About Sunbi Kimbap Franchise
Sunbi Kimbap is a distinctive Korean style Chinese cuisine restaurant offering a specialized menu of popular dishes.
Franchisees operate retail food service outlets, preparing a variety of kimbap, tteokbokki, stir-fried meat, and fish cake soup, alongside other food products and beverages.
These outlets provide both on-premises dining and convenient take-out services, catering to customers seeking authentic and
Sunbi Kimbap Franchise Cost & Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $35,000 | One-time payment upon signing |
| Royalty Fee | 5% of Gross Sales of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | Up to 1% of Gross Sales | National brand fund |
| Total Investment Range | $202,500 – $461,000 | Includes build-out, inventory, working capital |
The investment range of $203K–$461K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (5% of Gross Sales) and marketing fee (Up to 1% of Gross Sales) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee (1) | $35,000 | $35,000 |
| Real Estate Security/Deposits and Initial Rent (2) | $5,000 | $35,000 |
| Construction and leasehold improvements (3) | $80,000 | $200,000 |
| Design and architecture (4) | $12,000 | $20,000 |
| Equipment, Furniture and Fixtures (5) | $35,000 | $75,000 |
| Opening Inventory (6) | $2,000 | $5,000 |
| Insurance (7) | $1,500 | $2,500 |
| Opening Promotion and Grand Opening (8) | $3,500 | $5,000 |
| Cash Registers/Other Office Equipment (9) | $3,000 | $15,000 |
| Initial Training Expenses (10) | $3,500 | $8,500 |
| Business Licenses, Utility Deposits, Prepaid Fees (11) | $2,000 | $10,000 |
| Additional Funds – 3 months (12) | $20,000 | $50,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | Transfer Review Fee: $2,500; Transfer Fee: $15,000 |
| Renewal Fee | $15,000 |
| Technology Fee | Up to $250 per month (currently not assessed) |
| Audit Fee | Cost of inspection or audit (reimbursement if audit discloses understating Outlet Gross Sales by 2% or more) |
| Additional Training | Currently $100 per hour per instructor, plus travel and lodging expenses, subject to a maximum increase of 10% per year. |
| Refresh or Remodel for Renewal of Franchise Agreement | Costs as incurred (not to exceed $75,000) |
| Site Evaluation Costs | Actual costs |
| Local Advertising | Up to 1% of Gross Sales (currently not assessed) |
| Alternative Supplier Testing Fee | Actual costs |
| Late Payment | Late charge equal to 5% of payment due, together with interest at 2% per month (not to exceed highest legal rate) |
| Dishonored Item | $100 plus reimbursement of charge a financial or other institution imposes on us |
| Non-Compliance Fine | Our then-current fee (from $25 to $300 for a single violation, but may vary based on the severity of violations, number of violations, and repetition of violations) |
| Repeated Inspection Fee | Cost of inspection |
| Relocation Fee | $3,000 |
| Non-Compliance of Covenant Not to Compete | $1,000 per week |
| Securities Offering Review Fee | $5,000 |
| Management Fee | 20% of Gross Sales for the period in which we operate the Outlet (plus the expenses of the Outlet, including reasonable compensation and expenses for Franchisor’s representative, to be charged) |
| Liquidated Damages | If we terminate your franchise agreement for cause, you must pay us liquidated damages equal to the average monthly Royalty Fee multiplied by (i) 24 or (ii) if less than 24 months remain in the term, then the number of remaining months |
| Indemnification | Actual costs |
| Costs and Attorneys’ Fees | Actual costs |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | approximately 3-10 days |
| Classroom Training | 33 hours |
| On-the-Job Training | 54 hours |
| Training Location | Your Franchised Outlet or another location designated by Franchisor |
| Additional Training | Currently $100 per hour per instructor, plus travel and lodging expenses, subject to a maximum increase of 10% per year. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Non-exclusive |
| Exclusive Territory | No |
| Territory Size | a radius around your Sunbi Kimbap Outlet, which will vary depending on whether your Outlet is located in an urban, suburban or rural setting. |
| Description | You will not receive an exclusive territory. You may face competition from other franchisees, from outlets that we own, or from other channels of distribution or competitive brands that we control. Your non-exclusive territory will be a radius around your Sunbi Kimbap Outlet, which will vary depending on whether your Outlet is located in an urban, suburban or rural setting. The specific description of your non-exclusive territory along with the corresponding map showing the clear boundaries of your territory, will then be placed in writing and incorporated into your franchise agreement. Except for catering services and delivery services that we may allow or require, you may only sell goods and services at retail to customers who are physically present at your Sunbi Kimbap Outlet. You must not solicit or accept orders from customers outside your Outlet or use other channels of distribution (such as the Internet, e-commerce, mail order, telemarketing, or other direct marketing) other than your Outlet without first obtaining our written consent. You are not granted any other option, right of first refusal or similar right to acquire additional franchises under your franchise agreement. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 5 years |
| Renewal Term | One additional term of 5 years |
| Renewal Fee | $15,000 |
| Renewal Conditions | Franchisor may extend or grant a new Franchise Agreement if you have been in substantial compliance with agreement. You must serve us a notice of your intent to exercise your right of renewal not less than 12 months nor more than 18 months before the expiration of the initial term. You may have to remodel the Outlet, at your expense. You must sign a Franchise Agreement in effect which may contain materially different terms and conditions than the agreement you signed originally. |
| Transfer Fee | Transfer Review Fee: $2,500; Transfer Fee: $15,000 |
| Transfer Conditions | For transfers which result in change in control or involve 20% interest in your entity: You give us at least 90 days’ prior written notice of any proposed transfer. All amounts due are paid in full. You are not, and have not been, in default under the Franchise Agreement or any other agreement with us, our affiliates or our approved suppliers, without timely curing such default. Transferee must meet our then-current requirements for new franchisees. All required documents, including a then-current form of the franchise agreement (at our option) and a transfer agreement containing a general release are executed. Transferee enters into a written assignment and personal guarantee. Transferee completes training. You pay us a Transfer Review Fee and the Transfer and Training Fee. Landlord must consent to transfer. We determine price will not impact operation. You must comply with our right of first refusal. Transferee and transferor comply with all of our requirements. For non-control transfers: You give us prior written notice of the transfer. You pay all sums owed. You are not in default. Transferee meets qualifications. Transferee signs assignment and guaranty. You and your guarantors and Owners sign a general release. You pay us a Transfer Review Fee. |
| Termination for Cause | We can terminate only if you commit any one of several listed violations. You have 24 hours to cure if: You refuse us permission to inspect or audit. A threat or danger to public health or safety results from your continued operation of the Outlet. Any dilution or adulteration of products at the Outlet, or any misrepresentation, substitution, or palming off from the Outlet operated under the Franchise Agreement. You fail to comply fully with all laws. You have 5 days to cure if: You (i) sell, barter, or exchange the Proprietary Products or other proprietary items at wholesale or retail, (ii) fail to purchase all required goods and supplies, including the Proprietary Products, from us, our affiliates, or designated or approved suppliers, or (iii) use unapproved products in the Franchised Business. You fail to secure an Accepted Location within the required time limits and procedures or fail to open on time. You fail to comply with in-term confidentiality and non-competition covenants. You have 10 days to cure if: You fail to pay any of your debts to us, our affiliates or others. You do not obtain restrictive covenants required under the Franchise Agreement. You have an uncured default in any other agreement, including a mortgage or lease for the Outlet. You default under your lease or lose possession of the Accepted Location. You have 30 days to cure if: You do not maintain the required financial records. You breach any other provision of your Franchise Agreement. Non-curable defaults include: Violating restrictions on use of Confidential Information, copying Manuals, conviction of felony/fraud, abandoning Outlet, repeated defaults, insolvency/bankruptcy, violating terrorism laws, lease expiration/termination, failure to meet opening deadline, uncured default in other agreements, public health/safety threat, misuse of Proprietary Marks. |
| Non-Compete Period | during the term of this Agreement and for two (2) years thereafter |
| Non-Compete Details | During the term of this Agreement, or any extension thereof, Franchisee and each Owner covenants that except as otherwise approved in writing by Franchisor, Franchisee and each Owner shall not, either directly or indirectly, for itself, or through, on behalf of, or in conjunction with any person, or legal Entity (i) divert or attempt to divert any present or prospective Sunbi Kimbap customer to any Competitive Business, by direct or indirect inducement or otherwise, or do or perform, directly or indirectly, any other act injurious or prejudicial to the goodwill associated with the Sunbi Kimbap Marks and the System, (ii) employ or seek to employ any person who is or has been within the preceding ninety (90) days employed by Franchisor or an affiliate of Franchisor as a supervisorial or managerial employee, or otherwise directly or indirectly induce the person to leave his or her employment, or (ii) own (either beneficially or of record), engage in or render services to, whether as an investor, partner, lender, director, officer, manager, employee, consultant, representative or agent, any Competitive Business. Except as Franchisor otherwise approves in writing, commencing upon the date of (i) an assignment, transfer or sale permitted under Article XX, (ii) the expiration this Agreement, (iii) the termination of this Agreement (regardless of the cause for termination), or (iv) a final court order (after all appeals have been taken) with respect to any of the foregoing events or with respect to enforcement of this Section 14.3, and continuing for an uninterrupted period of two (2) years thereafter, Franchisee and each Owner shall not: Engage, employ or compensate or seek to employ any person who is at that time engaged, operating or employed by or at any other Outlets, or to otherwise directly or indirectly induce such person to leave employment at any Outlet; Solicit business from customers of Franchisee’s former Outlet or contact any of Franchisor’s suppliers or vendors for any Competitive Business purpose; or Either directly or indirectly for himself or on the behalf of, or in conjunction with, any person, persons, partnership, association or corporation, own, maintain, engage in, participate in, or have any interest in the operation of any Competitive Business, or which distributes, produces, produces or sells the Products within the “Minimum Area of Competition.” The “Minimum Area of Competition” shall be deemed to be that area which is within a radius of ten (10) miles from the Franchised Outlet, or any other Outlet in operation on the effective date of termination or expiration, whether franchised or company-owned. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | If you are an individual, you must devote full time and attention to supervising all administrative and operational activities of your franchised business at the franchise location. You and your spouse must sign a personal guaranty. If a legal entity owns the franchise rights, like a corporation, partnership or limited liability company, the person who owns a controlling interest in the entity's equity or voting rights, or a general partner, must devote full time and attention to franchise activities at the franchise location. All individual owners of such legal entity and their spouses must sign a personal guaranty. If none of the owners owns a controlling interest in the entity’s equity or voting rights, Franchisee must designate one of Franchisee’s owners as Franchisee’s “Operating Principal,” primarily responsible for the Franchised Business, who must devote full time and attention to franchise activities at the franchise location. Your Operating Principal must have and maintain at least ten percent (10%) ownership of the Franchised Business and have decision-making authority about the Franchised Business. We must approve your Operating Principal, and you must designate a qualified replacement from among your owners if your Operating Principal can no longer fulfill his/her responsibilities under the Franchise Agreement. You must staff your Sunbi Kimbap Outlet with at least one (1) "Approved Manager." An “Approved Manager” is a full-time employee with management responsibilities who has successfully completed the manager training segment of the initial training program and any mandatory supplemental management classes. An Approved Manager may but is not required to hold equity interest in the Franchised Business. You (or the Operating Principal, or the general partner of a partnership) may be an Approved Manager, provided you devote full time and attention to your Franchise Business. You (if you are an individual) and your owners (if you are a legal entity) are not required to participate in the actual operation of the Outlet as long as there is an Approved Manager. However, we strongly recommend that you or your Operating Principal personally participate in the actual operation of the Outlet. We do not recommend an investment in an Outlet for investors interested in an absentee management business. Under the Franchise Agreement, you or an Approved Manager must be personally available at all times at the Outlet which must be open for a minimum of 10 hours a day, 7 days a week, unless otherwise approved by us in writing. Depending on the size, location, and performance of your Franchised Business, we may require you to hire additional Approved Manager(s) in our sole discretion. You must hire and train all your employees. You may also send your employees to our training programs. You must require all your employees, managers and supervisors sign a confidentiality agreement in which they promise to keep all of our proprietary information confidential and to follow our directions regarding its use. |
| Required Suppliers | Our parent YBF will be the only Designated Supplier for the Proprietary Products that you must purchase for your Outlet. You must purchase certain fixtures, furniture, and equipment, which are proprietary in nature and unique to the Outlet, trade secret and proprietary food products, and certain packaging supplies, paper goods and other product and service items for the preparation and service of Sunbi Kimbap products which bear any of the Marks from us, our affiliates and/or other specified exclusive sources designated by us. |
| Supply Restrictions | You may have to buy or lease items from the franchisor or a limited group of suppliers the franchisor designates. These items may be more expensive than similar items you could buy on your own. All other food products, supplies, furnishings, décor, signs and materials of your Outlet and services to your Outlet must meet our specifications, standards, and requirements. The suppliers could, at our option, be limited to our list of specified approved suppliers, in which you would have to buy such other items only from those sources, unless otherwise approved by us in writing in accordance with the alternative supplier procedures. |
| Franchisor Revenue from Suppliers | During the fiscal year ended December 31, 2024, no revenue, rebates or other material consideration was derived by us, our parent YBF or our affiliates from the required purchases or leases by our franchisees. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | We do not provide, directly or indirectly, any financing to you. We do not guarantee your notes, leases or other obligations. |
Sunbi Kimbap Franchise Earnings — Item 19
Sunbi Kimbap 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.
Sunbi Kimbap 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.
Sunbi Kimbap System Growth
Sunbi Kimbap 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 |
|---|---|---|---|
| 2022 | 0 | 0 | 0 |
| 2023 | 0 | 0 | 0 |
| 2024 | 0 | 0 | 0 |
Transfers: 0 | Closures: 0
State Registrations
Registered in 17 states: CA, HI, IL, IN, MD, MI, MN, NE, NY, ND, OR, RI, SD, TX, VA, WA, WI
Franchisor Financials (Item 21)
Audited by Kimjoo Jang, LLP for year ending December 31st.
Sunbi Kimbap Franchise — FAQ
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