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.
- Rated MODERATE 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
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 San Chen unit return on the cash you put in?
Unlevered ROIC · per unit
38%
In Yale's "attractive" band (30–60%)
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.
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 · 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 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.
No SBA loan data available for this brand.
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.
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
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
6 numbers
One-time purchase · CSV download · Validation questions included
FDD download
San Chen · FDD (2025) PDF