These days, when neighborhood moms get together, the topic of starting a business comes up frequently.

With husbands' companies struggling and kids needing to go to college, relying solely on a 401k can feel quite unsettling.

So, everyone looks into franchises, but when you actually dig into the information, it can be overwhelming.

They say starting a McDonald's requires over $1.5 million, including commercial real estate, which means people like us can't even consider it.

So, a realistic benchmark is under $600,000.

This amount is certainly not small; it's about the price of a decent house in our neighborhood.

Most people invest that money by borrowing over 75%, so it's not a decision to be made lightly based on brand appeal.

Interestingly, in Korean community group chats, the conversation often revolves around K-Chicken, Mala Tang, Bubble Tea, and Hot Dogs.

Once a rumor spreads that something is doing well in Korea, everyone rushes in that direction.

Honestly, K-Food is indeed hot in the U.S. right now. Many Americans are seeking out Korean food thanks to K-Pop and K-Dramas.

And it's true that brands like Bonchon and Paris Baguette have made it into the mainstream market.

However, I read a column from someone in the restaurant industry in Atlanta, stating that the current popularity of K-Food is more of a trend and hasn't yet become a staple in American dining habits.

To become a part of everyday American meals like Italian pasta or Japanese sushi, K-Food still has a long way to go.

Trends can be explosive but have a short lifespan. Betting $600,000 on that is, frankly, a bit of a gamble.

Moreover, I saw data showing that the average closure rate for Korean food franchises is 18%, which is a truly scary number.

If you open five locations, one will likely fail to recoup the investment.

Additionally, it's only a matter of time before two or three Korean chicken places open in the same area.

The Korean community is so small that when someone does well, similar businesses pop up right next door, and you've probably seen that happen more than once.

I concluded that $600,000 is the price of a house, and if you make one wrong move, it could take ten years to recover.

So, we should look at businesses that generate consistent monthly revenue before flashy K-branded signs.

And when researching franchises, check the FDD (Franchise Disclosure Document) before the franchise fee.

It contains information on closure rates, average sales of existing franchises, royalties, advertising fees, and actual net profits.

Trying to save a few thousand dollars on lawyer and accountant fees could cost you $600,000.

I wanted to share this with neighborhood moms, so I wrote it out in detail.

The numbers that show up in your bank account every month are what truly matter, not the signs.