Cha Street Food
Formerly known as Chatime
Bottom line
- Total investment $313K – $638K including a $35K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $1.8M/year.
- Rated STRONG with a risk score of 52/100. SBA loan default rate of 0.0% across 14 loans (below the industry average).
- Emerging franchise — only 1 year of franchising with 2 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 STREET FOOD unit return on the cash you put in?
Unlevered ROIC · per unit
56%
In Yale's "attractive" band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 CHA STREET FOOD units return on equity?
Equity IRR · 5-yr
33.1%
4.17× MOIC
Year-1 DSCR
2.45×
EBITDA ÷ debt service
Equity required
$6.1M
on $15.9M purchase
Total debt
$9.8M
SBA $5.0M + senior + seller note
Overview
About
Franchisees operate quick-service food concepts serving Asian street food (likely tea beverages, noodles, or snacks). Day-to-day operations include food preparation, customer service, inventory management, and maintaining brand standards across a protected territory.
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 · 14 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.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Cha Street Food presents elevated risk due to a micro-scale system (2 units), undisclosed profitability metrics, and franchisor going concern issues, making franchisee success validation nearly impossible.
Score breakdown · what drove the 52 / 100 rating
- 01MINOROnly 2 units in system with unknown growth trajectory raises questions about scalability and franchisor commitment
- 02MINORNo net income disclosure (Item 19) prevents accurate ROI calculation despite $1.76M average revenue
- 03HIGHGoing Concern = False indicates potential financial instability at franchisor level
- 04MINORHigh investment range ($312,900-$638,000) with 6% royalty requires strong margins to justify returns
- 05MEDExtremely limited franchisee pool (only 2 units) makes validation and support assessment difficult
- 06MINOR10-year term is lengthy given micro-scale franchise system with unproven track record
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
14 numbers
One-time purchase · CSV download · Validation questions included
FDD download
CHA STREET FOOD · FDD (2025) PDF