Risk Score
Pending analysis
Investment Range
$346,600 - $774,000
Franchise Fee
$10,000
Total US Locations
7
Business Summary
YGF restaurants operate as a Chinese fast cuisine concept, primarily offering a dish called Malatang and other related products. The restaurants are established under a comprehensive system, including distinctive signage, interior and exterior design, special recipes, uniform standards for operations, and quality control for products and services.
Corporate History
Captain Business Management Co., Limited (YGF) was formed as a Delaware corporation on April 8, 2024. The company plans to begin offering YGF franchises in 2024, selling a Chinese fast cuisine called Malatang. YGF does not own or operate any businesses of the type being franchised, nor has it offered franchises in any other line of business. Its parent company, YGF Blessing Pte. Ltd., was formed in Singapore on October 27, 2023. YGF's affiliates include Xinxu (Shanghai) Information Technology Service Co., Ltd., which is a licensor of over 6,500 YGF restaurants in China, and Shanghai Yuelan Food and Beverages Management Co., Ltd., which owns and operates two YGF restaurants in Shanghai, China. Other affiliates, Sichuan Yang Guofu Food Co., Ltd. and Shanghai Yuna Supply Chain Management Co., Ltd., are approved suppliers for YGF restaurants in China.
Financial Overview
Investment Range
$346,600 - $774,000
Franchise Fee (Low)
$10,000
Franchise Fee (High)
$20,000
Royalty %
3%
Marketing %
10%
Equipment Costs (Low)
$100,000
Equipment Costs (High)
$180,000
Working Capital
$115,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
The auditor for Captain Business Management Co., Limited issued an unqualified opinion on the financial statements for the period ended December 31, 2024. However, the FDD notes a special risk that the franchisor's financial condition, as reflected in its financial statements, calls into question the franchisor's financial ability to provide services and support. The company reported a net loss of $231,182 for the period and an accumulated deficit of the same amount. The net cash provided by operating activities was $146,096. This indicates potential challenges in the franchisor's ability to provide long-term support despite the clean audit opinion.
Financing Details
YGF does not offer any direct or indirect financing to its franchisees. Franchisees are responsible for securing their own financing for the initial investment and ongoing operations. YGF also does not guarantee any franchisee's note, lease, or other obligations.
Performance Metrics
Total US Locations
7
Franchised Units
7
Corporate Units
0
Avg Square Footage
75
Franchising Since
2024
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
YGF has no litigation history to report. The franchisor or its management have not been involved in any material litigation or bankruptcy proceedings that are required to be disclosed.
Bankruptcy History
YGF has no bankruptcy history to report. The franchisor, its parent company, YGF Blessing Pte. Ltd., or its other affiliates (Xinxu (Shanghai) Information Technology Service Co., Ltd., Shanghai Yuelan Food and Beverages Management Co., Ltd., Sichuan Yang Guofu Food Co., Ltd., and Shanghai Yuna Supply Chain Management Co., Ltd.) or any of their executive officers or directors have not been involved in any bankruptcy proceedings.
Agreement Terms
Initial Term
5 years
Renewal Term
5 years
Renewal Conditions
To renew their franchise, YGF franchisees must provide written notice at least one month before the initial term expires. They must be in full compliance with their current Franchise Agreement and all other agreements, including having timely paid all amounts due to YGF and its affiliates. Franchisees will need to sign the then-current version of the franchise agreement and ancillary agreements, which may have different terms and fees. They also must sign a general release of claims against YGF, meet YGF's current financial and operational criteria for new franchisees, and either remodel their existing restaurant to meet current YGF System Standards or relocate to a new YGF-approved site and develop it to current standards.
Training & Support Program
Franchisor Assistance
Before opening, YGF provides assistance with site selection review, mandatory and recommended specifications and layouts for building and furnishing the restaurant, and an initial training program for up to three trainees (General Manager, Head Chef, and an owner) at its affiliate's training center in China or online for approximately four days. YGF also grants access to its Confidential Operations Manual. Upon request, YGF may offer on-site opening assistance, but franchisees are responsible for the personnel's travel and living expenses. During operation, YGF may provide additional training programs on management and techniques, update the Manuals, and review and approve all advertising materials and marketing plans. YGF may also provide finished advertising materials.
Initial Training Hours
30
Training Location
Shanghai, China / Online
Ongoing Support
YGF franchisees may receive ongoing training programs concerning management and techniques, at YGF's sole discretion. YGF also updates its Confidential Operations Manual periodically, and franchisees are required to comply with all new or changed standards. YGF reviews and approves all franchisee advertising materials and marketing plans. YGF also reserves the right to establish a national or regional marketing fund in the future. Field evaluations and audits of the restaurant operations and records may be conducted by YGF at any time. Franchisees must also use a YGF-selected computer system, including point-of-sale software, and are responsible for all maintenance and upgrades.
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
Supervisory
Territory Type
Non-Exclusive
Staff Count
12
Staffing Notes
YGF restaurants are required to have a General Manager and a Head Chef. The General Manager must devote full working time to the day-to-day, on-premises operation of the restaurant, complete initial training, and not engage in other business endeavors that interfere with their duties. The Head Chef manages the kitchen and must also complete initial training. Franchisees must hire sufficient personnel to staff the restaurant according to YGF System Standards. A typical YGF Restaurant usually has (but is not required to have) one assistant manager and approximately ten staff members, in addition to the General Manager and Head Chef. All personnel must meet legal requirements and YGF System Standards.