Jung Kwan Jang franchise
2025 filing · April 15, 2025Growing
Jung Kwan Jang at a glance
A retail store selling Jung Kwan Jang Korean red ginseng health supplements. At the end of 2024 there were 37 Jung Kwan Jang locations in the US, 36 franchised and 1 company-owned.
The business
- Franchisor
- Korean Red Ginseng Corp., Inc
- The company that sells the franchises
- Franchisor based in
- Cerritos, California
- Typical size
- 300–1,500 sq ft
What you pay
- Cost to open
- $111K–$316K
- Fee, build-out and opening working capital
- Franchise fee
- $15,000
- Paid once, when you sign
- Royalty
- 3%
- 3% of net sales, paid weekly, plus up to 3% for marketing once the fund is set up
- Brand fund
- Yes
- Up to 3% of net sales once a fund is set up
- Agreement length
- 3 years
- Territory
- None
- No exclusive territory
- Franchisor financing
- None offered
Where it is
- US locations, 2024
- 37
- Franchised and company-owned
- Franchised
- 36
- Company-owned
- 1
- Change in 3 years
- +3
- Franchised locations, 2022–2024
- States
- 12
- Most in California, New Jersey and New York
From Korean Red Ginseng Corp., Inc’s 2025 filing; SBA status from the SBA Franchise Directory, October 28, 2026.
Where it ranks
Jung Kwan Jang among all franchises with the same figure.
| Figure | Jung Kwan Jang | Among all franchises |
|---|---|---|
| Cost to open, midpointHalfway between the low and high estimate | $213,500 | Costs less than 68% of franchises |
| Franchise feePaid once, when you sign | $15,000 | Lower than 93% of franchises |
| RoyaltyShare of sales paid to the franchisor | 3% | Lower than 98% of brands with a set rate |
| US locationsFranchised and company-owned | 37 | More than 59% of franchises |
How much a Jung Kwan Jang franchise costs
Opening one Jung Kwan Jang costs an estimated $111,000 to $316,000. That covers the franchise fee and everything else needed to open, through the first months of working capital.
The biggest costs are furniture and fixtures ($15,000 to $100,000) and opening inventory ($30,000 to $60,000). Here is every line of the estimate as filed:
| What it pays for | Range | Low | High |
|---|---|---|---|
| Initial Franchise Fee | $15,000 | ||
| Real Estate (2-a) | $3,000 | $7,000 | |
| Real Estate Security/Utility Deposits, Licenses and Prepaid Fees | $4,000 | $17,000 | |
| Furniture and Fixtures | $15,000 | $100,000 | |
| Leasehold Improvements | $20,000 | $50,000 | |
| Opening Inventory | $30,000 | $60,000 | |
| Insurance | $2,000 | $5,000 | |
| Signage | $5,000 | $20,000 | |
| Grand Opening Promotion | $3,000 | $6,000 | |
| Travel and Accommodations | $2,000 | $3,000 | |
| Cash Registers/Other Office Equipment | $2,000 | $3,000 | |
| Additional Funds – 3 months | $10,000 | $30,000 | |
| Total | $111,000 | $316,000 | |
Source: Korean Red Ginseng Corp., Inc, 2025 filing, page 12
Jung Kwan Jang franchise fee
The franchise fee is $15,000. You pay it when you sign the franchise agreement.
Source: Korean Red Ginseng Corp., Inc, 2025 filing, page 9
Royalty and ongoing fees
| Royalty | 3% of net sales, paid weekly, plus up to 3% for marketing once the fund is set up. |
|---|---|
| Brand or marketing fund | Up to 3% of net sales once a fund is set up. |
| Transfer Fee | 50% of the then- current initial franchise fee |
The typical franchise royalty is 6% of sales, plus 2% for marketing. See franchise fees and royalties to compare.
Source: Korean Red Ginseng Corp., Inc, 2025 filing, page 10
Other fees as filed, from page 10. The filing lists every fee, including late fees and audit costs.
Sales and earnings
No figures Jung Kwan Jang 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: Korean Red Ginseng Corp., Inc, 2025 filing, page 33
Growth and closures
Share of franchised locations, 2024 / 2022–2024. Typical means the median: half of brands are above it, half below.
| Measure | Jung Kwan Jang | Typical health and wellness brand | Typical franchise |
|---|---|---|---|
| GrowthNet change in franchised locations | +5.9% / +9.1% | +6.7% / +23% | +1.2% / +10% |
| ClosuresTerminated, not renewed or stopped operating | 0% / 3% | 6.3% / 29% | 3.9% / 16% |
| Bought backLocations the franchisor took back | 0% / 0% | 0% / 0% | 0% / 0% |
Typical health and wellness brand is the median of the 57 brands in health and wellness franchises with three years of counts.
How Jung Kwan Jang compares
Of the 199 health and wellness franchises on this site, Jung Kwan Jang is the 36th cheapest to open and the 55th largest by number of locations.
| Figure | Jung Kwan Jang | Typical health and wellness brand | Typical franchise |
|---|---|---|---|
| Cost to open, low end | $111K | $224K | $222K |
| Cost to open, high end | $316K | $498K | $477K |
| Franchise fee | $15K | $45K | $40K |
| Royalty | 3% | 6% | 6% |
| US locations | 37 | 10 | 21 |
| Shares earnings figures | No | 125 of 199 | 2,147 of 3,352 |
Typical is the median across the 199 brands in health and wellness franchises; typical franchise, across every brand here.
Locations opened and closed
| Year | Franchised | Company-owned | Opened | Closed |
|---|---|---|---|---|
| 2021 | 33 (0) | 1 | – | – |
| 2022 | 33 (0) | 1 | +1 | −1 |
| 2023 | 34 (+1) | 1 | +1 | 0 |
| 2024 | 36 (+2) | 1 | +2 | 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.
Over 4 years, from the start of 2021 to the end of 2024, franchised locations went from 33 to 36 (+3, +9%). The earlier years come from the brand's 2024 filing.
Source: Korean Red Ginseng Corp., Inc, 2025 filing, page 35
2021: Korean Red Ginseng Corp., Inc, 2024 filing, page 34
Where Jung Kwan Jang locations are
At the end of 2024, Jung Kwan Jang had locations in 12 states. The most are in California, New Jersey and New York.
- California16
- New Jersey3
- New York3
- Texas3
- Georgia2
- Illinois2
| State | Franchised | Company-owned | Total |
|---|---|---|---|
| California | 15 | 1 | 16 |
| New Jersey | 3 | 0 | 3 |
| New York | 3 | 0 | 3 |
| Texas | 3 | 0 | 3 |
| Georgia | 2 | 0 | 2 |
| Illinois | 2 | 0 | 2 |
| Virginia | 2 | 0 | 2 |
| Washington | 2 | 0 | 2 |
| Hawaii | 1 | 0 | 1 |
| Maryland | 1 | 0 | 1 |
All 12 states
| Massachusetts | 1 |
|---|---|
| Pennsylvania | 1 |
Source: Korean Red Ginseng Corp., Inc, 2025 filing, page 36
Who owns Jung Kwan Jang?
Jung Kwan Jang franchises are sold by Korean Red Ginseng Corp., Inc.
From Korean Red Ginseng Corp., Inc’s 2025 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: Korean Red Ginseng Corp., Inc, 2025 filing, litigation on page 9, bankruptcy on page 9
Jung Kwan Jang filings
A franchisor files a new disclosure each year it sells franchises. The figures on this page come from Korean Red Ginseng Corp., Inc’s 2025 filing, issued April 15, 2025; the earlier ones below are on record with the NASAA Electronic Filing Depository and fill in older location counts.
| Filing | Issued | Registry | On this page |
|---|---|---|---|
| 2025 filing | April 15, 2025 | NASAA depository | Costs, fees and locations, 2022–2024 |
| 2024 filing | April 10, 2024 | NASAA depository | Locations, 2021 |
Each link opens the filing as a PDF. See the newest filings across all brands.
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