Chaiwale & Co.Franchise Cost, Revenue & Review 2026
Data from FDD filing
FranchiseVerdict summary · 2026
A Chaiwale & Co. franchise requires a total initial investment of $211K – $580K, including a $35K franchise fee and an ongoing 6.0% 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
- $211K – $580K
- 35th pct Service Resta…
- Avg gross sales
- N/A
- 59th pct Service Resta…
- Royalty
- 6.0%
- 44th pct Service Resta…
- Units
- 1
- 3rd pct Service Resta…
- SBA default
- N/A
Quick verdict · Quick-Service Restaurants · color = vs category peers
Green = >15% above Quick-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 $211K – $580K including a $35K franchise fee, 6.0% ongoing royalty.
- Item 19 disclosed $617K from 1 affiliate-owned outlet — the only unit in the system. This reflects franchisor operations, not franchisee performance.
- Verdict B (Above Average) with a risk score of 60/100.
- Item 19 reports "Affiliate Owned Outlet" instead of annual gross sales. Ask franchisees directly for full unit-level revenue.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Aardas, LLC
- Incorporated in
- WY
- HQ
- 177 N Glassell St, Orange, CA 92866
- Auditor
- Velez Hardy
- Audited financials
Affiliated brands
- has the same business address as us
- does provide products or services to our franchisees
- Chai Boys
Other brands the franchisor or its parent operates (Item 1).
Overview
About
Chaiwale & Co. franchisees operate tea-focused café concepts serving specialty chai and related beverages. Day-to-day operations involve inventory management, barista training, customer service, and local marketing to drive foot traffic in a protected territory. The model emphasizes premium tea sourcing and craft beverage preparation.
- CEO
- Shilapjot S. Sadana
- Headquarters
- CA
- Founded
- 2025
- FDD year
- 2025
- States available
- 1
FDD Item 7 · 2025 filing · 17 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Feenot refundable | $35K | $35K | |
| Rent and Lease Security Deposit | $4K | $38K | |
| Utilities | $500 | $3K | |
| Leasehold Improvementsnot refundable | $50K | $250K | |
| Market Introduction Programnot refundable | $3K | $6K | |
| Furniture, Fixtures, and Equipmentnot refundable | $75K | $150K | |
| Computer Systemsnot refundable | $1K | $3K | |
| Insurancenot refundable | $400 | $4K | |
| Signagenot refundable | $3K | $10K | |
| Office Expensesnot refundable | $500 | $1K | |
| Inventorynot refundable | $3K | $6K | |
| Licenses and Permitsnot refundable | $1K | $3K | |
| Professional Fees (lawyer, accountant, etc.)not refundable | $2K | $4K | |
| Travel, lodging and meals for initial trainingnot refundable | $3K | $8K | |
| Additional funds (for first 3 months)not refundable | $30K | $60K | |
| Additional Initial Franchise Fees (Multi-Unit Development Agreement)not refundable | $30K | $120K | |
| Miscellaneous expenses (Multi-Unit Development Agreement)not refundable | $1K | $5K | |
| Total initial investment | $242K | $705K |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $211K – $580K
- Better than avg vs category
- Liquid capital req'd
- $30K – $60K
- Below avg, review vs category
- Franchise fee
- $30K – $35K
- Near category avg vs category
- Royalty
- 6.0%
- percentage · typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 8.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.0% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
| Transfer fee | $10K |
| Total fee load | 8.0% of rev |
Financial Performance
Item 19 disclosed $617K from 1 affiliate-owned outlet — the only unit in the system. This reflects franchisor operations, not franchisee performance.
vs Quick-Service Restaurants averages
How Chaiwale & Co. Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 1
- Opened
- 0
- Last reporting year
- Closed
- 0
- Turnover rate
- 0.0%
- Company-owned
- 1
- Corporate units in the system
- % franchised
- 0%
- vs corporate-owned
3-year detail · Item 20
- Transfers (3yr)
- 0
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 10 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.
Available to sell in · Item 12
- California
- Wisconsin
States where the franchisor is registered to sell new franchises (FDD registration filings).
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
Chaiwale & Co. presents extreme risk: a non-going-concern franchisor with pending fraud/breach litigation, only one operating unit, and unverified financial claims — avoid unless corporate restructuring and litigation resolution are documented.
Litigation (Item 3)
1 case reference(s): 2 pending, 0 settled.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Velez Hardy
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Must buy proprietary products: No
- Restricted to system-approved products: No
Score breakdown · what drove the 60 / 100 rating
- 01HIGHGoing concern status is FALSE — indicates potential insolvency or financial distress at corporate level
- 02HIGHTwo active lawsuits involving founders (fraud allegations related to Pie Hole dissolution + breach of contract/trademark dilution) suggest governance and legal exposure
- 03MINOROnly 1 unit in system with unknown growth trajectory — no track record of scalability or franchisee success replication
- 04HIGHHigh investment range ($211K-$579.5K) coupled with single unit and litigation creates severe risk asymmetry
- 05HIGHFraud allegations in litigation directly undermine franchisee trust and corporate credibility
- 06MINORNo Item 19 financial performance representation available to validate $616K avg revenue claim
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 | 1 |
| Territory type | population-based radius |
| Protected territory | Yes |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Termination groundsℹ | 1 |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | Wyoming |
| Litigation count | 2 |
View Item 3 litigation summary
1 case reference(s): 2 pending, 0 settled.
Items 10, 11
Training & Operations
- Classroom training
- 48 hrs
- On-the-job training
- 22 hrs
- Training location
- On-site and corporate
- POS system
- TOAST POS
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: TOAST POS
Item 20 · call current owners
Franchisee Contacts
16 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Chaiwale & Co. · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Chaiwale & Co. franchise?
The total investment to open a Chaiwale & Co. franchise ranges from $211K – $580K, with an initial franchise fee of $35K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Chaiwale & Co. franchise owners earn?
Chaiwale & Co. 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 Chaiwale & Co.'s franchise failure rate?
SBA 7(a) loan charge-off data is not available for Chaiwale & Co. (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 Chaiwale & Co. franchise locations are there?
As of their most recent FDD filing, Chaiwale & Co. has 1 total units in the United States, including 0 franchised units and 1 company-owned units.
Is Chaiwale & Co. a good franchise to buy?
FranchiseVerdict rates Chaiwale & Co. 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.