CHATIME FRANCHISE LLC Franchise
Cost, fees, owner earnings, closure rate and litigation for a CHATIME FRANCHISE LLC franchise — pulled from the franchisor's own public FDD (2026), not its sales material.
Disclosure honesty
CHATIME FRANCHISE LLC discloses earnings (Item 19) — but the grade is how honestly. We graded it D.
What their own earnings claim actually says
Net sales for 13 stores operating 12+ months in 2025, ranging $93,939–$977,385. Unaudited POS data. No assurance of matching results.
What a CHATIME FRANCHISE LLC 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 | $291,100 – $499,900 | Item 7 — franchisor's own low/high estimate |
5% royalty + 2% brand marketing + 2% local marketing required. Multi-unit fee credited against individual franchise fees.
Royalty and ad-fund percentages are charged on gross sales — an owner pays them whether or not the location is profitable.
CHATIME FRANCHISE LLC system size and owner turnover
| Total outlets | 18 |
| Ceased operations | 2 |
| Terminated by franchisor | 0 |
| Transferred to new owners | 0 |
| Closure rate | 11.1% of outlets |
2 ceased operations in 2025; 1 non-renewal in 2024. Minimal exit activity.
From Item 20 of the FDD 2026. Terminations and ceased operations are the franchisor's own count of owners who stopped — the number the sales pitch leaves out.
Is CHATIME FRANCHISE LLC worth it? — how it compares to 32 similar franchises
| Ongoing fees | 7% of sales | lower than most (median 8%) |
| Startup cost | from $291,100 | cheaper than most (median $350,000) |
| Disclosure honesty | Grade D | less honest than most of the category |
| Closure rate | 11.1% of outlets | worse than 83% of peers |
| Disclosed lawsuits | 2 | more litigious than 88% of peers |
Benchmarked against every coffee & donuts franchise we've graded from public FDDs — the context the franchisor's pitch never gives you.
Owner take-home for a CHATIME FRANCHISE LLC
The franchisor's framing: Net sales for 13 stores operating 12+ months in 2025, ranging $93,939–$977,385. Unaudited … 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 LLC franchise — frequently asked
- How much does a CHATIME FRANCHISE LLC franchise cost?
- The FDD lists a total initial investment of about $291,100–$499,900, including a $54,900 initial franchise fee.
- How much do CHATIME FRANCHISE LLC franchise owners make?
- Net sales for 13 stores operating 12+ months in 2025, ranging $93,939–$977,385. Unaudited POS data. No assurance of matching results. We grade this disclosure D for honesty.
- What are the CHATIME FRANCHISE LLC franchise fees?
- CHATIME FRANCHISE LLC'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. 5% royalty + 2% brand marketing + 2% local marketing required. Multi-unit fee credited against individual franchise fees.
- What is the CHATIME FRANCHISE LLC franchise profit margin?
- CHATIME FRANCHISE LLC does not publish a franchisee net-profit margin — almost no franchisor does. What Item 19 actually shows: Net sales for 13 stores operating 12+ months in 2025, ranging $93,939–$977,385. Unaudited POS data. No assurance of matching results. 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 LLC franchise failure rate?
- 2 ceased operations in 2025; 1 non-renewal in 2024. Minimal exit activity.
- How many CHATIME FRANCHISE LLC locations are there?
- CHATIME FRANCHISE LLC's FDD reports 18 total outlets, with 2 that ceased operations in the most recent reporting year and 0 transferred to new owners. Item 20 is where system health shows up before the marketing does.
- Does CHATIME FRANCHISE LLC have complaints or lawsuits?
- CHATIME FRANCHISE LLC 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 LLC franchise worth it?
- It depends on the numbers, not the pitch. CHATIME FRANCHISE LLC scores D 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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Source: WI DFI Franchise Registration (2026). FranchiseValidate is independent and not affiliated with CHATIME FRANCHISE LLC or its franchisor. Figures are extracted from the franchisor's own public disclosure document; verify against the current FDD before any decision.