Chai and Kathi Roll Lounge
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.
- Rated CAUTION with a risk score of 72/100.
- 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
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 Chai and Kathi Roll Lounge unit return on the cash you put in?
Unlevered ROIC · per unit
30%
Below typical band (30–60%)
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.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
Item 20 · unit dynamics
The Growth Chart
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 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
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.
Score breakdown · what drove the 72 / 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
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
Chai and Kathi Roll Lounge · FDD (2026) PDF