About Kung Fu Tea Franchise
Kung Fu Tea is one of the largest and most recognized bubble tea franchises in the United States, offering a wide selection of handcrafted tea beverages, milk teas, slushes, and boba drinks.
Backed by parent company TKK Franchising LLC, the brand has built a massive following among tea enthusiasts with its commitment to freshly brewed teas and creative flavor combinations served in a modern, inviting atmosphere.
With a franchise fee ranging from $25,000 to $37,000, Kung Fu Tea provides a competitive entry point into the specialty beverage franchise market.
Kung Fu Tea Franchise Cost & Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $25,000 to $37,000 | One-time payment upon signing |
| Royalty Fee | 4% of Gross Sales of gross sales | Ongoing; paid monthly |
| Total Investment Range | $12,500 – $428,000 | Includes build-out, inventory, working capital |
The investment range of $13K–$428K reflects variability in build-out costs, store size, lease terms, and market. The ongoing royalty fee is 4% of Gross Sales of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial franchise fee (Note 1) | $25,000 | $37,000 |
| Training fee (Note 2) | $12,500 | $12,500 |
| Equipment from our affiliate (Note 3) | $6,500 | $7,500 |
| Other equipment, furniture, fixtures and signage | $30,000 | $40,000 |
| Computers, printer, fax, and other hardware and busi- ness software (Note 4) | $2,500 | $5,000 |
| Prepaid rent and security deposit (Note 5) | $5,000 | $40,000 |
| Leasehold improvements and architectural costs (Note 6) | $40,000 | $150,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $5,000 |
| Renewal Fee | Up to the greater of $10,000 or 25% of the then-current initial fee. |
| Technology Fee | $140 |
| Audit Fee | Payable if the audit is made necessary by your failure to furnish required infor |
| Initial training | $12,500 |
| Equipment | $6,500 |
| Initial inventory | $15,000 |
| First unit total | $59,000 |
| Development Fee | $50,000 |
| Total | $109,000 |
| Inventory of tea, coffee, packaging materials, cups and other items for resale | $2,500 |
| Marketing fee | 2% of Gross Sales |
| Promotions fee | 7.25% of each customer purchase using the LevelUp app |
| Relocation fee | $5,000 |
| Insurance | Our actual costs of the premium for the period of cov- erage plus a 25% service |
| Field assistance | $180 |
| Additional training | $180 |
| Remedial work | Our actual costs and a 25% service charge on labor and materials |
| Management fee | $20 |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | exclusive |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | Does not offer financing. |
Kung Fu Tea Franchise Earnings — Item 19
Kung Fu Tea 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.
Kung Fu Tea 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.
Kung Fu Tea System Growth
Kung Fu Tea currently operates 2 franchised locations and 1 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2019 | 0 | 0 | |
| 2019 | 0 | 1 | |
| 2019 | 2 | 11 | |
| 2019 | 2 | 4 | |
| 2019 | 0 | 0 | |
| 2019 | 0 | 2 | |
| 2019 | 3 | 9 | |
| 2019 | 2 | 6 | |
| 2019 | 0 | 4 | |
| 2019 | 0 | 1 | |
| 2019 | 0 | 2 | |
| 2019 | 0 | 1 | |
| 2019 | 1 | 3 | |
| 2020 | 1 | 1 | |
| 2020 | 0 | 1 | |
| 2020 | 5 | 16 | |
| 2020 | 2 | 6 | |
| 2020 | 0 | 0 | |
| 2020 | 0 | 2 | |
| 2020 | 1 | 10 | |
| 2020 | 3 | 9 | |
| 2020 | 0 | 4 | |
| 2020 | 1 | 2 | |
| 2020 | 1 | 3 | |
| 2020 | 0 | 1 | |
| 2020 | 0 | 3 | |
| 2021 | 1 | 2 | |
| 2021 | 0 | 1 | |
| 2021 | 3 | 19 | |
| 2021 | 2 | 8 | |
| 2021 | 1 | 1 | |
| 2021 | 0 | 2 | |
| 2021 | 2 | 12 | |
| 2021 | 2 | 11 | |
| 2021 | 2 | 6 | |
| 2021 | 1 | 3 | |
| 2021 | 0 | 3 | |
| 2021 | 1 | 2 | |
| 2021 | 0 | 3 |
Kung Fu Tea Franchise — FAQ
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