About De Jeng Franchise
De Jeng is a Taiwanese cultural and educational franchise operated by Yung De Jeng Culture Co., Ltd.
The brand brings traditional Chinese learning and cultural enrichment programs to communities in the United States, offering classes and activities rooted in calligraphy, language arts, and cultural education.
De Jeng began offering area franchise opportunities in the Illinois market in 2024.
De Jeng Franchise Cost & Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $100,000 | One-time payment upon signing |
| Royalty Fee | 1.5% of Gross Monthly Sales, minimum $800 per month of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | Certain percentage of Gross Monthly Sales, not yet determined. | National brand fund |
| Total Investment Range | $320,500 – $529,600 | Includes build-out, inventory, working capital |
The investment range of $321K–$530K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (1.5% of Gross Monthly Sales, minimum $800 per month) and marketing fee (Certain percentage of Gross Monthly Sales, not yet determined.) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Franchise Fee | $100,000 | $100,000 |
| Refundable Security Deposit | $10,000 | $10,000 |
| Minimum Royalty Fee | $2,400 | $2,400 |
| Related Personnel Cost for initial training | $13,600 | $17,800 |
| Equipment | $45,000 | $57,000 |
| Utensils | $2,500 | $3,300 |
| Pre-Opening Inspection Fee | $2,500 | $7,500 |
| Rent for the Tea Shop | $2,000 | $10,000 |
| Rental for Warehouse | $0 | $7,500 |
| Renovation | $55,000 | $200,000 |
| Opening Inventory | $7,000 | $7,000 |
| Licenses, Permits, Fees and Deposit | $12,000 | $12,000 |
| Point of Sale System | $2,100 | $2,100 |
| Office Equipment & Supplies | $1,500 | $1,500 |
| Uniforms | $2,000 | $2,000 |
| Insurance | $4,500 | $15,000 |
| Advertisement | $2,000 | $2,000 |
| Additional Funds – 3 Months | $56,400 | $72,500 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Renewal Fee | US$10,000 |
| Audit Fee | Cost of audit |
| Advertising and Marketing Materials Sample/Template | We will support your grand opening support by providing you with marketing designs but not physical marketing materials. |
| Post Opening Consultation Fees | US$300 per inspector per day, round trip airfare for the inspector; and local transportation, meals, three stars or above hotel accommodation of the business operation consultant(s), and other reasonable costs incur on behalf of you. |
| Late Payment | Interest on unpaid amount at 5% per month or highest rate allowed by law |
| Manual Replacement Fee | US$0 |
| Liquidated Damages for All Other Violation | US$10,000 |
| Cost and Attorney Fees | Will vary under circumstances |
| Indemnification | Will vary under circumstances |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | minimum twenty-one (21) business days |
| Classroom Training | 168 hours |
| Training Location | our training site in Taiwan or Illinois |
| Additional Training | If staff fail to successfully complete training, each additional training costs US$300 per day per trainer. Special training courses such as service staff training, special promotion training, other pre-opening supports and continuous organizational supports may be offered at additional costs upon request. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Exclusive |
| Exclusive Territory | Yes |
| Territory Size | the geographical area of the state of Illinois of the United States |
| Description | The franchisee receives an exclusive territory, defined as the geographical area of the state of Illinois of the United States. The franchisor will not grant a franchise or establish a company-owned location within this Protected Territory as long as the franchisee is in full compliance with the agreement. However, the franchisor retains the right to operate or license others to operate other concepts relating to the Trademarks within the Territory at its sole discretion, such as selling De Jeng brand canned beverages or tea bags in supermarkets or online, with the franchisee having a right of first refusal for such 'Other De Jeng Concepts'. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | five (5) years |
| Renewal Term | two (2) years |
| Renewal Fee | US$10,000 |
| Renewal Conditions | The Area Development Franchise Agreement may be renewed for unlimited terms of two (2) years upon satisfying required conditions, which may include signing a new agreement with materially different terms, including potential increases in Royalty or marketing funds, or a change in site. |
| Transfer Conditions | The franchisee may not transfer any of their rights or obligations, or the operation or ownership of any Tea Shop, to a third party. |
| Termination for Cause | The franchisor may terminate with 30-days written notice for uncured defaults, failure to timely cure defaults, change of control, challenging trademark validity, conviction of a felony or crime of moral turpitude, or committing fraud. |
| Non-Compete Period | During the term of the franchise and for two (2) years after its expiration or termination. |
| Non-Compete Details | During the term, the franchisee may not directly or indirectly own, manage, operate, engage in, consult with, or have any interest in any business where 50% or more of its sales include gourmet coffees and teas, coffee or tea-based beverages, or bubble tea, other than the franchised business. After termination or expiration, this restriction applies for two (2) years within a 3-mile radius of the Tea Shop. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | The franchisee must devote their best efforts to operate and manage the Tea Shop(s). If an individual, they must perform all obligations or designate an approved Principal Operator. If a corporation, partnership, or LLC, an individual must be named as the Principal Operator to assume primary responsibility for management. The Principal Operator is not required to have a designated equity interest. |
| Required Suppliers | All products, including food supplies, utensils, cups, equipment and materials and services from your Tea Shop must meet our specifications, standards, and requirements. Your products must be sourced from suppliers that we approve. Ourselves and our parent company, Yung De Jeng, are approved suppliers, but we are not the only approved suppliers. Currently, you will have to purchase beverage syrup and tea proprietary teas from our designated suppliers. |
| Supply Restrictions | We may limit the number of potential suppliers that we consider for approval and for some categories of products we will designate a third party or ourselves as an exclusive supplier. We may designate exclusive suppliers for some categories of products or services including purchasing, distribution, fountain and packaged beverage products, point of sale equipment, integrated point of sale back office, help desk support, and high-speed internet access. |
| Franchisor Revenue from Suppliers | We and our affiliate may derive revenue from required purchases. Yung De Jeng, our parent company, is our only affiliate; and its total revenue in 2023 from required purchases made by the franchisees located in the United States was US$0. |
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 obligation. |
De Jeng Franchise Earnings — Item 19
De Jeng 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.
De Jeng 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.
De Jeng System Growth
De Jeng currently operates 0 franchised locations and 0 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2021 | 0 | 0 | 0 |
| 2022 | 0 | 0 | 0 |
| 2023 | 0 | 0 | 0 |
Transfers: 0 | Closures: 0
State Registrations
Registered in 3 states: CA, IL, NY
De Jeng Franchise — FAQ
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