CHATIME Franchise
Cost, fees, owner earnings, closure rate and litigation for a CHATIME franchise — pulled from the franchisor's own public FDD (2025), not its sales material.
Disclosure honesty
CHATIME discloses earnings (Item 19) — but the grade is how honestly. We graded it C.
What their own earnings claim actually says
5 US franchises' 2024 net sales ($125K-$793K). Unaudited POS data. No assurance results replicate. Cherry-picks 12+ month stores only.
What a CHATIME franchise actually costs to run
| Fee | Disclosed | Where it comes from |
|---|---|---|
| Initial franchise fee | $54,900 | Item 5 — paid up front, before you open |
| Royalty | 5% of gross sales | Item 6 — charged on revenue, not profit |
| Advertising fund | 2% of gross sales | Item 6 — brand marketing, spent at the franchisor's discretion |
| Total recurring fees | 7% of gross sales | Before rent, labor, food or debt service |
| Total initial investment | $293,100 – $479,900 | Item 7 — franchisor's own low/high estimate |
Royalty 5% + Brand Marketing 2%. Additional: 2% local marketing required. Multi-unit fees $98.9K-$274.9K.
Royalty and ad-fund percentages are charged on gross sales — an owner pays them whether or not the location is profitable.
CHATIME system size and owner turnover
| Total outlets | 19 |
| Ceased operations | 0 |
| Terminated by franchisor | 0 |
| Transferred to new owners | 2 |
| Closure rate | 0.0% of outlets |
3 ceased ops 2023; net +2 outlets 2024; minimal terminations/closures recent.
From Item 20 of the FDD 2025. Terminations and ceased operations are the franchisor's own count of owners who stopped — the number the sales pitch leaves out.
Is CHATIME worth it? — how it compares to 436 similar franchises
| Ongoing fees | 7% of sales | lower than most (median 8%) |
| Startup cost | from $293,100 | pricier than 72% of peers |
| Disclosure honesty | Grade C | typical for the category |
| Closure rate | 0.0% of outlets | better than most (median 1.5%) |
| Disclosed lawsuits | 2 | more litigious than 68% of peers |
Benchmarked against every other franchises franchise we've graded from public FDDs — the context the franchisor's pitch never gives you.
Owner take-home for a CHATIME
The franchisor's framing: 5 US franchises' 2024 net sales ($125K-$793K). Unaudited POS data. No assurance results re… We reconstruct what an owner actually keeps, from their own FDD.
- Reconstructed owner P&L — net take-home after royalty, ad fund, rent, labor & debt
- Break-even timeline + cash-on-cash ROI
- Full fee stack + required-purchase markups
- Decoded real failure / closure rate
- How it ranks vs comparable franchises
- Validation-call playbook — the exact questions to ask
See a full sample report → · 30-day guarantee
CHATIME franchise — frequently asked
- How much does a CHATIME franchise cost?
- The FDD lists a total initial investment of about $293,100–$479,900, including a $54,900 initial franchise fee.
- How much do CHATIME franchise owners make?
- 5 US franchises' 2024 net sales ($125K-$793K). Unaudited POS data. No assurance results replicate. Cherry-picks 12+ month stores only. We grade this disclosure C for honesty.
- What are the CHATIME franchise fees?
- CHATIME's FDD discloses a $54,900 initial franchise fee, a 5% royalty on gross sales, a 2% advertising-fund contribution, for roughly 7% of gross sales in recurring fees before rent, labor, or debt service. Royalty 5% + Brand Marketing 2%. Additional: 2% local marketing required. Multi-unit fees $98.9K-$274.9K.
- What is the CHATIME franchise profit margin?
- CHATIME does not publish a franchisee net-profit margin — almost no franchisor does. What Item 19 actually shows: 5 US franchises' 2024 net sales ($125K-$793K). Unaudited POS data. No assurance results replicate. Cherry-picks 12+ month stores only. Recurring fees alone take about 7% of gross sales, before rent, labor, food or debt service. Margin has to be reconstructed from the disclosure, not read off it.
- What is the CHATIME franchise failure rate?
- 3 ceased ops 2023; net +2 outlets 2024; minimal terminations/closures recent.
- How many CHATIME locations are there?
- CHATIME's FDD reports 19 total outlets, with 0 that ceased operations in the most recent reporting year and 2 transferred to new owners. Item 20 is where system health shows up before the marketing does.
- Does CHATIME have complaints or lawsuits?
- CHATIME discloses 2 legal matters in Item 3 of its FDD. Item 3 covers the franchisor's litigation history, which is the closest thing to a public record of how it treats franchisees — read the case descriptions, not just the count.
- Is a CHATIME franchise worth it?
- It depends on the numbers, not the pitch. CHATIME scores C on disclosure honesty, carries about 7% of sales in ongoing fees, and discloses 2 legal matters. Get the real owner take-home before you sign.
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Compare CHATIME to similar franchises
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Source: MN CARDS 34930-202510-01 (Clean FDD 2025). FranchiseValidate is independent and not affiliated with CHATIME or its franchisor. Figures are extracted from the franchisor's own public disclosure document; verify against the current FDD before any decision.