Chai and Kathi Roll LoungeFranchise Cost, Revenue & Review 2026
Data from FDD filing
FranchiseVerdict summary · 2026
A Chai and Kathi Roll Lounge franchise requires a total initial investment of $204K – $413K, including a $30K franchise fee and an ongoing 6.0% royalty[2]. The 2026 FDD does not disclose unit-level revenue (no Item 19). Verdict grade: B. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2026 FDD issuance
Overview
- Investment
- $204K – $413K
- 10th pct Service Resta…
- Avg gross sales
- N/A
- 28th pct Service Resta…
- Royalty
- 6.0%
- 26th pct Service Resta…
- Units
- 2
- 6th 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 2026. Newer systems carry more uncertainty but may offer better territories.
Bottom line
- Total investment $204K – $413K including a $30K franchise fee, 6.0% ongoing royalty.
- No Item 19 financial performance data disclosed. The franchisor chose not to publish revenue figures.
- Verdict B (Above Average) with a risk score of 62/100.
- No Item 19 financial performance representation. Without franchisor-disclosed revenue data, you'll need to gather unit economics directly from existing franchisees.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Chai and Kathi Roll Franchisor, LLC
- CEO title
- CEO
- Jagdeep Singh Sandhu
- Incorporated in
- IN
- HQ
- 12418 Coastal Place, Fishers, IN 46037
- Auditor
- Smith, Buzzi & Associates, LLC
- Audited financials
Overview
About
Chai and Kathi Roll Lounge franchisees operate quick-service restaurants specializing in Indian chai beverages and kathi rolls (Indian street wraps). Daily operations include food preparation, beverage service, customer service, staffing management, and inventory control in a lounge-format setting.
- CEO
- Jagdeep Singh Sandhu
- Headquarters
- IN
- Founded
- 2026
- FDD year
- 2026
- States available
- 1
FDD Item 7 · 2026 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $30K | $30K |
| Working capital (3–6 mo) | $30K | $60K |
| Equipment, build-out, other | $144K | $323K |
| Total initial investment | $204K | $413K |
Source: Chai and Kathi Roll Lounge 2026 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $204K – $413K
- Better than avg vs category
- Liquid capital req'd
- $30K – $60K
- Better than avg vs category
- Franchise fee
- $30K – $30K
- Better than avg vs category
- Royalty
- 6.0%
- Gross Revenue · typical 6–8%
- Ad fund
- -n/d
- Total fee load
- 6.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.0% of gross sales |
| Transfer fee | $10K |
| Renewal fee | $5K |
| Total fee load | 6.0% of rev |
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
vs Full-Service Restaurants averages
How Chai and Kathi Roll Lounge Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 2
- Opened
- 0
- 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
- 2
- Corporate units in the system
- % franchised
- 0%
- vs corporate-owned
- Multi-unit owners
- 6.2%
3-year detail · Item 20
- Transfers (3yr)
- 0
- Projected new
- 1
- Franchisor's next-year forecast
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 9 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
This is a pre-revenue or distressed franchisor with a nascent system, no financial transparency, and uncertain business model—avoid until unit count, Item 19 financials, and going concern status improve.
Litigation (Item 3)
No litigation required to be disclosed
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Smith, Buzzi & Associates, LLC
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 62 / 100 rating
- 01HIGHGoing Concern status is FALSE — indicates franchisor financial distress or viability concerns
- 02MINOROnly 2 units in system with unknown growth trajectory — suggests minimal market validation and potential contraction risk
- 03MEDNo Item 19 financial disclosure (Avg Revenue/Net Income not disclosed) — impossible to validate ROI claims or unit economics
- 04MINORHigh initial investment range ($203.8K–$413.2K) with no corresponding revenue benchmarks — unfavorable risk-reward ratio
- 05MED6% royalty on undisclosed revenue base means franchisee cannot calculate true profitability or break-even timeline
- 06MEDExtremely limited franchisee network (2 units) creates zero peer support and raises questions about concept viability
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 | 10 years |
| Territory type | Radius |
| Protected territory | Yes |
| Exclusive territoryℹ | Yes |
| Territory radius | 5 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 | 25 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | Indiana |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation required to be disclosed
Items 10, 11
Training & Operations
- Classroom training
- 36 hrs
- On-the-job training
- 48 hrs
- Training location
- On-site and at franchisor location
- Ongoing training
- Required
- POS system
- Clover POS System
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Clover POS System
Item 20 · call current owners
Franchisee Contacts
11 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Chai and Kathi Roll Lounge · FDD (2026) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Chai and Kathi Roll Lounge franchise?
The total investment to open a Chai and Kathi Roll Lounge franchise ranges from $204K – $413K, 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 Chai and Kathi Roll Lounge franchise owners earn?
Chai and Kathi Roll Lounge does not disclose average franchise owner earnings in their FDD Item 19. Not all franchisors are required to make financial performance representations. We recommend asking existing franchisees directly about their financial experience.
What is Chai and Kathi Roll Lounge's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Chai and Kathi Roll Lounge (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 Chai and Kathi Roll Lounge franchise locations are there?
As of their most recent FDD filing, Chai and Kathi Roll Lounge has 2 total units in the United States, including 0 franchised units and 2 company-owned units.
Is Chai and Kathi Roll Lounge a good franchise to buy?
FranchiseVerdict rates Chai and Kathi Roll Lounge as a B-grade franchise with a risk score of 62 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.