Cho Dang franchise
2026 filing · March 17, 2026Growing
Cho Dang at a glance
A Korean restaurant specializing in soft tofu soup, with bibimbap, beef short rib and other dishes. At the end of 2025 there were 7 Cho Dang locations in the US, 5 franchised and 2 company-owned.
The business
- Franchisor
- Cho Dang Franchise, Inc
- The company that sells the franchises
- Franchising since
- 2023
- 3 years of selling franchises
- Franchisor based in
- Buena Park, California
- Typical size
- 500–3,000 sq ft
What you pay
- Cost to open
- $366K–$658K
- Fee, build-out and opening working capital
- Franchise fee
- $35,000
- Paid once, when you sign
- Royalty
- 3%
- 3% of gross sales, paid monthly, plus a marketing fee of up to 2%
- Brand fund
- 1%
- 1% of gross sales, paid with the royalty; it can rise to 2%
- Agreement length
- 5 years
Where it is
- US locations, 2025
- 7
- Franchised and company-owned
- Franchised
- 5
- Company-owned
- 2
- Change in 3 years
- +3
- Franchised locations, 2023–2025
- States
- 3
- Most in California, Illinois and Texas
From Cho Dang Franchise, Inc’s 2026 filing; SBA status from the SBA Franchise Directory, October 28, 2026.
Where it ranks
Cho Dang among all franchises with the same figure.
| Figure | Cho Dang | Among all franchises |
|---|---|---|
| Cost to open, midpointHalfway between the low and high estimate | $512,000 | Costs more than 65% of franchises |
| Franchise feePaid once, when you sign | $35,000 | Lower than 61% of franchises |
| RoyaltyShare of sales paid to the franchisor | 3% | Lower than 98% of brands with a set rate |
| US locationsFranchised and company-owned | 7 | Fewer than 66% of franchises |
How much a Cho Dang franchise costs
Opening one Cho Dang costs an estimated $366,000 to $658,000. That covers the franchise fee and everything else needed to open, through the first months of working capital.
The biggest costs are construction and leasehold improvements ($170,000 to $250,000) and additional funds – 3 months ($37,500 to $85,000). Here is every line of the estimate as filed:
| What it pays for | Range | Low | High |
|---|---|---|---|
| Initial Franchise Fee | $35,000 | ||
| Real Estate Security/Deposits and Initial Rent | $10,000 | $60,000 | |
| Construction and leasehold improvements | $170,000 | $250,000 | |
| Design and architecture | $6,000 | $8,000 | |
| Equipment, Furniture and Fixtures | $35,000 | $75,000 | |
| Opening Inventory | $5,000 | $15,000 | |
| Insurance | $5,000 | $15,000 | |
| Opening Promotion and Opening Setup | $23,000 | $40,000 | |
| Cash Registers/Other Office Equipment | $3,000 | $15,000 | |
| Initial Training Fee and related Expenses | $15,000 | $28,000 | |
| Business Licenses, Utility Deposits, Prepaid Fees | $1,500 | $10,000 | |
| Pre-opening Payroll | $10,000 | $12,000 | |
| Security Deposit | $10,000 | ||
| Additional Funds – 3 months | $37,500 | $85,000 | |
| Total | $366,000 | $658,000 | |
Source: Cho Dang Franchise, Inc, 2026 filing, page 16
Cho Dang franchise fee
The franchise fee is $35,000. You pay it when you sign the franchise agreement.
Source: Cho Dang Franchise, Inc, 2026 filing, page 10
Royalty and ongoing fees
| Royalty | 3% of gross sales, paid monthly, plus a marketing fee of up to 2%. |
|---|---|
| Brand or marketing fund | 1% of gross sales, paid with the royalty; it can rise to 2%. |
| Transfer Review Fee | $2,500 |
The typical franchise royalty is 6% of sales, plus 2% for marketing. See franchise fees and royalties to compare.
Source: Cho Dang Franchise, Inc, 2026 filing, page 11
Other fees as filed, from page 13. The filing lists every fee, including late fees and audit costs.
Sales and earnings
No figures Cho Dang does not share sales or profit figures for its locations. Talking to current and former franchise owners is the usual way to learn what a location earns.
Source: Cho Dang Franchise, Inc, 2026 filing, page 42
- Estimate Estimated yearly sales per location
- $890K–$1.6M
Estimated from the sales that 292 comparable franchises file, matched on industry, format, cost to open, fees and size.
Growth and closures
Share of franchised locations, 2025 / 2023–2025. Typical means the median: half of brands are above it, half below.
| Measure | Cho Dang | Typical restaurant brand | Typical franchise |
|---|---|---|---|
| GrowthNet change in franchised locations | +150% / +150% | 0% / +3% | +1.2% / +10% |
| ClosuresTerminated, not renewed or stopped operating | 0% / 0% | 2.5% / 13% | 3.9% / 16% |
| Bought backLocations the franchisor took back | 0% / 0% | 0% / 0% | 0% / 0% |
Typical restaurant brand is the median of the 301 brands in restaurant franchises with three years of counts.
How Cho Dang compares
Of the 813 restaurant franchises on this site, Cho Dang is the 353rd cheapest to open and the 483rd largest by number of locations.
| Figure | Cho Dang | Typical restaurant brand | Typical franchise |
|---|---|---|---|
| Cost to open, low end | $366K | $408K | $222K |
| Cost to open, high end | $658K | $866K | $477K |
| Franchise fee | $35K | $35K | $40K |
| Royalty | 3% | 5% | 6% |
| Brand fund | 1% | 2% | 2% |
| US locations | 7 | 14 | 21 |
| Shares earnings figures | No | 474 of 813 | 2,147 of 3,352 |
Typical is the median across the 813 brands in restaurant franchises; typical franchise, across every brand here.
Locations opened and closed
| Year | Franchised | Company-owned | Opened | Closed |
|---|---|---|---|---|
| 2023 | 2 (0) | 2 | 0 | 0 |
| 2024 | 2 (0) | 1 | 0 | 0 |
| 2025 | 5 (+3) | 2 | +3 | 0 |
Closed or left counts terminations, non-renewals, locations bought back by the franchisor and locations that stopped operating.
See which brands grew most in the fastest-growing franchises rankings.
More in the guides: franchise failure rates.
Source: Cho Dang Franchise, Inc, 2026 filing, page 43
Where Cho Dang locations are
At the end of 2025, Cho Dang had locations in 3 states. The most are in California, Illinois and Texas.
- California4
- Illinois2
- Texas1
| State | Franchised | Company-owned | Total |
|---|---|---|---|
| California | 2 | 2 | 4 |
| Illinois | 2 | 0 | 2 |
| Texas | 1 | 0 | 1 |
Source: Cho Dang Franchise, Inc, 2026 filing, page 43
Who owns Cho Dang?
Cho Dang franchises are sold by Cho Dang Franchise, Inc.
From Cho Dang Franchise, Inc’s 2026 filing.
Lawsuits and bankruptcy
| Lawsuits and regulatory actions | None. The filing says no litigation has to be disclosed. |
|---|---|
| Bankruptcy | None. The filing says no bankruptcy has to be disclosed. |
Franchisors must disclose lawsuits and bankruptcies involving the company, its parents and affiliates, and its executives. Many cases are routine disputes with franchisees over fees or contracts; read the descriptions in the filing and ask current owners about anything that worries you.
Source: Cho Dang Franchise, Inc, 2026 filing, litigation on page 10, bankruptcy on page 10
Cho Dang filings
The figures on this page come from Cho Dang Franchise, Inc’s 2026 filing, issued March 17, 2026, on record with the NASAA Electronic Filing Depository.
| Filing | Issued | Registry | On this page |
|---|---|---|---|
| 2026 filing | March 17, 2026 | NASAA depository | Costs, fees and locations, 2023–2025 |
Each link opens the filing as a PDF. See the newest filings across all brands.
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