Duan Chun ZhenFranchise Cost, Revenue & Review 2026
Data from FDD filing
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]. 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
- $311K – $708K
- 19th pct Service Resta…
- Avg gross sales
- N/A
- 28th pct Service Resta…
- Royalty
- 4.0%
- 3rd pct Service Resta…
- Units
- 3
- 8th pct Service Resta…
- SBA default
- N/A
Quick verdict · Full-Service Restaurants · color = vs category peers
Green = >15% above Full-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 $311K – $708K including a $60K franchise fee, 4.0% ongoing royalty.
- No Item 19 financial performance data disclosed. The franchisor chose not to publish revenue figures.
- Verdict B (Above Average) with a risk score of 57/100.
- 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
- Star of Celestial Cuisine Inc.
- CEO title
- Chief Executive Officer and Director
- 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
Overview
About
Duan Chun Zhen appears to operate a food service or beverage concept (likely Chinese cuisine based on the brand name), with franchisees managing day-to-day operations including food preparation, customer service, inventory management, and local marketing. Specific operational details and service model are not publicly available.
- CEO
- Hsun-Hsi Tsai
- Headquarters
- CA
- Founded
- 2019
- FDD year
- 2025
- States available
- 1
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
- Better than avg vs category
- Liquid capital req'd
- $20K – $80K
- Better than avg vs category
- Franchise fee
- $60K – $60K
- Near category avg vs category
- Royalty
- 4.0%
- Gross Sales · 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% of gross sales |
| Training fee | $500 |
| Transfer fee | $10K |
| Renewal fee | $30K |
| Total fee load | 5.0% of rev |
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
vs Full-Service Restaurants averages
How Duan Chun Zhen Compares
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
- 0.0%
- Company-owned
- 3
- Corporate units in the system
- % franchised
- 0%
- vs corporate-owned
3-year detail · Item 20
- Transfers (3yr)
- 0
- Projected new
- 1
- Franchisor's next-year forecast
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 9 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.
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
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)
Ardaru Asmoro and Ardocondro, LLC vs. Houston Chatime LLC, Ray Xu, Selina Xu, and Chatime USA, LLC (Case No. 202018076, Harris County, Texas). Filed March 2020 regarding unauthorized franchise transfer, misrepresentation, and failure to provide FDD. Chatime USA filed counterclaims for conspiracy and tortious interference. Case appears settled as of September 2023.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Wang Accountancy Corp
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Score breakdown · what drove the 57 / 100 rating
- 01HIGHGoing Concern status is FALSE — indicates the franchisor may not be financially viable as an ongoing business
- 02HIGHLitigation history includes misrepresentation of authority to sell franchises and multi-state registration violations (NY, CA, WA), suggesting regulatory non-compliance and potential fraud
- 03MINOROnly 3 existing units with unknown growth trajectory — minimal proof of concept and severe lack of franchisee success data
- 04MEDAverage Revenue and Net Income not disclosed — complete opacity on franchisee profitability makes ROI assessment impossible
- 05MINORNo protected territory — franchisees face direct competition from other franchisees in the same area
- 06MINOREscalating royalty structure (4% to 5%) combined with high investment range ($311k–$708k) creates cash flow pressure without proven unit economics
- 07MINORMaster Franchisor involved in breach of contract disputes — raises questions about franchisor reliability and contract enforcement
- 08MINORHigh 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
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 5 years |
|---|---|
| Renewal term | 3 years |
| Allowed renewalsℹ | 1 |
| Territory type | Radius |
| 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 | California |
| Litigation count | 5 |
View Item 3 litigation summary
Ardaru Asmoro and Ardocondro, LLC vs. Houston Chatime LLC, Ray Xu, Selina Xu, and Chatime USA, LLC (Case No. 202018076, Harris County, Texas). Filed March 2020 regarding unauthorized franchise transfer, misrepresentation, and failure to provide FDD. Chatime USA filed counterclaims for conspiracy and tortious interference. Case appears settled as of September 2023.
Items 10, 11
Training & Operations
- Classroom training
- 8 hrs
- On-the-job training
- 86 hrs
- POS system
- Chowbus POS
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Chowbus POS
Item 20 · call current owners
Franchisee Contacts
9 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Duan Chun Zhen · FDD (2025) PDF
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 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 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, including 0 franchised units and 3 company-owned units.
Is Duan Chun Zhen a good franchise to buy?
FranchiseVerdict rates Duan Chun Zhen as a B-grade franchise with a risk score of 57 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.
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.