Chatime Franchise FDD, Profits & Costs (2025)
Chatime is a global bubble tea franchise known for its high-quality beverages. Founded in Taiwan in 2005, it began franchising in 2006 and now operates over 2,500 locations in 38 countries, including the U.S. The menu includes milk teas, fruit teas, smoothies, and coffee to suit diverse tastes.
Chatime stands out with its focus on quality and innovation. Advanced tea machines ensure freshness and consistency. Customers can personalize drinks by adjusting sugar levels and adding toppings like pearls and jellies. This commitment to customization has fueled its success worldwide.
In the U.S., Chatime continues to grow through franchising. Franchisees receive full support, including training, marketing, and supply chain management. This approach strengthens Chatime’s position in the competitive beverage market.
Find the best franchises of 2024
Compare fees, costs, profits and more across 2,000 franchises.
Initial Investment
How much does it cost to start a Chatime franchise? It costs on average between $281,000 – $494,000 to start a Chatime franchised restaurant.
This includes costs for construction, equipment, inventory, and initial operating expenses. The exact amount varies based on several factors, including the type of Chatime store you establish, its location, and whether the franchisee decides to lease or purchase the property.
| 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 |
Average Revenue (AUV)
How much revenue can you make with a Chatime franchise? While specific average revenue figures for Chatime franchises are not publicly disclosed, industry estimates suggest that similar food and beverage franchises generate approximately $1.15 million in annual revenue.
Below are a few Chatime competitors as a comparison:
Find the best franchises of 2024
Compare fees, costs, profits and more across 2,000 franchises.
Chatime Franchise Disclosure Document
Frequently Asked Questions
How many Chatime locations are there?
As of the latest data, Chatime operates over 1,400 franchise locations worldwide. The majority of these outlets are franchise-owned, following Chatime’s expansion and growth model.
What is the total investment required to open a Chatime franchise?
The total investment required to open a Chatime franchise ranges from $281,000 to $494,000.
What are the ongoing fees for a Chatime franchise?
Chatime franchisees pay a royalty fee of 5% of monthly gross sales for brand use and support, along with a 2% marketing fee to fund advertising and promotional efforts.
What are the financial requirements to become a Chatime franchisee?
To become a Chatime franchisee, you need a minimum net worth of $300,000 and at least $150,000 in liquid capital. These financial requirements ensure you have the necessary resources to establish and operate a Chatime franchise successfully.
How much can a Chatime franchise owner expect to earn?
The average gross sales for a Chatime franchise are approximately $1.15 million per location. Assuming a 15% operating profit margin, $1.15 million yearly revenue can result in $173,000 EBITDA annually.
Who owns Chatime?
Chatime is owned by La Kaffa International Co. Ltd., a Taiwanese company that operates the global bubble tea franchise. As of June 2024, Carlos Antonius serves as the global CEO, overseeing the brand’s operations and strategic growth worldwide.
Disclaimer
Disclaimer: This content has been made for informational and educational purposes only. We do not make any representation or warranties with respect to the accuracy, applicability, fitness, or completeness of the information presented in the article. You should not construe any such information or other material as legal, tax, investment, financial, or other professional advice. Nothing contained in this article constitutes a solicitation, recommendation, endorsement, advertisement, or offer to buy or sell any franchises, securities, or other financial instruments in this or in any other jurisdiction in which such solicitation or offer would be unlawful under the franchise and/or securities laws of such jurisdiction.
All content in this article is information of a general nature and does not address the detailed circumstances of any particular individual or entity. Nothing in the article constitutes professional and/or financial and/or legal advice, nor does any information in the article constitute a comprehensive or complete statement of the matters discussed or the law relating thereto. You alone assume the sole responsibility of evaluating the merits and risks associated with the use of any information or other content in this article before making any decisions based on such information or other content.
