KongDog
KongDog offers quick serve restaurants featuring specialty corndogs, egg dishes, bubble tea, and more. Known for its unique menu items, KongDog operates in the fast-casual dining sector.
KongDog franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operating a KongDog franchise ranges from $162,750 to $660,500. This range includes the Initial Franchise Fee and other required payments but excludes additional costs such as local grand opening advertising, incidental training expenses, and potential additional cash needed during the first three to six months of operation [p.1, p.16, p.60].
What is the initial franchise fee?
The initial franchise fee is Fifty Thousand Dollars ($50,000.00), which is fully earned by the franchisor at the time the franchise agreement is signed and is not refundable under any circumstances. This can be found on pages [p.8] and [p.43].
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is 6% of Gross Revenue from the operation of the Franchised Business [p.43]. Additionally, you must spend at least 2% of your monthly Gross Revenue on Local Advertising in the Territory [p.59], with the potential for this percentage to be increased by the franchisor in its sole discretion. [p.59]
How long is the initial franchise agreement, and can I renew it?
The term length of the initial franchise agreement is not specified in the excerpts. However, according to [p.41], if the term expires, Franchisee has the right to enter into a successor agreement for one additional term equal to ten years, subject to certain conditions and payment of a Renewal Fee.
Can I sell or transfer my franchise, and what does that require?
According to the FDD, if you wish to transfer all or part of your interest in the Franchised Business or this Agreement, or if a Principal wishes to transfer any ownership interest in Franchisee, you must promptly notify the Franchisor in writing of each such offer and provide the required information and documentation as requested by the Franchisor [p.68].
On what grounds can the franchisor terminate the agreement?
According to the FDD excerpts, the franchisor may terminate the agreement on any grounds available by law [p.130]. However, under Virginia Retail Franchising Act and Virginia laws, terminating a franchise without reasonable cause is unlawful [p.131].
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?
No, you do not receive an exclusive territory. You may face competition from other franchisees, outlets owned by the company, or other channels of distribution or competitive brands controlled by the company [p.25]. However, your territory is defined and protected to some extent; it will be a one-mile radius or cover 50,000 people, whichever is less, and you are required to operate within this designated area [p.25, p.40].
What training and ongoing support does the franchisor provide?
The franchisor provides initial training that includes an operations manual, digital presentations, web-based instruction, and hands-on training. Additionally, upon reasonable request or as deemed appropriate by the franchisor, they offer on-site remedial training and assistance with trained representatives at the franchisee's location [p.25, p.46]. This ongoing support is part of the initial franchise fee for up to 2 franchisee partners and 1 general manager, but travel and personal expenses are not included in this cost [p.25].
How many franchised outlets are there, and how many have closed or been terminated?
This isn't specified in the excerpts.
Does the franchisor share any financial performance or earnings information?
The franchisor is permitted to provide actual records of existing outlets if requested, but generally does not make representations about future financial performance or past financial performance of company-owned or franchised outlets. Any financial performance information provided must have a reasonable basis and be included in the disclosure document [p.32].
What am I restricted to selling, and where must I buy supplies?
You are required to sell only products and services that have been approved by the franchisor in the Manual and any updates. There are no limits on the franchisor's ability to make changes to these requirements, including related to staffing, hours of operation, or participation in specific programs. For supplies, you must purchase all equipment, fixtures, furnishings, ingredients, supplies, and services from designated suppliers or according to the franchisor’s specifications [p.28, p.16].