About Palgong Tea Franchise
Palgong Tea is a specialty tea franchise operated by PalgongTea Franchising LLC, under parent company PalgongTea USA, Inc.
The brand brings Korean style tea beverages to the American market, offering a curated menu of premium teas, tea lattes, and other specialty drinks that reflect the rich tea culture of Korea.
The franchise fee is $20,000.
Palgong Tea Franchise Cost & Fees
Minimum Investment
$148K
Average Investment
$167K
Maximum Investment
$186K
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $20,000 | One-time payment upon signing |
| Royalty Fee | 5% of Gross Sales of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | At least 1.5% of Gross Sales(2) | National brand fund |
| Total Investment Range | $147,500 – $185,700 | Includes build-out, inventory, working capital |
The investment range of $148K–$186K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (5% of Gross Sales) and marketing fee (At least 1.5% of Gross Sales(2)) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial franchise fee(1) | $20,000 | $20,000 |
| Leasehold improvements(3) | $50,000 | $70,000 |
| Signage | $4,500 | $5,000 |
| Furniture and fixtures(4) | $10,000 | $15,000 |
| Equipment(5) | $15,000 | $20,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | Applies to a transfer of the Franchise Agreement, the Shop or a controlling inte |
| Technology Fee | $5,000 |
| Audit Fee | Payable if 2% or more discrepancy in amounts owed or if you fail to submit requi |
| Late Payments | Highest applicable legal rate for open account business or if there is no maximu |
| Administrative Fee | $100 |
| Leasehold improvements(3) | $50,000 |
| Signage | $4,500 |
| Furniture and fixtures(4) | $10,000 |
| Equipment(5) | $15,000 |
| Business licenses and permits(7) | $1,000 |
| Professional fees(8) | $5,000 |
| Initial inventory(9) | $8,000 |
| Insurance | $2,000 |
| Training expenses(10) | $5,000 |
| Additional funds – 3 months(11) | $20,000 |
| TOTAL ESTIMATED INITIAL INVESTMENT(12) | $147,500 |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | 1 hours classroom |
| Classroom Training | 1 hours |
| Training Location | Corporate Palgong Tea Shop in Glenview, Illinois or other location we designate |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | exclusive |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Renewal Term | Section 2.7 of the Franchise Agreement |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | Does not offer financing. |
Palgong Tea Franchise Earnings — Item 19
Palgong Tea does not make an Item 19 financial performance representation in their FDD. This means they do not disclose revenue, profit, or earnings data for franchised locations. Before investing, ask the franchisor directly for franchisee contact information so you can speak with existing owners about their actual financial performance.
Palgong 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.
Palgong Tea Litigation & Risk Flags
Clean Litigation RecordPalgong Tea has no pending litigation actions listed in their FDD. There is also no bankruptcy history disclosed.
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Palgong Tea System Growth
Total Units
0
Franchised
0
Company-Owned
0
Palgong 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 |
|---|---|---|---|
| 2019 | 0 | ||
| 2019 | 0 | ||
| 2019 | 0 | ||
| 2020 | 0 | ||
| 2020 | 0 | ||
| 2020 | 0 | ||
| 2021 | 0 | ||
| 2021 | 1 | ||
| 2021 | 1 |
Palgong Tea Franchise — FAQ
The total investment to open a Palgong Tea franchise ranges from $147,500 to $185,700, per their Franchise Disclosure Document. This includes the initial franchise fee of $20,000. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
Palgong Tea charges a royalty fee of 5% of Gross Sales of gross sales, plus a At least 1.5%
of Gross
Sales(2) contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the Palgong Tea Franchise Disclosure Document free on this page. The FDD is a public document filed with state franchise registries. Always also request the current FDD directly from Palgong Tea to ensure you have the most up-to-date version.
Palgong Tea does not provide an Item 19 financial performance representation in their FDD, which means they do not disclose franchisee revenue or earnings data. Prospective investors should contact existing franchisees directly (listed in Item 20 of the FDD) to gather real-world financial performance information.
Palgong Tea has been offering franchise opportunities. The FDD shows an investment range of $147,500-$185,700, a 5% of Gross Sales royalty, and includes an Item 19 earnings disclosure. There is no pending litigation. Review the full FDD and contact current franchisees listed in Item 20 before making any investment decision.
The franchise fee is $20,000 and the total investment ranges from $147,500 to $185,700 depending on location size and market. Contact the franchisor directly for current net worth and liquid capital requirements, territory availability, and application details.
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Data Source & Disclaimer: This website is for informational purposes only. It is not an offer to sell or buy a franchise. This profile is based on publicly available FDD data sourced from state franchise registry filings. All information is for research purposes only and does not constitute legal, financial, or investment advice. Data may be outdated or contain errors. Always obtain the current FDD directly from Palgong Tea and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with Palgong Tea or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com