Cupbop
Cupbop franchises offer Korean-style barbeque rice cups, salads, chicken wings, and potstickers in a unique restaurant format. Known for its innovative food concept, Cupbop operates in the quick-service restaurant sector.
About Cupbop
Cupbop is an American fast casual restaurant chain located in the United States and Indonesia. They serve street-food style Korean barbecue, otherwise known as cup-bap.
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Cupbop franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operation of a Cupbop® restaurant franchise ranges from $296,400 to $664,400. This includes an initial fee that must be paid to the franchisor or its affiliates in the amount of $41,250 to $42,000 [p.1].
What is the initial franchise fee?
The initial franchise fee is $40,000 for a new Cupbop® Restaurant. For your second or additional Restaurant, the initial fee is reduced to $30,000 [p.18]. This fee is fully earned upon payment and is not refundable [p.11, p.77].
What are the ongoing royalty and advertising fees?
The franchisee pays a monthly royalty fee equal to 6% of their monthly gross sales, due by the 10th day of each month for the previous month. This royalty is considered variable consideration but is recognized on a monthly basis based on sales reports from the franchisees [p.78]. There are no specific details provided about advertising fees in these excerpts [p.65 - p.78].
How long is the initial franchise agreement, and can I renew it?
This isn't specified in the excerpts.
Can I sell or transfer my franchise, and what does that require?
According to the FDD, a franchisor can generally permit the transfer of ownership of a franchise, except for good cause. Good cause includes but is not limited to specific reasons determined by the franchisor [p.5]. Additionally, if you wish to transfer or sell your franchise, you must do so in accordance with the transfer provisions outlined in the Franchise Agreement [p.134].
On what grounds can the franchisor terminate the agreement?
The franchisor may terminate the franchise agreement if there is good cause, which includes the franchisee's failure to comply with any lawful provision of the franchise agreement and not curing such failure within a reasonable time frame, typically no more than 30 days [p.5]. This isn't specified in the excerpts for other grounds on which the franchisor can terminate the agreement.
What financial requirements — net worth and liquid capital — do I need to qualify?
This isn't specified in the excerpts. The provided FDD does not detail specific financial requirements such as net worth or liquid capital for qualifying as a franchisee.
Do I get an exclusive or protected territory?
Yes, you are granted a protected territory around your authorized location. However, this does not give you exclusive rights within that territory; other Cupbop restaurants, whether owned by Cupbop or third parties, can still operate and sell products to customers in your protected area, including through online channels [p.32, p.83].
What training and ongoing support does the franchisor provide?
The franchisor provides initial pre-opening training and other services related to setting up the franchise location [p.65, p.78]. These pre-opening fees are recognized upon the franchise opening and completion of the related training, with approximately 50% of the initial franchise fee being recognized at that time [p.65, p.78]. Ongoing support is provided over the life of the contract, with the remaining portion of the upfront franchise fees recognized as revenue over an expected period of 10 years [p.65, p.78].
How many franchised outlets are there, and how many have closed or been terminated?
According to the FDD excerpts, as of December 31, 2024, there were 24 franchised restaurants operating for at least one full calendar year. Three franchised locations had closed before December 31, 2024 [p.43].
Does the franchisor share any financial performance or earnings information?
The franchisor may provide actual records of an existing outlet if a franchisee is purchasing one, but generally does not make financial performance representations about future or past performance of outlets [p.44]. However, under certain conditions and with reasonable basis, the franchisor can provide financial performance information that differs from what is included in Item 19 [p.42].
What am I restricted to selling, and where must I buy supplies?
You are generally required to buy certain products and services from the franchisor or designated affiliates for use in your restaurant [p.15]. Specifically, you must purchase opening inventory and supplies from Cupbop Co., with costs ranging from $1,250 to $2,000 [p.11]. This isn't specified in the excerpts regarding what you are restricted to selling.