Bubble Tea Franchise Cost 2025: A Detailed Investment and Startup Guide

If you have been exploring new business ideas recently, chances are you have come across the rising buzz around bubble tea. From Instagram reels to TikTok trends, the queues outside bubble tea shops are hard to ignore. For aspiring entrepreneurs, this growing demand has sparked one pressing question: what is the real bubble tea franchise cost, and is this a smart investment?

A bubble tea franchise is more than just a trendy food venture. It represents a low-barrier entry into the food and beverage industry, offering access to a loyal customer base, a scalable menu, and a business model backed by proven systems.

Global market research projects that the bubble tea market will surpass 6.2 billion US dollars by 2030, driven largely by Gen Z and Millennials who value customisable drinks and brand experiences, according to Fortune Business Insights.

This guide breaks down what you really need to know about launching your own outlet, from startup costs and brand options to what returns you can expect. If you are considering stepping into this space, it will help you determine whether the opportunity suits your ambition, location, and financial plan.

See also: Best franchise to own for beginners.

Key Takeaway

1. The average bubble tea franchise cost in the US ranges from 140,000 to 500,000 dollars, covering franchise fees, equipment, setup, and working capital.
2. Choosing the right franchise depends on brand strength, support systems, US market presence, and your operational involvement.
3. Profitability is achievable with margins of 15 to 25 per cent, especially in high-traffic locations with smart staffing and strong marketing.
4. Success depends on thorough research, location strategy, and getting expert support to navigate licensing, setup, and scaling.

See also: A product on how to become a successful franchise owner

First, What You Should Know About the Bubble Tea Market

Before you commit to any franchise investment, it is important to understand where the market is headed. The bubble tea industry has transformed from a niche drink into a global phenomenon, and that evolution is backed by data.

As of 2025, the global bubble tea market is valued at over 4.5 billion US dollars, and is projected to grow at a compound annual growth rate of 7.4 per cent until 2030, according to Grand View Research.

This growth is being fuelled by shifting consumer preferences. Today’s buyers are more health-conscious and experimental, which is why fruit-based teas, plant-based milk alternatives, and sugar-free options have become increasingly common across bubble tea menus.

This adaptability gives the industry long-term resilience, especially in urban centres where health trends evolve rapidly.

Regions like the Asia-Pacific dominate the market due to the product’s origins in Taiwan, but North America, Europe, and emerging African cities are catching up fast. In particular, Nigeria and Ghana have seen a surge in modern tea shops over the last few years, riding on the wave of youth culture, mobile ordering, and influencer-driven branding.

If you are evaluating bubble tea franchise cost, these regional growth patterns matter. The right franchise in the right city could give you a first-mover advantage and position you ahead of the curve.

See also: Different ways to succeed as a franchise owner

Top Bubble Tea Franchise Brands – Top Pick By Experts

If you are seriously considering the bubble tea business, choosing the right franchise is one of the most important decisions you will make.

Each brand comes with its own startup cost, business model, flavour profile, and market support. In the US market, some names stand out not just for their drinks, but for their proven systems, brand equity, and rapid expansion potential.

Here is a closer look at five of the best bubble tea franchise options, with a focus on their presence and growth potential in the United States.

See also: Steps to start a successful business

1. Gong Cha

Founded in Taiwan in 2006, Gong Cha has grown into one of the most globally recognised bubble tea brands. With over 1,800 stores in more than 20 countries, including a strong and expanding footprint across the US, this franchise offers both credibility and scalability.

Its US operations are headquartered in New York, a strategic choice that supports its fast-paced expansion across North America.

Why Gong Cha Is Different

What sets Gong Cha apart is its commitment to high-quality tea, fresh ingredients, and customisation. Its signature milk foam series and brown sugar pearl drinks are cult favourites among Gen Z and Millennials, and its clean, modern branding attracts a broad demographic.

Buble Tea Franchise Cost For Gong Cha

Bubble tea franchise cost with Gong Cha varies by region, but estimates suggest an initial investment ranging from 177,000 to 335,000 US dollars, which includes equipment, franchise fees, leasehold improvements, and inventory. The franchise fee itself typically falls between 30,000 and 41,500 dollars.

Gong Cha offers location scouting, store design, training, marketing tools, and operational guidance. Franchisees also benefit from centralised supply chain support and technology integration for smooth day-to-day operations.

Bubble Tea Gong Cha franchise is ideal for entrepreneurs looking for a globally trusted brand with broad US consumer appeal and strong backend support.

2. Chatime

Also originating from Taiwan, Chatime has become one of the largest bubble tea franchises globally, with more than 2,500 outlets in over 30 countries.

In the US, Chatime has seen consistent growth in states like California, Texas, and New York, thanks to its tech-driven model and wide range of drink options that include tea, fruit infusions, and even coffee blends.

Chatime positions itself as a forward-thinking brand that embraces innovation, including digital POS systems, loyalty apps, and social engagement strategies. This modern infrastructure makes it especially appealing to tech-savvy younger consumers in the US market.

Bubble Tea Franchise Cost For Chatime

Bubble tea franchise cost for Chatime can range between 250,000 to 500,000 US dollars. This includes a franchise fee that is generally around 40,000 dollars, along with initial build-out, equipment, and marketing costs.

Franchisees receive assistance with site selection, comprehensive training, digital integration, and supply chain management. Chatime also rolls out seasonal campaigns and promotions to help drive repeat visits.

This is ideal for entrepreneurs who value tech-enabled operations and want to appeal to urban professionals and college-age consumers.

See also: Dutch Bros Franchise Cost and Startup Guide- Everything You Need to Know

3. Kung Fu Tea

If you are looking to invest in a franchise brand that is deeply rooted in the US market, Kung Fu Tea should be high on your list. Launched in New York City in 2010, Kung Fu Tea has grown to over 350 stores across the United States, making it the largest bubble tea franchise based in the country.

Its brand identity is bold and distinctly urban, with a heavy focus on cultural relevance. Collaborations with pop culture icons like Nintendo and Boba Guys, along with savvy TikTok campaigns, have helped Kung Fu Tea maintain a vibrant connection with its mostly young customer base.

Buble Tea Franchise Cost for Kung Fu Tea

The typical bubble tea franchise cost for Kung Fu Tea starts from around 140,000 and can go up to 422,000 US dollars, depending on the location and store size. The franchise fee is approximately 37,000 dollars.

The company offers end-to-end support, including real estate consultation, store design, marketing, POS systems, and detailed training at its headquarters and operational stores.

This franchise is ideal for US-based entrepreneurs who want to work with an American-grown brand with deep market insights and a highly engaged youth audience.

See also: SERVPRO Franchise Cost & Startup Guide: Investment, Process & Profitability Explained

4. The Alley

The Alley positions itself as a premium, artisanal bubble tea brand. Known for its signature brown sugar Deerioca series and handcrafted ingredients, The Alley has carved out a niche in the luxury beverage market.

Originating in Taiwan in 2013, it has since expanded into North America, with flagship stores in major cities like Los Angeles, Toronto, and Vancouver.

The brand’s chic interior designs and focus on customer experience have helped it stand out in a crowded field. Every drink is designed to be Instagram-worthy, which naturally drives foot traffic and online visibility.

Buble Tea Franchise Cost For The Alley

Bubble tea franchise cost for The Alley can vary significantly based on city and location size, but the average investment typically starts from 250,000 US dollars and can reach up to 450,000 US dollars. Franchise fees are estimated to be around 40,000 to 50,000 dollars.

The Alley provides detailed design consultancy, supply chain logistics, training, and strict quality control to maintain its high-end brand image.

ideal for franchisees who want to operate in affluent neighbourhoods or urban hubs and offer a visually elevated customer experience.

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5. CoCo Fresh Tea & Juice

CoCo Fresh Tea & Juice is a pioneer in the bubble tea industry. Since its founding in 1997, it has grown to over 4,000 locations globally, with a robust presence in the US, particularly in California, New York, and Washington State.

Known for its consistency and large menu, CoCo offers both classic and modern bubble tea drinks that cater to a wide range of palates.

Its strength lies in operational consistency. Whether you are in Taipei or Seattle, a CoCo drink tastes the same. This reliability makes it a favourite among repeat customers and also reduces the risk for franchisees.

Bubble Tea Franchise Cost For Coco Fresh Tea & Juice

Bubble tea franchise cost with CoCo starts around 180,000 dollars and can climb to 400,000 dollars depending on the city and store design. The franchise fee generally ranges from 35,000 to 50,000 dollars.

CoCo offers turnkey solutions that include site selection, staff training, logistics coordination, brand marketing, and real-time operational support.

It is ideal for entrepreneurs seeking a trusted brand with a large, loyal customer base and time-tested operations.

See also: Crumbl Cookie Franchise Cost – Complete Investment Guide For Aspiring Entrepreneurs

Bubble Tea Franchise Qualifications and Requirements

Launching a bubble tea franchise is not as simple as signing paperwork and setting up shop. Franchisors in the United States follow structured qualification processes to ensure that every franchisee is capable of maintaining the brand’s standards, values, and operational efficiency.

Whether you are a first-time entrepreneur or a seasoned business owner, understanding the qualifications can help you prepare and set realistic expectations before you apply.

1. Financial Requirements

Your financial readiness is the first major hurdle. While exact figures vary by brand, most bubble tea franchise opportunities in the US require a minimum net worth between 250,000 and 500,000 US dollars.

In addition, you will need at least 100,000 to 150,000 dollars in liquid capital, money readily available to cover upfront expenses.

Why is this important? Because your initial investment goes beyond the franchise fee. The total bubble tea franchise cost usually includes:

• Franchise fee (30,000 to 50,000 dollars)
• Real estate and lease deposits
• Equipment and interior build-out
• Opening inventory and supplies
• Staff hiring and training
• Grand opening marketing

Most franchisors want assurance that you can cover 90 per cent of these costs independently, without relying entirely on loans.

If financing is needed, some brands may recommend preferred lenders, but approval is never guaranteed without strong credit and collateral.

Have your financial documents in order- bank statements, personal financial statements, credit history, and proof of assets. This will be requested early in the application process.

2. Business or Industry Experience

Although a background in food and beverage is not always mandatory, many franchisors prefer applicants who have some form of business, retail, or customer service experience.

This is especially relevant for hands-on franchises like bubble tea shops, where day-to-day operations involve inventory tracking, customer interaction, and employee supervision.

However, if you are new to entrepreneurship, you are not automatically disqualified. Brands often assess transferable skills such as leadership, problem-solving, and your willingness to follow a proven system.

Some franchise systems even provide additional training for first-time owners, provided you show a strong learning mindset and commitment to the brand.

In your application, highlight any experience that shows you can manage a team, handle cash flow, and engage customers. If you have run a side hustle, led a team, or worked in retail, that counts.

3. Location Strategy and Demographics

Choosing the right location is critical, and your franchisor will take this seriously. Most bubble tea brands look for franchisees who understand their local area and can identify high-traffic zones suitable for this kind of business.

In the US, popular locations include:

• Urban centres and downtown districts
• Near colleges and universities
• Shopping malls and retail strips
• Dense residential areas with foot traffic
• Suburbs with strong Millennial and Gen Z populations

Many brands have demographic targeting criteria. For example, a bubble tea franchise might prefer areas where 40 per cent or more of the population is between the ages of 16 and 34, based on US Census data.

Some franchisors provide territorial exclusivity, meaning you will be granted rights to open within a defined area. However, others operate with open territory systems, so location strategy becomes even more important to avoid internal competition.

Come prepared with a few location ideas. Franchisors often expect franchisees to take the lead on scouting viable spaces while they assist with analysis and approval.

See also: Best Italian Food Franchises to Invest in.

4. Time Commitment and Owner Involvement

In most cases, franchisors prefer candidates who will actively manage the business, especially in the first 12 to 18 months. This is when you set the tone for customer service, team culture, and brand standards. It is also when many operational kinks are ironed out.

Some brands allow for semi-absentee ownership, but this typically requires hiring a full-time manager with industry experience, and that raises your bubble tea franchise cost. Fully absentee models are rare in this segment because customer experience is heavily reliant on in-store engagement.

Be honest about your availability. If you plan to manage multiple businesses or keep a full-time job, make sure your model supports that structure and budget accordingly.

5. Cultural and Brand Alignment

The most successful franchisees are those who genuinely connect with the brand’s mission, values, and customer culture. Bubble tea is not just a product, it is a lifestyle trend, rooted in East Asian culture and adapted globally by younger, socially active audiences.

Franchisors will look for signs that you:

• Understand and appreciate the heritage of bubble tea
• Can speak the language of Gen Z and Millennial customers
• Are committed to delivering an on-brand experience
• Will represent the franchise professionally both online and offline

Some brands even ask for a brand interview, where you discuss your motivations and business philosophy. They want to see that you are not just buying into a trend, but are invested in building a lasting business with them.

Familiarise yourself with the brand’s values, digital voice, and customer touchpoints. Visit local franchise stores if available. Mention what you like about the brand in your application, it shows you’ve done your homework.

The Bubble Tea Franchise Application Process – Step-by-Step

Once you have identified a brand and confirmed that you meet its basic requirements, the next phase is navigating the application process.

While procedures vary slightly by franchise, most reputable bubble tea brands in the United States follow a structured sequence designed to evaluate your readiness and align expectations from the start.

Here is a detailed breakdown of what you can expect from start to finish.

1. Initial Inquiry and Franchise Interest Form

Your journey begins by expressing interest through the brand’s official franchise portal or website. Most brands have a dedicated page where you can fill out a Franchise Interest Form or Request for Information.

This initial form usually captures:

• Your full name and contact information
• Your preferred location or territory
• Current occupation or business experience
• Estimated liquid capital and net worth
• Timeline for opening

Submitting this form is not a commitment, it is simply your entry point into the process. A franchise development representative will usually follow up within a few days.

Treat this as your first impression. Clear, professional communication signals that you are serious and credible.

2. Introductory Call or Interview

After your inquiry, you will be contacted for a discovery call or virtual interview with a franchise development manager. This is your chance to ask questions and learn more about the brand’s expectations, support systems, and overall strategy.

Expect the representative to ask about:

• Your reasons for choosing a bubble tea franchise
• Any prior business or retail experience
• Your financing plan
• Your preferred involvement (hands-on or semi-absentee)

This call also helps the brand assess your cultural fit and business mindset.

Prepare thoughtful questions. For example, ask about territory availability in your city, average franchise performance, and training timelines.

3. Financial Disclosure and Verification

Before proceeding further, you will be asked to submit financial documentation that confirms your ability to cover the bubble tea franchise cost. This typically includes:

• Personal financial statement (PFS)
• Bank statements (usually last 3 to 6 months)
• Tax returns (past 2 years)
• Credit score or credit report
• Business ownership documents (if applicable)

This step is non-negotiable. It protects both you and the franchisor by ensuring you have the resources to succeed.

Keep these documents prepared in advance. Delays at this stage can stall your application or affect your approval timeline.

4. Franchise Disclosure Document (FDD) Review

Once your financials are approved, the franchisor will send you the Franchise Disclosure Document (FDD). This is a legally required document under the Federal Trade Commission (FTC) guidelines. It outlines everything you need to know about the franchise relationship.

The FDD includes:

• Full breakdown of the bubble tea franchise cost
• Franchise fees and royalty structures
• Brand policies and expectations
• Legal history of the company
• Average financial performance of franchisees
• Territory and exclusivity clauses
• Renewal and termination rules

By law, you must have at least 14 days to review the FDD before signing any agreements.

Consult a franchise attorney before signing anything. An experienced lawyer can help you understand complex clauses and assess the financial implications of the agreement.

5. Discovery Day (Optional but Common)

Many bubble tea brands offer or require a Discovery Day, a scheduled visit to the company’s headquarters or flagship store. This gives you a first-hand look at operations, meet-the-team sessions, and an immersion into the brand’s culture.

You will get to:

• Observe store flow and technology in action
• Taste menu items and understand preparation systems
• Meet leadership and training staff
• Ask deeper operational and logistical questions

For franchises with a strong US presence, Discovery Day is often held in cities like New York, Los Angeles, or Dallas, depending on their base of operations.

Dress professionally, take notes, and ask scenario-based questions (e.g., How is staff turnover managed? What support is given if sales decline?)

6. Site Selection and Lease Negotiation

If both sides agree to proceed, you will now begin identifying potential store locations. This step may run parallel to agreement signing in some cases, but most franchisors will help you shortlist sites based on:

• Local demographics
• Traffic patterns and visibility
• Nearby competitors
• Lease terms and build-out feasibility

Some brands offer real estate teams to assist with negotiations or approvals, while others leave the lease deal entirely to the franchisee.

Secure a location with pedestrian visibility, high foot traffic, and access to parking. A poor site will impact even the best marketing campaigns.

7. Franchise Agreement Signing

Once the FDD review and location are approved, the next step is to sign the Franchise Agreement. This is a binding contract that makes you an official franchise partner of the brand.

You will also pay your initial franchise fee at this stage, which ranges between 30,000 to 50,000 US dollars depending on the brand.

After signing, you will receive access to proprietary systems, supplier contacts, operations manuals, and onboarding materials.

Review the final agreement with your attorney again, just before signing. Ensure all negotiated terms (territory, timelines, fees) are clearly stated.

8. Training and Onboarding

Training programs vary by brand, but most include:

• 5 to 10 days of classroom or on-site training
• In-store sessions at a flagship outlet
• Product preparation and inventory management
• POS and digital systems training
• Hiring and staff training guides
• Marketing toolkit and launch checklist

Training usually takes place 1 to 3 months before your store’s opening date, so you have time to prepare while finishing your store build.

Bring along your store manager or assistant if you plan to delegate daily operations. Many franchisors allow this and even encourage it.

9. Store Build-Out and Setup

With training underway, your location will go through its build-out phase. This includes:

• Interior design and brand elements
• Equipment installation (tea brewers, sealing machines, refrigeration, POS, etc.)
• Health and safety compliance
• Furniture and signage setup

Timeline can range from 8 to 16 weeks, depending on permit approvals, contractors, and location conditions.

The bubble tea franchise cost for this phase is one of the most variable, often making up 40 to 60 per cent of your total investment.

Stick to the brand’s approved vendors and equipment list to avoid delays and non-compliance.

10. Grand Opening Launch

This is your big day. Most franchisors will support your grand opening with:

• Pre-launch marketing materials
• Local advertising campaigns
• Social media assets
• Influencer engagement (if applicable)
• Staff support for launch day operations

Some also require a minimum local marketing spend, typically between 5,000 to 15,000 US dollars, as part of your opening strategy.

Promote the launch at least two weeks in advance using local food bloggers, social ads, and foot-traffic flyers. Build momentum before doors open.

See also: Best Grocery Store Franchises: Top Investment Opportunities in Food Retail

Bubble Tea Franchise Cost and Profitability: What You Should Expect

Knowing how much it costs to start a bubble tea franchise is more than just about tallying numbers. It is about understanding the full investment picture, managing expectations, and setting yourself up for long-term profitability.

While the exact startup cost will vary by brand, city, and store model, the overall structure is fairly consistent across the US market.

Below is a detailed breakdown of the bubble tea franchise cost and what you should prepare for financially, plus what kind of return on investment you might expect.

Estimated Total Startup Cost

The average cost to open a bubble tea franchise in the United States ranges from 140,000 to 500,000 US dollars, depending on the brand and store size. Here is where the money typically goes:

1. Franchise Fee

• 30,000 to 50,000 dollars
• Paid upfront when signing the franchise agreement
• Covers use of brand name, proprietary recipes, operations manuals, and training access

2. Equipment and Technology

• 25,000 to 50,000 dollars
• Includes tea brewers, blenders, cup sealing machines, refrigerators, storage units, and POS systems
• Some brands offer discounts through approved vendor lists

3. Leasehold Improvements and Interior Build-Out

• 50,000 to 150,000 dollars
• Covers flooring, signage, lighting, branding elements, furniture, plumbing, and electrical work
• Actual cost depends heavily on location condition and square footage

4. Real Estate and Rent

• Monthly rent for a 500 to 1,200 square-foot space typically ranges from 2,500 to 10,000 dollars
• High-traffic malls and downtown areas command premium prices
• Some landlords may offer tenant improvement allowances to offset initial build-out

5. Initial Inventory and Supplies

• 8,000 to 15,000 dollars
• Includes tapioca pearls, teas, flavoured syrups, milk options, cups, lids, and packaging materials

6. Licensing, Permits, and Insurance

• 3,000 to 8,000 dollars
• Covers health department approvals, business licences, occupancy certificates, and general liability insurance

7. Pre-Opening Marketing and Launch Campaign

• 5,000 to 15,000 dollars
• Required by most franchisors to build local buzz and attract first customers
• May include social media ads, influencer outreach, soft opening events, and community activations

8. Working Capital

• 10,000 to 30,000 dollars
• Recommended buffer to cover initial payroll, utilities, inventory replenishment, and emergencies for the first three to six months

Ongoing Operational Costs

Once your store is open, you will also face monthly expenses that impact profitability. These include:

• Royalty fees: Usually 4 to 7 per cent of gross sales
• Marketing fees: Often 1 to 3 per cent of revenue (for national brand campaigns)
• Staff wages: Vary by state; average barista wage in the US ranges from 12 to 16 dollars per hour
• Utilities and consumables
• Maintenance and tech support

Be sure to ask your franchisor for a sample pro forma or profit and loss projection to better estimate what your monthly cash flow might look like.

Profit Potential and ROI Timeline

The profit margin for a well-run bubble tea shop typically ranges from 15 to 25 per cent, after all expenses. However, this depends on:

• Your location
• Brand strength
• Operational efficiency
• Staff turnover and training
• Waste control (bubble tea ingredients have short shelf lives)

According to industry reports, average gross revenue for a single-unit bubble tea franchise in the US falls between 300,000 to 600,000 dollars annually, though high-performing stores in busy urban areas can surpass 800,000 dollars.

Assuming stable operations, most franchisees see a return on investment within 18 to 36 months. That timeline shortens significantly for multi-unit owners who benefit from shared resources and economies of scale.

Realistic Profit Example (Single Store Model)

Let us break down a simplified scenario:

• Annual revenue: 450,000 dollars
• Cost of goods sold: 30 per cent (135,000 dollars)
• Labour and wages: 25 per cent (112,500 dollars)
• Rent and utilities: 15 per cent (67,500 dollars)
• Royalties and marketing fees: 6 per cent (27,000 dollars)
• Other operating expenses: 10 per cent (45,000 dollars)

Net profit: 63,000 dollars (14 per cent margin)

This is a modest but realistic outlook for a single-location operator working in a mid-sized US city. Profitability improves significantly once you optimise your team, build a loyal customer base, and refine your marketing.

Many franchisees start with one location and reinvest profits into opening a second unit within three to five years. Multi-unit operators often negotiate better support and lower costs per store.

Estimated Bubble Tea Franchise Startup Costs (USD)

Top Bubble Tea Franchise Brands Comparison

How can Entrepreneur.ng Support your Bubble Tea Franchise Journey

Getting into the bubble tea business is a smart move if you are ready to commit the capital, time, and energy required to build a profitable outlet. But franchise ownership is not just about drinks and branding, it is about strategy, execution, and long-term growth. That is where Entrepreneurs.ng comes in.

Our Entrepreneur Blueprint Success Program is built specifically for entrepreneurs like you. Whether you are exploring your first franchise or expanding your current portfolio, we offer tailored guidance to make sure your decisions are backed by real data, expert insight, and proven systems.

Conclusion

The bubble tea wave is more than a trend, it is a fast-growing global market with deep appeal among younger consumers and urban foodies.

For entrepreneurs in the United States, it represents a chance to tap into a vibrant business model with strong brand support, predictable systems, and scalable growth opportunities.

Still, success in this space comes down to more than choosing a popular brand. You need the right location, a clear grasp of the bubble tea franchise cost, and a solid understanding of what it takes to run a retail food business in today’s competitive landscape.

With careful planning and the right support team, your bubble tea franchise can go from idea to profitable storefront in less than a year.

We want to see you succeed, and that’s why we provide valuable business resources to help you every step of the way.

• Register your business today with Entrepreneurs.ng’s Business Registration Services.
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Frequently Asked Questions About Starting a Bubble Tea Franchise

1. How much does it cost to start a bubble tea franchise in the US?

The bubble tea franchise cost in the United States typically ranges between 140,000 and 500,000 US dollars, depending on the franchise brand, store size, and location.

This cost includes the franchise fee, equipment, interior build-out, inventory, marketing, and working capital. Some urban areas, like New York or Los Angeles, may require a higher investment due to real estate costs.

2. What is included in the bubble tea franchise cost?

The total startup cost includes:

• Franchise fee (30,000 to 50,000 dollars)
• Store build-out and branding
• Tea equipment and POS systems
• Initial inventory
• Licences and permits
• Launch marketing
• Working capital

Franchisors usually provide a detailed breakdown in the Franchise Disclosure Document (FDD).

3. Are bubble tea franchises profitable?

Yes, bubble tea franchises can be profitable when set up in the right location with strong operations. The average profit margin ranges between 15 to 25 per cent, and gross revenue for a single location typically falls between 300,000 to 600,000 dollars annually, depending on the brand and traffic.

Profitability depends on location, rent, labour costs, and marketing execution.

4. What is the cheapest bubble tea franchise to start?

The cheapest bubble tea franchises tend to be local or regional brands with lower franchise fees and simplified menus.

However, among well-known international brands, Kung Fu Tea offers one of the lower entry points, with startup costs starting around 140,000 dollars. Always compare the total investment, not just the franchise fee.

5. Can I start a bubble tea franchise with no experience?

Yes, many franchises are open to first-time business owners as long as they meet the financial requirements and are willing to follow the franchise system.

Brands provide training, operational manuals, and ongoing support. However, having experience in retail, food service, or customer service is always an advantage.

6. How long does it take to open a bubble tea franchise?

It usually takes 3 to 6 months from application to grand opening. The timeline depends on:

• How quickly you secure financing
• Franchise approval and training
• Site selection and lease negotiation
• Store build-out and permit approvals

Franchisors will often assist you through each step to streamline the process.

7. Can I own more than one bubble tea franchise location?

Yes. Many franchisors offer multi-unit agreements for entrepreneurs looking to scale. Owning multiple units can increase profit margins and offer operational efficiencies.

However, you may need a higher net worth and stronger operational systems in place.

8. What is the best bubble tea franchise to invest in?

The best franchise depends on your goals, location, and budget. In the US, popular options include:

• Gong Cha for its global presence and high-quality tea
• Kung Fu Tea for its strong US roots and youthful brand
• Chatime for its tech-enabled systems and wide drink range

Always evaluate the bubble tea franchise cost, brand support, and local demand before making your choice.

9. Do I need to be involved in the day-to-day operations?

Most brands prefer owner-operators, especially during the first year. Active involvement ensures better team management and quality control. Some brands allow semi-absentee ownership, but you will need to hire a trusted manager and may face higher startup costs.

10. Is a bubble tea franchise a good investment?

Yes, the bubble tea market is projected to surpass 6.2 billion US dollars globally by 2030, with strong growth in the US.

Demand is driven by younger consumers and health-conscious trends. With the right location, brand, and execution, a bubble tea franchise can be a profitable long-term investment.