ChaiiwalaFranchise Cost, Revenue & Review 2026
Data from FDD filing
FranchiseVerdict summary · 2026
A Chaiiwala franchise requires a total initial investment of $287K – $697K, including a $40K franchise fee and an ongoing 7.0% royalty[2]. The 2025 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 2025 FDD issuance
Overview
- Investment
- $287K – $697K
- 17th pct Service Resta…
- Avg gross sales
- N/A
- 28th pct Service Resta…
- Royalty
- 7.0%
- 42nd pct Service Resta…
- Units
- 0
- 0th 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 2025. Newer systems carry more uncertainty but may offer better territories.
Bottom line
- Total investment $287K – $697K including a $40K franchise fee, 7.0% 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 60/100.
- 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
- Rowda Group USA LLC
- Parent company
- Rowda Group LTD
- CEO title
- Chief Executive Officer
- Muhummed Juneid Bashir Ibrahim
- Incorporated in
- DE
- HQ
- 90 Freemans Common Road, Leicester, England LE27SQ
- Auditor
- Wall, Einhorn & Chernitzer, P.C.
- Audited financials
- Franchisor revenue
- $0
- Most recent fiscal year
Overview
About
Franchisees operate specialty chai/tea beverage retail locations, likely featuring South Asian-inspired drinks and related food items. Day-to-day operations include beverage preparation, counter service, inventory management, and maintaining brand standards across a single protected territory location.
- CEO
- Muhummed Juneid Bashir Ibrahim
- Founded
- 2023
- FDD year
- 2025
- States available
- 0
FDD Item 7 · 2025 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $40K | $40K |
| Working capital (3–6 mo) | $30K | $80K |
| Equipment, build-out, other | $217K | $577K |
| Total initial investment | $287K | $697K |
Source: Chaiiwala 2025 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
- $287K – $697K
- Better than avg vs category
- Liquid capital req'd
- $30K – $80K
- Better than avg vs category
- Franchise fee
- $36K – $40K
- Better than avg vs category
- Royalty
- 7.0%
- percentage_of_gross · typical 6–8%
- Ad fund
- 1.0%
- typical 3–5%
- Total fee load
- 8.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 7.0% of gross sales |
| Marketing / ad fund | 1.0% of gross sales |
| Technology fee | $400 |
| Transfer fee | $30K |
| Renewal fee | $20K |
| Total fee load | 8.0% 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 Chaiiwala Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 0
- 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)
- Company-owned
- 0
- Corporate units in the system
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 · 4 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
Chaiiwala presents HIGH RISK due to going concern status, zero disclosed unit metrics, missing financial performance data, and unclear franchise system viability despite protected territory advantages.
Litigation (Item 3)
No litigation required to be disclosed
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Wall, Einhorn & Chernitzer, P.C.
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- 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 60 / 100 rating
- 01HIGHGoing Concern warning indicates financial distress at corporate level
- 02MEDZero disclosed unit count suggests either startup franchise system or complete unit collapse
- 03MINORNo average revenue or net income disclosure (Item 19) prevents ROI validation
- 04MINORHigh initial investment ($286.5K-$697.4K) with no performance benchmarks to justify cost
- 05MINORUnknown system growth trajectory creates uncertainty about support infrastructure and brand momentum
- 06MED7% royalty rate on undisclosed revenue base creates unpredictable cost structure
- 07MINOR10-year term commitment is lengthy given corporate financial instability
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 | 2 |
| Territory type | Radius |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory radius | 0.3 mi |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Not allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | Virginia |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation required to be disclosed
Items 10, 11
Training & Operations
- Classroom training
- 10 hrs
- On-the-job training
- 65 hrs
- Training location
- On-site and corporate
- Ongoing training
- Required
- POS system
- 3S POS
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: 3S POS
Item 20 · call current owners
Franchisee Contacts
5 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Chaiiwala · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Chaiiwala franchise?
The total investment to open a Chaiiwala franchise ranges from $287K – $697K, with an initial franchise fee of $40K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Chaiiwala franchise owners earn?
Chaiiwala 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 Chaiiwala's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Chaiiwala (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.
Is Chaiiwala a good franchise to buy?
FranchiseVerdict rates Chaiiwala as a B-grade franchise with a risk score of 60 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.