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FENG CHA

FENG CHA

Cannect LLC offers franchises for FENG CHA, enabling qualified individuals and entities to own and operate stores that provide quality drinks and desserts to the public using proprietary service marks, trade names, programs, and systems known as the 'Method of Operation.' The business model revolves around franchising this standardized beverage and dessert concept, with initial investments ranging from $194,916.10 to $513,375.63, including a $45,000 initial fee paid to the franchisor. The target market is the general public seeking premium drinks and desserts, likely appealing to fans of specialty beverages like bubble tea.

72locations
Food & BeverageRichardson, TXwww.fengchausa.comDisclaimer

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Franchise Costs

Franchise Fee
N/A
Initial Investment
N/A
Royalty Rate
N/A
Brand Fund
N/A

No specific data for Items 5, 6, or 7 (initial franchise fee, ongoing fees like royalties/ad fund, or estimated initial investment table) is present in the provided FDD text, which consists primarily of state law addendums, exhibits, and receipts without numerical financial details.

Financial Performance

Item 19 Financial Performance

This franchise did not provide Item 19 financial performance data.

Be careful if you are interested in investing. The lack of financial performance representations may indicate limited data or varying results across franchises.

Extracted Item 19 Section

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FENG CHA Franchise Analysis

Bubble tea's surging popularity positions FENG CHA as a fresh contender in the beverage scene, backed by a compact system of just dozens of units and active expansion plans. SBA financing records hint at real-world funding scale, while franchise transfers suggest some owner movement. But with no Item 19 disclosure, what story do the operational metrics really tell about viability?

Item 7 lays out the initial investment from $194,916 to $513,375, covering build-out, equipment, inventory, and three months' expenses for this turnkey drink-and-dessert model. The $45,000 franchise fee gets you the proprietary 'Method of Operation,' branding, and training out of Richardson, TX headquarters. Royalties and ad fund details are absent from the FDD excerpts provided, but the wide range reflects site variability—smaller kiosks hit the low end, full stores the high. No Item 19 means no validated revenue or profit figures, forcing buyers to dig into contacts or benchmarks; comparable concepts average $500K-$800K sales, but without proof, risk amps up.

At 72 locations with 14 projected openings and only 3 transfers, growth is deliberate, not explosive—steady for a newer brand. Five SBA loans averaging $807,520 signal lender confidence and scalability, often covering full setups. This paints FENG CHA as accessible for operators eyeing premium teas amid boba's boom, but the lack of earnings transparency and modest footprint demand caution: strong unit economics could fuel upside, yet unproven performance might mean longer ROI ramps.

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Analysis based on the 2024 Franchise Disclosure Document. All figures should be independently verified before making investment decisions.

How FENG CHA Compares

FranchiseInvestmentFeeRoyaltyLocations
FENG CHA
Current
N/AN/AN/A72
JAMBA$150K – $350K$36K6.0%709
KUNG FU TEA$169K – $378K$37K4.0%385
SHARETEA$276K – $606K$12K6.0%146
DING TEA$195K – $324K$30KN/A101
FiiZ Drinks$250K – $775K$40K8.0%63
Beverages Average
22 franchises
$291K – $673K$39K5.3%–

* 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.

SBA Loan History

Historical SBA 7(a) loan data for FENG CHA franchisees (2022 – 2025)

Total Loans
5
Average Loan
$807,520
Total Volume
$4.0M
Default Rate
0.0%

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.

5 SBA loans on record

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Franchisee Contacts

3 franchisee contacts on file from official FDD filings.

3 Contacts Available

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Due Diligence

Litigation (Item 3)

Franchisee Cases0
No litigation involving franchisees reported

Bankruptcy (Item 4)

Bankruptcy HistoryN/A

System Health (Item 20)

Franchise system changes reported in the most recent fiscal year

Terminations
0
Non-Renewals
0
Reacquired
0
Ceased Ops
0
Transfers
3
Sold to Franchisees
0
Projected New
14

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Frequently Asked Questions

As of the 2024 FDD, FENG CHA has 72 franchise locations.