Dae Gee Korean
Dae Gee Korean offers state-of-the-art Korean barbecue restaurants where customers cook their own meats and vegetables. Known for its proprietary marinades and sauces, this franchise operates in the quick-service restaurant sector.
Dae Gee Korean franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operation of a single Dae Gee franchised business is between $479,875 and $948,625. This includes between $77,625 and $119,625 that must be paid to the franchisor or its affiliate(s). [p.1]
What is the initial franchise fee?
The initial franchise fee varies based on whether a single franchise or multiple franchises are being established. For a single Franchised Business, an Initial Franchise Fee must be paid in one lump sum at the time of signing the Franchise Agreement [p.78]. Under an Area Development Agreement, no Initial Franchise Fee is required to open additional Franchised Businesses, though other fees may apply [p.78]. This isn't specified in the excerpts for situations where fee deferral conditions exist due to financial considerations or location-specific regulations [p.158, p.159].
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is 5.5% of Gross Sales [p.78], and there is also a monthly technology fee of $125 [p.78]. Additionally, you must pay Brand Fund Contributions at 1% of Gross Sales [p.79] and a Local Advertising Requirement of $2,000 per month [p.51].
How long is the initial franchise agreement, and can I renew it?
The initial term of the franchise agreement is 10 years [p.75]. You may enter into a maximum of one successor franchise agreement upon meeting the conditions for renewal specified in the FDD, which will also be for a 10-year term [p.75].
Can I sell or transfer my franchise, and what does that require?
A transfer of ownership requires approval from the franchisor, except for transfers to existing Dae Gee franchisees, which are permitted without good cause. For other transfers, good cause is required [p.6]. Additionally, you must provide the transferee with the current form of franchise disclosure document and have them sign a new franchise agreement [p.95]. There is also a transfer fee of $10,000 for transfers to existing Dae Gee franchisees or $25,000 for other transfers, which includes a non-refundable deposit [p.95].
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the agreement on any grounds available by law [p.167]. However, termination without reasonable cause is unlawful under Virginia Retail Franchising Act Section 13.1-564, and provisions for termination must include good cause such as failure to comply with lawful provisions of the franchise agreement after being given notice and a reasonable opportunity to cure [p.6].
What financial requirements — net worth and liquid capital — do I need to qualify?
This isn't specified in the excerpts.
Do I get an exclusive or protected territory?
Based on the excerpts provided, you do not receive an exclusive territory [p.40, p.157, p.38]. However, you are granted a protected Territory under the Franchise Agreement for each additional franchise under the Area Development Agreement [p.40], and this Territory is typically a three-mile radius around your Franchised Premises [p.38]. This protection does not extend to metropolitan areas or non-traditional locations as defined in the FDD [p.38].
What training and ongoing support does the franchisor provide?
The franchisor provides initial training at no cost for up to three people, which includes training on the system and brand standards [p.35]. They also send one or more trainers for approximately three days prior to opening to provide additional training and support [p.37]. Ongoing support includes providing limited training on the System and brand standards to key employees, but you are responsible for hiring, training, and supervising your own employees and independent contractors in day-to-day operations [p.30]. The franchisor may offer refresher courses and additional training or assistance at their discretion, with potential fees applicable [p.31].
How many franchised outlets are there, and how many have closed or been terminated?
As of December 31, 2023, there were two franchised Dae Gee Businesses ('Franchised Locations'). This isn't specified in the excerpts regarding any closures or terminations.
Does the franchisor share any financial performance or earnings information?
Yes, the franchisor can disclose financial performance information if there is a reasonable basis for it [p.49]. However, they do not make any financial performance representations other than what is included in Item 19 of the FDD, and their employees or representatives are not authorized to make such representations either orally or in writing [p.51]. If purchasing an existing outlet, you may receive actual records of that outlet's performance [p.51].
What am I restricted to selling, and where must I buy supplies?
You are required to sell only those products and services authorized by the franchisor, which may vary based on operating season and geographic location [p.44]. You must purchase or lease all specified items from suppliers designated or approved by the franchisor, including certain initial inventory from the franchisor's affiliates as outlined in the Brand Standards Manual [p.79].