Since when has La Kaffa operated businesses similar to the Chatime franchise you will operate?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
Chatime North Star is owned by La Kaffa International Co., Ltd. ("La Kaffa"), a corporation
formed under the laws of Taiwan in March 2004. La Kaffa's principal place of business is No. 98, Gaotie Ninth Road, Zhubei City, Hsinchu County 30274, Taiwan.
La Kaffa licenses us the right to use and sublicense the use of the Chatime® and trade names and related marks. La Kaffa does business under the names "Chatime®", "Chatime ®", " "," ®"," ®", " ® , and " ®." La Kaffa has operated businesses similar to the one you will operate since January 2008. La Kaffa currently operates approximately 1,112 Chatime Stores worldwide by itself or through franchisees. La Kaffa has offered franchises for Chatime Stores since April 2009. As of December 31, 2024, La Kaffa had one franchised or licensed Chatime Store in the United States similar to the business you will operate as a franchisee, and had sold in excess of 100 Chatime Store franchises worldwide.
Source: Item 1 — The Franchisor, and Any Parents, Predecessors, and Affiliates (FDD pages 6–9)
What This Means (2025 FDD)
According to Chatime's 2025 Franchise Disclosure Document, La Kaffa International Co., Ltd. has operated businesses similar to the Chatime franchise since January 2008. La Kaffa operates approximately 1,112 Chatime stores worldwide through company-owned stores and franchises. La Kaffa began offering franchises for Chatime stores in April 2009. As of December 31, 2024, La Kaffa had one franchised or licensed Chatime store in the United States and had sold over 100 Chatime store franchises worldwide.
This indicates that La Kaffa has substantial experience in the bubble tea business, both in operating stores and franchising the Chatime concept. For a prospective franchisee, this suggests a well-established system with a proven track record. The extensive number of stores worldwide implies a degree of brand recognition and operational expertise that could be beneficial.
However, it's important to note that while La Kaffa has a significant international presence, its footprint in the United States as of December 31, 2024, was limited to one franchised or licensed store. This could mean that the brand is still developing its recognition and support systems in the U.S. market. A potential franchisee should investigate the level of support and brand awareness in their specific target market.
Furthermore, the FDD mentions that Chatime USA, LLC, an affiliate of La Kaffa, offered Chatime franchises in the United States from February 2014 to June 2022. As of December 31, 2024, Chatime USA had one operating franchised and licensed Chatime Store in the United States. From 2016 to 2020, Chatime USA operated one company-owned Chatime Store in New York, New York, and from 2017 to 2018, Chatime USA operated one additional company-owned Chatime Store in New York, New York. This prior franchising activity in the U.S. could provide additional insights into the brand's performance and challenges in the U.S. market.