Risk Score
Pending analysis
Investment Range
$317,000 - $570,000
Franchise Fee
$50,000
Min Cash Required
$25,000
Total US Locations
2
Business Summary
Young Dabang Outlets offer 'tabletop' topokki (simmered and stir-fried rice cake) menu items prepared freshly on the spot, with a variety of ingredients and toppings, and other related popular Korean street food menu items. The business also provides on-premises dining and take-out services and operates according to the franchisor's specific business formats, methods, procedures, designs, layouts, standards, and specifications.
Corporate History
Brandco USA, Inc., which operates as Young Dabang, was founded as a California corporation on June 22, 2022. Young Dabang is the master franchisee for the United States, granted by Hankyung Enterprise Corp. of South Korea. Hankyung Enterprise Corp. has been franchising the Young Dabang concept in South Korea and other international markets since 2015, operating over 400 outlets globally. Brandco USA, Inc. itself does not operate the franchised business, but its affiliates currently run Young Dabang Outlets in California and Virginia.
Financial Overview
Investment Range
$317,000 - $570,000
Franchise Fee (Low)
$50,000
Franchise Fee (High)
$50,000
Minimum Cash Required
$25,000
Royalty %
5%
Marketing %
1%
Equipment Costs (Low)
$205,000
Equipment Costs (High)
$325,000
Working Capital
$47,500
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Young Dabang shows signs of improving financial health. For the year ended December 31, 2023, Brandco USA, Inc. reported total revenue of $35,257 and a net income of $24,160, a significant improvement from the prior year when there was no revenue and a small net loss. The company's cash position at the end of 2023 was $43,031. Its total stockholder's equity increased to $524,140, indicating growth in its financial standing. The auditors have issued an unqualified opinion, meaning the financial statements are presented fairly, and there are no stated concerns about the company's ability to continue as a going concern.
Financing Details
Young Dabang does not offer any direct or indirect financing to its franchisees. This means that Brandco USA, Inc. will not provide loans or guarantees for things like notes, leases, or other financial obligations a franchisee might incur. Franchisees are responsible for securing all their own funding.
Performance Metrics
Total US Locations
2
Franchised Units
0
Corporate Units
2
Avg Square Footage
1,350
Franchising Since
2024
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Young Dabang has no litigation history to report. The FDD states that no litigation is required to be disclosed in Item 3.
Bankruptcy History
Young Dabang has no bankruptcy history to report for the franchisor or its management. The FDD states that no bankruptcies are required to be disclosed in Item 4.
Agreement Terms
Initial Term
5 years
Renewal Term
5 years
Renewal Conditions
To renew with Young Dabang, franchisees must ensure their lease is renewable and that they are not in default of any agreement terms, having substantially complied throughout the initial term. Franchisees must provide written notice of their intent to renew 12 to 18 months before the current term expires. They will also need to make any required improvements to their outlet and operations, satisfy all financial obligations to Brandco USA, Inc., and sign Brandco USA, Inc.'s then-current Franchise Agreement, which may have different terms, including higher fees. A general release of claims must be signed, and the franchisee must meet current qualification and training requirements. Additionally, the outlet must be refurbished, remodeled, and updated to meet current brand standards, and a renewal fee of $25,000 must be paid.
Training & Support Program
Franchisor Assistance
Young Dabang provides comprehensive assistance to its franchisees. Before opening, Brandco USA, Inc. helps with site selection and approval, assists with purchasing equipment, signs, fixtures, and initial inventory, and furnishes design specifications and layouts for the outlet. Franchisees and their managers receive initial training. During the grand opening, Brandco USA, Inc. provides on-site support and guidance. After opening, ongoing assistance includes advice on operating procedures, new menu items, purchasing, and marketing programs. Brandco USA, Inc. also conducts regular inspections to ensure compliance with system standards, administers the marketing fund, offers advanced and refresher training, and provides updates to the Confidential Operations Manuals.
Initial Training Hours
41
Training Location
Corporate outlet in Irvine, California
Ongoing Support
After opening, Young Dabang provides its franchisees with continuous guidance and advice on operating issues, system standards, new menu items and preparation methods, and purchasing. This support is delivered through the Operations Manuals, bulletins, and telephone or electronic consultations. Brandco USA, Inc. reviews and approves local advertising materials, conducts periodic inspections of the outlet's operations, and administers the marketing fund. Franchisees also receive ongoing initial training, with advanced and refresher courses available for managers. The Operations Manuals are regularly updated to reflect new developments in the Young Dabang System.
Franchise Requirements
Ideal Candidate Profile
Young Dabang seeks franchisees who are committed to full-time, hands-on involvement in supervising all administrative and operational activities of their outlet. If the franchisee is an individual, they must personally devote at least 40 hours per week to the business. For legal entities, the person with a controlling ownership interest, or a designated Operating Principal (holding at least 10% ownership and decision-making authority), must dedicate full-time attention to the franchise. Franchisees must also ensure that the outlet is always supervised by an 'Approved Manager,' who is a full-time employee with management responsibilities and has successfully completed the required manager training program. The franchisee or Operating Principal can also fulfill the Approved Manager role.
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
Young Dabang grants its franchisees a specific non-exclusive territory that is a radius around the Young Dabang Outlet. The size of this radius will vary based on whether the outlet is in an urban, suburban, or rural setting. When determining these boundaries, Young Dabang considers factors like population size, ethnic make-up, persons per household, income level, residential/commercial mix, traffic patterns, parking, access issues, neighboring business mix, rent and leasing terms, and the physical characteristics of the premises, as well as the presence of any other nearby Young Dabang Outlets. The specific boundaries are then written into the franchise agreement with a corresponding map.
Staffing Notes
Young Dabang franchisees are responsible for recruiting, hiring, training, and developing all their own employees and staff, and Brandco USA, Inc. emphasizes that franchisees are the sole employers. Each Young Dabang Outlet must have at least one 'Approved Manager,' who is a full-time employee (or the franchisee/Operating Principal) with management responsibilities and has completed the required training. Brandco USA, Inc. may, at its discretion, require additional Approved Managers based on the outlet's size, location, and performance. All employees, managers, and supervisors must sign a confidentiality agreement, and all personnel must wear System uniforms. While Brandco USA, Inc. provides minimum staffing requirements to ensure System conformity, franchisees have exclusive control over their employees' schedules, compensation, and general employment matters.