About Happy Lemon Franchise
Happy Lemon is a bubble tea and specialty beverage franchise that originated in Asia and has expanded into the United States.
The brand offers an extensive menu of tea based drinks, fruit teas, smoothies, and signature creations featuring tapioca pearls, rock salt cheese, and other creative toppings that have made bubble tea a global phenomenon.
The franchise fee for a Happy Lemon location is $80,000.
Happy Lemon Franchise Cost & Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $80,000 | One-time payment upon signing |
| Royalty Fee | 7% of Gross Revenue of gross sales | Ongoing; paid monthly |
| Total Investment Range | $289,000 – $607,000 | Includes build-out, inventory, working capital |
The investment range of $289K–$607K reflects variability in build-out costs, store size, lease terms, and market. The ongoing royalty fee is 7% of Gross Revenue of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $80,000 | $80,000 |
| Your Initial Training Expenses (Note 2) | $12,000 | $16,000 |
| Rent & Deposit (Note 3) | $4,000 | $10,000 |
| Architects Fees, Engineering Plans, Construction, Remodeling, Decorating, Signage, Leasehold Improve | $100,000 | $250,000 |
| Equipment | $30,000 | $80,000 |
| Opening Inventory and Supplies (Note 5) | $15,000 | $45,000 |
| Insurance (Note 6) | $8,000 | $12,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $5,000 |
| Renewal Fee | $20,000 |
| Technology Fee | $5,000 |
| Interest | Lower of 1.5% per month or highest rate permitted by law (note 4) |
| Additional On-Site Training/Consultation Fees and Possible Expenses | $400 |
| Your Initial Training Expenses (Note 2) | $12,000 |
| Rent & Deposit (Note 3) | $4,000 |
| Architects Fees, Engineering Plans, Construction, Remodeling, Decorating, Signag | $100,000 |
| Equipment | $30,000 |
| Opening Inventory and Supplies (Note 5) | $15,000 |
| Insurance (Note 6) | $8,000 |
| Security and Utility Deposits, Licenses, Permits, Certificates and other Prepaid | $10,000 |
| Legal, Accounting Costs (Note 8) | $5,000 |
| Additional Funds for 3 months (Note 10) | $20,000 |
| TOTAL (Note 11 and Note 12) | $289,000 |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | exclusive |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Renewal Term | If you meet all conditions, you can renew for 1 additional 5-year term. |
Happy Lemon Franchise Earnings — Item 19
Happy Lemon does not include an Item 19 financial performance representation in their FDD. Contact information for current and former franchisees is listed in Item 20 of the FDD.
Happy Lemon Litigation & Risk Flags
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Happy Lemon System Growth
Happy Lemon currently operates 48 franchised locations and 4 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2019 | 48 | ||
| 2019 | 3 | ||
| 2019 | 51 | ||
| 2020 | 58 | ||
| 2020 | 4 | ||
| 2020 | 62 | ||
| 2021 | 66 | ||
| 2021 | 3 | ||
| 2021 | 69 |
Happy Lemon Franchise — FAQ
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