Chatime

Chatime

Franzy VerifiedInformation based on 2026 FDD

Food & Beverage · Coffee & Tea

Investment min
$293K
Total: $293K–$494K
Avg gross revenue
$793K
Unit-level, 2026
Franchise fee
$55K
Veteran discount available
Royalty
5%
of gross revenue
Locations
16
Franchising since 2014

Description

What is Chatime?

Chatime is a food service establishment offering gourmet coffees and teas, other coffee and tea-based beverages, bubble tea, compatible food products, coffee and tea makers, and related supplies, accessories, and gifts. The word ‘cha’ means ‘tea,’ so technically ‘chatime’ could be loosely translated into ‘teatime.’ But today, with over 1,500 locations around the globe, Chatime means so much more than that! Chatime is a Taiwanese franchise founded in 2005 with over 1,000 retail outlets across countries like Taiwan, Malaysia, China, India, Macau, Vietnam, Singapore, Hong Kong, Thailand, Korea, Philippines, Indonesia, Australia, Dubai, Vietnam, Canada, UK, Mexico and the United States. Chatime has become one of the largest bubble tea brands in the world and is a publicly traded company showing a quadrupled stock value in 2019 from its mother company La Kaffa. As one of the top beverage companies in the world, Chatime aims to be the most loved and accessible drink brand in the world, revolutionizing the tea drinking culture in the US!

  • Taiwanese bubble tea
  • Customizable tea beverages
  • Asian diaspora destination
  • Youth-focused tea lounges
  • High-traffic urban locations

Location Analysis

Where Chatime wins

Chatime demonstrates clear geographic concentration in markets with established Asian-American communities and specialty beverage consumption patterns, particularly across California, the New York/New Jersey corridor, Texas metros, and major Canadian markets. This clustering in ethnically diverse, millennial-dense urban centers aligns with the brand's Taiwanese heritage and bubble tea category appeal. The 3.8-4.2 star average rating reflects solid but not exceptional customer sentiment, with moderate-to-high review volume in established locations indicating reasonable traffic generation in mature markets. Customer feedback reveals operationally significant patterns: while menu variety, customization options, and product authenticity receive consistent praise, execution inconsistencies—particularly around drink preparation variance and service quality tied to staffing—suggest territory-level operational support may vary. The emphasis on high-visibility, high-traffic retail corridors near educational institutions and entertainment venues requires premium rents, making site selection critical to unit viability. Demographic targeting toward markets exceeding 10% Asian-American concentration and Gen Z/millennial density indicates relatively narrow territory suitability compared to mainstream coffee concepts. The limited 16-unit footprint despite nearly 20 years in operation warrants careful evaluation of market saturation dynamics and expansion trajectory in prospective territories. Franchisees should conduct comprehensive local market validation, including competitive bubble tea density analysis, demographic overlay studies, and territory-level franchisor support capabilities before site commitment. Direct engagement with existing franchisees regarding operational complexity and unit economics is essential given the constrained footprint and execution variance observed in reviews.
Total US locations
18
Franchise units
16
Corporate locations
2
Avg. sq. footage
450

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Financial Analysis

The numbers behind Chatime

Avg gross revenue$793,037
Investment range$293,100 – $493,900
Investment midpoint$393,500
Brand fund2%
Royalty5%
Franchise fee$54,900
Min. net worth$500,000
Min. liquid capital$150,000

Veteran discount available

Chatime participates in a veteran discount program on the franchise fee. Ask your Franzy advisor or the brand for current eligibility and terms.

Chatime's $293,100-$493,900 investment range positions it in the mid-to-upper tier of specialty beverage franchises, reflecting the brand's emphasis on premium positioning and store presentation. The 1,000-1,500 square foot footprint requires meaningful build-out investment in high-visibility retail locations, with associated tenant improvement costs and equipment specifications for authentic bubble tea preparation. Founded in 2005 with only 16 North American units after nearly two decades suggests either selective expansion, market-specific challenges, or operational complexities that have constrained growth velocity. This limited footprint may indicate heightened franchisor selectivity or operational demands that slow unit economics. The absence of disclosed franchise fee and zero reported gross revenue data creates significant analytical constraints for evaluating unit-level performance. Bubble tea concepts typically operate on moderate check averages with high-volume throughput models, making labor efficiency and ingredient management critical to profitability. Review feedback highlighting inconsistent preparation and service quality variance suggests operational execution challenges that could pressure margins. The product customization model—while valued by customers—adds complexity to labor training and speed of service. Prospective franchisees should conduct granular item-level financial validation, including detailed sales mix modeling, peak-hour staffing requirements, and ingredient waste management protocols before committing capital to this concept.
Did you know? Chatime, a Taiwanese bubble tea concept in the specialty Coffee & Tea sector, requires an initial investment between $293,100 and $493,900. This mid-to-premium range reflects the brand's emphasis on high-visibility retail locations with 1,000-1,500 square foot footprints, authentic preparation equipment, and modern store environments. The franchise fee was not disclosed in available materials, requiring direct franchisor inquiry during due diligence.

Financing partners

Vetted partners, tailored to franchisees

Your Franzy advisor can connect you with these partners later in the process — competitive rates, specialized in franchise financing.

FranFund

Lender

CRF USA

Nonprofit SBA lender; provides financing for franchise acquisitions, startups, and expansion.

Lender

First Bank of the Lake

Lender

Pension Pros

Lender

The model

How Chatime works

01
Ownership
Part-Time (Executive)

Owner stays in an executive role — sets strategy, hires a manager, and oversees crews. Typically 5–20 hr/wk after ramp; many keep their day job.

Full-Time

Owner runs the business as their primary job — leads the team day-to-day on the ground, 40+ hr/wk.

02
Revenue
Recurring revenueTransaction-basedBig-ticket salesService-basedProduct sales (retail)Hybrid model
03
Customer
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FDD Item 7

Initial investment range

$293K–$494K
Most common
$293,100
Minimum
$393,500
Midpoint
$493,900
Maximum

Per FDD Item 7, total initial investment ranges from $293,100 to $493,900. The midpoint $393,500 is what most franchisees report at signing — financing typically reduces cash-at-close by 80–90%. Knowing the investment range helps you plan confidently and ensure you're fully prepared to make the leap.

FDD Item 19

Average gross sales

Avg
$274K
YOY change

According to Item 19 of the Franchise Disclosure Document, Chatime has an average gross revenue of $274K. (Note: This information is based on the latest FDD in our records. Please review the Franchise Disclosure Document (FDD) and confirm this information directly with the brand. We make no claims of accuracy for the information presented.)

Growth over time

Franchise footprint

0% YoY
16 units open as of 2026 FDD

2026 Franchise Disclosure

FDD documents

Below are items 2, 3, 4, 7, 11 and 19 for Chatime's 2026 FDD. The complete FDD is delivered to you directly by the franchisor, per the FTC Franchise Rule.

Estimated initial investment
FDD Item 7 · PDF
Financial performance representations
FDD Item 19 · PDF
Members-only items
Executive team
FDD Item 2 · PDF
Litigation
FDD Item 3 · PDF
Bankruptcy
FDD Item 4 · PDF
Franchisor assistance
FDD Item 11 · PDF
Members only
Unlock the 2026 FDD

Connect to download Items 2, 3, 4, and 11 — direct from the franchisor.

Buyer FAQs

Frequently asked questions

The initial investment for a Chatime franchise typically ranges between $293,100.00 and $493,900.00. This includes the franchise fee, equipment, real estate, and other startup costs. To get a detailed breakdown and better understand the financial requirements, we recommend scheduling a call with the Franzy team. We'll walk you through the specifics and answer any questions you might have. For more detailed information, refer to the financial sections of the FDD.

Disclaimer. The information provided on this page is based on the latest Franchise Disclosure Document (FDD) we have on record, which was issued in 2026. This information is for informational purposes only and is not intended to constitute legal, financial, or business advice. We make no guarantees or claims regarding the completeness or accuracy. Only the franchisor can confirm that the information is complete and accurate and we recommend consulting the franchisor directly for the most recent FDD and regarding any questions that you may have about the information provided.

Chatime
Chatime
$793K avg revenue · 16+ US franchises

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