About Nana's Green Tea Franchise
Nana's Green Tea is a Japanese tea and dessert franchise where franchisees operate retail stores that serve Japanese green tea, matcha green tea, and other Japanese sweets and beverages.
The day-to-day operation involves preparing and serving specialty matcha drinks, Japanese desserts, and food items to the general public.
The franchise promotes Japanese food culture and traditions presented in a modern Japanese style that suits contemporary lifestyles, targeting customers who appreciate authentic Japanese tea culture and specialty beverages.
Nana's Green Tea Franchise Cost & Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $50,000 | One-time payment upon signing |
| Royalty Fee | 5% of Gross Sales of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | Up to 2% of Gross Sales (Brand Fund, not currently charged); 1% of Gross Sales (Local Advertising Requirement) | National brand fund |
| Total Investment Range | $627,400 – $1,508,400 | Includes build-out, inventory, working capital |
The investment range of $627K–$1.5M reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (5% of Gross Sales) and marketing fee (Up to 2% of Gross Sales (Brand Fund, not currently charged); 1% of Gross Sales (Local Advertising Requirement)) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $50,000 | $50,000 |
| Furniture and Fixtures | $70,000 | $180,000 |
| Computer Equipment & Information Systems | $10,000 | $15,000 |
| Leasehold Improvements | $300,000 | $700,000 |
| 3 Months' Lease Payments | $18,000 | $48,000 |
| Security Deposits | $6,000 | $58,000 |
| Signage | $10,000 | $20,000 |
| Utilities | $3,000 | $9,000 |
| Uniforms | $1,000 | $2,000 |
| Kitchen Supplies | $10,000 | $20,000 |
| Opening Inventory | $30,000 | $60,000 |
| Training | $4,000 | $16,000 |
| Travel-related expenses for On-site Training and Opening Assistance | $5,400 | $5,400 |
| Grand Opening Program | $5,000 | $10,000 |
| Professional Fees, Insurance, Licenses and Permits | $5,000 | $15,000 |
| Additional Funds - 3 Months | $100,000 | $300,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | 25% of the then-current Initial Franchise Fee |
| Renewal Fee | 50% of the then-current Initial Franchise Fee |
| Technology Fee | Not currently charged |
| Audit Fee | Cost of audit and inspection if understatement exceeds 2% |
| Local and Regional Advertising Cooperatives | 1% to 2% of Gross Sales (not currently established) |
| Unauthorized Advertising Fee | $500 per occurrence |
| Additional Training Fee | $3,000 per additional person for initial training; $200 per attendee per day for additional training |
| Conference Fee | $500 per person |
| Supplier and Product Evaluation Fee | $100 to $500 |
| Food Safety Audit | Approximately $2,500 |
| Payment Service Fee | Up to 4% of total charge |
| Late Payment Fee | $100 per occurrence plus 18% per year simple interest |
| Non-Sufficient Funds Fee | $100 per occurrence plus 18% per year simple interest |
| Failure to Submit Required Report Fee | $100 per occurrence and $100 per week |
| Management Fee | $250 per day plus costs and expenses |
| Liquidated Damages | Average monthly Royalties and Brand Fund Contributions multiplied by lesser of 36 or months remaining, minimum $30,000 |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | 20 hours classroom, 180 hours on-the-job |
| Classroom Training | 20 hours |
| On-the-Job Training | 180 hours |
| Training Location | Designated training facility in Pasadena, California and franchisee's Nana's Green Tea Business |
| Additional Training | On-site opening assistance approximately 7 days before and 3 days after opening. Periodic refresher and additional training courses may be required. Remedial training if operational deficiencies are found. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Protected |
| Exclusive Territory | No |
| Territory Size | Typically a three-mile radius around the Nana's Green Tea Business |
| Description | Franchisee receives a protected Territory but not an exclusive territory. Territory is determined based on geographic area, population, and demographic characteristics. Territory may not be granted in metropolitan areas (population exceeding 50,000 per square mile during any 24-hour period) or non-traditional locations. Franchisor retains rights to operate or license non-traditional locations inside the Territory and any location outside the Territory. Franchisor may sell through alternate channels of distribution within the Territory. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 5 years |
| Renewal Term | Two successor terms of 5 years each |
| Renewal Fee | 50% of the then-current Initial Franchise Fee |
| Renewal Conditions | Must not be in default, no more than 3 default notices in prior 12 months, sign then-current franchise agreement, sign general release, renovate to current standards, have lease rights for successor term, pay renewal fee, provide 60-180 days written notice before expiration |
| Transfer Fee | 25% of the then-current Initial Franchise Fee |
| Transfer Conditions | Written notice 45 days before transfer, qualified transferee, all monetary obligations paid, training completed, new franchise agreement signed, general release signed, landlord consent, remodel to current standards, franchisor right of first refusal waived |
| Termination for Cause | Immediate termination without cure for: failure to open, material misrepresentation, violation of law, criminal offense, under-reporting, intellectual property misuse, health/safety violations, abandonment, failure to pay, unauthorized transfer, brand covenant violations, license revocation, failure to complete training, repeated defaults, cross default. 30-day cure period for other defaults. |
| Non-Compete Period | 2 years after termination, expiration or transfer |
| Non-Compete Details | Owners may not have an interest in, own, manage, operate, finance, control or participate in any competitive business within a 10-mile radius from the franchisee's business and a 10-mile radius from all other Nana's Green Tea businesses operating or under construction. Restricted period extended by time of any violation. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | Franchisee must appoint a Responsible Owner who has at least 25% equity interest and authority for day-to-day operations on a full-time basis. Alternatively, a Franchise Manager approved by the franchisor may assume daily management responsibilities. Both must complete the initial training program. |
| Required Suppliers | Franchisees must purchase proprietary products from the franchisor or approved suppliers. Certain products bearing trademarks must be purchased from authorized suppliers. Computer hardware, software, and POS system must be obtained from approved suppliers. |
| Supply Restrictions | Approximately 65% to 85% of purchases to open and 50% to 70% of purchases to operate must be from approved suppliers or under franchisor specifications. Franchisees may not deviate from methods, standards, and specifications without prior written consent. |
| Franchisor Revenue from Suppliers | During fiscal year ended March 31, 2025, neither franchisor nor affiliates derived revenue from franchisees' required purchases. Franchisor and affiliates may receive rebates from suppliers with no obligation to pass them to franchisees. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | The franchisor does not offer direct or indirect financing and does not guarantee any note, lease, or obligation. |
Nana's Green Tea Franchise Earnings — Item 19
Nana's Green 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.
Nana's Green 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.
Nana's Green Tea System Growth
Nana's Green Tea currently operates 0 franchised locations and 0 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2023 | 0 | 0 | 0 |
| 2024 | 0 | 0 | 0 |
| 2025 | 0 | 0 | 0 |
Transfers: 0 | Closures: 0
State Registrations
Registered in 4 states: CA, NY, RI, WA
Nana's Green Tea Franchise — FAQ
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