From the filings
Software purchasing at Palgong Tea is controlled at the headquarters level by a small executive team led by President John Park, Director of Franchising Mike Choi, and Director of Operations Jeremiah Park. The brand currently operates a single company-owned unit in Illinois, with no franchised locations confirmed in the 2022 FDD. No mandated technology systems are disclosed, leaving the tech stack open for vendor discovery.
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.
8%of gross sales (FY2022)
15% reference
Franchisor behaviours
21 requirements the franchisor states in this filing, each in its own words; 4 explicit no's; 9 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?
YesFranchise agreement
You agree to establish and maintain at your own expense a bookkeeping, accounting, and recordkeeping system conforming to the requirements, data processing and cash register systems and formats we prescribe from time to time.
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 the information and data from the Computer System.
Must the franchisee submit periodic financial statements (monthly, quarterly or annual) to the franchisor?
YesFranchise agreement
by the 20th day of each month period (or other period we designate), a profit and loss statement for the preceding month period (or other period we designate) and a year-to-date profit and loss statement and balance sheet; (4) within 120 days after the end of your fiscal year, a fiscal year-end balance sheet and an…
How the franchisor buys
How much revenue did the franchisor and its affiliates earn from franchisee purchases in the last fiscal year?
0Item 8
Because we commenced franchising in 2021 and currently do not have any franchisees, during 2021 we and our affiliates did not derive any revenues or other material consideration from franchisees’ direct purchases or leases.
Does the franchisor or an affiliate receive rebates, commissions or other revenue from designated or approved suppliers?
YesItem 8
We have the right to charge and/or retain royalties, commissions and rebates from vendors which supply Palgong Tea Shops.
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?
95Item 8
We estimate that approximately 95% of your purchases or leases to start and operate your business will be made from us, approved or designated suppliers or in accordance with our specifications or requirements.
Does the franchisor charge a fee to evaluate a proposed supplier?
YesItem 8
Either you or the proposed supplier must pay us a 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, you must submit to us a written request for approval of the proposed supplier.
Franchise management
Must the franchisee participate in a customer-satisfaction or net-promoter survey program?
YesFranchise agreement
You also agree to present to your customers any evaluation forms we periodically prescribe and agree to participate and/or request your customers to participate in any surveys performed by or on our behalf.
Does the franchisor conduct periodic inspections, audits or evaluations of the franchised business?
YesFranchise agreement
13.1 Company’s Right to Inspect the Shop. To determine whether you and the Shop are complying with this Agreement, and with specifications, standards, and operating procedures we prescribe for the operation of Palgong Tea Shops, we or our agents have the right, at any reasonable time and without advance notice to…
Can the franchisor change the operations manual and brand standards unilaterally?
YesFranchise agreement
We may modify the Operations Manual periodically to reflect changes in the specifications, standards, operating procedures and other obligations in operating a Palgong Tea Shop.
Must the franchisor approve the franchisee's site or location before opening?
YesItem 12
You may operate the Shop only at the approved 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
Unless we consent otherwise in writing, you may not, directly or indirectly, conduct or be involved in any Digital Marketing that use the Marks or that relate to the Shop.
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 must spend annually (or during any other period we designate) at least 1.5% of your Gross Sales on advertising, marketing, promotional, customer relationship management, social responsibility, public relations and other brand-related programs in your local market area, which includes coupons, but does not include…
Must the franchisee participate in a regional advertising cooperative when one exists?
YesItem 11
You automatically will become a member of any existing or new cooperative formed in your geographic area and must participate in the cooperative as its governing documents require.
Operations
Must the franchisee buy products from a designated distributor?
YesItem 8
You must (1) purchase products for sale from the Shop in the quantities we designate; (2) utilize the formats, formulae and containers for products we prescribe; and (3) purchase all beverages, products, menus, straws, napkins, paper and plastic products, packaging or other materials, and utensils only from…
Must equipment be purchased from designated or approved suppliers?
YesItem 8
You must use in the development and operation of the Shop only those brands, types, and/or models of equipment, furniture, fixtures, furnishings, cash registers and signs we have approved.
People
Must employees wear uniforms specified by the franchisor?
YesItem 15
All employees must maintain a neat and clean appearance and to conform to the standards of dress and/or uniforms we specify from time to time for all Palgong Tea Shops.
Point of sale
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 the information and data from the Computer System.
Training
Can the franchisor charge the franchisee for additional, refresher or remedial training?
YesItem 11
We may require at your expense that you (or your designated principal owner) attend additional training programs (up to 5 days per year) and conventions or national franchise meetings (up to 5 days per year).
Is attendance at an annual convention or conference mandatory for the franchisee?
YesFranchise agreement
You (or your designated Principal Owner) must attend any franchise meeting or convention sponsored by us for up to a total of 5 days per year.
Who buys here
The decision-maker a vendor sells to at this scale, and the gaps they’re paid to close, derived from our data by segment and unit count, not a guess.
The franchisee/operator personally, or a small franchisor still owner-run. Wears every hat.
Palgong Tea presents a very early-stage opportunity for software vendors. The brand operates a single company-owned location in Illinois under PalgongTea USA, Inc. No franchised units were reported in the 2022 FDD, and year-over-year unit growth data is not available. The total addressable market for a vendor today is exactly one unit, with no operator footprint mapped in our corpus. This is a pre-scale franchise system where a software vendor could establish a foundational relationship before any franchising expansion begins.
Average unit volume is not disclosed in the most recent FDD. The royalty rate is set at 5.0% of gross sales, and the initial franchise term runs 5 years. For a vendor, the absence of scale means the near-term revenue opportunity is minimal, but the lack of an entrenched tech stack could lower the barrier to entry if the franchisor decides to standardize.
Software purchasing authority at Palgong Tea sits with a compact headquarters team. The 2022 FDD lists three executives: John Park serves as President, Mike Choi is the Director of Franchising, and Jeremiah Park holds the Director of Operations title. In a single-unit operation, these three individuals likely make or approve all operational and technology decisions. There is no separate IT or procurement executive named in the disclosure. Vendors should direct initial outreach to the Director of Operations, who typically oversees day-to-day tools, or to the President for strategic software investments.
Palgong Tea’s 2022 FDD does not capture any mandated or recommended technology systems. No point-of-sale vendor, back-office platform, inventory management tool, or online ordering system is named in the disclosure. This does not mean the location operates without technology — it means the franchisor has not yet standardized or required specific systems in its franchise agreement. For a software vendor, this represents a blank slate. The brand may be using consumer-grade or ad hoc solutions that could be replaced or formalized as the system grows.
The FDD provides no Item 8 procurement extract, so Palgong Tea’s purchasing rules — whether they require designated suppliers, approved suppliers, or leave procurement open — are not publicly known. Vendors should be prepared to navigate an undefined procurement process and may need to educate the franchisor on supplier designation if they seek to become a preferred vendor.
Renewal conditions in Item 17 offer some timing signals. Franchisees must maintain their premises, refurbish and redecorate to current standards, correct any operational deficiencies, sign the then-current franchise agreement, and execute a general release of claims. The renewal term is 5 years. While these conditions are standard, they suggest that any franchisee entering a renewal window would be required to update their operations — potentially including technology — to meet current system standards. With only one unit and no franchised locations, however, renewal-driven software opportunities do not yet exist at scale.
The full Palgong Tea 2022 Franchise Disclosure Document is embedded below. This is the primary source for verifying unit counts, executive names, fee structures, and any technology or procurement mandates. Because the brand is small and early-stage, the FDD is the most reliable — and often the only — public record of how the system operates. Review Item 1 for executive and ownership details, Item 6 for fees, Item 8 for procurement restrictions, Item 11 for franchisor assistance and any technology references, and Item 17 for renewal and transfer conditions. If you are evaluating Palgong Tea as a potential account, the FDD tells you exactly who to call and what constraints they operate under. For a ranked target list of franchise systems that match your software category, FranCloud can help you prioritize accounts by unit count, tech mandates, and decision-maker access.
Questions vendors ask
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FDD alert
We’ll email you the moment Palgong Tea files a new annual FDD, usually the freshest signal of a vendor change.
Operator footprint
No franchisee network yet. Palgong Tea’s latest FDD reports no franchised locations.
Ownership
single_brand_holdco of Palgong Tea.
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Primary franchise filings · updated June 2026. Every figure is source-traceable and QA-checked.