Chatime Franchise FDD, Costs & Fees (2025)

KEY FRANCHISE STATS

All you need to know about this franchise in a snapshot

Franchisees

?

10
+
-17%
-17%
Investment required

?

$281,000 - $494,000
Revenue (AUV)

?

$0
Undisclosed
Pro
+
n.a.
+
xx%
-xx%
n.a.
Initial franchise fee

?

$54,900
Royalty fees

?

5.00%
+
4.00%
Operating Profit

?

n.a.

Pro
Franchisees

?

10
+
-17%
-17%
Investment required

?

$281,000 - $494,000
Franchise fee

?

$54,900
Royalty fees

?

5.00%
+
4.00%
Revenue (AUV)

?

$0
Undisclosed
Pro
+
n.a.
+
xx%
-xx%
n.a.
Operating Profit

?

n.a.

Pro

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.

Initial investment

Here's what you would need to invest if you were to start this franchise. These costs are provided by the franchisor in the Franchise Disclosure Document.

Type of Expenditure Amount
Initial Franchise Fee $54,900
Initial Training, Opening Support, and Related Personnel Cost $5,000
Rent $6,000 to $33,000
Lease Security Deposit $4,000 to $22,000
Storage Space Deposit $0 to $1,500
Leasehold Improvements $105,000 to $189,000
Equipment $50,000 to $81,000
External Signage $4,200 to $10,500
Opening Inventory and Supplies $15,000 to $20,000
Grand Opening Marketing $5,000 to $10,000
Licenses, Permits, and Utility Deposits $3,500 to $5,500
Technology Systems $11,500 to $19,000
Uniforms $500 to $1,500
Insurance $3,000 to $6,000
Professional Fees $1,000 to $5,000
Additional Funds – Three Months $12,000 to $30,000
Total Estimated Initial Investment $280,600 to $493,900

Franchise Disclosure Document

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Competitors

Franchise
Franchisees
Growth
Initial fee
Investment
Revenue
Gross Profit
Operating Profit
Industry

10

+
-17%
-17%
No growth
New

$54,900

$281,000

-

$494,000

n.a.

$0

Pro

n.a.

Pro

n.a.

Pro

Food & Beverage

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.

Number of units

2024
Franchised units

12

12

10

Company-owned units

0

0

3

Total units

12

12

13

Competitors

Happy Lemon

Investment required
$298,000
-
$587,000
Franchisees
106
+
16%
16%

Haraz Coffee House

Investment required
$350,000
-
$518,000
Franchisees
14
+
n.a.
n.a.

Tiger Sugar

Investment required
$306,000
-
$542,000
Franchisees
47
+
147%
147%

Ellianos Coffee

Investment required
$672,000
-
$1,069,000
Franchisees
63
+
110%
110%

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