Chaiwale & Co. Franchise Cost, Revenue & Review 2026
Data from FDD filing
Analysis by FranchiseVerdict Research · Methodology
Chaiwale & Co. is a cafe franchise serving specialty Indian chai, teas, and light bites. Franchisees run the cafes, managing beverage prep, inventory, and counter service.
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). 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
- $211K – $580K
- 27th pct Service Resta…
- Avg gross sales
- N/A
- Company-owned onlyn=1
- Royalty
- 6.0%
- 46th pct Service Resta…
- Units
- 1
- 3rd 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 $211K – $580K including a $35K franchise fee, 6.0% ongoing royalty.
- RETURNSNewly formed franchisor (organized 10/24/2025); audited financial statement is a balance sheet only as of November 24, 2025, with no income statement, so no revenue or net income is reported.
- RISKVerdict D (Below average), verdict score 30/100 (higher is better).
- FLAGBankruptcy history disclosed in the FDD. Review Item 4 for details before proceeding.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Aardas, LLC
- Parent company
- None
- CEO title
- Member/Manager
- Shilapjot S. Sadana
- Incorporated in
- WY
- HQ
- 177 N Glassell St, Orange, CA 92866
- Auditor
- V H Velez Hardy CPAs and Advisors
- 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
- CEO
- Shilapjot S. Sadana
- Headquarters
- CA
- Founded
- 2025
- FDD year
- 2025
- States available
- 1
Can you afford it, and what does the money buy?
Entry cost runs 40% below the typical quick-service restaurants franchise.
Source: FDD 2025 · Items 5–7
Full Item 7 breakdown17 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
- Top 40% of category vs category
- Liquid capital req'd
- $30K – $60K
- Middle of category vs category
- Franchise fee
- $35K – $35K
- Middle of category 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 |
| Inventory (initial) | $3K – $6K |
| Total fee load | 8.0% of rev |
What do units actually make?
Source: FDD 2025 · Item 19
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
Chaiwale & Co. 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 Chaiwale & Co. unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
24%
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
Newly formed franchisor (organized 10/24/2025); audited financial statement is a balance sheet only as of November 24, 2025, with no income statement, so no revenue or net income is reported.
Company-owned outlets only - not franchisee performance
Based on a single reporting unit - not a system average
- Item 19 type
- fee estimates only
- Sample size
- 1
- vs category median 20 · small
- Reporting year
- 2024
- Fiscal year the figures cover
- Source filing
- FDD 2025
- Disclosed in the 2025 filing, covering 2024
- Transparency
- 6 / 10
- vs category median 4 / 10 · above
Compared against 782 Quick-Service Restaurants brands
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 Quick-Service Restaurants average).
Disclosure
Item 19 reports fee estimates only rather than annual gross sales, so unit revenue is not directly comparable.
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 Chaiwale & Co. Compares
Is the system healthy?
Source: FDD 2025 · Item 20
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
- Opened (3yr)
- 0
- Closed (3yr)
- 0
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 0
- Reacquired (3yr)
- 0
- Franchisor bought back
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
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) Dhiraj Manchiraju v. Damanjot Singh and Shilapjot Singh, Superior Court CA San Bernardino (CIV SB 2412515), filed 5/2/2024, fraud claim re Pie Hole partnership dissolution, pending. 2) BPRD Trading LLC v. Damanjot Singh, Shilapjot Singh, Pie Hole entities, and Chai Boys LLC, Superior Court CA Los Angeles, filed 8/23/2024, breach of contract, unfair competition, trademark dilution, pending.
Bankruptcy (Item 4)
Disclosed in last 7 years
Managing Member Shilapjot Sadana filed Chapter 7 bankruptcy, discharged 4/04/2022, Central District of California, case 6:21-bk-16320-WJ
Audited financials (Item 21)
Yes · V H Velez Hardy CPAs and Advisors
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: Yes
Score breakdown · what drove the 30 / 100 verdict
- 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
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 | 1 |
| Territory type | exclusive |
| Protected territory | Yes |
| Exclusive territoryℹ | Yes |
| Territory population | 50,000 |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 5 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Termination groundsℹ | 1 |
| Mandatory arbitration | Yes |
| Arbitration location | Sheridan, Wyoming (franchisor headquarters) |
| Jury trial waiver | Yes |
| Governing law | WY |
| Litigation count | 2 |
View Item 3 litigation summary
1) Dhiraj Manchiraju v. Damanjot Singh and Shilapjot Singh, Superior Court CA San Bernardino (CIV SB 2412515), filed 5/2/2024, fraud claim re Pie Hole partnership dissolution, pending. 2) BPRD Trading LLC v. Damanjot Singh, Shilapjot Singh, Pie Hole entities, and Chai Boys LLC, Superior Court CA Los Angeles, filed 8/23/2024, breach of contract, unfair competition, trademark dilution, pending.
Items 10, 11
Training & Operations
- Classroom training
- 48 hrs
- On-the-job training
- 22 hrs
- Training location
- Our Location, Orange, CA, Your Location or Virtual
- Ongoing training
- Required
- Time to open
- 6 mo
- From signing to launch
- Site selection
- Franchisee selects, franchisor approves
- Franchisor financing
- Not offered
- Item 10
- POS system
- TOAST POS
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: TOAST POS
Item 20 · call current owners
Franchisee Contacts
1 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 Item 19 in the Chaiwale & Co. 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 Chaiwale & Co. FDD and qualifies whose outlets they describe.
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 D-grade franchise with a verdict score of 30 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
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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.