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SUBJECT DOSSIER · FDD 2026

Yangguofu Franchise

Cost, fees, owner earnings, closure rate and litigation for a Yangguofu franchise — pulled from the franchisor's own public FDD (2026), not its sales material.

Quick Service Restaurants · disclosure-honesty grade · from public state filings
GRADE F · FAILS DISCLOSURE

Disclosure honesty

F
Transparency 1 / 5

Yangguofu discloses little or no owner-earnings data (Item 19) — the franchisor won't put real profit in writing.

Outlets23
Disclosed lawsuits0
Closure signals1 ceased
Investment
$346,600–$774,000
Total fees
13% of sales
Outlets
23
Closure signals
1 ceased, 0 terminated
Lawsuits
0
◢ FINDINGS
ITEM 19
No real earnings disclosure
The franchisor won't put owner profit in writing — you can't verify the pitch.
ITEM 20
1 outlets ceased operations
One outlet ceased operations in 2025 (Nevada). New system with only 23 total outlets.

What their own earnings claim actually says

Franchisor explicitly states no financial performance representations made; directs franchisees to contact management or FTC if misled.

What a Yangguofu franchise actually costs to run

FeeDisclosedWhere it comes from
Initial franchise fee$20,000Item 5 — paid up front, before you open
Royalty3% of gross salesItem 6 — charged on revenue, not profit
Advertising fund10% of gross salesItem 6 — brand marketing, spent at the franchisor's discretion
Total recurring fees13% of gross salesBefore rent, labor, food or debt service
Total initial investment$346,600 – $774,000Item 7 — franchisor's own low/high estimate

3% subsequent franchise fee on gross sales; up to 10% advertising; affiliate revenue from required purchases ~43% of franchisor total revenue.

Royalty and ad-fund percentages are charged on gross sales — an owner pays them whether or not the location is profitable.

Yangguofu system size and owner turnover

Total outlets23
Ceased operations1
Terminated by franchisor0
Transferred to new owners0
Closure rate4.3% of outlets

One outlet ceased operations in 2025 (Nevada). New system with only 23 total outlets.

From Item 20 of the FDD 2026. Terminations and ceased operations are the franchisor's own count of owners who stopped — the number the sales pitch leaves out.

Is Yangguofu worth it? — how it compares to 164 similar franchises

Ongoing fees13% of salessteeper than 99% of quick service restaurants franchises
Startup costfrom $346,600cheaper than most (median $481,500)
Disclosure honestyGrade Fless honest than most of the category
Closure rate4.3% of outletsworse than 68% of peers
Disclosed lawsuits0fewer than most

Benchmarked against every quick service restaurants franchise we've graded from public FDDs — the context the franchisor's pitch never gives you.

◤ CLASSIFIED · ITEM 19 RECONSTRUCTED

Owner take-home for a Yangguofu

The franchisor's framing: Franchisor explicitly states no financial performance representations made; directs franch… We reconstruct what an owner actually keeps, from their own FDD.

LOW
MEDIAN
HIGH

See a full sample report → · 30-day guarantee

Yangguofu franchise — frequently asked

How much does a Yangguofu franchise cost?
The FDD lists a total initial investment of about $346,600–$774,000, including a $20,000 initial franchise fee.
How much do Yangguofu franchise owners make?
Yangguofu discloses little or no earnings data (Item 19) — meaning the franchisor won't put real owner profit in writing. That's a red flag worth questioning.
What are the Yangguofu franchise fees?
Yangguofu's FDD discloses a $20,000 initial franchise fee, a 3% royalty on gross sales, a 10% advertising-fund contribution, for roughly 13% of gross sales in recurring fees before rent, labor, or debt service. 3% subsequent franchise fee on gross sales; up to 10% advertising; affiliate revenue from required purchases ~43% of franchisor total revenue.
What is the Yangguofu franchise profit margin?
Yangguofu discloses no Item 19 earnings representation, so no profit margin can be derived from the FDD at all. Any margin figure quoted elsewhere is an estimate, not a disclosure.
What is the Yangguofu franchise failure rate?
One outlet ceased operations in 2025 (Nevada). New system with only 23 total outlets.
How many Yangguofu locations are there?
Yangguofu's FDD reports 23 total outlets, with 1 that ceased operations in the most recent reporting year and 0 transferred to new owners. Item 20 is where system health shows up before the marketing does.
Does Yangguofu have complaints or lawsuits?
Yangguofu discloses no material litigation in Item 3 of the filing we reviewed. That's a positive signal, though it covers only what the franchisor is required to report.
Is a Yangguofu franchise worth it?
It depends on the numbers, not the pitch. Yangguofu scores F on disclosure honesty, carries about 13% of sales in ongoing fees. Get the real owner take-home before you sign.

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Source: WI DFI Franchise Registration (2026). FranchiseValidate is independent and not affiliated with Yangguofu or its franchisor. Figures are extracted from the franchisor's own public disclosure document; verify against the current FDD before any decision.