Franchise FAQ

how much to franchise bubble tea

by Jarvis Cronin Published 2 years ago Updated 1 year ago
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Bubble Tea Franchise Comparison Table

Franchise Name Franchise Fee Total Investment Cost Liquid Capital Requirement
Gong Cha $41,500 per location 4.5% of monthly sal ... $177,430 – $335,400 per location $150,000
Bambu $40,000 $137,000-$321,000 $10,000-$20,000
Kung Fu Tea $37,000 $124,050 to $428,050 $140,000 to $422,000 for a traditional s ...
Bubbleology $30,000 5% royalty fee and 1% marketing ... $163,000 – $284,000 $100,000
Sep 1 2022

Most bubble tea franchises cost between $75,000 and $500,000. Large locations and those in populous cities are likely to cost on the high end of that spectrum. Kiosks and stores in shopping centers or airports tend to cost less to get started. The majority can get up and running for between $125,000 and $200,000.Sep 22, 2020

Full Answer

Should I buy a franchise of a bubble tea shop?

It is a fact that most business people would prefer to buy into the franchise of a successful bubble tea shop than opening their own business outright. If you want to join a brand, you have to pay the franchise cost and this make up a large percentage of your startup cost. Different brands will produce different brand costs.

How much does it cost to open bee & Tea franchise?

The initial investment ranges from $163,250 to $361,600. Bee & Tea is a quick-service restaurant that specializes in bubble tea, smoothies, bao, and healthy bowls. For millennials and Generation Z, the brand has a lot of attraction. They do, however, provide possibilities for older age groups.

How much does bubble tea cost?

On average, a store charges $3.00 – $3.50 USD for a serving of bubble tea (16oz or 20oz serving). However, the approximate cost for materials to make the tea comes out at approximately $0.75 USD. That’s about a 350% markup.

How much does it cost to franchise Kung Fu Tea?

Those who want to franchise Kung Fu Tea in the United States can follow a proven ten-step process to get started. The franchise fee for a traditional store is $37,000. They also offer nontraditional options, like those in shopping centers. But those fees vary on a case-by-case basis. Total upfront costs fall between $124,050 and $428,050. 3.

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Bubbleology

Bubbleology, a U.K.-based beverage leader specializing in authentic bubble tea, was founded in 2011 in the heart of trendsetting Soho, London. This is your opportunity to move into the next big retail opportunity in the U.S., with the full backing of our experts on the ground.

Boba Loca

Boba Loca is the leading importer & manufacturer of Boba Tea drinks like taro, popping boba, honeydew, milk tea and much more. Boba Loca has quickly become the leader of the Boba world and the standard by which all others are measured.

Bubble Tea Franchise Opportunities

Here are the best bubble tea franchise businesses for aspiring entrepreneurs to consider:

How much does it cost to start a bubble tea business?

Most bubble tea franchises cost between $75,000 and $500,000. Large locations and those in populous cities are likely to cost on the high end of that spectrum. Kiosks and stores in shopping centers or airports tend to cost less to get started. The majority can get up and running for between $125,000 and $200,000.

Is owning a bubble tea business profitable?

The profitability of owning a bubble tea shop depends on your market. If you’re in a trendy or affluent area, you’re more likely to earn enough to offset your expenses. The industry is still experiencing growth. So it is certainly possible to build a profitable business in this market.

How much can you make owning a bubble tea shop?

The amount you can earn with a bubble tea shop depends on your store volume. Locations, prices, and costs play a major role. However, many stores make $3 or more per serving. And materials can cost $0.75 or less. If you sell 500 products per day, you could bring in more than $30,000 per month before factoring in other expenses.

How do I start a bubble tea business?

To start your own bubble tea business, you first need to scout locations. Find something in an upscale or touristy area with plenty of walkabilities. A popular downtown location would be ideal. Then you need to source equipment and supplies. This includes blenders, stoves, tea shakers, cups, straws, tea ingredients, and tapioca pearls.

What do I need to open a boba shop?

First, you need a location. This should be a retail storefront that has enough space for your equipment, countertops, sinks, staff, and a small customer area. Equipment-wise, you’ll likely need a stove for brewing tea and making tapioca pearls. You should also consider tea shakers and blenders for specialty beverages.

Our Story

Bubble Tea is quickly becoming one of Canada’s favourite treats – and Chatime is the brand that started it all. As the largest bubble tea brand in Canada, Chatime has won over millions of fans, many of whom now make Chatime a part of their daily lives.

Who We're Looking For

If you’re passionate about multicultural culinary experiences and want to open a business that brings something new and wonderful to your community, opening a Chatime franchise is a wise choice.

Costs and Fees

Chatime exists to help as many entrepreneurs realize their dreams of owning a bubble tea business as possible, and because of this, we’ve kept the barriers to entry as low as possible.

Testimonials

I was in the corporate world for more than 30 years, and I was ready to get out and do something different. My son discovered the Chatime opportunity and we decided to do it together. We opened in 2019 and we’ve been growing ever since. We even grew during the pandemic - it never stopped us.

Recent Franchise Articles

Father and son team impact their community with their bubble tea franchise Chatime bubble tea franchise owners are finding success with the ...

Steps to Ownership

If you’re ready to learn more about the Chatime franchise opportunity, simply fill out an inquiry form on this website and a member of our team will be in touch with you.

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Franchise Cost: $5,000 – $20,000

  • It is a fact that most business people would prefer to buy into the franchise of a successful bubble tea shopthan opening their own business outright. If you want to join a brand, you have to pay the franchise cost and this make up a large percentage of your startup cost. Different brands will produce different brand costs. As an investor, you need...
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Liability Insurance – $2,000

  • Another significant cost you will incur while setting up your bubble tea business is insurance cost. You need to carry some basic insurance so as to protect your businessfrom harm. This is a requirement you cannot wish away. Your business insurance can cost you around $2000.
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Shop Rent – $50,000+ Per Year

  • When it comes to opening a bubble tea shopthe rent and decoration investment can be relatively large. You should note that the location and size of the shop you choose will influence your decoration and rent costs. But generally speaking, milk tea shops do not need a large area, 20 square meters is enough, so the rent for running your milk tea shop is not too high. Remember, y…
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Decoration: $8,000 – $40,000

  • The decoration of a bubble tea shop is relatively simple, mainly reflecting the warm and delicate feeling. Typically, you will need a bar counter and working bench, as well as a commercial kitchen. But if you are starting a bubble tea kiosk in shopping center, you will need a full kiosk set. The store needs to have a serving bar and some leisure tables, chairs, seating booth etc. So, altogeth…
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Inventory and Equipment Cost – $10,000+

  • The basics include gas or electric stove, blender, stirrers, shaker cups, sealer machine, refrigerator and ice maker. Most of this equipment can be bought online at sites such as Boba Tea Direct. Or search online for used equipment. You should budget about $10,000 or more for this.
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Hire Staff Cost – $25,000+

  • Initially, this might simply reflect what you — as your sole employee — need to take out of the business. You’ll spend less than this if you have a working mate, savings or second source of income. And you’ll spend more as your staffing needs increase. You need to keep aside around $25,000 or more for this, but that just depends of the size of your shop.
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Business Running Capital: $10,000 – $20,000

  • In order to open a bubble tea store, you need to prepare some funds for the operation of the store. Generally speaking, you may have to budget around $10,000-20,000 as your running cost so as to be on the safe side.
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Licensure and Certification – $750

  • Depending on your location and products sold, you’ll probably have to have a business license and a health permit at the very least. Visit the U.S. Small Business Administration (SBA) website to find out the licensing requirements in your state. This should cost you about $750 or more.
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Logo Development, Signage and Marketing Materials – $10,000

  • This might include everything from creating your logo to buying store signage and producing business cards, fliers and other sales and marketing literature. You will be looking at up to $10,000 to get this sorted out.
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