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.
Disclosure honesty
Yangguofu discloses little or no owner-earnings data (Item 19) — the franchisor won't put real profit in writing.
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
| Fee | Disclosed | Where it comes from |
|---|---|---|
| Initial franchise fee | $20,000 | Item 5 — paid up front, before you open |
| Royalty | 3% of gross sales | Item 6 — charged on revenue, not profit |
| Advertising fund | 10% of gross sales | Item 6 — brand marketing, spent at the franchisor's discretion |
| Total recurring fees | 13% of gross sales | Before rent, labor, food or debt service |
| Total initial investment | $346,600 – $774,000 | Item 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 outlets | 23 |
| Ceased operations | 1 |
| Terminated by franchisor | 0 |
| Transferred to new owners | 0 |
| Closure rate | 4.3% 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 fees | 13% of sales | steeper than 99% of quick service restaurants franchises |
| Startup cost | from $346,600 | cheaper than most (median $481,500) |
| Disclosure honesty | Grade F | less honest than most of the category |
| Closure rate | 4.3% of outlets | worse than 68% of peers |
| Disclosed lawsuits | 0 | fewer than most |
Benchmarked against every quick service restaurants franchise we've graded from public FDDs — the context the franchisor's pitch never gives you.
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.
- Reconstructed owner P&L — net take-home after royalty, ad fund, rent, labor & debt
- Break-even timeline + cash-on-cash ROI
- Full fee stack + required-purchase markups
- Decoded real failure / closure rate
- How it ranks vs comparable franchises
- Validation-call playbook — the exact questions to ask
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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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Compare Yangguofu to similar franchises
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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.