Desi Chowrastha Franchise Cost, Revenue & Review 2026
Data from FDD filing
Analysis by FranchiseVerdict Research · Methodology
Desi Chowrastha is a full-service franchise serving South Asian and Indian cuisine. Franchisees run the restaurants, managing the kitchen, dining service, and staffing.
FranchiseVerdict summary · 2026
A Desi Chowrastha franchise requires a total initial investment of $567K – $942K, including a $75K franchise fee and an ongoing 4.0% royalty[2]. The 2024 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 2024 FDD issuance
Overview
- Investment
- $567K – $942K
- 26th pct Service Resta…
- Avg gross sales
- N/A
- Royalty
- 4.0%
- 2nd pct Service Resta…
- Units
- 12
- 15th 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 $567K – $942K including a $75K franchise fee, 4.0% ongoing royalty.
- RETURNSNew franchisor formed 8/21/2024; Item 8 states total revenue in the prior fiscal year was $0. Item 21 includes only an audited opening balance sheet dated 8/15/2024 (Exhibit F); the financial statement pages are image-based with no extractable figures and no named auditor.
- 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
- Chowrastha Franchise, LLC
- CEO title
- Founder and President
- Sharath Podduturi
- Incorporated in
- TX
- HQ
- 15851 Rolater Rd, Frisco, Texas 75035
- Auditor
- Naper CPA Group
- Audited financials
- Franchisor revenue
- $0
- vs $0 prior year
Overview
About
- CEO
- Sharath Podduturi
- Headquarters
- TX
- Founded
- 2024
- FDD year
- 2024
- States available
- 4
Can you afford it, and what does the money buy?
Entry cost runs 35% below the typical full-service restaurants franchise.
Source: FDD 2024 · Items 5–7
FDD Item 7 · 2024 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $75K | $75K |
| Working capital (3–6 mo) | $50K | $100K |
| Equipment, build-out, other | $442K | $767K |
| Total initial investment | $567K | $942K |
Source: Desi Chowrastha 2024 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
- $567K – $942K
- Top 40% of category vs category
- Liquid capital req'd
- $50K – $100K
- Top 40% of category vs category
- Franchise fee
- $75K – $75K
- Top 40% of category vs category
- Royalty
- 4.0%
- percentage · typical 6–8%
- Ad fund
- 0.5%
- typical 3–5%
- Total fee load
- 4.5%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 4.0% of gross sales |
| Marketing / ad fund | 0.5% of gross sales |
| Technology fee | $300 |
| Training fee | $350 |
| Transfer fee | $10K |
| Inventory (initial) | $15K – $25K |
| Total fee load | 4.5% of rev |
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
Desi Chowrastha 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 Desi Chowrastha unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
12%
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: 2024 FDD
Financial Performance
New franchisor formed 8/21/2024; Item 8 states total revenue in the prior fiscal year was $0. Item 21 includes only an audited opening balance sheet dated 8/15/2024 (Exhibit F); the financial statement pages are image-based with no extractable figures and no named auditor.
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 4.5% — below the Full-Service Restaurants average of 7.6%.
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 Desi Chowrastha Compares
Is the system healthy?
Source: FDD 2024 · Item 20
Unit growth
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
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 · 4 states 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.
4
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
A micro-franchise system with opaque unit economics, going concern uncertainty, and no financial disclosure creates substantial validation risk before committing $556K–$2.3M.
Litigation (Item 3)
No litigation required to be disclosed in Item 3.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Naper CPA Group
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
- 01MINORNo Item 19 financial disclosure (avg revenue/net income) makes ROI impossible to validate
- 02HIGHGoing Concern = False indicates financial instability or undisclosed corporate restructuring risk
- 03MEDOnly 12 units system-wide suggests minimal scale, limited support infrastructure, and high failure concentration risk
- 04MEDNo disclosed unit growth trajectory raises questions about system viability and franchisee recruitment
- 05MED4% royalty on undisclosed revenue base makes ongoing cost burden unquantifiable
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 4.5% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2024 · 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 | 3 |
| Territory type | exclusive |
| Protected territory | Yes |
| Exclusive territoryℹ | Yes |
| Territory population | 50,000 |
| Online sales rightsℹ | 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 |
| Curable defaultsℹ | 3 |
| Mandatory arbitration | Yes |
| Arbitration location | Frisco, Texas |
| Jury trial waiver | No |
| Governing law | TX |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation required to be disclosed in Item 3.
Items 10, 11
Training & Operations
- Classroom training
- 75 hrs
- On-the-job training
- 52 hrs
- Training location
- Frisco, TX or franchisee's location
- Ongoing training
- Required
- Time to open
- 15 mo
- From signing to launch
- Site selection
- franchisee with franchisor approval
- Franchisor financing
- Not offered
- Item 10
- POS system
- POS/CRM system
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: POS/CRM system
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Desi Chowrastha franchise?
The total investment to open a Desi Chowrastha franchise ranges from $567K – $942K, with an initial franchise fee of $75K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Desi Chowrastha franchise owners earn?
Desi Chowrastha 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 Desi Chowrastha 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 Desi Chowrastha FDD and qualifies whose outlets they describe.
What is Desi Chowrastha's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Desi Chowrastha (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 Desi Chowrastha franchise locations are there?
As of their most recent FDD filing, Desi Chowrastha has 12 total units in the United States, including 0 franchised units and 12 company-owned units.
Is Desi Chowrastha a good franchise to buy?
FranchiseVerdict rates Desi Chowrastha 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?
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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.