Fee (1), (2) Amount Due Date Remarks Royalty Fee 5% of monthly Collected on the Based on monthly Gross Revenues (3). See Gross Revenues 15th day each month Item 11 for additional information. (3) Contribution to Currently 1% of Collected on the Based on monthly Gross Revenues (3). See th the Company’s monthly Gross 15 of each month. Item 11 for additional information. Advertising Revenues Fund Local Market $600 or 1% of Collected on the Based on monthly Gross Revenues (3). See Advertising your monthly 15th of each month. Item 11 for additional information. Gross Revenues whichever is Franchisee is to spend on online advertisement greater Yelp, and print advertisement in local paper, periodical magazine. Interest 18% per annum From the date Charged on any late payments of Royalty Fees, (California: payments are due, contributions to the Company’s advertising Maximum 10% and continues until fund, amounts due for product purchases, or per annum) outstanding balance any other amounts due our affiliates or us. and accrued interest are paid in full Late Charge $50 per day As incurred Charged on any late payments of Royalty Fees, contributions to the Company’s advertising fund, amounts due for product purchases, or any other amounts due our affiliates or us. Insufficient $100 per violation As incurred Charged on any payment by check that is not Fund honored by the bank upon which it is drawn Audit Expenses Cost of audit and On demand If you fail to timely input financial data or fail inspection, plus to submit required reports, payable in the event any reasonable of an understatement of gross sales of five
From the filings
CrunCheese Korean Hot Dog
Quick service restaurantSoftware purchasing at CrunCheese Korean Hot Dog is controlled at the headquarters level by a small leadership team that includes Director CHOONG KYUN “MIKE” KIM, Director of Franchise Sale/Real Estate LEON WU, and Development Director BOBBY SABAS. The system currently mandates the CrunCheese Mobile Application and operates 16 total units—12 franchised and 4 company-owned—giving vendors a compact but direct addressable market. With no parent company on file and a 10-year initial term, the franchise presents a focused opportunity for vendors who can align with HQ-driven technology decisions.
For software vendors selling into US franchise brands.
Live signals
Ordinary royalty terms
5% component; full terms unconfirmed
Complete royalty terms are not confirmed for the selected filing.
Recorded percentage components
These are recorded percentage components. Each has its own base and conditions; the chart does not state the total payment or confirm ad-fund completeness.
1recorded components (FY2024)
15% reference
Mandated & recommended tech
The systems vendors compete with
Systems named in Item 11 of this filing. None is recorded as mandated here, which is not the same as the filing mandating nothing. Read Item 11 before treating the category as open.
Franchisor behaviours
What the franchisor requires
26 requirements the franchisor states in this filing, each in its own words; 2 explicit no's; 6 questions the text does not settle, which is not a no.
Accounting
Must the franchisee use an accounting or bookkeeping system designated or approved by the franchisor?
YesItem 11
You must use our approved POS/Computer System or a similar system which meets our minimum standards and specifications and which we have approved in writing.
Does the franchisor have direct or independent electronic access to the franchisee's financial, sales or customer records?
YesItem 11
CrunCheese will have independent access to the information at the times and in the manner that CrunCheese specifies from time to time.
Must the franchisee submit periodic financial statements (monthly, quarterly or annual) to the franchisor?
YesFranchise agreement
by the Page 41 of 72 MHDGA, LLC 2024 FDD - Exhibit B Franchise Agreement thirtieth (30th) day of each month, a profit and loss statement for the preceding calendar month, and a year-to-date profit and loss statement and balance sheet; (3) within ninety (90) days after the end of the fiscal year, a fiscal year-end…
How the franchisor buys
Is the franchisor or an affiliate itself a supplier of required products, services or systems?
YesFranchise agreement
We and/or our affiliates may be an approved supplier of certain products or services to be purchased by you for use and/or sale by the Franchise.
Does the franchisor reserve the right to change designated suppliers or systems at any time?
YesFranchise agreement
Page 17 of 72 MHDGA, LLC 2024 FDD - Exhibit B Franchise Agreement We will continually be reviewing and analyzing developments in the restaurant industries, as well as developments in fields related to small-business management, and based upon our evaluation of this information, may make changes in the System…
How much revenue did the franchisor and its affiliates earn from franchisee purchases in the last fiscal year?
0Item 8
In fiscal year 2023, we did not receive any revenue, rebate, discounts or other material consideration from any suppliers based on your required purchases of products, supplies or equipment.
Item 8 gives this proportion in one of two shapes: separate percentages for establishing the business and for operating it, or one figure covering "establishing and operating" together. Where they are separate, answer with the operating percentage; where the passage gives only the combined figure, answer with that. What percentage of the franchisee's purchases must come from designated or approved suppliers?
80Item 8
The cost of these items, purchased in accordance with CrunCheese's specifications, will represent approximately 80% to 100% of your total purchases for the establishment and operation of your Location.
Does the franchisor charge a fee to evaluate a proposed supplier?
YesItem 8
We may charge you a supplier evaluation fee (not to exceed the reasonable cost of the inspection and the actual cost of the test) to make the evaluation.
Can a franchisee propose a new supplier for the franchisor's approval?
YesItem 8
If you would like to purchase any items from any unapproved supplier, then you must submit to us a written request for approval of the proposed supplier.
Communications
Does the franchisor own or control the business telephone numbers, or take them over when the agreement ends?
YesItem 17
Includes payment of money owed to us, return termination/non-renewal Manual, cancellation of assumed names and transfer of phone numbers, cease using Proprietary Marks, cease operating Franchised Business, no confusion with Proprietary Marks, our option to purchase your inventory and equipment, your modification of…
Franchise management
Must the franchisee participate in a customer-satisfaction or net-promoter survey program?
YesFranchise agreement
You agree to present to your customers any evaluation forms we periodically prescribe, and agree to participate in, and/or request that your customers participate in, any surveys performed by or on our behalf.
Does the franchisor conduct periodic inspections, audits or evaluations of the franchised business?
YesItem 11
As we deem advisable, conduct inspections and/or audits of your Location, including evaluations of its training methods, techniques, and equipment; its staff; and the services rendered to its customers (Franchise Agreement – Section 13.1).
Can the franchisor change the operations manual and brand standards unilaterally?
YesItem 14
You must operate your Location franchise strictly in accordance with the Manual, as it may be revised by the Company from time to time.
Must the franchisor approve the franchisee's site or location before opening?
YesItem 11
Before you open your Location franchise for business, Franchisor or its designee will review and approve or disapprove your proposed Location site.
Marketing
Is the franchisee prohibited from operating its own website or social media accounts, or required to use pages the franchisor provides?
YesItem 11
Except as we approve in advance in writing, you may not establish or maintain a separate Website, or otherwise maintain a presence or advertise on the Internet or any other public computer network in connection with your Restaurant.
Is a minimum grand opening advertising spend required?
YesFranchise agreement
During a sixty (60) day period that begins thirty (30) days prior to the opening of your Franchise, and ending thirty (30) days after the opening of your Franchise (the “Grand Opening Period”), you will be required to expend between Five Thousand Dollars ($5,000.00) to Ten Thousand Dollars ($10,000.00) in verifiable…
Is the franchisee required to spend a minimum amount on local advertising or marketing, as a percentage of sales or a fixed amount?
YesItem 11
You are required to contribute to the advertising of your Location in your local market area, in the amount of $600 per month or one percent (1%) of your monthly Gross Revenue, whichever is greater (“Minimum Local Advertising Requirement”).
Must the franchisee participate in a customer loyalty or rewards program?
YesFranchise agreement
You agree to participate in all promotion campaigns, advertising, loyalty programs, and other programs we periodically establish or approve, whether on a national, regional or local basis.
Must the franchisee participate in a regional advertising cooperative when one exists?
YesItem 11
If an Ad Co-Op has been established for a geographic area where your Location is located when the Franchise Agreement is signed, or if any Ad Co-Op is established during the term of the Franchise Agreement, you must become a member of the Ad Co-Op.
Operations
Must the franchisee buy products from a designated distributor?
YesItem 8
You are required to purchase from approved suppliers.
Must equipment be purchased from designated or approved suppliers?
YesItem 8
POS/Computer System), marketing and advertising materials and all paper and other goods bearing the CrunCheese or other proprietary designation purchased for your Location must conform to CrunCheese's specifications and must be purchased from approved suppliers, if these suppliers are so designated.
Payments
Are royalties and other fees collected by automatic bank debit (ACH or electronic funds transfer) from the franchisee's account?
YesItem 6
After you sign the document we require to debit your business checking account automatically for the amounts due, we will debit your bank account for the Royalty Fee, Advertising Fee, and other amounts you owe us.
Must the franchisee participate in a gift card program?
YesFranchise agreement
To participate in CrunCheese's promotional programs for all restaurants and concessions operating under the System, as prescribed by CrunCheese, in the Manuals or otherwise in writing, that may be updated from time to time, including, but not limited to, selling and offering gift cards which may be used at any…
Point of sale
Must the franchisee use a specific point-of-sale system designated or approved by the franchisor?
YesItem 11
Under the Franchise Agreement, you must purchase, install and use the computer hardware and software, point-of-sale and cash register equipment as CrunCheese requires
Does the franchisor have independent access to the data in the franchisee's POS or computer system?
YesItem 11
CrunCheese will have independent access to the information at the times and in the manner that CrunCheese specifies from time to time.
Training
Can the franchisor charge the franchisee for additional, refresher or remedial training?
YesItem 11
CrunCheese reserves the right to require ongoing training as needed.
The filing answers no to 2 questions
- Is there a franchisee advisory council, association or committee?Item 11
- Does the franchisor or an affiliate receive rebates, commissions or other revenue from designated or approved suppliers?Item 8
The vendor opportunity at CrunCheese Korean Hot Dog
CrunCheese Korean Hot Dog is a quick-service restaurant concept with headquarters in Nevada. According to its 2024 Franchise Disclosure Document, the system comprises 16 total units—12 franchised and 4 company-owned. For software vendors, this is a small but concentrated target: every location operates under a single HQ that makes technology decisions, and there is no parent company or multi-brand complexity on file. The brand’s average unit volume is not disclosed in the most recent FDD, and year-over-year unit growth is not reported, so vendors should approach with a realistic view of the current footprint rather than projected expansion.
These numbers matter because they shape franchisee profitability and the timeline for technology adoption. A 10-year term with specific renewal conditions (discussed below) means that major software shifts are most likely to occur at renewal or when the franchisor updates its mandated systems.
Who controls software purchasing
Software purchasing authority sits squarely at the headquarters level. The 2024 FDD lists three executives in Item 1: CHOONG KYUN “MIKE” KIM (Director), LEON WU (Director of Franchise Sale/Real Estate), and BOBBY SABAS (Development Director). In a system this small, these individuals are the de facto technology buying center. There is no separate CIO or CTO disclosed, so vendors should expect that operational and sales leadership evaluate software directly. The operator footprint in our corpus shows no mapped multi-unit operators, which reinforces the HQ-driven dynamic: franchisees are unlikely to have independent procurement power for core systems.
Mandated and current tech stack
The only technology system explicitly mandated in the 2024 FDD is the CrunCheese Mobile Application. No other point-of-sale, back-office, or operational software is listed as required or recommended. This narrow mandate creates both a risk and an opportunity for vendors. On one hand, the brand has not locked itself into a broad suite of prescribed tools, leaving room for new solutions. On the other hand, the absence of disclosed systems means vendors must do their own discovery to understand what franchisees are actually using day to day. The mobile application mandate signals that customer-facing digital experience is a priority, but the rest of the tech stack remains undefined in the public filing.
Procurement, renewals, and timing
The 2024 FDD does not include an Item 8 extract, so the franchisor’s procurement model—whether designated supplier, approved supplier, or open—is not publicly known. Vendors should be prepared for a range of scenarios, from a tightly controlled supply chain to a more flexible approach. The renewal terms in Item 17 offer a clearer timing signal. To renew, a franchisee must give notice between 12 and 24 months before the 10-year term expires, sign the then-current Franchise Agreement (which may include materially different terms), execute a general release of claims, pay a renewal fee, cure any defaults, remodel, and pay all amounts owed. These conditions mean that technology evaluations are most likely to surface during the renewal window, when franchisees are already required to update their operations to current standards.
How to read the CrunCheese Korean Hot Dog FDD
The full 2024 Franchise Disclosure Document is embedded below. It contains the complete Item 1 executive roster, Item 6 fees, Item 11 tech obligations, Item 17 renewal conditions, and all other standard sections. For software vendors, the most actionable sections are Item 11 (what technology the franchisor mandates or recommends) and Item 1 (who runs the company). Because this is a small system with no parent company and a single mandated application, the FDD is relatively straightforward to parse. Use the embedded viewer to confirm the details cited here and to identify any additional obligations that may affect your product’s fit. For a ranked target list of franchise systems matched to your software category, FranCloud can help.
Ordinary royalty terms
Complete royalty terms are not confirmed.
Questions vendors ask
CrunCheese Korean Hot Dog, answered from the filing
Read the filing itself
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Operator footprint
Who runs the locations
1 operators run 1 mapped locations. 0 of them are multi-unit. Aggregate counts from the filing; no names.
Operators by units owned
Related Quick service restaurant brands
Primary franchise filings · updated June 2026. Read the original filing for definitions, conditions, and qualifications.