Chi Tea
Disclosure honesty
Chi Tea discloses earnings (Item 19) — but the grade is how honestly. We graded it C.
What their own earnings claim actually says
Based on 3 affiliate-operated restaurants (Jan-Dec 2025). Average annual gross sales $1,351,860. Range $950,200-$1,988,989. Unaudited. Affiliate locations exempt from franchise fees.
Is Chi Tea worth it? — how it compares to 164 similar franchises
| Ongoing fees | 6% of sales | lower than most (median 8%) |
| Startup cost | from $230,542 | cheaper than most (median $481,500) |
| Disclosure honesty | Grade C | typical for the category |
| Closure rate | 0.0% of outlets | better than most (median 1.3%) |
| Disclosed lawsuits | 0 | fewer than most |
Benchmarked against every quick service restaurants franchise we've graded from public FDDs — the context the franchisor's pitch never gives you.
Owner take-home for a Chi Tea
The franchisor's framing: Based on 3 affiliate-operated restaurants (Jan-Dec 2025). Average annual gross sales $1,35… 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
Chi Tea franchise — frequently asked
- How much does a Chi Tea franchise cost?
- The FDD lists a total initial investment of about $230,542–$478,667, including a $40,000 initial franchise fee.
- How much do Chi Tea franchise owners make?
- Based on 3 affiliate-operated restaurants (Jan-Dec 2025). Average annual gross sales $1,351,860. Range $950,200-$1,988,989. Unaudited. Affiliate locations exempt from franchise fees. We grade this disclosure C for honesty.
- What is the Chi Tea franchise failure rate?
- No franchised outlets exist; zero franchise agreements signed; company-owned only.
- Is a Chi Tea franchise worth it?
- It depends on the numbers, not the pitch. Chi Tea scores C on disclosure honesty, carries about 6% of sales in ongoing fees. Get the real owner take-home before you sign.
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Compare Chi Tea to similar franchises
See all franchises ranked by disclosure honesty →
Source: WI DFI Franchise Registration (2026). FranchiseValidate is independent and not affiliated with Chi Tea or its franchisor. Figures are extracted from the franchisor's own public disclosure document; verify against the current FDD before any decision.