Chai and Kathi Roll Lounge Franchise Cost, Revenue & Review 2026
Data from FDD filing
Analysis by FranchiseVerdict Research · Methodology
Chai and Kathi Roll Lounge is a fast-casual franchise serving Indian chai and kathi roll street wraps. Franchisees run the restaurants, managing food and beverage prep, staffing, and counter service.
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). FranchiseVerdict grade: D (Below average), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2026 FDD issuance
Overview
- Investment
- $204K – $413K
- 25th pct Service Resta…
- Avg gross sales
- N/A
- 2 outlets
- Royalty
- 6.0%
- 46th pct Service Resta…
- Units
- 2
- 9th pct Service Resta…
- SBA charge-off
- N/A
Quick verdict · Quick-Service Restaurants · color = vs category peers
Green = favorable by >10% vs Quick-Service Restaurants avg · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $204K – $413K including a $30K franchise fee, 6.0% ongoing royalty.
- RETURNSNewly formed Indiana LLC (formed January 19, 2026). Item 21 / Exhibit F contains only an audited balance sheet as of January 23, 2026 (cash $48,000 = total members' equity); no income statement or revenue figures are presented because the franchisor has not been in business for a full year.
- RISKVerdict D (Below average), verdict score 35/100 (higher is better).
- DATANo 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
Corporate structure & franchisor financials
- 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
- CEO
- Jagdeep Singh Sandhu
- Headquarters
- IN
- Founded
- 2026
- FDD year
- 2026
- States available
- 1
Can you afford it, and what does the money buy?
Entry cost runs 53% below the typical quick-service restaurants franchise.
Source: FDD 2026 · Items 5–7
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
- Top 40% of category vs category
- Liquid capital req'd
- $30K – $60K
- Middle of category vs category
- Franchise fee
- $30K – $30K
- Top 40% of category vs category
- Royalty
- 6.0%
- percentage · 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 |
| Technology fee | $500 |
| Transfer fee | $10K |
| Renewal fee | $5K |
| Inventory (initial) | $6K – $10K |
| Total fee load | 6.0% of rev |
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
Chai and Kathi Roll Lounge did not disclose financial performance in FDD Item 19. The ROIC and return models require Item 19 revenue. Without it all inputs are estimates. You can still run the calculator with your own assumptions by entering an expected revenue figure.
Returns model · single-unit ROIC
What would one Chai and Kathi Roll Lounge unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
28%
Below the 30–60% attractive-franchise band
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2026 FDD
Financial Performance
Newly formed Indiana LLC (formed January 19, 2026). Item 21 / Exhibit F contains only an audited balance sheet as of January 23, 2026 (cash $48,000 = total members' equity); no income statement or revenue figures are presented because the franchisor has not been in business for a full year.
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Fee burden
Total ongoing fee load of 6.0% — below the Quick-Service Restaurants average of 7.9%.
Disclosure
Franchisor chose not to disclose financial performance representations. You will need to gather unit economics directly from existing franchisees.
Multi-unit rate
Only 6% of franchisees own multiple units. Could indicate challenging economics or a young system where operators haven't had time to expand.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Quick-Service Restaurants averages
How Chai and Kathi Roll Lounge Compares
Is the system healthy?
Source: FDD 2026 · Item 20
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
- Opened (3yr)
- 0
- Closed (3yr)
- 0
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 0
- Reacquired (3yr)
- 0
- Franchisor bought back
- Projected new
- 1
- Franchisor's next-year forecast
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 12 · 1 state reported
The Territory Map
FDD Item 12 reports the state count, but the specific list isn't in our current data. The map will appear once we re-extract from the FDD or enough franchisee contacts are available.
1
states with franchisees (per FDD Item 12)
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.
What could kill this investment?
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
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 35 / 100 verdict
- 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
What are you signing up for?
Ongoing fees run about 6.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2026 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Territory type | exclusive |
| 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 |
| Arbitration location | Indiana |
| Jury trial waiver | Yes |
| Governing law | IN |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation required to be disclosed
Items 10, 11
Training & Operations
- Classroom training
- 23 hrs
- On-the-job training
- 52 hrs
- Training location
- Corporate location (Fishers, IN) and franchise location
- Ongoing training
- Required
- Field support
- 40 hrs/yr
- On-site visits per year
- Time to open
- 6 mo
- From signing to launch
- Site selection
- Franchisor approves; franchisee selects
- Franchisor financing
- Not offered
- Item 10
- POS system
- Clover
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Clover
Item 20 · call current owners
Franchisee Contacts
1 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 Item 19 in the Chai and Kathi Roll Lounge FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the Chai and Kathi Roll Lounge FDD and qualifies whose outlets they describe.
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 D-grade franchise with a verdict score of 35 out of 100 (higher is better), 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.
For franchisors
Are you the franchisor?
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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.