Takorean
TaKorean offers fast casual Korean-inspired dining with tacos, bowls, and slaws made from scratch using fresh ingredients. Known for bold flavors in a casual restaurant setting, TaKorean operates in the fast casual food service industry.
Takorean franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment for a TaKorean Full Restaurant ranges from $337,000 to $781,500, while for a TaKorean Food Court/Hall outlet, it ranges from $230,500 to $561,000. This includes an affiliate fee of $40,000 that must be paid to the franchisor [p.1].
What is the initial franchise fee?
The initial franchise fee is $40,000 and it is fully earned and due in lump sum upon signing the Franchise Agreement; this payment is not refundable under any circumstances. [p.9, p.62]
What are the ongoing royalty and advertising fees?
Ongoing royalty and marketing fees are generally based on a franchisee's gross sales, billed monthly and recognized as revenue when earned [p.157]. There were no marketing fees billed or earned in 2022 [p.157].
How long is the initial franchise agreement, and can I renew it?
The duration of the initial franchise agreement isn't specified in the excerpts. Additionally, renewal terms are not detailed; however, the franchisor may offer to renew the agreement on the same terms or extend it on a month-to-month basis if certain conditions apply [p.61].
Can I sell or transfer my franchise, and what does that require?
Yes, you can sell or transfer your franchise. However, it requires notifying the franchisor in writing of any bona fide offer to purchase your interest promptly and providing them with necessary information and documentation as required [p.89]. Additionally, there are different fee structures depending on who you transfer to: 70% of the initial franchise fee for general transfers, 50% if transferred to another good-standing Franchisee of the same company, or a flat $1,500 fee for adding a business entity without changing management control [p.88].
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the agreement if there are grounds for default or termination stated in the franchise agreement, but these must constitute 'reasonable cause' as defined by the Virginia Retail Franchising Act or Virginia law. [p.176]
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 [p.34]. You may face competition from other franchisees, outlets owned by the company, or other channels of distribution within your defined territory [p.35]. Your territory is non-exclusive and will be determined based on specific criteria such as population size and demographic characteristics [p.34].
What training and ongoing support does the franchisor provide?
The franchisor provides an Initial Management Training Program consisting of approximately 5 hours of classroom training and 51 hours of on-the-job training. This must be completed to their satisfaction before opening the franchise. Additionally, there is seven days of training assistance at your location prior to and during the grand opening, totaling up to 6 hours of classroom training and 50 hours of on-the-job training [p.32]. The training materials also include operations manuals, digital presentations, tutorials, web-based instruction, marketing, and promotional materials [p.33]. This training is generally performed over a period not exceeding one month [p.157].
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 may provide financial performance information about its outlets, but only under specific conditions [p.46]. If you are considering purchasing an existing outlet, the franchisor might provide actual records of that outlet's performance upon request [p.50]. However, no representations about future financial performance are made to prospective franchisees, and they should verify any such information reported elsewhere [p.50, p.167].
What am I restricted to selling, and where must I buy supplies?
You are restricted to offering and selling all products and services that are part of the System, and any new items incorporated into the System by the franchisor [p.37]. You must purchase or lease certain items from the franchisor or a limited group of suppliers designated by them, which may be more expensive than other options [p.3, p.22].