Bubble Tea Franchise Versus Going Independent
Should you choose a franchise or independent shop model? The answer depends on various factors. Firstly, you need to know if the upfront costs of a franchise model are higher. You need to pay the company for the package and its a fee thats set by them. Typically all franchisees have to pay the same price so there is little wiggle room for negotiation. Also, a percentage of gross sales will go towards royalty and marketing fees.
Franchise models are great for people that want to run a business without having to innovate for themselves. Youre given a proven strategy that you have to follow. As an independent shop owner, youll need to come up with the brand, menu, and marketing strategy. Its a lot of work and requires a particular skillset.
Three Scenarios For Kung Fu Tea In Rochester
According to the assessment, the shop has to sell approximately 400 cups per day to break even on the 7th month from the day of its opening. However, if the shop sells 700 cups per day , it will take only 4 months to breakeven. The bubble tea business has a high markup that is why it is expected that the shop will pay off quickly.
The factors that will contribute to the high sales are:
- A good location with intense traffic
- Unsatisfied market demand for the bubble tea
- A growing interest in eating and drinking out
- A high quality healthy product offered, which gains more popularity in the USA nowadays.
Taking into account the mentioned conditions, a constant increase in sales is expected, and it is hoped to establish performance at the optimistic level on the second month after the shop opening.
Whats Included In The Kung Fu Tea Shops Franchise Due Diligence Report
Each Franchise Due Diligence Report involves custom research on and a complete investigation of the franchise opportunity and KF TEA FRANCHISING LLC, the franchisor that offers franchised businesses for sale. Our Franchise Due Diligence Report is designed to provide prospective franchisees all the information they need. Let our experienced franchise experts take the leg work out of buying a franchise and save you countless hours searching online for information about Kung Fu Tea shops/KF TEA FRANCHISING LLC.
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It’s Grown So Much That Big Names Have Taken Notice
Kung Fu Tea’s philosophy is to create franchisees and employees who are masters that challenge the beverage industry with fearless innovation. Meanwhile, customers who embrace the Kung Fu Tea spirit are also regarded as masters of perseverance and motivation. Kung Fu Tea, it seems, wants to spread a message of success, and it’s perhaps this determination that’s seen the brand rise to the top.
According to World Tea News, Kung Fu Tea is a big player on the global stage, especially within a steadily growing market. The global bubble tea market is set to be worth $4.3 billion by 2027, which is a rise from a valuation of $2.4 billion in 2019.
In 2016, Kung Fu Tea hit the headlines when politician Hillary Clinton stopped off at the bubble tea shop in New York during her campaign tour. As per Vice, she seemed to enjoy her first boba, commenting, “I’ve never had chewy tea before!”
Dragon Pop Is Kung Fu Tea’s Popcorn Venture
It’s nearly always to enjoy something to nibble on along with a drink. Kung Fu Tea has gone that extra step and actually created its own unique snacks that are inspired by the chain’s unique boba flavors. Yes, that even includes popcorn. The chain’s Dragon Pop adds a delicious crunchy texture to any Kung Fu Tea beverage, with air-popped popcorn that comes in individual bags.
According to Kung Fu Tea, you can have your pick of some seriously unique flavors. You might enjoy a Brown Sugar Milk Tea, which is rich and creamy and has the flavor of black tea. There’s also Mango, bringing an Asian, tropical taste. Or, perhaps you’d prefer a sweet Strawberry variety. Meanwhile, Thirteen Spices brings a spicy pop to the proceedings, with its punchy flavors of chili, cumin, nutmeg, and pepper. Perhaps the most unique of the group is the Salted Egg flavor.
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The Kung Fu Tea Experience
This bubble tea experience is honestly unlike any other that you may encounter. With each beverage that is constructed, the kung-fu spirit is applied each and every time. They share their passion for this art and ensure that it shows through their handcrafted drinks. In fact, they understand the importance of taking your time to create amazingness.
So much that they use actual leaves when brewing their teas. Its all about having patience and discipline. After all, thats what the kung-fu experience is all about, right? Which is why these signature drinks are crafted in a way that resembles those values.
They are so much dedicated to providing only the best drinks that they brew the tea every three hours and ensuring that the bubbles are cooked every two every. Its truly a highly rated brewing process that has been mastered by this company. And the flavor has been always remained consistent throughout the years.
With this company, you can always appreciate the amazingly crafted bubble teas and other signature drinks that are carefully crafted with patience. Or, you can become an owner of one of the franchise locations and enjoy the art of making these signature drinks for the people in your community.
Either which way, its an incredible experience that you wont want to miss. Are you ready to find out what makes this business opportunity one of the best of its kind? Lets jump in and check it out.
Bambu Desserts & Drinks
Franchise Fee: $81,500Royalty Fees: None
Bambu serves distinctive Asian-inspired Che, unique boba teas, Vietnamese coffees, exotic fruit smoothies and juices ordered directly off our colorful menu or custom-made just the way our customers love it. Besides our house-made, vegan-friendly, gluten and dairy-free Che, we are also known for our incredibly friendly service. Bambu is offering passionate entrepreneurs the opportunity to open one or more Bambu Shoppes using Bambus valuable intellectual property including our brand, proprietary recipes, and unique processes. Our franchise model recommends, but does not dictate, the way you run your business except as it relates maximizing your workflow and protecting the Bambu brand, recipes and quality of our drinks.
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How Much Does The Kung Fu Tea Franchise Cost
Kung Fu Tea has a franchise fee of up to $37,000, with a total initial investment range of $123,000 to $422,000.
Liquid Cash Requirement: $25,000 – $35,000
Kung Fu Tea Initial Investment
Initial Investment: $123,000 – $422,000
Equipment Costs: $25,000 – $35,000Renovation Costs: Varies
Are you interested in starting Kung Fu Tea shop in the USA, Australia, Canada, Taiwan, Cambodia, Japan, or another country?
We provide estimated franchise costs for some countries:
- – In the United States, the total investment to start the Kung Fu Tea bubble tea shop is around $123,000 to $422,000.
- – In Australian dollar, the investment comes around AUD 168,268 to AUD 577,311.
- – In Canadian dollar, the investment comes around CAD 154,567 to CAD 530,303.
- – In Taiwanese currency, the investment comes around TWD 3,4 to TWD 11,7 million.
- – In Cambodian currency, the investment comes around KHR 504 – KHR 1,730 million.
- – In currency of Japan, the investment comes around ¥14 – ¥48.1 million yen.
- – In currency of India, the investment comes around Indian Rupee 91.55 to 314.09 Lakhs.
- – In currency of the UK, the investment comes around GBP 91,790 to GBP 314,923.
Kung Fu Tea website: www.kungfutea.com
Request Free Info
- Year of launching the franchise2011
- 589 8th Ave 17th Fl New York, NY 10018, US
History Of Kung Fu Tea
After returning from Taiwan in 2009, entrepreneurs Michael, Allen, and Ray were roaming around Flushing, Queens.
They were looking for bubble tea, their favorite childhood beverage.
They visited a neighborhood tea shop, ordered, and sat down to explore fresh company ideas after gazing.
The three of them instantly put their glasses down in mid-conversation, perplexed that the beverage was a substandard counterfeit rather than the bubble tea they had grown to adore in Taiwan.
They stared at each other as they noticed the long line of thirsty consumers, and thats when Michael, Allen, and Ray realized their new venture.
A bubble tea restaurant, that opened in 2010 has quickly grown in popularity. As a result, in 2011, the brand offered its first Kung Fu Tea franchise for sale.
Today, the company operates the largest chain in the field, with over 361 locations.
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About The Kung Fu Tea
Kung Fu Tea is Americas largest made-to-order bubble tea company, with over 200 outlets across the country.
Through fresh, imaginative, and daring efforts, you may join them in upgrading the world of beverages and challenging the face of the industry.
They also have a multi-unit franchise program in which you pledge to open and operate a certain number of Kung Fu Tea shops in a specific geographic area over a set length of time.
What Is The Kung Fu Tea Franchise Fee
Owning a Kung Fu Tea franchise requires 5% royalty fee and 2% marketing fee. These two expenses represent the main ongoing costs you can expect to pay the franchisor throughout the franchise relationship. There may be other ongoing fees disclosed in the Kung Fu Tea Franchise Disclosure Document
Keep in mind, there is also an initial Kung Fu Tea franchise fee of $25,000 that is included in the initial investment amount of $166,500 to $375,500. Depending on the franchise agreement you sign, you might have to pay the full franchise fee again if you decide to extend the Kung Fu Tea franchise relationship. Consult with a licensed franchise attorney to understand exactly what you receive for paying the Kung Fu Tea franchise fee of $25,000.
Visit the Kung Fu Teametrics tab to explore the financials for this business, royalty and marketing fees compare to other Food and Beverage franchises. You can also compare these fees for 2,000+ franchises currently offered in the U.S.
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What Is The Kung Fu Tea Franchise For Sale Rate
The Kung Fu Tea systemwide health and franchisee satisfaction can be measured by the Kung Fu Teafranchise for sale rate. The franchise for sale rate is calculated by the percentage of units transferred to new franchisees and reacquired by franchisor.
Kung Fu Tea franchise for sale rate over the past 3 years is 8%. Over the last year we have data for, Kung Fu Tea had a franchise for sale rate of 3%.
Without a comparison, this number doesn’t mean much. Compare how the Kung Fu Tea franchise for sale rate compares to 2,000+ other franchises and Industry franchises like Kung Fu Tea. More info in the Kung Fu Teametrics tab.
How Much Does It Cost To Start A Bubble Tea Franchise
The majority of bubble tea franchises range from $75,000 to $500,000. Larger areas, such as those in densely populated cities, are likely to be on the higher end of the price range. Kiosks and retailers at shopping malls and airports are typically less expensive to open. The bulk of them can get started for $125,000 to $200,000.
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Major Details On Franchising Kung Fu Tea
Not every franchise opportunity is made the same. Some are wonderful while others seem to be more trouble than its worth. Were looking into Kung Fu Tea to see how their opportunity rates and figure out if its a good choice for you.
When we take a look at the growth of the franchise outlets, there is a definite rise which is a pretty good sign. In 2010 there were zero franchises running, but in 2017 that number rose to 127.
So we can assume that this establishment has definitely grown in popularity. But we also need to look at the turnover rate of this franchise to see if those franchise outlets are transferring or terminating their agreements.
The turnover rate clues us into the health of the franchise business. If the number is too high it could indicate that the previous franchises decided that there wasnt much money to be made.
When we take a look at the turnover rate for Kung Fu Tea, its decently low at a 2. This is a very good level for the rate to be at. Especially since the total number of outlets is 127. I would say that the one negative to this franchise opportunity is the lack of financial transparency of the company.
As recorded, the company seems to not share and revenue or data details on current franchise outlets or the details on company-owned locations.
Luckily? Kung Fu Tea isnt too pricey.
There are a few other benefits that you get when you choose to franchise Kung Fu Tea. Such as on the job training along with computer and technical support.
How Much Do Kung Fu Tea Franchise Owners Make
Kung Fu Tea does not make any representations about a franchisees future financial performance or the past financial performance of company-owned or franchised outlets.
Through our analysis of the Franchisor income statement we can guesstimate sales figures from the income statement line item Franchise Revenue.
2018 Kung Fu Tea Break-even point:
Royalty fee: 3% of Gross Sales
In 2020 Kung Fu Tea made $2,513,157
Estimated average franchise revenue: $341,926
2019 Kung Fu Tea Break-even point:
Royalty fee: 3% of Gross Sales
In 2020 Kung Fu Tea made $2,467,310
Estimated average franchise revenue: $335,688
1- Based on a midpoint investment of $271,000 with estimated profits of $33,568 at a 10% profit margin it would take about 10 years to recoup your investment.
2- Based on a midpoint investment of $271,000 with estimated profits of $50,353 at a 15% profit margin it would take about 7 years to recoup your investment.
3- Based on a midpoint investment of $271,000 with estimated profits of $67,137 at a 20% profit margin it would take about 6 years to recoup your investment.
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Who Found Kung Fu Tea
In 2009, entrepreneurs Michael, Allen, and Ray were walking around Flushing, Queens after returning from a trip to Taiwan. They were in search of their favorite childhood drink: bubble tea. After looking around, they found a local tea spot, ordered, and sat down to discuss new business ideas.
Home-based, commercial ones are used by top stars.
The average studio owner in the US makes over $100,000 a year. The average total compensation for studio owners in Los Angeles, CA is $106,513, which is less than the US average.
Why Lead Generation Business An Important But Scalable & Long
There are tons of businesses out there. Yet, only a few to none of them gives me a chance to give a huge impact to others in need of my knowledge and skills for their businesses.
As passionate as I am when it comes to this industry, especially in sales, I love helping other people by what Im doing. And as far as Ive recalled my previous experiences in business, only the lead generation business makes it possible for me.
Nowadays, there are tons of potential markets out there. The problem is most of the small business owners dont know or dont have the time to learn how to position their selves right online because they the skills needed for it.
When I decided to do the lead generation business after I quit my job of 3 years in a Japanese auto parts company, I got the chance to reach out to these small business owners and deliver the leads I generated from the lead gen sites I created in exchange for the monthly paycheck.
This is exactly what happened to one of my first clients in Lansing, MI. Take a look at the lead gen site I made for around 6 hours for a Limo company. The work included the creation of the simple website that looked like this and the ranking on Googles top page.
Until now, theyre paying me for $750 every month for 4 years now. That means I am earning $9,000 per year and in 2019, I have $36,000 with a 6-hour work. Thats how great the lead generation business when it comes to earning your passive income.
How is this possible?
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Statistics Of American Tea Market Giving An Edge To Companies Like Taichi Bubble Tea And Kung Fu
The American tea market is increasing. Tea sales have increased 165% during the last fifteen decades, with the number of tea rooms that offer sit down service rising about 15% to approximately 1,500 shops.
American fascination with tea certainly owes some of its growth to the proliferation of gourmet coffee stores around the country in this same period. The majority of working America has recognized the idea of expensive hot drinks as affordable luxuries due to the marketing campaigns of Starbucks, Seattles Best, and so on. At precisely the same time, fashion is frequently on the move. Today that fancy coffee drinks are so widely accepted. Savvy consumers are searching for a new, unique variation to enjoy.
Starbucks estimates that 7% of its $12 billion annual sales currently come from tea in the USA. So there is no reason why Tai chi Bubble tea and other tea shops will not jump into it.
Bubble tea shops quickly generate sales to present committed tea drinkers, who will immediately recognize the services and products standards. Marketing to the more prominent local groups that are not yet knowledgeable about premium teas will emphasize our setting .
So what are you thinking?
Even you can sell our prestige-value , and our broad range of potential gifts . Sales to tourists depend on a highly-visible place, association with any citys quaint charm, and promotional efforts in collaboration with other regional businesses.
You will hardly get direct competitors in your region.