Vons Chicken Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$294,000 - $568,000
Franchise Fee
$20,000
Total US Locations
37
Business Summary
Vons Chicken Restaurants specialize in preparing and selling Korean style fried and oven-baked chicken and other related menu items. These restaurants operate in locations such as strip shopping centers, shopping malls, and free-standing units, following a specific business format and system.
Corporate History
Vons Chicken F&B, Inc. was established in California on July 1, 2020, to franchise Vons Chicken Restaurants, which offer Korean style fried and oven-baked chicken. The company operates as a master franchisee for B.A.G. Vons Co., Ltd. from South Korea, holding the rights to sub-license the Vons Chicken system across the United States. Vons Chicken F&B, Inc. also owns a Vons Chicken Restaurant in Torrance, California. It has affiliates, Vons Chicken California, Inc., and JP Pacific Group, Inc., which serve as approved suppliers for certain food items. Vons Chicken California, Inc. previously offered similar licenses between 2019 and 2020.
Financial Overview
Investment Range
$294,000 - $568,000
Franchise Fee (Low)
$20,000
Franchise Fee (High)
$35,000
Royalty %
3%
Equipment Costs (Low)
$185,000
Equipment Costs (High)
$395,000
Working Capital
$37,500
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Vons Chicken F&B, Inc.'s financial statements show a net loss of $45,441 for 2023, a decrease from a net income of $3,611 in 2022. The company experienced a significant decline in cash and cash equivalents, which went from $153,030 in 2022 to $44,178 in 2023. Additionally, the amount owed to the company from a related party increased from $126,027 in 2022 to $165,427 in 2023. Despite these changes, the company maintained positive working capital with current assets exceeding current liabilities. The auditors did not issue a going concern qualification in their report.
Financing Details
Vons Chicken F&B, Inc. does not offer any direct or indirect financing to its franchisees. This means that franchisees are responsible for securing their own loans, leases, and other financial obligations, as the franchisor does not provide guarantees for these.
Performance Metrics
Total US Locations
37
Franchised Units
34
Corporate Units
3
Avg Square Footage
1,750
Franchising Since
2020
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
1
Litigation Summary
Vons Chicken has one disclosed legal matter involving its affiliate, Vons Chicken California, Inc., and Chul Soo Han. In April 2023, they entered a Consent Order with the State of Washington's Department of Financial Institutions. The DFI alleged that Vons Chicken California, Inc. and Chul Soo Han offered and sold franchises without proper registration and failed to provide current franchise disclosure documents to two franchisees. Without admitting or denying the findings, Vons Chicken California, Inc. and Chul Soo Han agreed to stop future violations and pay $2,000 in costs.
Bankruptcy History
Vons Chicken has no bankruptcy history to disclose.
Agreement Terms
Initial Term
5 years
Renewal Term
5 years
Renewal Conditions
To renew the franchise agreement, Vons Chicken franchisees must have been in substantial compliance with their current agreement. They may also be required to remodel their restaurant at their own expense and must sign a new franchise agreement that is currently in effect, which could include terms and conditions that are materially different from their original agreement.
Training & Support Program
Franchisor Assistance
Vons Chicken provides extensive assistance to its franchisees. Before opening, the company helps with site selection and approval, purchasing equipment, signs, fixtures, and opening inventory, and provides design concepts and layouts for the restaurant. Franchisees and their managers receive initial training, and they get access to confidential operations manuals and grand opening guidance. After the restaurant opens, Vons Chicken offers ongoing support and advice on operational issues, System standards, new menu items, purchasing, advertising, employee training, and administrative procedures. The company also reviews local advertising materials, conducts inspections of the restaurant's operations, administers the advertising fund, and offers continuous training programs, including advanced and refresher courses for managers. Vons Chicken updates its operations manuals periodically and may delegate some duties to its affiliates.
Initial Training Hours
80
Training Location
Corporate headquarters or restaurant in Los Angeles, California, or another designated location in the United States
Ongoing Support
After opening, Vons Chicken provides ongoing guidance and advice to its franchisees on operational issues, System standards, new recipe items, menu variations, purchasing, advertising, employee training, and administrative procedures. The company conducts periodic inspections of the restaurant's operations and administers the advertising fund. Vons Chicken also offers ongoing and refresher training for managers, for which there is a fee, and updates its Operations Manuals as needed. Franchisees can consult with Vons Chicken by telephone Monday through Friday from 10:00 a.m. to 6:00 p.m. Pacific Time. The franchisor may also delegate performance of its duties, including inspections and consultation, to an affiliate.
Franchise Requirements
Ideal Candidate Profile
Vons Chicken is looking for franchisees who are dedicated and committed to supervising all administrative and operational activities of their restaurant on a full-time basis, defined as a minimum of 40 hours per week. If the franchisee is a legal entity, the person with a controlling interest or a designated Operating Principal (holding at least 10% ownership and decision-making authority) must meet this full-time commitment. Franchisees must also staff their Vons Chicken Restaurant with at least one Approved Manager, who is a full-time employee with management responsibilities and has successfully completed the initial manager training and any supplemental management classes. The owner or Operating Principal can also serve as the Approved Manager. Franchisees are expected to be responsive to the franchisor's communications and requests for information.
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
retail
Owner Participation
Full-Time
Territory Type
Non-Exclusive
Territory Size Requirements
Vons Chicken defines its franchisees' non-exclusive territories as a radius around their restaurant, with the specific size varying based on whether the location is in an urban, suburban, or rural area. When determining these boundaries, Vons Chicken considers factors such as population size, ethnic makeup, persons per household, income level, residential and commercial mix, population age, traffic patterns, parking, access, neighboring businesses, and the presence of other Vons Chicken Restaurants. The precise boundaries and a map of the territory are then formally incorporated into the franchise agreement.
Staffing Notes
Vons Chicken franchisees are required to staff their restaurants with at least one Approved Manager, who must be a full-time employee with management responsibilities and have successfully completed the initial manager training and any supplemental management classes. The franchisee or their Operating Principal can fulfill this role if they work full-time in the business. Vons Chicken may require additional Approved Managers depending on the business's size, location, and performance. Franchisees are solely responsible for recruiting, hiring, training, compensating, and supervising all their employees, ensuring all personnel are capable of performing their duties to System standards. All employees, managers, and owners working at the restaurant must wear the designated System uniforms or attire. Vons Chicken emphasizes that franchisees' employees are exclusively employed by the franchisee, not by Vons Chicken.