About CrunCheese Korean Hot Dog Franchise
CrunCheese Korean Hot Dog is a quick service restaurant franchise specializing in Korean style hot dogs featuring unique batters, fillings, and toppings.
The brand brings a popular international street food concept to the American market, offering a menu of creative and flavorful hot dog variations that appeal to adventurous eaters and fans of Korean cuisine.
The franchise fee is $40,000, and the company has been franchising since 2022.
CrunCheese Korean Hot Dog Franchise Cost & Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $40,000.00 | One-time payment upon signing |
| Royalty Fee | 5% of monthly Gross Revenues of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | Currently 1% of monthly Gross Revenues (Company’s Advertising Fund); $600 or 1% of your monthly Gross Revenues whichever is greater (Local Market Advertising) | National brand fund |
| Total Investment Range | $225,450 – $543,900 | Includes build-out, inventory, working capital |
The investment range of $225K–$544K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (5% of monthly Gross Revenues) and marketing fee (Currently 1% of monthly Gross Revenues (Company’s Advertising Fund); $600 or 1% of your monthly Gross Revenues whichever is greater (Local Market Advertising)) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial franchise fee | $40,000 | $40,000 |
| Lease rent for three months | $9,000 | $27,000 |
| Leasehold Improvements (Construction and remodeling) | $60,000 | $200,000 |
| Furnishings | $5,000 | $15,000 |
| Fixtures | $5,000 | $20,000 |
| Signage | $5,000 | $20,000 |
| Equipment | $20,000 | $60,000 |
| Travel/Living expenses for Initial Training | $2,000 | $20,000 |
| Inventory for the first 3 months: Special Formula Flour | $1,500 | $6,000 |
| Computer Hardware, Software, Supplies and Installation | $3,700 | $3,700 |
| Professional Fees and Services | $1,000 | $6,200 |
| Start-up supplies – Uniforms, contracts, invoices, and other office and/or restaurant supplies | $5,000 | $10,000 |
| Utility deposits and fees | $500 | $5,000 |
| Business Licenses and Permits | $750 | $5,000 |
| Wages for employees (For the 3 months while in training) | $30,000 | $40,000 |
| Insurance | $2,000 | $6,000 |
| Additional Funds–three (3) months | $30,000 | $50,000 |
| Marketing Expenses for Grand Opening/Start-up and up to the third month of operation | $5,000 | $10,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $5,000 |
| Renewal Fee | The then current Initial Franchise Fee or 50% of the then-current Initial franchise fee |
| Technology Fee | Initial setup fee is $2,500 and the ongoing monthly fee is $400 |
| Audit Fee | Cost of audit and inspection, plus any reasonable accounting and legal expenses, and expenses such as travel, lodging, and wages which are reasonably incurred in conducting an audit in which the above discrepancy is found |
| Interest | 18% per annum (California: Maximum 10% per annum) |
| Late Charge | $50 per day |
| Insufficient Fund | $100 per violation |
| Accounting Fee | $100 |
| Non-Compliance Charge | $500 per violation |
| Fee for Sale of Prohibited Products or Services | $500 or 50% of your gross Revenues of the prohibited products or services whichever is greater |
| Insurance | Amount of unpaid premiums and related costs |
| Replacement of Operations Manual | Currently $200 |
| Relocation Fee | Currently $5,000 |
| Legal Costs and Attorney’s Fees | All legal costs and attorneys’ fees incurred by us |
| Indemnification | All amounts (including attorneys’ fees) incurred by us or otherwise required to be paid |
| De-Identification | All amounts incurred by us |
| CrunCheese's Lost Profits Following Termination | The mathematical product of (a) the average monthly Royalty Fees, and Marketing Fund Fees, payable under your Franchise Agreement over the 12-month period preceding the date of termination (or a shorter time period if the CrunCheese Restaurant has been open less than 12 months); (b) multiplied by the lesser of 36 or the number of months remaining in the term of your Franchise Agreement. |
| Ongoing Training | $400 per day plus room and board for each trainer |
| Supplies or Inventories | Based on Use |
| Negotiating franchisee’s lease or constructing or remodeling franchisee’s unit | $1,500 to $10,000 |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | 5-7 days |
| Classroom Training | 31-47 hours |
| On-the-Job Training | 31-47 hours |
| Training Location | Franchisor’s corporate site in Las Vegas, Nevada, or otherwise at Franchisor’s designate |
| Additional Training | Additional ongoing training is optional, but they are offered at Franchisee’s expenses at $400.00/day per trainer, in additional to each trainer’s travel, room and board, meals. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Protected |
| Exclusive Territory | No |
| Territory Size | three (3) mile radius |
| Description | There is a three (3) mile radius restrictions on Franchisee’s operating units or granting franchises in a franchisee's granted territory. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years |
| Renewal Term | 10 years |
| Renewal Fee | One-half (1/2) of the initial franchise fee, or the then-current initial franchise fee if relocating to a new Start-up Location. |
| Renewal Conditions | Franchisee must have substantially complied with the Franchise Agreement, given notice of intent to renew between 12 months and 2 years before expiration, sign a new Franchise Agreement, sign a general release of claims, pay the applicable renewal fee, cure any defaults, remodel, and pay all amounts owed. |
| Transfer Fee | $5,000 |
| Transfer Conditions | New owner must have sufficient business experience, aptitude, and financial resources; have a clean background check; all amounts due to franchisor must be paid; new owner's directors must complete initial training; landlord must consent to lease transfer; pay a transfer fee; sign a general release; new owner must agree to remodel to current standards; new owner must assume all obligations or sign a new Franchise Agreement; sign a non-competition agreement; franchisor must approve material terms of transfer; and any installment payments to seller must be subordinate to new owner's obligations to franchisor. |
| Termination for Cause | Franchisor may terminate for various breaches including failure to develop/open, abandonment, unauthorized transfer, bankruptcy, use of unauthorized products, felony conviction, actions adversely affecting reputation, health/safety violations, non-payment of fees, failure to meet advertising expenditures, non-compliance with agreement provisions, failure to maintain insurance, or multiple failures to comply within a 12-month period. |
| Non-Compete Period | 2 years |
| Non-Compete Details | No involvement in competing business for two (2) years within a twenty-five (25) mile radius of the Location and any then-existing CrunCheese restaurant. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | The Restaurant must at all times be under direct supervision by an "on-premises" manager (the "Operating Principal") who has satisfactorily completed CrunCheese's training program, devotes his or her full time during business hours to the management of the Restaurant, and owns and controls not less than 10% of the equity and voting control of Franchisee. |
| Required Suppliers | All food and beverage ingredients, products, equipment, software, computer and POS/Computer Systems, marketing and advertising materials and all paper and other goods bearing the CrunCheese or other proprietary designation purchased for your restaurant must conform to CrunCheese's specifications and must be purchased from approved suppliers, if these suppliers are so designated. |
| Supply Restrictions | CrunCheese reserves for itself and its affiliates the absolute right to be a sole source of supplies or the sole designator of suppliers, contractors or purveyors who will provide products, ingredients or mixes involving trade secrets, confidential formulae or confidential recipes and will have no obligation to release any trade secret, confidential formulae or confidential recipes to you or any supplier, contractor or purveyor. |
| Franchisor Revenue from Suppliers | We may collect and retain certain manufacturing allowances, marketing allowances, rebates, credits, monies, payments and benefits (collectively, “Allowances”) offered to us or to our affiliates by manufacturers, suppliers and distributors based upon your purchases of products and other goods and services. We or our affiliates may also derive income from our sale of products or services to you, and may sell these items at prices exceeding our or their costs in order to make a profit on the sale. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | We do not offer direct or indirect financing. We do not guarantee your note, lease or obligations. |
CrunCheese Korean Hot Dog Franchise Earnings — Item 19
CrunCheese Korean Hot Dog does not include an Item 19 financial performance representation in their FDD. Contact information for current and former franchisees is listed in Item 20 of the FDD.
CrunCheese Korean Hot Dog Litigation & Risk Flags
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
CrunCheese Korean Hot Dog System Growth
CrunCheese Korean Hot Dog currently operates 0 franchised locations and 2 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2019 | 0 | 0 | 1 |
| 2020 | 0 | 0 | 1 |
| 2021 | 0 | 0 | 2 |
Transfers: 0 | Closures: 0
State Registrations
Registered in 14 states: CA, HI, IL, IN, MD, MI, MN, NY, ND, RI, SD, VA, WA, WI
Franchisor Financials (Item 21)
CrunCheese Korean Hot Dog Franchise — FAQ
Similar Food & Beverage Franchises
Interested in CrunCheese Korean Hot Dog?
Get free info on this franchise. We will send you a detailed FDD report by email.