Chicha San Chen franchise cost 2026: $155,500-$249,460 Item 7, $30,000 fee, 6% royalty, no ad fund. Unit vs sub-franchise FDD compared, plus Gong cha and Kung Fu Tea.
Quick answer A Chicha San Chen unit franchise costs $155,500 to $249,460 all-in per the 2025 FDD Item 7, including a $30,000 initial franchise fee and a $30,000 refundable security deposit, with a 6% royalty on gross revenues and no advertising fund. The separate master franchise FDD runs $359,000 to $537,000 on a $250,000 to $350,000 master fee and a 1% royalty. Seven franchised US outlets were open at the end of 2024 and neither FDD contains an Item 19.
Item 7 of Chicha San Chen’s 2025 Franchise Disclosure Document puts a single US outlet at $155,500 to $249,460. That document carries an issuance date of March 1, 2025, and the number to underwrite from is that Item 7 total rather than any figure quoted on a franchise portal. Of the total, $92,800 to $108,960 is paid to the franchisor or its affiliates.
The line items behind the range are unusually legible, which helps because the brand is new enough that comparable resale data does not exist:
| Item 7 line | Low | High |
|---|---|---|
| Initial franchise fee | $30,000 | $30,000 |
| Security deposit (refundable) | $30,000 | $30,000 |
| Design fee | $0 | $3,360 |
| Training fee | $2,800 | $5,600 |
| Training travel and lodging | $5,000 | $10,000 |
| Lease and security deposit | $10,000 | $20,000 |
| Leasehold improvements | $10,000 | $50,000 |
| Equipment, furniture and fixtures | $20,000 | $30,000 |
| Point of sale system | $700 | $2,500 |
| Signage and graphics | $1,000 | $5,000 |
| Professional fees | $5,000 | $10,000 |
| Licenses and permits | $1,000 | $5,000 |
| Opening inventory | $10,000 | $10,000 |
| Business insurance | $1,000 | $3,000 |
| Additional funds, 3 months | $30,000 | $40,000 |
| Total | $155,500 | $249,460 |
The footprint is what keeps the headline number low. Outlets run 400 to 1,000 square feet, and the FDD allows something smaller under special circumstances, including an island-style store in a mall. A build that size caps leasehold improvements at $50,000, which is the line where most food franchises blow past $250,000 on their own. Note 5 also warns that the estimate assumes a basic build of the standard design and ignores the condition of the space you actually lease, so a raw shell rather than a former food tenant lands above the disclosed high end.
The most common mistake in researching this brand is treating it as one offer. Chicha registered two separate disclosure documents on the same March 1, 2025 issuance date, and the $200,000 figure that circulates in search results belongs to neither of the deals most buyers are imagining.
Take the unit document first. A single outlet carries a $30,000 initial franchise fee plus a $30,000 refundable security deposit, and a royalty of 6% of Gross Revenues due on the 10th of each month. There is no advertising fund. The document states directly that the franchisor does not have a marketing fund, will not establish one, and will not require any contribution. That is rare, and it is worth two points of margin against most competitors.
An area development track sits inside that same document. Its Initial Area Development Fee is $200,000, total investment becomes $406,500 to $541,100, and the developer commits to at least two additional outlets on an agreed schedule. Royalty under the development agreement drops to 5% of gross sales across all stores, and each additional store carries an $8,000 franchise fee. That $200,000 is the number people find and misreport as the cost of a single Chicha franchise.
The master franchise document describes a different business entirely. Its Master Initial Franchise Fee runs $250,000 to $350,000, paid in two installments, and total investment is $359,000 to $537,000, of which $295,000 to $430,000 goes to the franchisor. Royalty is 1% of net sales for every store operated by the master franchisee and its subfranchisees, and the master collects royalties from third-party unit franchisees and remits them upward. Renewal costs $100,000 and requires agreeing to open or sublicense ten more outlets.
The one-line test: if you plan to run stores, read the unit FDD. If you plan to sell franchises to other people inside a territory, read the master FDD. Buying the wrong document wastes a due diligence cycle, and the fee difference between them is roughly $220,000 to $320,000.
The brand has been in the country longer than its franchisor’s outlet table suggests. A California Department of Financial Protection and Innovation consent order records that Fang Yuan sold a San Chen subfranchise to Globalink USA, Inc. on May 7, 2019, and that Globalink opened a store in San Gabriel, California in or around November 2019. That was the US entry. The seven outlets in the current Item 20 table are a separate and newer channel, franchised directly by Chicha San Chen Corporation rather than through a master.
Growth since has been regional and fast in pockets. The company’s own store locator listed 29 US locations across thirteen states, and that list omits the Manhattan Chinatown shop Time Out New York covered when it opened on Bayard Street in May 2024, so 29 is a floor rather than a count. In the Bay Area alone, The Dissent SF tallied six stores opening in roughly eighteen months through August 2026. The Daily Californian dated the Berkeley opening to February 15, 2025 and quoted the store manager on the mechanic that drives the queue: every cup brewed to order, one at a time, on a proprietary machine. In September 2026 the company announced it was seeking master franchise partners across the United States. Notably, almost none of this ran in the restaurant or franchise trade press, so the secondary sources a buyer would normally triangulate against do not exist yet.
One claim in the search results does not survive checking. Coverage of this brand is thick with the word “Michelin,” and there is no listing, star, or partnership behind it. The award is the Superior Taste Award from the International Taste Institute, a Brussels body whose published jury description covers chefs and sommeliers and never mentions the tire company or its guide. The program is non-competitive and charges an entry fee per product. That framing traces back to Chicha’s own marketing, which uses the constructed phrase “Michelin iTi three-star certification.” The Infatuation handled it correctly, writing that the institute award has led “some to call it ‘Michelin star boba.’” Read it as a paid sensory certification, because that is what it is.
The supply chain explains the economics better than the press does. Item 8 discloses that Fang Yuan F&B International Co., Ltd. generated $14,083,133 of revenue in 2024, of which $8,903,245 came from mandatory purchases and leases made by franchisees, or 63% of the affiliate’s total. Required purchases run 28% to 36% of a subfranchisee’s initial investment and 23% to 27% of ongoing monthly expenses. Roughly a quarter of every operating dollar goes to designated suppliers, which is the real pricing mechanism here and matters more than the 6% royalty.
Neither Chicha FDD contains a financial performance representation. Both use the standard language: the franchisor makes no representation about a franchisee’s future financial performance or the past performance of company-owned or franchised outlets, and does not authorize employees or representatives to make one either.
That absence carries more weight here than it would at a mature brand. Across the 605 Food & Beverage systems in our database with a recorded Item 19 status, 62% disclose one, and unlike a large chain where performance figures circulate informally among owners, there are only seven US operators to ask. The entire revenue side of the model therefore has to come out of Item 20, whose Exhibit C lists the name, address and phone number of every open outlet and every franchisee who signed without opening. In a system this small, calling all of them is one afternoon, and it is not optional. Our validation call guide covers how to structure those conversations so you get sales figures rather than enthusiasm.
Considering Chicha San Chen? The full 12-section FDD analysis covers Item 19 earnings, litigation history, fee footnotes, and a buyer verdict personalized to your capital and market: $49 per brand, or three brands for $99 if you’re comparing finalists.
The three brands sit at different points of the same category, and the comparison is more useful on disclosure than on price.
| Chicha San Chen | Gong cha | Kung Fu Tea | |
|---|---|---|---|
| FDD year | 2025 | 2026 | 2026 |
| Item 7 total | $155,500 to $249,460 | $207,450 to $648,460 | $169,000 to $378,000 |
| Initial franchise fee | $30,000 | $37,000 | $37,000 ($25,000 non-traditional) |
| Refundable security deposit | $30,000 | none | none |
| Royalty | 6% of gross revenues | 6% of weekly net sales | 4% of gross sales |
| Ad or marketing fund | none | 1%, can rise to 2% | 2%, plus 7.25% app promotions fee |
| Franchised US units | 7 | 36 direct (239 US stores in total) | 342 |
| Item 19 | none | 222 stores, $363,373 median | none |
Chicha is the cheapest entry and the thinnest bet. Gong cha costs more at the top end and is the only one of the three that will tell you what a store earns: its 2026 Item 19 reports 2025 net sales for 222 established US stores, with a $363,373 median, a $396,887 average, a $992,695 high and a $74,712 low, and a bottom quartile of 56 stores averaging $199,208. That spread is the most useful number in the boba category and it belongs to a competitor.
Kung Fu Tea is the scale player and the cautionary one, with franchised units falling from 387 to 342 during 2025 and royalty income down from $4,712,285 in 2023 to $3,610,681 in 2025. Its Item 7 range also reads lower than it is, because additional funds cover only the first month where Chicha and Gong cha both budget three.
Unit franchisees do not get an exclusive territory, and the FDD says so in those words. What they get is a protected territory defined by population density and drawn on a map attached to the franchise agreement, typically a radius running from a quarter mile in dense areas to one mile in rural ones. Inside that radius the franchisor will not grant another San Chen franchise or operate its own outlet, provided the franchisee stays in compliance. Outside it, competition from other franchisees, company outlets and other channels is expressly reserved.
A quarter-mile radius is a few blocks. That is defensible for a 400 square foot takeaway counter and meaningless as a barrier to a competing brand. Judge the site on its trade area rather than on the protection, using the framework in our territory analysis guide.
Master franchisees get a genuinely different grant. Their territory is exclusive, covers a minimum population of five million, and cannot be relocated or unilaterally modified by the franchisor. Continued exclusivity is not conditioned on hitting sales volume or market penetration targets, which is unusually favorable language. The trade is capital: $359,000 to $537,000 and a commitment to build a network you then have to support. Area developers under the unit FDD sit between the two, holding an exclusive right, while the development agreement remains in effect, to open a mutually agreed number of outlets on a mutually agreed schedule.
Four disclosed facts define the risk, and all four are in the documents.
Start with Item 21, because the franchisor is losing money. It shows 2024 franchising revenue of $717,817 against $959,483 of operating cost, a $241,666 operating loss and a $96,041 net loss after interest income and a tax benefit, following a $139,439 net loss in 2023. At December 31, 2024 the company carried a shareholders’ equity deficiency of $167,567 and had taken a $50,000 capital injection from its parent. The notes attribute the negative equity to deferred revenue timing rather than distress, which is defensible, but the operating shortfall is the part that matters: franchise fees are currently funding overhead. Our guide to emerging franchise risk below 50 units covers why 80 to 100 units is the usual threshold for royalty self-sufficiency. Chicha has seven.
Item 3 carries a regulatory finding. California’s Department of Financial Protection and Innovation executed a consent order with the company on January 28, 2022, after the Commissioner found that it had omitted an existing unit franchise and the name and contact details of an existing subfranchisor from Item 20 of a filed FDD. Terms included a desist and refrain order, delivery of a notice of violation to the affected subfranchisee, remedial education, and the appointment of a monitor to supervise future filings. A disclosure-accuracy finding lands differently than most litigation entries, because your entire evaluation of this brand rests on the accuracy of a disclosure.
Then there is the term. The unit franchise agreement runs an initial 3.5 years, renewable in two-year increments for a $10,000 renewal fee, with the franchisor under no obligation to renew. Most US food franchise agreements run ten. Financing a $155,500 to $249,460 build against a 3.5-year right to operate compresses the payback window and hands the franchisor renewal leverage roughly three times as often as the category norm.
Training is the one place the disclosure is generous. Item 11 discloses 88 classroom hours and 152 on-the-job hours, delivered in two phases of roughly fifteen days each, the first in San Francisco and the second at the franchisee’s own outlet. That is a substantial program by category standards. It is also the entire support structure, provided by a franchisor with seven US stores and a net loss.
None of this makes Chicha San Chen a bad opportunity. It makes it an early one, priced accordingly. The buyer profile that fits is an operator with the capital to absorb the build without debt service pressure, a specific high-density site already identified, and the appetite to be among the first twenty US owners of a brand that has not yet proven US unit economics in writing. The buyer profile that does not fit is anyone who needs a revenue number before signing, because that number does not exist in either document.
If you want to compare the full boba category on verified FDD numbers first, see our ranking of the best boba tea franchises. For a look at how imported Asian food and beverage brands have handled US entry generally, see international franchise brands expanding into the US.
Find the franchise that fits your capital →
Get the full 12-section FDD analysis — $49
Real franchise data, real Item 19 numbers, personalized to your capital and location. Comparing 2–3 brands? The 3-pack is $99.
Browse franchises · pick your brand Or see a real sample report →
Take the Chicha San Chen numbers with you.
We'll email you the Chicha San Chen FDD data sheet: a one-page PDF with the Item 7 investment range, initial franchise fee, royalty, and the Item 19 revenue headline. No spam, unsubscribe anytime.
✓ Check your inbox
The Chicha San Chen data sheet is on its way.
The only franchise report written entirely for the buyer. 12 sections covering financial risks, legal obligations, and a personalized recommendation.
Browse Franchise Library See a real sample report →
$49 per brand · $99 for a 3-brand pack
chicha san chen franchise costbubble tea franchiseboba franchisefdd item 7emerging franchise
About this analysis The franchise data in this article is drawn from VetMyFranchise's structured analysis of 2,300+ Franchise Disclosure Documents filed with U.S. state regulators. See our data & methodology.
A single outlet costs $155,500 to $249,460 according to Item 7 of the 2025 FDD. That includes a $30,000 initial franchise fee, a $30,000 refundable security deposit, $20,000 to $30,000 of equipment and fixtures, $10,000 to $50,000 of leasehold improvements, $10,000 of opening inventory, and $30,000 to $40,000 of additional funds covering the first three months. Between $92,800 and $108,960 of the total is paid to the franchisor or its affiliates. An area development commitment is a separate and much larger number: $406,500 to $541,100, built on a $200,000 Initial Area Development Fee.
Yes. Chicha San Chen Corporation, a California entity headquartered in Sacramento, registered two FDDs with an issuance date of March 1, 2025, one for unit and area-development franchises and one for master franchises. Item 20 of the unit document shows seven franchised outlets open at the end of 2024 in California, Colorado, Maryland and Washington, all opened during 2024, with two more projected in California for the following fiscal year.
The unit FDD applies if you are buying the right to operate one outlet, or an area development agreement covering at least two. The master (sub-franchise) FDD applies if you are buying a development territory and intend to sell unit franchises inside it to other operators. The economics differ sharply: the unit deal costs $155,500 to $249,460 and carries a 6% royalty, while the master deal costs $359,000 to $537,000 with a master fee of $250,000 to $350,000 and a 1% royalty on the sales of every store in the territory. A master franchisee collects royalties from its subfranchisees and remits to the franchisor.
Chicha is cheaper to open and far less proven. The Chicha unit range of $155,500 to $249,460 sits below Gong cha's $207,450 to $648,460, and both charge a 6% royalty. The difference is disclosure and scale. Gong cha's 2026 FDD reports Item 19 net sales for 222 established US stores with a median of $363,373 and a range of $74,712 to $992,695. Chicha discloses no Item 19 at all, and had seven US outlets to Gong cha's 239. A buyer choosing Chicha is accepting an unverifiable revenue assumption in exchange for an earlier entry point.
This page is part of VetMyFranchise. View all pages: llms.txt · llms-full.txt