Cha RedefineFranchise Cost, Revenue & Review 2026
Data from FDD filing
FranchiseVerdict summary · 2026
A Cha Redefine franchise requires a total initial investment of $315K – $714K, including a $30K franchise fee and an ongoing 5.0% royalty[2]. Per the 2026 FDD, average unit revenue was $1.4M[2]. Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2026 FDD issuance
Overview
- Investment
- $315K – $714K
- 20th pct Service Resta…
- Avg gross sales
- $1.4M
- 14th pct Service Resta…
- Royalty
- 5.0%
- 7th pct Service Resta…
- Units
- 5
- 13th pct Service Resta…
- SBA default
- N/A
Quick verdict · Full-Service Restaurants · color = vs category peers
Green = >15% above Full-Service Restaurants avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Started franchising in 2024. Newer systems carry more uncertainty but may offer better territories.
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).
- Verdict A (Top Quintile) with a risk score of 52/100.
- 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
- Legal entity
- Cha Redefine Franchises LLC
- Parent company
- CHR Holdings Group, Inc.
- CEO title
- President
- Jim Lan
- CEO experience
- 23 yrs
- Years in role or industry
- Incorporated in
- CA
- HQ
- 9083 Las Tunas Drive, Temple City, California 91780
- Auditor
- Plante & Moran, PLLC
- Audited financials
- Franchisor revenue
- $0
- Most recent fiscal year
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.
- CEO
- Jim Lan
- Headquarters
- CA
- Founded
- 2024
- FDD year
- 2026
- States available
- 2
FDD Item 7 · 2026 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $30K | $30K |
| Working capital (3–6 mo) | $25K | $50K |
| Equipment, build-out, other | $260K | $634K |
| Total initial investment | $315K | $714K |
Source: Cha Redefine 2026 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$164K
12.0% margin
Unlevered ROIC
30%
EBITDA / total invested capital
Payback
3.4 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $315K – $714K
- Better than avg vs category
- Liquid capital req'd
- $25K – $50K
- Better than avg vs category
- Franchise fee
- $30K – $30K
- Better than avg vs category
- Royalty
- 5.0%
- Gross Sales · typical 6–8%
- Ad fund
- 1.0%
- typical 3–5%
- Total fee load
- 6.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 5.0% of gross sales |
| Marketing / ad fund | 1.0% of gross sales |
| Transfer fee | $15K |
| Renewal fee | $15K |
| Total fee load | 6.0% of rev |
A 6.0% total fee load is unusually lean. More of each revenue dollar stays with the franchisee.
Financial Performance
- Avg gross sales
- $1.4M
- Per unit, per year
- Median gross sales
- $1.5M
- Item 19 type
- gross_sales
- Sample size
- 3 units
- vs category median 13 · small
- Range (low → high)
- $850K→$1.8M
- Cohort dispersion (min → max)
- Transparency
- 4 / 5
- vs category median 4 / 5 · typical
Compared against 1264 Full-Service Restaurants brands
vs Full-Service Restaurants averages
How Cha Redefine Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 5
- Opened
- 2
- Last reporting year
- Closed
- 0
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 0.0%
- Company-owned
- 3
- Corporate units in the system
- % franchised
- 40%
- vs corporate-owned
3-year detail · Item 20
- Transfers (3yr)
- 0
- Projected new
- 4
- Franchisor's next-year forecast
- Ceased ops
- 20.0%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 3 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 contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
No SBA loan data available for this brand.
Risk analysis
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.
Litigation (Item 3)
No litigation required to be disclosed
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Plante & Moran, PLLC
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 52 / 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
| Initial term | 10 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 1 |
| Territory type | Radius |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory radius | 1 mi |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 5 mi |
| Right of first refusalℹ | Yes |
| RoFR response window | 60 days |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Arbitration location | Temple City, California |
| Jury trial waiver | Yes |
| Governing law | California |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation required to be disclosed
Items 10, 11
Training & Operations
- Classroom training
- 0 hrs
- On-the-job training
- 210 hrs
- Training location
- On-site and corporate
- Ongoing training
- Required
- Time to open
- 12 mo
- From signing to launch
- POS system
- Toast
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Toast
Item 20 · call current owners
Franchisee Contacts
3 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Cha Redefine · FDD (2026) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Cha Redefine franchise?
The total investment to open a Cha Redefine franchise ranges from $315K – $714K, with an initial franchise fee of $30K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Cha Redefine franchise owners earn?
According to Item 19 of the Cha Redefine FDD, the average gross sales per unit is $1.4M. The median is $1.5M. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Cha Redefine's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Cha Redefine (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
How many Cha Redefine franchise locations are there?
As of their most recent FDD filing, Cha Redefine has 5 total units in the United States, including 2 franchised units and 3 company-owned units. 2 new units were opened in the latest reporting year.
Is Cha Redefine a good franchise to buy?
FranchiseVerdict rates Cha Redefine as a A-grade franchise with a risk score of 52 out of 100, based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.