statements, raises questions about its financial ability to provide services and support to franchisees. Despite this highlighted risk, the company's financial statements show positive trends, with net income increasing to $166,897 in 2024 from $110,579 in 2023, and member's equity growing to $338,679. The company also maintains a positive working capital of $163,241 as of December 31, 2024.
Financing Details
TKK Franchising LLC does not offer any direct or indirect financing to its franchisees. Additionally, it does not guarantee any franchisee's lease or other financial obligations.
Performance Metrics
Total US Locations
29
Franchised Units
27
Corporate Units
2
Avg Square Footage
2,000
Franchising Since
2018
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
TKK Franchising LLC has no litigation that is required to be disclosed in Item 3 of its Franchise Disclosure Document. This means TKK Franchising LLC has not been involved in any material lawsuits, administrative actions, or other legal proceedings that are typically reported to potential franchisees.
Bankruptcy History
TKK Franchising LLC reports no bankruptcy information for itself or its affiliates and key personnel 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 TKK Fried Chicken franchise, franchisees must notify TKK Franchising LLC of their intent between 12 and 18 months before the initial term ends. They must repair and update their equipment and premises, and sign a new franchise agreement that may have different terms and conditions. TKK Franchising LLC may also require franchisees to sign a legal release and pay a renewal fee of up to $10,000 or 25% of the then-current initial franchise fee, whichever is greater. Franchisees must be in good standing, not have defaulted more than three times in any 24-month period, and demonstrate the right to possess their restaurant premises for the new term.
Training & Support Program
Franchisor Assistance
Before opening a TKK Fried Chicken restaurant, TKK Franchising LLC assists with site proposal review and approval, provides a design package including preliminary plans and equipment specifications, grants access to a confidential operations manual, and supplies initial inventory of specific ingredients and materials. They also provide two weeks of initial training for the managing owner and a second person, plus approximately two weeks (80 hours) of on-site pre-opening and opening training. TKK Franchising LLC also approves advertising and promotional guidelines. During operation, TKK Franchising LLC updates the manual, offers refresher courses (at franchisee's expense for travel and salaries), conducts operational reviews, provides approved supplier lists, develops national and regional advertising programs, maintains a system website, and offers telephone consultation. TKK Franchising LLC may also implement restrictions on menu item prices.
Initial Training Hours
80
Training Location
New York City area
Ongoing Support
After opening, TKK Fried Chicken franchisees receive ongoing assistance from TKK Franchising LLC. This includes periodic amendments and revisions to the operations manual. Refresher courses are provided from time to time, for which franchisees cover travel, living expenses, and salaries of their personnel. TKK Franchising LLC also conducts operational reviews and other quality control measures to ensure compliance with standards and recommend improvements. Franchisees receive standards and lists of approved suppliers. TKK Franchising LLC creates and manages national and regional advertising programs, administers a marketing fund, and coordinates a customer loyalty program using the KFT Group App. They maintain a website to promote the brand, including franchisee locations. Representatives are available for telephone consultation on operational aspects, and on-site assistance may be provided at the franchisee's request for a fee. TKK Franchising LLC may also issue reasonable and lawful restrictions on prices of specific menu items.
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
TKK Fried Chicken defines the territory for a standard unit as the lesser of a one-mile radius around the restaurant or a smaller radius encompassing a combined residential and workplace population of approximately 50,000 people. TKK Franchising LLC may reduce the territory boundaries if the population exceeds 50,000 people. For non-traditional units, the territory is the specific airport, hotel, resort, military installation, school or university campus, train station, subway station, casino, theme park, sports stadium, enclosed shopping mall, or similar designated location, or a specific part of such a location.
Staffing Notes
TKK Fried Chicken requires the franchisee's Operating Manager to dedicate their full working time and effort to the franchised business, providing direct, day-to-day supervision. The Managing Owner, who must have an equity or voting interest and be approved by TKK Franchising LLC, is responsible for overseeing the business but is not required to work full-time unless they are also the Operating Manager. Franchisees must maintain a competent, conscientious, and trained staff sufficient to provide prompt customer service in line with System Standards. All staff members are required to receive specified training and certification from approved sources at the franchisee's expense.