Bingsu Franchise Profit Margin: What the 2026 FDD Shows

Oakobing's 2026 FDD Item 19 reports the actual results of its two company-owned bingsu shops: in 2025 the Los Angeles shop recorded gross sales of $1,224,763 and the Pasadena shop $524,899, each with a Direct Gross Profit of 59% of gross sales. Those are the only profit figures Oakobing publishes, and they come directly from the Franchise Disclosure Document (issued January 16, 2026, as amended June 15, 2026). Below is what those numbers cover, what Direct Gross Profit does and does not include, and how to read them next to the $200,000 to $500,000 initial investment. To review the full FDD, start on the Oakobing franchise page.

What Profit Figures Does Oakobing Actually Publish?

Under the FTC Franchise Rule, a franchisor may only present financial performance information that appears in Item 19 of its FDD. Oakobing's 2026 FDD Item 19 reports three calendar years for its two company-owned outlets:

Los Angeles shop (opened 2016, about 1,800 sq ft) - gross sales of $1,262,871 in 2023, $1,333,929 in 2024, and $1,224,763 in 2025.

Pasadena shop (opened 2021, about 1,200 sq ft) - gross sales of $496,949 in 2023, $571,684 in 2024, and $524,899 in 2025.

Direct Gross Profit - 58% to 65% of gross sales across 2023-2025 at both shops; after adjusting for the 7% royalty a franchisee would pay, 51% to 58% of gross sales.

Some Outlets have earned this amount. Your individual results may differ. There is no assurance that you'll earn as much.

What Is Direct Gross Profit - and What It Is Not

In the FDD's definitions, Direct Gross Profit means gross sales minus food and paper goods cost and direct labor cost - and nothing else. It is not net profit or income. It is calculated before rent, utilities, marketing, insurance, interest, taxes, depreciation, and the other operating and general expenses a shop pays. For scale, food and paper goods ran about 11% of gross sales and direct labor 25% to 31% in 2024-2025 at the company-owned shops. Any bottom-line profit estimate has to layer the remaining expenses on top, and those vary by location and operator.

What Costs Come Out Before Profit?

The cost side is disclosed in other FDD items and covered in our published guides. The initial investment for a single shop is $200,000 to $500,000 including the $35,000 franchise fee, per Item 7 - see the full Korean dessert franchise cost breakdown. On an ongoing basis, a franchisee pays a 7% royalty on gross sales and is required to spend at least 2% of gross sales on local marketing, per Item 6 - detailed in how much a bingsu franchise costs. Rent, labor, utilities, and insurance complete the picture and depend on your site.

How Should You Read These Numbers as an Investor?

Read them as disclosed history, not a promise. The FDD itself notes the figures are historical, unaudited, and not a forecast, and that company-owned shops differ from future franchise outlets - they benefit from an experienced management team and established local brand recognition, and they do not pay the ongoing fees a franchisee pays (which is why the tables show results adjusted for the 7% royalty). The right use of Item 19 is as the starting input for your own twelve-month cash-flow model, built with your rent, your labor market, and your financing - and reviewed with an attorney and an accountant during the FDD process. Check whether you meet the operator profile in the bingsu franchise requirements guide.

Where Can You Verify the Numbers?

Every figure in this article comes from Item 19 of the 2026 FDD, and Oakobing states in the FDD that written substantiation of the data will be made available upon reasonable request. To go through the document itself, request it on the franchise page and review the step-by-step launch process. Oakobing does not make any financial performance representations outside the FDD.

Frequently Asked Questions

What profit margin does a bingsu franchise make?

Oakobing does not advertise a profit margin. Its 2026 FDD Item 19 reports that the two company-owned shops earned a Direct Gross Profit of 58% to 65% of gross sales in 2023-2025 - a figure calculated before rent, marketing, and other operating expenses. Some Outlets have earned this amount. Your individual results may differ. There is no assurance that you'll earn as much.

How much revenue does an Oakobing bingsu shop make?

Per the 2026 FDD Item 19, the Los Angeles shop recorded gross sales between $1.22M and $1.33M and the Pasadena shop between $497K and $572K across 2023-2025. The figures are historical, unaudited, and not a forecast of any franchisee's future results.

Is Direct Gross Profit the same as net profit?

No. Direct Gross Profit is gross sales minus only food and paper goods cost and direct labor cost. Rent, utilities, marketing, insurance, taxes, and other operating expenses still come out of it, so a shop's net profit is lower and depends on its specific location and cost structure.

What ongoing fees affect a bingsu franchise's profitability?

Per Item 6 of the 2026 FDD, a franchisee pays an ongoing royalty of 7% of gross sales and is required to spend at least 2% of gross sales on local marketing within their territory. The FDD also provides for a Brand Development Fund contribution of up to 2% of gross sales, which is currently not assessed.

Where can I see real bingsu franchise financials?

In the Franchise Disclosure Document. Item 19 contains Oakobing's financial performance representations, and written substantiation of the data is available upon reasonable request. Request the FDD through the Oakobing franchise page.

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