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Chatime
Chatime Franchise, LLC offers franchises to operate Chatime Stores, which are beverage service establishments providing gourmet teas, bubble tea, smoothies, iced beverages, coffee and tea-based drinks, compatible food products, and related supplies, accessories, and gifts within designated territories. The business model includes single-unit franchises and multi-unit development agreements, emphasizing proprietary trademarks, uniform design, menu items, operational standards, training, and marketing programs. They target the general public in a highly competitive market for specialty beverages and snacks.
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Franchise Costs
5% royalty + 2% brand marketing fee + minimum 2% local marketing expenditure
Financial Performance
Item 19 Financial Performance
Data Based On: 5 Chatime franchise locations operating within the United States of America which have been operating more than 12 months in their current location and were operating as of December 31, 2024 under franchise agreements issued by us (Chatime Franchise LLC).
* Calculated average gross revenue from 5 individual franchise locations: (793037 + 476602 + 243569 + 210709 + 125407) / 5 = $369,864.80. Median gross revenue is the middle value of the sorted net sales data.
Extracted Item 19 Section
Avg. Revenue: $369,865
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Unlock financial performance dataChatime Franchise Analysis
Bubble tea's explosive popularity meets a fledgling franchise system in Chatime, which just began U.S. franchising. Item 19 disclosures paint a picture of early revenue performance, while a handful of SBA loans hint at financing realities for new owners. But with rapid location growth and low system disruptions so far, is this the next big sip in beverages—or a risky pour?
Chatime's track record is embryonic: franchising launched in 2023 with 14 locations, expanding to 16 franchise units (+14%) by 2024 alongside 3 corporate stores, per the 2025 FDD. Projected new units hit 11, signaling aggressive plans, but the tiny footprint (just 19 total outlets) means limited proof of scalability in a cutthroat bubble tea market. Only 1 non-renewal and 2 transfers suggest stability uncommon for startups, yet the youth flags high risk—many new systems falter before maturing.
Economics demand scrutiny: $54,900 franchise fee leads to $293,100-$479,900 total investment (Item 7), plus 5% royalty, 2% brand fund, and 2% local marketing minimum. Item 19 shines with $369,865 average gross revenue but a stark $243,569 median across units, implying top performers skew averages—likely urban hits vs. struggling sites. Eight SBA loans averaging $237,263 show accessible debt financing, but prospective investors must probe profitability (not disclosed) amid $370K sales; at 20-30% margins typical for beverages, EBITDA might range $75K-$110K for averages, though medians suggest far less. For risk-tolerant operators eyeing growth, Chatime offers upside; conservatives may wait for scale.
Analysis based on the 2025 Franchise Disclosure Document. All figures should be independently verified before making investment decisions.
How Chatime Compares
| Franchise | Investment | Fee | Royalty | Locations |
|---|---|---|---|---|
Chatime Current | $293K – $480K | $55K | 5.0% | 16 |
| JAMBA | $150K – $350K | $36K | 6.0% | 709 |
| KUNG FU TEA | $169K – $378K | $37K | 4.0% | 385 |
| SHARETEA | $276K – $606K | $12K | 6.0% | 146 |
| DING TEA | $195K – $324K | $30K | N/A | 101 |
| FiiZ Drinks | $250K – $775K | $40K | 8.0% | 63 |
Beverages Average 22 franchises | $291K – $673K | $39K | 5.3% | – |
* Comparison based on latest FDD filings. Investment ranges from Item 7, fees from Item 5. Showing top 5 of 22 Beverages franchises by location count.
Locations & Growth
Outlet Growth Over Time
Total outlets at end of each year
Geographic Distribution (2024)
Outlets by state across the United States
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Unlock location growth dataSBA Loan History
Historical SBA 7(a) loan data for Chatime franchisees (2019 – 2025)
Loans by Year
SBA 7(a) loan activity over time
* Data sourced from SBA 7(a) FOIA loan records. Default rate calculated from charged-off loans.
8 SBA loans on record
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Unlock SBA loan historyFranchisee Contacts
17 franchisee contacts on file from official FDD filings.
17 Contacts Available
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Unlock contactsDue Diligence
Litigation (Item 3)
Bankruptcy (Item 4)
System Health (Item 20)
Franchise system changes reported in the most recent fiscal year
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Unlock due diligence reportsFrequently Asked Questions
The total initial investment to open a Chatime franchise ranges from $293,100 to $479,900. This includes a franchise fee of $54,900. Ongoing royalty fees are 5.0% of gross sales.
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