San ChenFranchise Cost, Revenue & Review 2026
Data from FDD filing
FranchiseVerdict summary · 2026
A San Chen franchise requires a total initial investment of $156K – $249K, including a $30K franchise fee and an ongoing 6.0% royalty[2]. The 2025 FDD does not disclose unit-level revenue (no Item 19). Verdict grade: C. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $156K – $249K
- 20th pct Service Resta…
- Avg gross sales
- N/A
- 59th pct Service Resta…
- Royalty
- 6.0%
- 44th pct Service Resta…
- Units
- 7
- 29th pct Service Resta…
- SBA default
- N/A
Quick verdict · Quick-Service Restaurants · color = vs category peers
Green = >15% above Quick-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 2024. Newer systems carry more uncertainty but may offer better territories.
Bottom line
- Total investment $156K – $249K including a $30K franchise fee, 6.0% ongoing royalty.
- No Item 19 financial performance data disclosed. The franchisor chose not to publish revenue figures.
- Verdict C (Average) 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
- Chicha San Chen Corporation
- Parent company
- Fang Yuan F&B International Co., Ltd.
- CEO title
- Chief Executive Officer
- Lin, Hui-Chuan
- Incorporated in
- CA
- HQ
- 1401 21ST ST, STE R, SACRAMENTO, CA 95811
- Auditor
- Chen & Fan Accountancy Corporation
- Audited financials
- Franchisor revenue
- $409K
- vs $718K prior year
- Management churn noted
- Frequent turnover
- Item 2 disclosed frequent executive changes
Overview
About
San Chen franchisees operate a [specific business model not disclosed in provided data]. Day-to-day operations likely involve customer service, inventory management, and local marketing. Without disclosed business category details, specific operational scope cannot be determined.
- CEO
- Lin, Hui-Chuan
- Headquarters
- CA
- Founded
- 2020
- FDD year
- 2025
- States available
- 4
FDD Item 7 · 2025 filing · 29 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Feenot refundable | $30K | $30K | |
| Design Feenot refundable | $0 | $3K | |
| Security Deposit | $30K | $30K | |
| Training Feenot refundable | $3K | $6K | |
| Training expenses | $5K | $10K | |
| Lease of Outlet premises and lease security deposit | $10K | $20K | |
| Leasehold improvements | $10K | $50K | |
| Equipment, furniture and fixturesnot refundable | $20K | $30K | |
| Point of sale system | $700 | $3K | |
| Interior/exterior signs and graphics | $1K | $5K | |
| Professional fees | $5K | $10K | |
| Business licenses and permits | $1K | $5K | |
| Inventory and administrative supplies to begin operating | $10K | $10K | |
| Business insurance | $1K | $3K | |
| Additional funds - 3 months | $30K | $40K | |
| Initial Area Development Feenot refundable | $200K | $200K | |
| Security Deposit (Area Developer) | $30K | $30K | |
| Training Fee (Area Developer)not refundable | $3K | $6K | |
| Training expenses (Area Developer) | $5K | $10K | |
| Lease of Outlet premises and lease security deposit (Area Developer) | $30K | $60K | |
| Total initial investment | $563K | $796K |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $156K – $249K
- Better than avg vs category
- Liquid capital req'd
- $30K – $40K
- Below avg, review vs category
- Franchise fee
- $30K – $30K
- Better than avg vs category
- Royalty
- 6.0%
- Gross Revenues · typical 6–8%
- Ad fund
- 0.0%
- typical 3–5%
- Total fee load
- 6.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.0% of gross sales |
| Marketing / ad fund | 0.0% of gross sales |
| Training fee | $3K |
| Transfer fee | $15K |
| Renewal fee | $10K |
| Total fee load | 6.0% of rev |
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
vs Quick-Service Restaurants averages
How San Chen Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 7
- Opened
- 6
- 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
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Multi-unit owners
- 13.0%
3-year detail · Item 20
- Opened (3yr)
- 5
- Transfers (3yr)
- 0
- Projected new
- 2
- Franchisor's next-year forecast
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).
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
San Chen presents caution-level risk due to regulatory compliance violations, extremely small system size, missing financial disclosure data, and short contract term that collectively suggest limited operational maturity and uncertain profitability.
Litigation (Item 3)
Commissioner of Financial Protection and Innovation v. Fang Yuan F&B International Co., Ltd and Chicha San Chen Corporation. Violations of Corporations Code sections 31111, 31114, and 31200 for failure to disclose existing unit franchise and subfranchisor information in Item 20 of FDD. Settled via Consent Order on January 28, 2022 requiring: cessation of violations, delivery of Notice of Violation to Globalink, proof of mailing to Commissioner, remedial education, and appointment of monitor for future filings.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Chen & Fan Accountancy Corporation
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
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 65 / 100 rating
- 01HIGHRecent litigation (January 2022 Consent Order) indicates regulatory compliance failures and disclosure violations in FDD filings
- 02MEDOnly 7 units across entire system suggests extremely limited scale, making support infrastructure and buying power questionable
- 03MEDNo disclosed average revenue or net income data prevents ability to assess ROI on $155,500–$249,460 investment
- 04MINORShort 3.5-year franchise term creates instability and limits ability to recoup investment and build equity
- 05MINORNo growth trajectory provided for 7-unit system raises concerns about franchisee demand and brand expansion viability
- 06MED6% royalty on undisclosed revenues creates uncertainty around actual take-home profitability
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 | 3 years |
|---|---|
| Renewal term | 2 years |
| Territory type | Radius or geographic area |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory radius | 0.3 mi |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 1 year |
| Non-compete (miles)ℹ | 25 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 60 days |
| Curable defaultsℹ | 4 |
| Mandatory arbitration | Yes |
| Arbitration location | Los Angeles County, California |
| Jury trial waiver | Yes |
| Governing law | California |
| Litigation count | 1 |
View Item 3 litigation summary
Commissioner of Financial Protection and Innovation v. Fang Yuan F&B International Co., Ltd and Chicha San Chen Corporation. Violations of Corporations Code sections 31111, 31114, and 31200 for failure to disclose existing unit franchise and subfranchisor information in Item 20 of FDD. Settled via Consent Order on January 28, 2022 requiring: cessation of violations, delivery of Notice of Violation to Globalink, proof of mailing to Commissioner, remedial education, and appointment of monitor for future filings.
Items 10, 11
Training & Operations
- Classroom training
- 88 hrs
- On-the-job training
- 152 hrs
- Training location
- On-site and Corporate
- Time to open
- 9 mo
- From signing to launch
Items 5 & 11
Franchisor Support
Item 20 · call current owners
Franchisee Contacts
6 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
San Chen · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a San Chen franchise?
The total investment to open a San Chen franchise ranges from $156K – $249K, with an initial franchise fee of $30K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do San Chen franchise owners earn?
San Chen 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 San Chen's franchise failure rate?
SBA 7(a) loan charge-off data is not available for San Chen (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 San Chen franchise locations are there?
As of their most recent FDD filing, San Chen has 7 total units in the United States, including 0 franchised units and 0 company-owned units. 6 new units were opened in the latest reporting year.
Is San Chen a good franchise to buy?
FranchiseVerdict rates San Chen as a C-grade franchise with a risk score of 65 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.