Duan Chun Zhen Franchise Cost, Revenue & Review 2026
- Investment
- $311K – $708K
- Disclosed sales
- not disclosed
- SBA charge-off
- Not SBA-matched
Data from FDD filing
Analysis by FranchiseVerdict Research · Methodology
Duan Chun Zhen is a restaurant franchise serving Taiwanese-style slow-simmered beef noodle soup and Chinese dishes. Franchisees run the restaurants, managing the kitchen, service, and staffing.
FranchiseVerdict summary · 2026
A Duan Chun Zhen franchise requires a total initial investment of $311K – $708K, including a $60K franchise fee and an ongoing 4.0% royalty[2]. This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. FranchiseVerdict grade: D (Below average), an editorial assessment, not investment advice. Run a live ROI scan →
Limited operating history: franchising since 2025. A system this young has fewer than three years of Item 20 outlet history and rarely enough SBA loans for a charge-off rate, so its grade rests on less evidence than an established system's. Read its Item 20 tables and talk to its first franchisees before relying on the grade. Other new franchisors
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: medium - issued 12 to 24 months ago; a newer filing is likely on file
Evidence: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✗ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored5 of 5 headline figures on this page cite a page of the filing.
Overview
- Investment
- $311K – $708K
- 13th pct Service Resta…
- Avg gross sales
- N/A
- Royalty
- 4.0%
- 3rd pct Service Resta…
- Units
- 3
- 5th 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 median · 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 $311K – $708K including a $60K franchise fee, 4.0% ongoing royalty.
- RETURNSThis franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that.
- RISKVerdict D (Below average), verdict score 34/100 (higher is better).
- GROWTHFlat: no net change in franchised outlets in the latest year (0 opened, 0 closed) (Item 20).
- DATAThis franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Star of Celestial Cuisine Inc.
- Parent company
- Chatime USA, LLC (Master Franchisor)
- FDD Item 1, page 7 of the 2025 FDD
- Ultimate parent
- La Kaffa International Co., Ltd.
- FDD Item 1, page 8 of the 2025 FDD
- CEO title
- Chief Executive Officer
- Hsun-Hsi Tsai
- Incorporated in
- CA
- HQ
- 10118 Bandley Dr. Suite H, Cupertino, California 95014
- Auditor
- Wang Accountancy Corp
- Audited financials
- Franchisor revenue
- $2.8M
- Most recent fiscal year
Same owner · FDD Item 1, page 8
1 other brand on this site name La Kaffa International Co., Ltd. as parent or ultimate parent in their own FDD.
Grouped by the owner's name as each filing prints it (this page: the 2025 FDD). Spelling variants of the same group may be listed apart; a brand is never grouped with an owner its filing does not name.
Overview
About
- CEO
- Hsun-Hsi Tsai
- Headquarters
- CA
- Founded
- 2019
- FDD year
- 2025
- States available
- 1
Can you afford it, and what does the money buy?
Entry cost runs 25% 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 | $60K | $60K |
| Working capital (3–6 mo) | $20K | $80K |
| Equipment, build-out, other | $231K | $568K |
| Total initial investment | $311K | $708K |
Source: Duan Chun Zhen 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
- $311K – $708K
- Top 40% of category vs category
- Liquid capital req'd
- $20K – $80K
- Top 40% of category vs category
- Franchise fee
- $60K – $60K
- Top 40% of category vs category
- Royalty
- 4.0%
- Tiered by sales volume · typical 6–8%
- Ad fund
- 1.0%
- typical 3–5%
- Total fee load
- 5.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 4.0% of gross sales |
| Marketing / ad fund | 1.0% |
| Training fee | $6K |
| Transfer fee | $10K |
| Renewal fee | $30K |
| Inventory (initial) | $20K – $40K |
| Total fee load | 5.0% of rev |
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
Duan Chun Zhen makes no financial performance representation in Item 19 of its FDD - a voluntary item under the FTC Franchise Rule - so no unit revenue figures are disclosed. The return models need a revenue figure to start from, and the operating costs that turn gross sales into a profit are in no FDD. Enter your own and the calculator runs on your assumptions — nothing here is modelled until you do.
Returns model · single-unit ROIC
What would one Duan Chun Zhen unit return on the cash you put in?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for annual revenue, COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
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
No financial performance representation
This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that.
Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
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 5.0% — below the Full-Service Restaurants median of 7.0%.
Disclosure
This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
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 medians
How Duan Chun Zhen Compares
Category median of published Full-Service Restaurants brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
Is the system healthy?
Source: FDD 2025 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 3
- 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)
- Turnover rate
- N/A
- Company-owned
- 3
- Corporate units in the system
- % franchised
- 0%
- vs corporate-owned
Last fiscal year · Item 20 exits and transfers
- Terminated
- 0
- Not renewed
- 0
- Signed, not yet open
- 0
- 0.00 per open outlet · Item 20 Table 5
- Projected new
- 0
- Franchisor's next-year forecast
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)
Where the owners are · Item 20 owner list
1 current owner across 1 state.
- CA 1
Counts only, from the list the franchisor prints in Item 20. Names and phone numbers are for your own due diligence and are not shown here.
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
Avoid this franchise: going concern doubts, active litigation for misrepresentation and regulatory violations, only 3 units with no profitability disclosure, and no territorial protection create extreme risk of total investment loss.
Litigation (Item 3)
Subject: the franchisor is a named party (defendant).
No litigation disclosed for our Company (Star of Celestial Cuisine). Master Franchisor (Chatime USA) has 2 concluded civil cases and 3 governmental enforcement actions disclosed. All concluded.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Wang Accountancy Corp
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Franchisor Star of Celestial Cuisine, Inc. first California registration; only one audited year (FYE 12/31/2024). Revenue is food and beverage sales of $2,754,695; total other income (management income + misc) of $155,459 is reported separately. Net income $41,709. The franchisor's own auditor signature page was not present in the extracted text; 'Chen & Fan Accountancy Corporation' (El Monte, CA) signed the separate Master Franchisor (Chatime USA, LLC) statements, not necessarily the franchisor's.
ⓘ These are the parent company's consolidated financials (the parent guarantees the franchisor), not this brand's standalone results — the figure reflects the whole corporate group, not this brand alone.
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
Score breakdown · what drove the 34 / 100 verdict
- 01HIGHLitigation history includes misrepresentation of authority to sell franchises and multi-state registration violations (NY, CA, WA), suggesting regulatory non-compliance and potential fraud
- 02MINOROnly 3 existing units with unknown growth trajectory — minimal proof of concept and severe lack of franchisee success data
- 03MEDAverage Revenue and Net Income not disclosed — complete opacity on franchisee profitability makes ROI assessment impossible
- 04MINORNo protected territory — franchisees face direct competition from other franchisees in the same area
- 05MINOREscalating royalty structure (4% to 5%) combined with high investment range ($311k–$708k) creates cash flow pressure without proven unit economics
- 06MINORMaster Franchisor involved in breach of contract disputes — raises questions about franchisor reliability and contract enforcement
- 07MINORHigh franchise fee ($60k) relative to tiny system size (3 units) suggests fee-driven growth model rather than sustainable franchising
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 5.0% 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 | 5 years |
|---|---|
| Renewal term | 3 years |
| Allowed renewalsℹ | 1 |
| Territory type | No territory protection |
| Protected territory | No |
| Exclusive territoryℹ | No |
| Territory radius | 10 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 | 30 mi |
| Right of first refusalℹ | Yes |
| RoFR response window | 45 days |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Arbitration location | Santa Clara County, California |
| Governing law | CA |
| Litigation count | 5 |
View Item 3 litigation summary
No litigation disclosed for our Company (Star of Celestial Cuisine). Master Franchisor (Chatime USA) has 2 concluded civil cases and 3 governmental enforcement actions disclosed. All concluded.
Items 10, 11
Training & Operations
- Classroom training
- 7 hrs
- On-the-job training
- 74 hrs
- Training location
- Duan Chun Zhen store in Cupertino, CA (classroom); franchisee's store (OJT)
- Ongoing training
- Required
- Time to open
- 6 mo
- From signing to launch
- Site selection
- Franchisee proposes; franchisor must approve
- Franchisor financing
- Not offered
- Item 10
- POS system
- Chowbus POS
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Chowbus POS
Item 20 · call current owners
Franchisee Contacts
1 owners to call
Name · phone · city · state. Extracted from FDD Item 20
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Duan Chun Zhen franchise?
The total investment to open a Duan Chun Zhen franchise ranges from $311K – $708K, with an initial franchise fee of $60K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Duan Chun Zhen franchise owners earn?
Duan Chun Zhen makes no financial performance representation in Item 19 of its FDD - a voluntary item under the FTC Franchise Rule - so no unit revenue figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Who owns Duan Chun Zhen?
Duan Chun Zhen is franchised by Star of Celestial Cuisine Inc.. Its parent company is Chatime USA, LLC (Master Franchisor). The ultimate parent named in the FDD is La Kaffa International Co., Ltd.. Source: FDD Item 1, 2025 filing.
What is Item 19 in the Duan Chun Zhen 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 Duan Chun Zhen FDD and qualifies whose outlets they describe.
What is Duan Chun Zhen's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Duan Chun Zhen (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 Duan Chun Zhen franchise locations are there?
As of their most recent FDD filing, Duan Chun Zhen has 3 total units in the United States.
Is Duan Chun Zhen a good franchise to buy?
FranchiseVerdict rates Duan Chun Zhen as a D-grade franchise with a verdict score of 34 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. 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.