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Sweethoney Dessert

Company Information

155 98th Avenue Oakland, California 945603

[email protected]

We are a limited liability that was formed m California on August 30, 2018 We do not do business under any other names Our business address is 155 98th Avenue, Oakland, Cahforma 94603 Our telephone number is (510) 918 1178 The Sweethoney Dessert business began with a partnership between Allen Guoliang Yang and Evonne Vun Ung, currently our Chief Executive Officer and our former Chief Business Development Officer respeetively In November, 2015, they opened a Sweethoney Dessert restaurant m San Leandro, California, under a single store license from Gangji Catering Management Co Ltd of Guangzhou, China, which has operated Sweethoney Dessert restaurants in China sinee 2006 The partners transferred their rights to their Sweethoney Dessert restaurant, and the license under which it was opened, to our predecessor, Sweethoney Dessert, Inc , upon its formation in December, 2015 In March, 2016, Sweethoney Dessert, Inc obtained the right to use the Sweethoney Dessert name and the Sweethoney Dessert recipes throughout the United States from Gangji Catenng Management Co Ltd This license was transferred to JA Investment LLC on September 30, 2018, which transferred the license to us on the same date Sweethoney Dessert, Inc sold Its restaurant m San Leandro in September, 2016 Sweethoney Dessert, Inc began to franchise Sweethoney Dessert restaurants m August, 2017

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1 Ongoing Lawsuits

FDD Effective Date Action

Franchise Rating

Franchimp Summary Rating

8/10

Investment Accessibility

8/10

Franchise System Development

Year Units at Start of Year Units Opened Units Terminated Non-Renewals Re-Acquired by Franchisor Ceased Operations Units at End of Year

Employee Contact Database

# Name Position Email Phone

Summary of Investment Costs

Upfront Franchise Fees

Minimum: $50,000 Maximum: $50,000

Upfront franchise fees are the one-time payments required to secure rights to operate under an established brand, typically ranging from $20,000 to $100,000+ depending on brand value.

These fees grant access to proprietary business systems, training programs, intellectual property rights, and often territorial exclusivity—essentially purchasing the blueprint for a proven business model.

While separate from ongoing royalties, investors should evaluate these fees against expected returns, comparing fee-to-earnings ratios across opportunities and assessing how effectively franchisors reinvest these funds into system improvements.

Total Investment Costs

Minimum: $256,600 Maximum: $355,750

Ongoing Fees

Ongoing franchise fees, typically structured as royalties ranging from 4-8% of gross sales, represent the continuous payments franchisees make to maintain brand affiliation and support services.

These recurring fees fund the franchisor's operational assistance, marketing initiatives, technology updates, and continued brand development—creating a partnership where the franchisor's revenue grows alongside the franchisee's success. In addition to royalties, franchisees often contribute to national advertising funds (usually 1-3% of sales) and may incur technology fees, supply chain markups, or renewal fees depending on the franchise agreement.

Investors should carefully analyze these ongoing costs within their financial projections, as they directly impact profit margins and cash flow throughout the entire franchise relationship.

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