Did you know that Korean restaurants in the United States have grown from 2,000 to 7,000 according to the New York Times? One of the food items in particular that gained popularity state-side is Korean street food and you’d be surprised to know that corndogs are among the list. Two Hands Corn Dogs is one food stop that’s emerging around the United States and they’re open for franchising.
How much does it cost to open Two Hands Corn Dogs? To franchise this Korean street food, your net worth must be a minimum of $100,000. Expect the investment range to be around $89,000 to $304,000 and the franchise fee to be $35,000. This is significantly less expensive than most food franchise concepts where an initial investment of $500,000 is on the low end of the pricing.
Learn more about the Two Hands Corn Dogs investment and how to franchise with them. You can also take our 7-minute franchise quiz to get match with a franchise opportunity that matches your interests.
Financial Requirements and Fees
Below are the financial requirements to franchise a Two Hands Corn Dogs outlet:
|Fees / Expenses
||$89,000 to $304,000
There are two options in franchising Two Hands Corn Dogs outlets:
- Regular Outlet Program: A single outlet that can be opened in a shopping mall, strip shopping center or free-standing unit. The investment is around $205,000 to $304,000 and the size is 500 to 1,000 square feet.
- Market Outlet Program: A single outlet that can be opened in a grocery store, supermarket or other location owned by a third party. The investment is around $89,000 to $137,000 and the size is 200 to 750 square feet.
In addition, the royalty fee to open a regular outlet is 4% of gross sales while the market outlet is 10% of gross sales. Marketing fee is 1% of gross sales while the local advertising fee is up to 1% of gross sales. The term of the Two Hands Corn Dogs franchise is 5 years.
Average Sales / Revenue per Year
As of the time of this writing, there is no official report on how much Two Hands Corn Dogs makes annually. Average sales per unit is something you’ll want to discuss with the company representative. This is not uncommon for a new franchise with a small number of units not to list this information in their FDD. They are new to the game and don’t have a long track record across markets.
Two Hands Corn Dogs Franchise Facts
||Two Hands America Inc.
||Food and Beverage
Two Hands Corn Dogs are not your typical American corndogs that are simply just hotdogs dipped in a batter and deep fried. Two Hands follows the Korean style corndogs which may contain the following variation of filling: half sausage and half mozzarella, whole sausage or whole mozzarella. These are then dipped in batter, deep fried, and sprinkled with sugar.
But Two Hands Corn Dogs adds more variety to their menu by having their batter either covered in crispy rice puffs or potato cubes, and sprinkled with your choice of injeolmi (Korean bean powder), hot Cheetos or their signature seasonings. You can also choose to put spicy or sweet sauce, sweet ranch sauce, or your classic ketchup and mustard.
Korean corn dogs.
Aside from Korean style corndogs, they also have sides such as dirty fries, elote, and kimchi seasoning fries. Beverages include a slush series such as lemonade and horchata.
The business started in 2019 in Los Angeles, California. At present, they have about 40 locations but they are aiming to open a hundred more locations in the next year.
To franchise Two Hands Corn Dogs, fill out the franchise inquiry form here and submit it to them. They’ll evaluate your application and then you’ll get to receive their Franchise Disclosure Document (FDD) to review. They’ll also evaluate the location of your choice. Once both parties are in a favorable relationship, you’ll get to sign the Franchise Agreement which makes everything official.
Next, you’ll be able to take a look at the design of your outlet prior to construction. Training comes next and then you’ll get to do a soft opening before the grand opening.
The Chief Executive Officer of Two Hands Corn Dogs is Donghun Yoo and he has been with the company since they started in 2019.
How Much Does Two Hands Corn Dogs Make in Profit?
It is not known how much Two Hands Corn Dogs makes in profit since there is no official financial record that was publicly reported. However, an analysis was made that if you franchise with them, you can expect a net profit margin of 8-12%.
An 8% to 12% profit margin is considered good in the restaurant industry. The average profit margin for restaurants is around 3% to 5%, so an 8% to 12% profit margin is well above average.
There are a few reasons why restaurant profit margins are typically so low. First, the cost of food is a major expense for restaurants. Restaurants typically have to pay a high markup on food, which can eat into their profits. This is the beauty of selling gourmet corn dogs. The product is widely available, cheap to purchase, and has a long shelf life.
The product is also simple to train entry level employees to make and further keeps prices low. From a cost perspective this is a very appealing food business.
Advantages of a Two Hands Corn Dogs Franchise
Interested in franchising this Korean street food chain by now? Here’s more to learn about Two Hands Corn Dogs and the advantages this business brings:
Korean food has become very popular in the recent years. And though corndogs are not exactly Korean in origin, the way it is made and the variety of corndog flavors is a thing in South Korea. Because of social media (mukbangs or food vlogs), corndogs gained popularity and has spread to U.S. shores.
So if you do decide to franchise Two Hands, know that Korean corndogs are quite a hit with millenials and Gen Z.
As mentioned above, the corndogs that Two Hands serves on their menu have assorted flavors. You can still choose to get the classic American corndog which they serve. But you can also try some others that are fun and interesting as well that customers won’t get bored.
In addition to the flavors, you can also choose the fillings. You can do half cheddar and half mozzarella, spicy beef sausage, and even plant based sausage. According to their website, they’re also about to debut plant based mozarella and half plant-based sausage and mozarella.
Two Hands Fresh Corn Dogs.
Low start-up costs: The start-up costs for a Two Hands franchise are low ($89,000 to $304,000 initial cost) compared to other franchise opportunities. This can make it an attractive option for investors with limited capital. This also means you won’t need to wait as long or generate as many sales to become profitable.
Challenges of a Two Hands Corn Dogs Franchise
If you want to franchise Two Hands Corn Dogs then you’ll have to be prepared with the challenges that this business brings. Here are a few to prepare for:
You’d be surprised to know that Korean style corndogs are not rare in the American food scene these days. There are a lot of food stores that sell these due to their popularity. There’s Myungrang Hotdogs (with over 650 locations), CrunCheese, and Stix Corndogs. There’s also more places popping up that serve Korean style corn dogs so if you want to franchise Two Hands and expect it to be a hit, you’ll need to find a really good location for it to be a success.
It’s Not For Everyone
Korean corndogs are beloved by many but the taste of it isn’t for everyone. For starters, Americans are used to corndogs that have ketchup and mustard and it’s known to be more of a savory treat. Korean corndogs on the other hand are a bit sweet. It might just take a while to get new customers that don’t know what Korean corndogs are. You might have difficulty finding a customer base in certain parts of the United States.
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It Might Be A Fad
Korean corndogs have been around for so long but it’s admittedly popular now. But for how long? We’re not sure if they’re here to stay or not. Some people believe that they are a passing trend, while others believe that they are here to stay.
There are a few factors that could contribute to Korean corn dogs becoming a fad. First, they are visually appealing and can be made to look very creative. Second, they are relatively affordable and can be found at a variety of restaurants and food trucks. It’s not a difficult cuisine to specialize in so the market does have the potential to become saturated.
Location is Essential
The location of your franchise is critical to its success. You need to choose a location that is in a high-traffic area and that has the potential to attract customers. If you look on the operating map of Two Hand Corn Dog s franchises, you’ll see the units are concentrated in California, Texas, and Arizona. There are also a few franchises in New York, Nevada, and Oregon.
But you won’t find any units located in states like Montana, Idaho, or North Dakota yet. This is likely due in part to less awareness of the product and brand. If you decide to open this franchise in an untested area, you may need to focus more of your efforts into marketing.
Is the Two Hands Corn Dogs Franchise Right For You?
Corn dogs and condiments.
Two Hands Corn Dogs seems like a pretty good franchise but due to a lack of official financial information, it’s difficult to assess whether or not they’re worth investing in. However, if you have a really good location and you have a community that’s into the Korean Wave, it might be worth a shot.
On the other hand, you can also try to put up your own Korean corndog business rather than franchise. You can try a few recipes online, purchase your equipment and choose your own location. You may be able to save money since franchises charge royalty fees and the Two Hands Market Outlet has an expensive royalty fee of 10%.
What’s an alternative Two Hands Corn Dogs franchise?
If you’re still interested in Korean style corndogs, you can check out Myungrang Hotdogs. They’re a chain of Korean street food located in the United States, Canada, United Kingdom, Philippines, Taiwan, and Australia with over 650 locations. To franchise Myungrang Hotdogs, expect the franchise fee to be $35,000.
If you’re looking for something more established, Sonic Drive-In is a fast-food restaurant chain with a drive-in format. It is known for its menu of burgers, hot dogs, chicken, and ice cream. Sonic is a franchise opportunity that offers a number of benefits, including a proven track record of 60 years of successful franchising. You can check out my review of this franchise here.
Have you decided whether Two Hands Corn Dogs is the right franchise for you? I hope this guide was able to help you evaluate the pros and cons of this unique opportunity.