Chaiiwala Franchise Cost, Revenue & Review 2026
Data from FDD filing
Analysis by FranchiseVerdict Research · Methodology
Chaiiwala is a cafe franchise serving South Asian karak chai, street food, and Indian breakfast fare. Franchisees run the cafes, managing beverage and food prep, staffing, and counter service.
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). FranchiseVerdict grade: D (Below average), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2025 FDD issuance
Overview
- Investment
- $287K – $697K
- 12th pct Service Resta…
- Avg gross sales
- N/A
- 0 outlets
- Royalty
- 7.0%
- 34th pct Service Resta…
- Units
- 0
- 0th pct Service Resta…
- SBA charge-off
- N/A
Quick verdict · Full-Service Restaurants · color = vs category peers
Green = favorable by >10% vs Full-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 $287K – $697K including a $40K franchise fee, 7.0% ongoing royalty.
- RETURNSStartup franchisor (Rowda Group USA LLC); company had not begun planned operations as of FYE Dec 31, 2024, so no revenue was recognized. Statement of operations shows only general & administrative expenses totaling $41,242 (net loss).
- RISKVerdict D (Below average), verdict score 36/100 (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
- Rowda Group USA LLC
- Parent company
- Rowda Group LTD
- Predecessor
- None
- Prior franchisor entity
- CEO title
- Chief Executive Officer
- Muhummed Juneid Bashir Ibrahim
- Incorporated in
- DE
- HQ
- 90 Freemans Common Road, Leicester, England LE27SQ
- Auditor
- Wall Einhorn & Chernitzer, CPAs & Advisors
- Audited financials
- Franchisor revenue
- $0
- Most recent fiscal year
Overview
About
- CEO
- Muhummed Juneid Bashir Ibrahim
- Headquarters
- DE
- Founded
- 2023
- FDD year
- 2025
- States available
- 0
Can you afford it, and what does the money buy?
Entry cost runs 58% below the typical full-service restaurants franchise.
Source: FDD 2025 · Items 5–7
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
- Top 40% of category vs category
- Liquid capital req'd
- $30K – $80K
- Top 40% of category vs category
- Franchise fee
- $40K – $40K
- Top 40% of category vs category
- Royalty
- 7.0%
- percentage · 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 | $300 |
| Training fee | $2K |
| Transfer fee | $30K |
| Renewal fee | $20K |
| Inventory (initial) | $30K – $30K |
| Total fee load | 8.0% of rev |
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
Chaiiwala 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 Chaiiwala unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
14%
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: 2025 FDD
Financial Performance
Startup franchisor (Rowda Group USA LLC); company had not begun planned operations as of FYE Dec 31, 2024, so no revenue was recognized. Statement of operations shows only general & administrative expenses totaling $41,242 (net loss).
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 8.0% (near the Full-Service Restaurants average).
Disclosure
Franchisor chose not to disclose financial performance representations. You will need to gather unit economics directly from existing franchisees.
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 Full-Service Restaurants averages
How Chaiiwala Compares
Is the system healthy?
Source: FDD 2025 · Item 20
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
- 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.
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
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, CPAs & Advisors
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 36 / 100 verdict
- 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
What are you signing up for?
Ongoing fees run about 8.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2025 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 2 |
| Territory type | protected |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory radius | 1 mi |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Not allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 15 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Arbitration location | Virginia |
| Jury trial waiver | No |
| Governing law | VA |
| 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
- Franchisor headquarters or affiliate restaurant locations
- Ongoing training
- Required
- Site selection
- Franchisee selects from sites approved by franchisor
- POS system
- 3S POS
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: 3S POS
Item 20 · call current owners
Franchisee Contacts
1 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 Item 19 in the Chaiiwala 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 Chaiiwala FDD and qualifies whose outlets they describe.
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 D-grade franchise with a verdict score of 36 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?
If you represent Chaiiwala, you can request corrections or provide updated information.
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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.