About machi machi Franchise
Machi Machi is a premium bubble tea and cheese tea franchise that has been franchising since 2021, originally founded in Taiwan and backed by Machi Machi (Taiwan).
The brand gained international fame for its Instagram worthy presentation and its signature cheese foam teas, fruit teas, and specialty milk teas.
Machi Machi locations feature a sleek, modern aesthetic and a menu of handcrafted beverages that have earned a devoted global following.
machi machi Franchise Cost & Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $65,000 to $150,000 | One-time payment upon signing |
| Royalty Fee | 5% of Net Sales of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 2% of Net Sales | National brand fund |
| Total Investment Range | $316,150 – $813,800 | Includes build-out, inventory, working capital |
The investment range of $316K–$814K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (5% of Net Sales) and marketing fee (2% of Net Sales) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $65,000 | $150,000 |
| Background / Credit Check | $150 | $300 |
| Real Estate and Leasehold Improvements | $101,000 | $250,000 |
| Location Selection Services | $5,000 | $35,000 |
| Furniture and Fixtures | $20,000 | $40,000 |
| Equipment | $53,000 | $100,000 |
| Architectural and Engineering Fees | $7,000 | $15,000 |
| Signage | $5,000 | $20,000 |
| Computer/Tablet System (includes POS hardware, software, and implementation costs) | $7,000 | $12,500 |
| On-Site NSO Support | $5,000 | $5,000 |
| Insurance | $5,000 | $20,000 |
| Smallwares | $5,000 | $10,000 |
| Opening Inventory | $5,000 | $20,000 |
| Grand Opening Advertising | $2,000 | $10,000 |
| Training | $6,000 | $35,000 |
| Miscellaneous Costs to Begin Operations | $9,000 | $16,000 |
| Rent for the first 3 months | $6,000 | $45,000 |
| Additional Funds (3 Months) | $10,000 | $30,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | 50% of the then-current initial franchise fee if it is a Control Transfer; 10% of the then-current Initial Franchise Fee if it is a transfer to a related party or a non-Control Transfer |
| Renewal Fee | 10% of the then-current initial franchise fee |
| Technology Fee | Online Onboarding Sessions: $300 annual fee. POS System Support Fee: $100-$250 per month and $4 per employee. Network Services: $45 per month per Store. |
| Audit Fee | Cost of audit (estimated $1,000 to $4,000) plus reimbursement for reasonable expenses and amount owed on understated Net Sales (if understatement is 2% or more). |
| Promotions | Our costs plus an administrative fee, which will be between $0.50 and $22.50 per item. |
| NSF Fee | Our out-of-pocket costs and an administrative fee |
| Interest | 1.5% per month or maximum legal interest rate |
| Late Fee for reports, financial statements or tax returns | $100 per day for any report, statement or return that is late. |
| Taxes | Our cost |
| Subsequent/Additional Trainee Initial Training Fee/Webinar | Currently, up to $500 per day per trainee. |
| Initial Training Program fee if purchasing an existing store | $2,500 |
| Additional On-Site Support Fee | Currently $500 per trainer per day, plus travel and living expenses of our representatives. |
| Additional Support/Consulting Fee | Currently $500 per day, plus travel and living expenses, of our representatives. |
| Conference/ Program Fee | Varies from $0-$2,500 depending upon the item. |
| Training Cancellation Fee | Our out-of-pocket costs |
| Online Onboarding Sessions | Currently, we charge an annual fee of $300 to access our online system |
| Relocation Fee | $5,000 |
| Lease Renewal/Extension Review Fee | $800 |
| Lease Documentation Fee | $500 per month (or partial month) until delivered |
| Gift Card and Loyalty Program Fees | Amount of fees. Currently, we do not charge this fee, but you may be required to purchase or lease certain equipment and services and pay certain fees to us or a vendor associated with the implementation and support of the gift card and loyalty program. |
| Purchasing Program Fee | Reasonable membership fees assessed by the Purchasing Program |
| Ordering Support Fee | A reasonable fee, which will vary based on the services provided. |
| Online Ordering (Dispatch Delivery Order) | $0.50 per order. |
| Music Service Subscription | $27 monthly service charge, plus tax and standard equipment installation fee of $195. |
| Development Deadline Extension Fee | $2,500 per missed deadline. |
| Non-compliance Fee | Currently, $25 to $500 for a single violation, but may vary based on the severity of violations, number of violations, and repetition of violations. |
| Failure to Comply with Standards or Law Fee | Up to a $5,000 fee plus our reasonable expenses connected with any inspection, examinations, or analysis of products. |
| Liquidated Damages | The average monthly amount of Royalty Fee that you owed us during the past 36 months times the lesser of remaining months of the term of Franchise Agreement or 36 months. |
| Appraiser’s Fee | 50% of appraiser’s fee. |
| Indemnification | Varies |
| Attorneys’ Fees | Varies |
| Reinstatement Fee | 10% of the amount of the then-current initial franchise fee, plus royalty fees that would have been payable in period between termination and reinstatement. |
| De-identification Fee | Our actual costs, plus interest and an administrative fee equal to 15% of our actual costs. |
| Evaluation Fee | Amounts we incur to inspect supplier’s facilities and our actual cost of testing the proposed goods or evaluating the proposed supplier, including personnel and travel costs, whether or not the goods or supplier is approved. |
| Insurance | Amount of unpaid premiums. |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | approximately 17 working days |
| Classroom Training | 28 |
| On-the-Job Training | 108 |
| Training Location | Certified Training Store (which may be located outside of your state) or other locations authorized by us |
| Additional Training | The franchisor may periodically conduct conferences, conventions, programs, webinars, or additional training sessions. Required Trainees and/or Subsequent Trainees may be required to attend. Fees for these events range from $0 to $2,500. Franchisees may also be required to take part in other training or updates, including web-based training modules, webinars, seminars, or on-site training. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Protected |
| Exclusive Territory | No |
| Territory Size | Not to exceed a one-block radius for a Store in an urban location or a one-mile radius for a Store in any non-urban location. No minimum Area of Protection. |
| Description | While franchisees do not receive an exclusive territory, they receive a territory with limited protected rights (an “Area of Protection”). During the term of the Franchise Agreement, the franchisor will not establish or operate, nor license any other person to establish or operate, a Store operating under the Proprietary Marks and the System that is physically located within the Area of Protection, except in Non-Traditional Locations and as otherwise provided in the Franchise Agreement. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 7 years |
| Renewal Term | One 7-year renewal term |
| Renewal Fee | 10% of the then-current initial franchise fee |
| Renewal Conditions | Timely written request (12 to 6 months before expiration), complete renewal application within 30 days, pay Renewal Fee, substantial compliance with Franchise Agreement, no existing defaults, remodel/refurbish/renovate Store to current Standards, secure right to operate at Accepted Location or relocate, sign new Renewal Franchise Agreement (may have materially different terms), and franchisee/guarantors/owners must sign a general release. |
| Transfer Fee | 50% of the then-current initial franchise fee for a Control Transfer; 10% of the then-current Initial Franchise Fee for a transfer to a related party or a non-Control Transfer |
| Transfer Conditions | Transferee (and any director, officer, shareholder, partner, or member) must complete Initial Training Program, have English proficiency, agree to upgrade/remodel the Franchised Business to meet current Standards, and sign a new franchise agreement for the remaining term. All monetary obligations to franchisor/affiliates must be satisfied, no current/previous material default, delivery of all requested documents, payment of transfer fee, and signing of a release (subject to state law). |
| Termination for Cause | Violating restrictions on Confidential Information/Trade Secrets or Restrictive Covenants; Copying Manuals or failing to prevent theft; Conviction of felony, fraud, moral turpitude, or brand-damaging crime; Engaging in fraudulent, deceptive, unethical conduct; Material misrepresentation; Knowingly maintaining false books/reports; Abandoning/suspending operations for 5+ days; Lease termination/loss of possession; Two or more default notices in 12 months; Insolvency/bankruptcy; Assets blocked under anti-terrorism law; Failure to open by Opening Deadline; Default under other agreements with franchisor/affiliates; Operating in a manner threatening public health/safety; Misuse/unauthorized use of Marks. |
| Non-Compete Period | 2 years |
| Non-Compete Details | During the term of the franchise, no involvement in any business deriving more than 20% annual revenue from retail/wholesale production/sale of Competing Products, or similar business concept, or granting franchises/licenses for such businesses. No diversion of business or solicitation of franchisor/affiliate employees. After termination/expiration, for 2 years, no involvement in any business primarily selling retail teas or similar beverages within the Area of Protection or a 10-mile radius of any Machi Machi® location. No offering/selling franchises/licenses for such businesses in the prohibited area. No solicitation of customers or interference with franchisor/affiliate business activities. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | The franchisee must devote best efforts to the proper and effective operation of the Store. If an individual, they must serve as or designate a Manager. If an Entity, they must designate a Manager, who may also be the Primary Contact. Each Store must maintain at least one Certified Manager. The Manager will have day-to-day management responsibility, exercise on-premises supervision, and personally participate in direct operation. Managers, Primary Contact, and Director of Operations (if 4+ Stores) must complete Initial Training Program. |
| Required Suppliers | Franchisees must purchase all Proprietary Ingredients, Proprietary Products, employee uniforms, signs, menu boards, smallwares, materials, supplies, paper goods, equipment, and packaging from the franchisor, its affiliates, or designated third-party Approved Suppliers. Trademarked Product Lines and the POS system must also be purchased from Approved Suppliers. |
| Supply Restrictions | The franchisor has the right to require that all products, ingredients, food stuffs, supplies, furniture, fixtures, equipment, POS systems, computer software, and services meet established specifications, be a specific brand/kind/model, be purchased/leased only from designated/approved Suppliers (which may include the franchisor or its affiliates), be purchased/leased only from a single Approved Supplier, and/or be part of a purchasing program/arrangement/contract specified by the franchisor. The franchisor may add or change Approved Suppliers at any time. |
| Franchisor Revenue from Suppliers | The franchisor and its affiliates intend to make a profit on items sold or leased to franchisees and may receive payments (promotional allowances, volume discounts, etc.) from Suppliers or third parties. In the year ended December 31, 2021, neither the franchisor nor its affiliates derived any revenue or other material consideration from required purchases or leases by franchisees. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | We do not offer any direct or indirect financing. We do not guarantee your notes, leases or other obligations. |
machi machi Franchise Earnings — Item 19
machi machi 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.
machi machi 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.
machi machi System Growth
machi machi currently operates 1 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 | 0 |
| 2020 | 2 | 0 | 2 |
| 2021 | 0 | 0 | 2 |
Transfers: 0 | Closures: 0
Public Figures (Item 18)
The following public figures are associated with this franchise: Jay Chou
State Registrations
Registered in 14 states: CA, HI, IL, IN, MD, MI, MN, NY, ND, RI, SD, VA, WA, WI
Franchisor Financials (Item 21)
Audited by Brian J. Markwell, CPA, Ltd. for year ending December 31.
machi machi Franchise — FAQ
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