FranchiseVerdict
Desi Chowrastha logo
FV-00740·MODERATEExcellent81

Desi Chowrastha

Food & Beverage - Full ServiceFranchising since 2024Website
Investment
$557K – $2.3M
71st pct Full Service
Avg revenue
57th pct Full Service
Royalty
4.0%
6th pct Full Service
Units
12
45th pct Full Service
SBA default

Bottom line

  • Total investment $557K – $2.3M including a $75K franchise fee, 4.0% ongoing royalty.
  • No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
  • Rated MODERATE with a risk score of 65/100.
  • 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
Chowrastha Franchise, LLC
Incorporated in
Texas
HQ
15851 Rolater Rd, Frisco, Texas 75035
Auditor
Naper CPA Group
Audited financials

Yale framework · single-unit ROIC

Returns Analysis

Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.

The model · Yale framework

What would one Desi Chowrastha unit return on the cash you put in?

Revenue · per unit, per year
$
Item 19 not disclosed — typing your own estimate
Franchisor take · royalty + ad fund
Royaltytyp 68%
%
Ad fundtyp 35%
%
Operating costs · category default: generic
COGS
%
Labor
%
Rent / occupancy
%
Other operating
%
Total invested capital · what you actually put in
Initial investment
$
FDD Item 7: $557K–$2.3M
Working capital
$
FDD reports $50K–$350K

Unlevered ROIC · per unit

8%

Below typical band (30–60%)

0%30–60% Yale band80%

Store EBITDA · annual
$139K
EBITDA margin
18.5%
Total invested
$1.6M
Payback
142 mo
Unit-level only. A multi-unit portfolio gives up roughly 5–15% of this to shared services (corporate G&A) before reaching the ~10-unit break-even Yale describes.

Overview

About

Desi Chowrastha franchisees operate South Asian cuisine restaurants or food service venues, managing daily kitchen operations, customer service, inventory procurement, and staff scheduling. They execute the brand's menu and service standards while building local customer loyalty in protected territories.

CEO
Sharath Podduturi
Founded
2021
FDD year
2025
States available
1

Item 7 · what it costs

The Vitals

Total investment
$557K – $2.3M
All-in to open one unit
Liquid capital
$50K – $350K
Cash you must have on hand
Franchise fee
$75K
Royalty
4.0%
Percentage of Gross Sales · typical 6–8%
Ad fund
0.5%
typical 3–5%
Total fee load
4.5%
vs 9–13% typical

Item 19

Financial Performance

This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.

Item 20 · unit dynamics

The Growth Chart

Total units
12
Opened
0
Last reporting year
Closed
0
Turnover rate
0.0%
Company-owned
12
Corporate units in the system
% franchised
0%
vs corporate-owned
2023
0±0
Franchised units
2024
0
Franchised units
2025
0
Franchised units

Year-over-year franchised unit counts and net change. Source: FDD Item 20.

Item 20 · 3 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).

AK
ME
VT
NH
MA
RI
CT
NY
NJ
PA
DE
MD
DC
WA
OR
CA
NV
ID
MT
WY
UT
CO
AZ
NM
ND
SD
NE
KS
OK
TX
MN
IA
MO
AR
LA
WI
IL
MS
TN
MI
IN
KY
AL
OH
WV
GA
VA
NC
SC
FL
HI
Registered · 3 states
Not registered

States derived from franchisee phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.

Government records

SBA Loan Data

Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.

No SBA loan data available for this brand.

FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17

Risk & Legal

65
Risk · 0-100
MODERATE65 / 100

A micro-franchise system with opaque unit economics, going concern uncertainty, and no financial disclosure creates substantial validation risk before committing $556K–$2.3M.

Score breakdown · what drove the 65 / 100 rating

  1. 01MINORNo Item 19 financial disclosure (avg revenue/net income) makes ROI impossible to validate
  2. 02HIGHGoing Concern = False indicates financial instability or undisclosed corporate restructuring risk
  3. 03MEDOnly 12 units system-wide suggests minimal scale, limited support infrastructure, and high failure concentration risk
  4. 04MINORWide investment range ($556.5K–$2.34M) with no corresponding revenue data creates opacity around unit economics
  5. 05MEDNo disclosed unit growth trajectory raises questions about system viability and franchisee recruitment
  6. 06MED4% royalty on undisclosed revenue base makes ongoing cost burden unquantifiable

Severity inferred from the FDD text · not a regulatory classification

FDD Items 5, 6, 12, 17 · continued from Risk & Legal

Contract & Territory Detail

Territory
Radius or other boundaries
Protected territory
Yes
Initial term
10 years
Renewal term
5 years
Online sales rights
Restricted
Franchisor can compete
Yes
Hire a manager?
Allowed
Litigation count
0
Right of first refusal
Yes
Franchisor can buy back on resale
Mandatory arbitration
Yes
Jury trial waiver
Yes
Non-compete
2 yrs
Post-termination restriction
Owner-operator
Optional
Governing law
Texas

Item 11

Training & Operations

Classroom training
75 hrs
On-the-job training
52 hrs
POS system
POS/CRM system
Operating tech stack

Item 20

Franchisee Contacts

Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.

Franchisee contacts

14 numbers

Locked
(651) 539-••••
CA
(605) 773-••••
OR
(401) 462-••••
OR

One-time purchase · CSV download · Validation questions included

FDD download

Desi Chowrastha · FDD (2025) PDF

Single-page checkout · instant download · CSV export of contacts available separately above