Chatime Franchise FDD, Costs & Fees (2025)

Chatime: Revolutionizing the Global Tea Experience

Established in 2005 by Henry Wang in Hsinchu, Taiwan, Chatime has rapidly evolved into a leading global teahouse franchise. With its headquarters in Zhubei, Hsinchu County, Taiwan, the brand has expanded to over 2,500 outlets across 38 countries, making it the world's largest teahouse franchise.

Chatime began its international expansion in 2006, opening its first overseas store in California, USA. The franchise offers a diverse menu that includes bubble tea, flavored teas, fruit-infused beverages, and smoothies, catering to a wide range of taste preferences.

A hallmark of Chatime's offerings is the ability for customers to customize their drinks, selecting sugar levels, ice content, and a variety of toppings such as pearls (tapioca balls), jellies, and mousse.

What sets Chatime apart from its competitors is its unwavering commitment to quality and innovation. The company ensures that its teas are brewed fresh every four hours, guaranteeing vibrant flavors and aromas in every cup.

Training

Chatime provides a comprehensive training program for its franchisees, which includes the following components:

1. Initial Training:
   • A minimum of two weeks of continuous training, conducted in English, covering areas such as store operations, sales, staff training, inventory management, and local marketing.
   • The training is mandatory for franchisees, senior managers, and designated guarantors. It must be completed prior to the store's opening.
   • If the initial training is not successfully completed, additional training may be required at the franchisee’s expense.
2. Continuing Training:
   • Franchisees and their senior managers may be required to participate in ongoing training programs throughout the term of the agreement.
   • These programs may be delivered in-person, virtually, or as blended learning sessions and are designed to ensure competency and operational excellence.
3. Refresher and Additional Training:
   • The franchisor may mandate refresher courses or supplementary training programs as necessary. These may include advanced technical or orientation support.
   • Franchisees bear the cost of such training, including travel, accommodations, and meal expenses for attendees.
4. On-the-Job and Hands-On Training:
   • On-site training may be provided by franchisor representatives to address specific operational needs or support the franchisee during the store opening.

Territory Protection

Chatime grants franchisees the right to operate within a designated territory, but it does not provide exclusive territory protection. This means that while a specific area is allocated to the franchisee in the agreement, they may face competition from other franchisees, outlets owned by Chatime, or other distribution channels controlled by the franchisor.

The boundaries of the designated territory are typically defined in the franchise agreement, but these rights are contingent on the franchisee complying with all contractual obligations.

Furthermore, Chatime reserves the right to adjust or terminate territorial rights if franchisees fail to meet the terms of their agreement. The franchisor also retains the ability to establish additional outlets or grant franchises within or near the designated area, based on its discretion.