From the filings
Software purchasing at Korean Red Ginseng is controlled at the headquarters level by executives including Sales & Business Innovation Director Sang Min Oh. The franchise currently mandates SkyMember, Inc. (dba SkySoft) for its technology platform. With 35 total units and a 3-year initial term, the addressable market for vendors is compact but concentrated.
For software vendors selling into US franchise brands.
Live signals
Ongoing fee load
The recurring percentage of gross sales named in this filing, before rent, labour or any technology fee.
6%of gross sales (FY2026)
15% reference
Franchisor behaviours
22 requirements the franchisor states in this filing, each in its own words; 5 explicit no's; 7 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 obtain and maintain at your own expense accounting, sales, reporting and records retention systems conforming to the requirements set by us.
Does the franchisor have direct or independent electronic access to the franchisee's financial, sales or customer records?
YesItem 11
We will have independent access to information generated by you and stored in the POS System and related computer system.
Must the franchisee submit periodic financial statements (monthly, quarterly or annual) to the franchisor?
YesFranchise agreement
Within sixty (60) days after the close of each twelve (12) month period, an 17 annual profit and loss statement for the Store for such year and a balance sheet for the Store as of the end of such year, reviewed by an independent certified public accountant.
How the franchisor buys
Is the franchisor or an affiliate itself a supplier of required products, services or systems?
YesItem 8
We serve as the sole supplier for purchases of Products sold to our franchisees.
Does the franchisor reserve the right to change designated suppliers or systems at any time?
YesFranchise agreement
Franchisee’s obligation under this Section shall be satisfied so long as Franchisee purchases the stated products from sources of supply approved by Franchisor, subject to the same meeting the strict specifications of Franchisor which may be changed, modified or updated from time to time.
How much revenue did the franchisor and its affiliates earn from franchisee purchases in the last fiscal year?
8428095Item 8
In the year ending 2025, our total revenue from the sale of such required purchases was $8,428,095, which makes up 31.51% from our total revenue for 2025.
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?
50Item 8
You can expect items purchased or leased in accordance with our specifications will represent approximately 90% to 100% of total purchases you will make to begin operations of the business and approximately 50% to 90% of the ongoing costs to operate the business.
Does the franchisor charge a fee to evaluate a proposed supplier?
YesItem 8
We may charge you or the supplier a reasonable fee for the evaluation (see Item 6) and will decide within a reasonable time, but no more than 30 days.
Can a franchisee propose a new supplier for the franchisor's approval?
YesItem 8
If you want to use any item or service that we have not yet evaluated or to buy or lease from a supplier that we have not yet approved or designated, you first must send us sufficient information, specifications, and samples so that we can determine whether the item or service complies with System Standards or the…
Communications
Does the franchisor own or control the business telephone numbers, or take them over when the agreement ends?
YesFranchise agreement
Franchisee acknowledges and agrees that Franchisor will own all rights to and interest in each telephone number and telephone directory listing used by Franchisee that is associated in any manner with Franchisee’s Store and/or with any Mark (“Telephone Listing”).
Data and IT
Must the franchisee comply with PCI, data-security or cybersecurity standards set by the franchisor?
YesItem 1
You must ensure that your POS or your credit card processing terminals (whichever are responsible for processing credit card transactions) are in compliance with the most current Payment Card Industry (PCI) standards.
Franchise management
Does the franchisor conduct periodic inspections, audits or evaluations of the franchised business?
YesItem 11
We will inspect and observe the operations of your JKJ Store from time to time to determine whether you and the Store are complying with the Franchise Agreement and all System Standards.
Can the franchisor change the operations manual and brand standards unilaterally?
YesItem 11
We will update periodically the Operations Manual, as needed, to incorporate new developments and changes in the System, and will provide you a copy of all updates.
Must the franchisor approve the franchisee's site or location before opening?
YesItem 11
We must approve any site selected, but our consent will not be unreasonably withheld.
Marketing
Is the franchisee prohibited from operating its own website or social media accounts, or required to use pages the franchisor provides?
YesFranchise agreement
Franchisee shall not maintain a World Wide Website or otherwise maintain a presence or advertise on the Internet or any other public computer network in connection with the Store without Franchisor’s prior written approval, which Franchisor may withhold for any reason or for no reason.
Is a minimum grand opening advertising spend required?
YesItem 7
You must spend this amount on your JKJ Store, including newspaper, direct mail advertising, and promotional items and food, such as brochures and promotional flyers.
Operations
Must the franchisee buy products from a designated distributor?
YesItem 8
We serve as the sole supplier for purchases of Products sold to our franchisees.
Payments
Are royalties and other fees collected by automatic bank debit (ACH or electronic funds transfer) from the franchisee's account?
YesFranchise agreement
Franchisee shall remit Royalty Fees, Marketing Fees, and/or any other monies owed to Franchisor under this Agreement via electronic funds transfer.
People
Does the franchisor require minimum staffing levels or specific roles?
YesItem 15
You must staff your JKJ Store with at least 1 "Approved Manager" who has management responsibilities and who has successfully completed the initial training program.
Point of sale
Must the franchisee use a specific point-of-sale system designated or approved by the franchisor?
YesItem 11
We have presently approved SkyMember, Inc. dba SkySoft as the supplier for the POS system, and they are located at 1320 East Olympic Blvd., Suite 200, Los Angeles, CA 90021, and they can be contacted at 213-372-5938.
Does the franchisor have independent access to the data in the franchisee's POS or computer system?
YesItem 11
We will have independent access to information generated by you and stored in the POS System and related computer system.
Training
Can the franchisor charge the franchisee for additional, refresher or remedial training?
YesItem 11
We may charge a reasonable fee for any training program, conference, convention or other events.
Korean Red Ginseng operates a small, 35-unit retail chain headquartered in California. The system is almost entirely franchised, with 34 franchised locations and a single company-owned unit. For software vendors, the total addressable market is exactly 35 locations. The franchise reported a year-over-year unit decline of 5.556%, signaling a contracting footprint. This makes every existing location critical for vendors seeking to displace or supplement the current mandated technology.
The franchise is independently owned, with no parent company on file. Its operator base consists of 19 mapped operators, none of whom are multi-unit owners. Every operator runs a single location. This fragmented ownership structure means that while the franchisor mandates core technology, individual franchisees are unlikely to have independent purchasing authority for systems that fall under the mandate.
Software purchasing decisions are centralized at the headquarters level. The 2026 FDD lists four executives in Item 1: Woo Sung Chung (President and CEO), Sang Min Oh (Sales & Business Innovation Director), Dochun Choi (Manager of Franchise Business), and Seungwan Lee (Account Manager of Franchise Business). The Sales & Business Innovation Director title is the most natural entry point for a software vendor. This role likely owns technology evaluation and process innovation, making Sang Min Oh the probable buyer or key influencer for any new platform.
The absence of a dedicated CIO or CTO in the filing suggests that technology decisions are managed within the business operations function. Vendors should prepare for a sales process that emphasizes operational ROI over deep technical integration, given the small size of the system and the business-oriented titles of the decision-makers.
The only technology system named in the FDD is SkyMember, Inc., which does business as SkySoft. This system is mandated for franchisees. The FDD does not disclose whether SkySoft covers point-of-sale, inventory management, CRM, or other specific functions. However, the mandate means that any vendor selling a competing or adjacent product must be prepared to integrate with or replace SkySoft at the franchisor level.
No other vendors are named as recommended or required. This creates a blank-slate opportunity for vendors in categories like payroll, scheduling, loyalty, or analytics, provided they can demonstrate value to a small, non-food retail chain with a 3% royalty and a 3-year initial term.
Item 8 of the FDD contains no extract, so the procurement model is not publicly disclosed. It is unknown whether Korean Red Ginseng uses designated suppliers, approved supplier lists, or an open procurement model. Vendors will need to discover this directly during the sales process.
Item 17 is explicit: franchisees have no contractual right to renew or extend their agreements. Before expiration, the parties may enter into a new franchise agreement on the terms and conditions then in effect for new franchisees. This means that every 3-year cycle is effectively a new deal. For software vendors, this creates a potential window to introduce new technology requirements at the point of re-agreement, though the declining unit count suggests that new agreements may be infrequent.
The 2026 Franchise Disclosure Document is the definitive source for understanding Korean Red Ginseng's operations, obligations, and technology mandates. The embedded viewer below contains the full filing. Key sections for software vendors include Item 1 (executive team), Item 11 (mandated systems), Item 8 (procurement restrictions), and Item 17 (renewal and termination). Review these sections to validate the decision-maker list and confirm whether any additional technology requirements have been added since this analysis. For a ranked target list of franchise systems matched to your software category, FranCloud can help.
Questions vendors ask
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FDD alert
We’ll email you the moment Korean Red Ginseng files a new annual FDD, usually the freshest signal of a vendor change.
Operator footprint
19 operators run 19 mapped locations. 0 of them are multi-unit. Aggregate counts from the filing; no names.
Operators by units owned
Top states by locations
| CA | 6 |
|---|---|
| NY | 3 |
| TX | 2 |
| NJ | 2 |
| WA | 1 |
Ownership
unknown of korea ginseng.
Related Retail non food brands
Primary franchise filings · updated June 2026. Every figure is source-traceable and QA-checked.