Chatime Franchise Review 2026: Ratings & Verdict

Product details

Contents

Key facts


The Verdict

Quick Verdict · who it fits

Chatime fits first-time franchise buyers looking for an emerging food & beverage concept.

⚠ Risks to review

Key FDD Facts

The numbers a buyer needs first — straight from the filing.

Initial investment (Item 7)

$371K - $720K

Franchise fee (Item 5)

$55K

Royalty (Item 6)

5%

Item 19 median rev

$244k franchised units operating more than 12 months in current loc…

System size (Item 20)

18

Years in business

8+ yrs

Training (Item 11)

14 days

Company-owned units

3

Item 3 litigation

2 suits

Model Chatime's costs in the investment calculator → Prefilled from this filing — startup cost, cash flow and break-even.

Buyer qualifications

•No exclusive territory•Owner-operator required✓No bankruptcy disclosed•2 Item 3 cases

Data extracted from the 2026 FDD filed with state regulators. Fees and terms may have changed since filing — request the current FDD from the franchisor before deciding. Not legal, financial, or investment advice. Full disclaimer.

What you'd pay the franchisor

Drag to your projected annual sales. Royalty 5% on gross sales.

PROJECTED ANNUAL SALES$240,000

$100k$2M

Royalty (5%)

Total / year

▪ Of-sales fees only · excludes rent, labor, COGS, and one-time costs · for illustration

Executive Summary

Free AI summary — the first read on the filing.

Key Numbers

19

Total units open

3

Units opened last year

0

Units closed last year

+2

Net unit growth

AI Due Diligence Findings PREMIUM

What our analysis flagged across the 2026 filing.

5

Risks to review

3

Strengths identified

4

Questions to ask

Industry Benchmarks

How Chatime ranks against 749 Food & Beverage peers we've analyzed.

Initial investment

51st pct · of 749 peers

Franchise fee

93rd pct · of 749 peers

System size

42nd pct · of 749 peers

Food & Beverage industry averages

Avg investment

$589K - $1.4M

Avg franchise fee

$37K

Avg system size

261

Franchises analyzed

749

How Chatime stacks up

Closest concepts by category and investment.

Brand Item 19 Fee Investment Royalty Units
Chatime Disclosed $55K $371K - $720K 5% 18
BarberitosSimilar price Disclosed $35K $506K - $720K 6% 43
Doctor's AssociatesBiggest system None $15K $227K - $630K 8% 18,773
Vintage Hospitality GroupTop-rated in category Disclosed $50K $3.5M - $6.4M 5.5% 33

Compare side-by-side ↗

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Frequently Asked Questions

How much does a Chatime franchise cost?

Chatime requires a $54,900 initial franchise fee and a total initial investment range of $371,100–$719,900, per the most recent FDD on file.

Who owns Chatime?

Chatime franchises are sold by Chatime Franchise LLC, the franchisor entity of record on its Franchise Disclosure Document. Item 1 of the FDD discloses the corporate structure, including any parent companies and predecessors.

Does Chatime disclose financial performance (Item 19)?

No. Chatime does not include a financial performance representation in its FDD. Prospective buyers should rely on validation calls with existing franchisees and benchmark against industry medians.

What ongoing fees does Chatime charge?

Franchisees pay a royalty of 5.0% on gross sales as defined in Item 6 of the FDD.

How many Chatime locations are there?

As of their 2026 FDD, Chatime has 18 total locations. This information comes from Item 20 of the FDD.

Does Chatime offer franchisee training and support?

Yes. Chatime's most recent FDD documents approximately 14 days of initial training, typically split between classroom and on-site components. See Item 11 of the FDD for the full training and support schedule.

Does Chatime grant exclusive territory?

No. Chatime does not grant exclusive territory rights under Item 12. The franchisor retains the right to operate or grant additional units inside or adjacent to your trade area.

What are the renewal and exit terms?

Per the FDD, Chatime discloses a transfer fee of $10,000. Review Items 10 and 17 for the full renewal and termination provisions.

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