About Egg Drop Franchise
Egg Drop is a Korean egg sandwich franchise that has become a sensation in South Korea and is now expanding to the United States.
Backed by Golden Hind Co., Ltd., the brand began franchising in the U.S.
in 2023, bringing its signature fluffy egg sandwiches and creative flavor combinations to American consumers.
Egg Drop Franchise Cost & Fees
Minimum Investment
$202K
Average Investment
$257K
Maximum Investment
$312K
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $40,000 | One-time payment upon signing |
| Royalty Fee | 8.0% of Gross Sales of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 4.5% of Gross Sales (to be spent directly by the Ad Fund) | National brand fund |
| Total Investment Range | $201,500 – $311,500 | Includes build-out, inventory, working capital |
The investment range of $202K–$312K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (8.0% of Gross Sales) and marketing fee (4.5% of Gross Sales (to be spent directly by the Ad Fund)) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $40,000 | $40,000 |
| Security Deposit | $30,000 | $30,000 |
| Real Property/Site Lease | $5,000 | $15,000 |
| Leasehold Improvements | $20,000 | $40,000 |
| Equipment & Furniture | $5,000 | $20,000 |
| Opening Inventory | $10,000 | $20,000 |
| Insurance | $3,000 | $5,000 |
| Signage, Menu Board | $2,500 | $5,000 |
| Grand Opening Promotion | $5,000 | $5,000 |
| Cash Registers (POS) /Other Office Equipment | $3,500 | $6,500 |
| Additional Funds – 3 months | $75,000 | $125,000 |
| Travel and accommodations during Initial Training | $2,500 | $6,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | 50% of the then-current initial franchise fee |
| Renewal Fee | 25% of the then-current initial franchise fee |
| Technology Fee | The approximate cost to purchase the POS System, Computer System, computer software, and hardware is approximately $2,000 (inclusive of the first year of the maintenance agreement fee and license fee). Annual maintenance or lease is estimated at $1,500 to $2,000 per year. The amount for upgrades varies based on the extent of the upgrade or services provided. |
| Audit Fee | Cost of audit |
| Security Deposit | $30,000 (deposit) |
| Promotions | Costs to purchase, lease and install (and periodically replace) all materials necessary to promotional campaigns, including counter cards, posters, banners, signs, photographs, give-away items and gift cards. We may charge you our costs plus a reasonable administrative fee. |
| Replacement Manager Initial Training Fee | $3,000 |
| On-Site Training and Assistance | $50 per hour plus trainers' Expenses |
| Supplemental Training | $1,000 per person per day plus trainers’ expenses |
| Travel and accommodations for Supplemental Training | $2,500 – 6,000 |
| Adulteration, Dilution or Failure of Sanitation Inspection Fee | Our expenses, including attorneys' fees, and inspection fees of up to $7,500 per visit |
| Interest | 1% per month or maximum legal interest rate |
| Relocation Fee | $10,000 |
| Supplier Evaluation Fee | Based on our actual cost |
| Indemnification | Based on our actual costs |
| Attorneys’ Fees | Based on our actual costs |
| Liquidated Damages | Will vary under circumstances |
| Updating or reconstruction of your Restaurant | Amount varies and is based on the extent of reconstruction or costs associated with updating, relocation and outfitting of new premises for your Restaurant. We estimate the amount may range from $10,000 to $100,000 but could be higher depending on the age, condition and size of your Restaurant. |
| Updating and Maintaining computer systems; Systems Fee | The approximate cost to purchase the POS System, Computer System, computer software, and hardware is approximately $2,000 (inclusive of the first year of the maintenance agreement fee and license fee). Annual maintenance or lease is estimated at $1,500 to $2,000 per year. The amount for upgrades varies based on the extent of the upgrade or services provided. |
| EFT NSF Fee | $100 plus reimbursement of financial or other institution imposes on us, for each dishonored or unsuccessful check, ACH debit, electronic funds transfer, credit or wire transfer or other form of payment that in any way is not honored or completed. |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | 10 days |
| Classroom Training | 15 |
| On-the-Job Training | 45 |
| Training Location | New York, New York, or at another location as we may designate |
| Additional Training | We will provide ongoing initial training program, and we will also offer advanced and refresher training for managers. We may require that you and/or your designated manager(s) attend such further training programs as we shall from time to time reasonably prescribe, but not more than once a year, and complete the programs to our satisfaction. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Protected |
| Exclusive Territory | No |
| Territory Size | about 5 city blocks from your Restaurant if located within a Central Business District, or approximately 5 miles from your Restaurant for locations outside the Central Business District |
| Description | The size and scope of the Area of Protection will be determined on a case-by-case basis and set forth specifically in the Franchise Agreement, but will be an area of about 5 city blocks from your Restaurant if located within a Central Business District, which is an area concentrated with commercial businesses to be designated by us at our sole discretion. For locations outside of the Central Business District, your Area of Protection will be an area measuring approximately 5 miles from your Restaurant. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years |
| Renewal Term | One additional term of 5 years |
| Renewal Fee | 25% of the then-current initial franchise fee |
| Renewal Conditions | You must satisfy these requirements to renew: a. Timely request renewal b. Have been in substantial compliance with Franchise Agreement c. Remodel, refurbish and renovate the Restaurant, if required d. Sign and return your Renewal Franchise Agreement (then-current) e. Pay the renewal fee f. Sign a general lease. When renewing, you may be asked to sign a contract with materially different terms and conditions than your contract. |
| Transfer Fee | 50% of the then-current initial franchise fee |
| Transfer Conditions | Third Party Transfers require payment of all amounts owed, no material default, transferee and manager complete training, transferee meets new franchisee requirements, transferee agrees to remodel, transferee signs current franchise agreement, franchisor receives general release and assignment contract, and franchisor's right of first refusal is complied with. Related Party Transfers have similar conditions but allow up to 49% (100% on death/disability) interest transfer to spouse, parent, child, or original guarantors. |
| Termination for Cause | We may terminate only if you default or fail to timely cure. |
| Non-Compete Period | 12 months |
| Non-Compete Details | No involvement in competing business anywhere during the term. After termination/expiration, no involvement in competing business for 12 months within 3 miles of any Restaurant (including your Restaurant). |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | You must personally supervise the operation of your Restaurant(s), unless we otherwise permit in writing. You must devote the necessary time and your best efforts for the proper and effective operation of your Restaurant. You must employ one certified manager for each Restaurant. If you are an individual, you may serve as or designate a certified manager. An entity franchisee must designate a certified manager, who will exercise on-premises supervision and personally participate in the direct operation. |
| Required Suppliers | The Franchise Agreement requires you to purchase the Proprietary Products and Non-Proprietary Products ("Products") either directly or indirectly from our approved suppliers and/or distributors. You must purchase exterior trademarked signs for your Restaurant that meet our specifications and from a vendor that we approve in writing. You must hire an architect that we approve in writing and a general contractor that we accept in writing. You must purchase certain items of machinery and equipment, some of which are Proprietary Products, from sources we approve. |
| Supply Restrictions | We have specifications for all food and beverage products sold at EGG DROP restaurants, cooking equipment, food preparation methods, recipes and ingredients. We state all specifications, and we will identify approved suppliers in the Operations Manual, where applicable. We may revise the specifications and approved suppliers through written bulletins or supplements to the Operations Manual at any time. If you wish to purchase from another supplier, you must first obtain our approval using specific procedures including submitting a written request, demonstrating the supplier's ability to meet standards, signing confidentiality agreements if applicable, paying a supplier evaluation fee, and demonstrating financial soundness and reliability. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | We do not offer direct or indirect financing. We do not guarantee your notes, lease or obligations. |
Egg Drop Franchise Earnings — Item 19
Egg Drop does not make an Item 19 financial performance representation in their FDD. This means they do not disclose revenue, profit, or earnings data for franchised locations. Before investing, ask the franchisor directly for franchisee contact information so you can speak with existing owners about their actual financial performance.
Egg Drop 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.
Egg Drop Litigation & Risk Flags
Clean Litigation RecordEgg Drop has no pending litigation actions listed in their FDD. There is also no bankruptcy history disclosed.
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Egg Drop System Growth
Total Units
0
Franchised
0
Company-Owned
0
Egg Drop 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 |
|---|---|---|---|
| 2020 | 0 | 0 | 0 |
| 2021 | 0 | 0 | 0 |
| 2022 | 0 | 0 | 0 |
Transfers: 0 | Closures: 0
State Registrations
Registered in 7 states: CA, IL, MI, HI, VA, NY, TX
Franchisor Financials (Item 21)
0
Net Income
$-7,236
Total Assets
$99K
Audited by Hansol CPAs LLP for year ending December 31, 2022.
Egg Drop Franchise — FAQ
The total investment to open a Egg Drop franchise ranges from $201,500 to $311,500, per their Franchise Disclosure Document. This includes the initial franchise fee of $40,000. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
Egg Drop charges a royalty fee of 8.0% of Gross Sales of gross sales, plus a 4.5% of Gross Sales (to be spent directly by the Ad Fund) contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the Egg Drop Franchise Disclosure Document free on this page. The FDD is a public document filed with state franchise registries. Always also request the current FDD directly from Egg Drop to ensure you have the most up-to-date version.
Egg Drop does not provide an Item 19 financial performance representation in their FDD, which means they do not disclose franchisee revenue or earnings data. Prospective investors should contact existing franchisees directly (listed in Item 20 of the FDD) to gather real-world financial performance information.
Egg Drop has been franchising since 2023. The FDD shows an investment range of $201,500-$311,500, a 8.0% of Gross Sales royalty, and no Item 19 earnings disclosure. There is no pending litigation. Review the full FDD and contact current franchisees listed in Item 20 before making any investment decision.
The franchise fee is $40,000 and the total investment ranges from $201,500 to $311,500 depending on location size and market. Contact the franchisor directly for current net worth and liquid capital requirements, territory availability, and application details.
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Data Source & Disclaimer: This website is for informational purposes only. It is not an offer to sell or buy a franchise. This profile is based on publicly available FDD data sourced from state franchise registry filings. All information is for research purposes only and does not constitute legal, financial, or investment advice. Data may be outdated or contain errors. Always obtain the current FDD directly from Egg Drop and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with Egg Drop or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com