Bottom line
- Total investment $247K – $663K including a $35K franchise fee, 5.0% ongoing royalty.
- No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
- Rated STRONG with a risk score of 51/100. SBA loan default rate of 0.0% across 10 loans (below the industry average).
- System growing at 66.0% CAGR over 3 years with 79 total units — strong expansion trajectory.
Item 1 · who you're contracting with
The Franchisor
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 Feng Cha unit return on the cash you put in?
Unlevered ROIC · per unit
25%
Below typical band (30–60%)
Overview
About
Feng Cha franchisees operate bubble tea/specialty beverage retail locations, focusing on tea-based drinks with tapioca pearls and customization options. Day-to-day operations include inventory management, drink preparation, POS operations, customer service, and local marketing. The business model relies on high-traffic foot traffic locations and repeat customer loyalty in the competitive tea beverage market.
Item 7 · what it costs
The Vitals
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
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 4 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 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.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Feng Cha presents meaningful investment risk due to absent financial disclosure, minimal unit growth, territorial overlap exposure, and inability to validate profitability across a $417k investment range.
Score breakdown · what drove the 51 / 100 rating
- 01MEDNo average revenue or net income disclosed (Item 19 absent) — impossible to validate ROI on $246k-$663k investment
- 02MINORSlow unit growth (8.3% YoY) suggests market saturation or franchisee dissatisfaction in tea/beverage category
- 03MINORUnprotected territory creates direct competition risk between franchisees in same market
- 04MINORWide investment range ($417k spread) indicates inconsistent buildout costs and unclear profitability benchmarks
- 05MED10-year term with no disclosed exit clauses or renewal terms creates long-term commitment uncertainty
- 06MINORHigh relative initial investment ($35k franchise fee) for beverage concept with no performance data to justify it
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
Item 11
Training & Operations
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
5 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Feng Cha · FDD (2025) PDF