Franchise Facts Report → brands → Chi Tea

Chi Tea franchise — is it worth it?

Low risk No franchised units open yet Item 19 disclosed

Chi Tea is a food and beverage franchise with an initial investment ranging from $230,542 to $478,667.

Everything below is free, read straight off Chi Tea's registered filing, with where the numbers land against food & beverage peers. Weighing Chi Tea against other options? Get a free shortlist of franchises that fit your budget.

Figures above are as disclosed in Chi Tea's most recent FDD (registered 2026). Source: Wisconsin Dept. of Financial Institutions — Franchise Registration · filing 641087 — check it yourself. See every other Wisconsin-registered franchise.

How much does a Chi Tea franchise make?

Chi Tea is one of the franchisors that answers this on the record: its most recent FDD makes an Item 19 financial performance representation — actual unit earnings figures, disclosed by the franchisor itself. The headline figure is $1,351,860 in average unit revenue — read it alongside what Item 19 says about which units it covers (often only mature or top-performing locations). See every food & beverage brand that discloses earnings in the Food & beverage franchises with disclosed Item 19 earnings ranking.

Chi Tea franchise profit vs. revenue

Revenue is not profit. An Item 19 almost always reports sales — what a location takes in — not what an owner keeps. Out of that number come Chi Tea's 5% royalty, the ad fund, rent, payroll, supplies and debt service. No FDD tells you a Chi Tea franchise's profit, because profit depends on your site, your rent and how you run it — so treat any "Chi Tea franchise profit" figure quoted elsewhere as someone's estimate, not a disclosure. On $1,351,860 of revenue, a 5% royalty alone is about $67,593 a year before any other cost.

Chi Tea lawsuits & legal history (FDD Item 3)

Chi Tea's most recently filed Franchise Disclosure Document (2026) discloses no litigation in Item 3. That is a real signal rather than a gap: the FTC Franchise Rule requires a franchisor to disclose material litigation involving itself, its predecessors, parents, affiliates and management, so an empty Item 3 in a current filing means there was nothing it was required to report. It is worth reading alongside the churn numbers — a system can have a clean Item 3 and still be losing franchisees, which is what Item 20 shows.

Chi Tea closures & failure rate

Before you sign, Chi Tea will hand you a list of current owners to call as references — and they choose who's on that list. It won't include the owners who quit, got bought out, or were forced out last year. The FDD does report that number, even though the reference list leaves those people off. Below is what Chi Tea's most recent filing shows, and whether it's normal for a food & beverage of this kind.

The closest thing an FDD has to a failure rate is Item 20 — outlet openings, closures, terminations and non-renewals, reported by the franchisor. Chi Tea reports no franchised units open yet — there is no operating track record to churn.

Who owns Chi Tea?

Chi Tea's franchise is offered by Madinah Master Franchising, LLC — the franchisor named on the cover of its most recently filed Franchise Disclosure Document (2026), and the entity a franchisee actually signs with. That name comes straight off the filing at WI DFI; it identifies the franchisor, not necessarily the ultimate parent company behind it.

Food & beverage franchises at a similar investment level

Anyone weighing Chi Tea is really weighing it against the other brands their money could go into. These are the closest by total initial investment (FDD Item 7), each with its own FDD-based page.

Chi Tea franchise — frequently asked