Can you get an SBA loan for a FENG CHA franchise?

Yes, SBA loans are available for FENG CHA franchises. Historical data shows 5 SBA 7(a) loans have been approved for FENG CHA franchisees, with an average loan amount of $807,520. The historical default rate is 0.0%.

Is FENG CHA a good franchise to buy?

FENG CHA shows several positive indicators: low SBA loan default rate. However, franchise success depends on many factors including location, local market conditions, and owner involvement. We recommend speaking with existing franchisees and consulting with a franchise attorney before making a decision.

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.

Locations

Food & BeverageRichardson, TXwww.fengchausa.comDisclaimer

Franchise Costs

Franchise Fee

N/A

Item 5 of FDD

Initial Investment Range

N/A

Item 7 of FDD

Royalty Rate

N/A

Brand Fund

N/A

Item 6 of FDD

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

How FENG CHA Compares

Franchise	Investment	Fee	Royalty	Locations
FENG CHA Current	N/A	N/A	N/A	72
KUNG FU TEA	$169K – $378K	$37K	4.0%	385
SHARETEA	$225K – $555K	$12K	6.0%	153
DING TEA	$195K – $324K	$30K	N/A	120
FiiZ Drinks	$250K – $775K	$40K	8.0%	63
BAMBU	$159K – $328K	$49K	3.5%	60
Beverages Average 20 franchises	$281K – $629K	$40K	5.2%	–

* Comparison based on latest FDD filings. Investment ranges from Item 7, fees from Item 5. Showing top 5 of 20 Beverages franchises by location count.

SBA Loan History

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

Total Loans

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.

Franchisee Contacts

3 franchisee contacts on file from official FDD filings.

Name	Address	Phone	Email	SBA Loan
John Smith ABC Franchise LLC	123 Main St Anytown, CA 90210	(555) 123-4567	john@example.com	$350,000 2023 · Active
John Smith ABC Franchise LLC	123 Main St Anytown, CA 90210	(555) 123-4567	john@example.com	$350,000 2023 · Active
John Smith ABC Franchise LLC	123 Main St Anytown, CA 90210	(555) 123-4567	john@example.com	$350,000 2023 · Active
John Smith ABC Franchise LLC	123 Main St Anytown, CA 90210	(555) 123-4567	john@example.com	$350,000 2023 · Active
John Smith ABC Franchise LLC	123 Main St Anytown, CA 90210	(555) 123-4567	john@example.com	$350,000 2023 · Active

3 Contacts Available

Unlock all FENG CHA franchisee contacts with verified contact information

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

Non-Renewals

Reacquired

Ceased Ops

Transfers

Sold to Franchisees

Projected New

Frequently Asked Questions

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

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84 SBA loans

Franchising since 1976