Risk Score
Pending analysis
Investment Range
$338,000 - $789,700
Franchise Fee
$10,000
Business Summary
YGF/YANGGUOFU operates restaurants that serve "Malatang," a popular Chinese fast cuisine, along with related products. These YGF Restaurants are established and run using a specific system, which includes unique branding, interior design, proprietary recipes, standardized operations, and training for consistency in quality and service.
Corporate History
Captain Business Management Co., Limited was formed as a Delaware limited liability company on April 8, 2024, with plans to begin offering YGF franchises in 2024. This new entity does not own or operate any of the YGF restaurants being franchised in the U.S. Its parent company, YGF Blessing Pte. Ltd., was formed in Singapore in October 2023. An affiliate, Xinxu (Shanghai) Information Technology Service Co., Ltd., formed in January 2019, is already a licensor for over 6,500 YGF restaurants in China and has granted licenses for 16 currently operating locations.
Financial Overview
Investment Range
$338,000 - $789,700
Franchise Fee (Low)
$10,000
Franchise Fee (High)
$16,600
Royalty %
8%
Equipment Costs (Low)
$150,000
Equipment Costs (High)
$380,000
Working Capital
$115,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
While the audit report provided an unqualified opinion, the notes to financial statements for YANGGUOFU indicate that the company's long-term success relies on its ability to secure additional capital, expand its services, increase revenue, and ultimately become profitable. This suggests that while current cash is deemed sufficient for one year, there are future funding and operational challenges that will need to be addressed for sustained success.
Financing Details
YANGGUOFU does not offer any direct or indirect financing to its franchisees and does not guarantee any notes, leases, or obligations. Franchisees must arrange their own funding.
Performance Metrics
Total US Locations
0
Franchised Units
0
Corporate Units
0
Avg Square Footage
753
Franchising Since
2024
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
YANGGUOFU has no litigation history to report.
Bankruptcy History
YANGGUOFU has no bankruptcy history to report.
Agreement Terms
Initial Term
3 years
Renewal Term
3 years
Renewal Conditions
To renew the YGF franchise agreement, franchisees must provide written notice and ensure they are in full compliance with the current franchise agreement and all other financial obligations to YANGGUOFU. They must pay a successor franchise fee, sign a new franchise agreement which may have materially different terms and conditions, and provide a general release to YANGGUOFU. Additionally, franchisees need to meet any new criteria set by YANGGUOFU and may be required to remodel their restaurant to meet current brand standards.
Training & Support Program
Franchisor Assistance
Before opening, YANGGUOFU assists franchisees with reviewing and approving site proposals. For an additional fee, they can provide further guidance and on-site evaluations for proposed locations. YANGGUOFU also provides mandatory and recommended specifications and layouts for building and furnishing the restaurant. At the franchisee's request, and with the franchisee covering travel costs, YANGGUOFU may offer on-site assistance during the restaurant's opening. Franchisees and key staff receive an initial training program at no charge for up to three trainees, and are given access to the confidential operations manuals. Ongoing assistance from YANGGUOFU is provided at their discretion and may include additional training programs on management and techniques. They will update the operations manuals as needed. YANGGUOFU reviews and approves all advertising materials and marketing plans, and may also provide finished advertising materials like posters and digital content.
Initial Training Hours
31
Training Location
Shanghai, China / Online
Ongoing Support
YANGGUOFU may provide additional training programs on management and techniques at its sole discretion, which Managing Owners, General Managers, and Head Chefs are required to attend. The company also updates the operations manuals periodically. Furthermore, YANGGUOFU reviews and approves all franchisee advertising and marketing materials, and may offer assistance by providing finished advertising content such as posters and digital postings. Franchisees can request additional on-site training or assistance, but they will be responsible for the fees and expenses associated with such services.
Franchise Requirements
Ideal Candidate Profile
YANGGUOFU is looking for franchisees who will designate a General Manager to oversee the day-to-day operations of the restaurant. This General Manager must dedicate their full working time to the business, complete the initial and any subsequent training programs, meet YANGGUOFU's educational and business criteria, and be individually approved by YANGGUOFU. Additionally, franchisees must designate and retain a Head Chef to manage the kitchen. While the franchisee does not have to be the General Manager, they and their principal equity owners and executive officers will be designated as Managing Owners and must sign specific agreements.
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
non-exclusive
Territory Size Requirements
YANGGUOFU grants the right to operate a restaurant at a specific street address, known as the "Site." There are no defined territory size requirements such as a specific mile radius, population, or geographic boundaries beyond the immediate location of the restaurant itself.
Staffing Notes
YANGGUOFU requires each restaurant to have a General Manager who works full-time, dedicating their best efforts to the day-to-day, on-premises operation. This General Manager must also complete the initial and any additional training programs and meet YANGGUOFU's educational and business criteria. The kitchen of the restaurant must be managed by a Head Chef. Franchisees are responsible for hiring, training, and supervising all other restaurant personnel, ensuring they comply with YANGGUOFU's training content and system standards. All personnel who access confidential information must sign confidentiality agreements.