Bottom line
- Total investment $315K – $714K including a $30K franchise fee, 5.0% ongoing royalty.
- Average unit revenue of $1.4M/year (median $1.5M).
- Rated MODERATE with a risk score of 63/100.
- Emerging franchise — only 2 years of franchising with 5 units. Early-stage systems carry higher risk but may offer better territory availability.
Item 1 · who you're contracting with
The Franchisor
Yale framework · single-unit ROIC
Returns Analysis
Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.
The model · Yale framework
What would one Cha Redefine unit return on the cash you put in?
Unlevered ROIC · per unit
42%
In Yale's "attractive" band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Cha Redefine units return on equity?
Equity IRR · 5-yr
36.4%
4.72× MOIC
Year-1 DSCR
2.26×
EBITDA ÷ debt service
Equity required
$4.6M
on $13.7M purchase
Total debt
$9.1M
SBA $5.0M + senior + seller note
Overview
About
Cha Redefine franchisees operate specialty tea/beverage retail locations, likely featuring customizable drinks and premium ingredients. Daily operations involve inventory management, point-of-sale transactions, staff training, and maintaining brand standards across a small but growing tea-focused retail network.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 7 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator — not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
No SBA loan data available for this brand.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Cha Redefine presents elevated risk due to franchisor going concern issues, absence of profitability disclosure, minimal unit count, and a wide investment range with opaque returns.
Score breakdown · what drove the 63 / 100 rating
- 01HIGHGoing Concern status is False — indicates potential financial instability or undisclosed restructuring at franchisor level
- 02MEDNet Income not disclosed in Item 19 — impossible to validate actual profitability; average revenue of $1.37M means little without expense clarity
- 03MINOROnly 5 units system-wide — extremely small franchise network with unknown growth trajectory; minimal scale and brand recognition
- 04MEDHigh investment range ($315K-$714K) paired with undisclosed net income creates unquantifiable ROI risk
- 05HIGHNo litigation disclosed but going concern status suggests financial strain that may precede legal issues
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
Item 11
Training & Operations
Item 20
Franchisee Contacts
Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.
Franchisee contacts
11 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Cha Redefine · FDD (2026) PDF