About Tea Top Franchise
Tea Top is a specialty tea and juice franchise operating retail stores that sell a focused menu of freshly prepared teas, milk teas, juices, and tapioca based drinks.
Backed by Zhen Ding Ji Tea Co., Ltd.
and franchising since 2017, the brand uses proprietary teas, recipes, and preparation techniques to create high quality beverages for carry out and on premises consumption.
Tea Top Franchise Cost & Fees
Minimum Investment
$131K
Average Investment
$204K
Maximum Investment
$278K
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $40,000 | One-time payment upon signing |
| Royalty Fee | $400 per month of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | Amount of assessment (variable), if two-thirds of affected franchisees agree by affirmative vote. No current mandatory advertising fees. | National brand fund |
| Total Investment Range | $130,500 – $277,500 | Includes build-out, inventory, working capital |
The investment range of $131K–$278K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty ($400 per month) and marketing fee (Amount of assessment (variable), if two-thirds of affected franchisees agree by affirmative vote. No current mandatory advertising fees.) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $40,000 | $40,000 |
| Training expenses | $10,000 | $15,000 |
| Lease of Outlet premises and security deposit | $5,000 | $9,000 |
| Leasehold improvements | $25,000 | $100,000 |
| Equipment, furniture and fixtures | $20,000 | $40,000 |
| Point of sale system | $3,000 | $5,000 |
| Interior/exterior signs and graphics | $1,000 | $5,000 |
| Professional fees | $1,500 | $3,000 |
| Business licenses and permits | $1,000 | $5,000 |
| Inventory to begin operating | $6,500 | $19,500 |
| Grand opening advertising and promotion | $1,000 | $2,000 |
| Business insurance | $1,000 | $3,000 |
| Miscellaneous opening costs | $500 | $1,000 |
| Additional funds – 3 months | $15,000 | $30,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $25,000 |
| Renewal Fee | null |
| Technology Fee | $150 to $400 per month (POS system), $1,200 per year (Computer System) |
| Audit Fee | Cost of audit plus interest on underpayment |
| Late Payment Penalty | 5% of the amount past due |
| Interest Charged | Annual Percentage Rate (“APR”) of 18% of the unpaid amount |
| Costs of Collection | Cost of collection of delinquent amounts (variable) |
| Gift Cards | Variable based on purchases |
| Additional Training Fee | Up to $750 (per day) |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | 30 days classroom training in Taiwan and up to two weeks (80 hours) on-the-job training at your Outlet, totaling 320 hours. |
| Classroom Training | 240 |
| On-the-Job Training | 80 |
| Training Location | Classroom training takes place at ZDJ’s headquarters in Taichung City, Taiwan, or another designated training center. On-the-job training takes place at your Outlet. |
| Additional Training | The franchisor may require attendance at additional training courses, seminars, conferences, or other programs for designated personnel, with a potential fee of up to $750 per day. Franchisees are responsible for all travel, hotel, and meal expenses for attendees at mandatory meetings. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Protected (non-exclusive) |
| Exclusive Territory | No |
| Territory Size | Typically varies from a quarter mile in densely populated areas to two miles in rural areas. |
| Description | You will receive a protected territory within a defined geographical area surrounding your Outlet, based on population density. While the franchisor will not grant another TEATOP franchise or operate its own Outlet within your Territory, you will not receive an exclusive territory and may face competition from other franchisees, company-owned outlets, or other channels of distribution/competitive brands controlled by the franchisor. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 2 years |
| Renewal Term | 2 years |
| Renewal Fee | null |
| Renewal Conditions | To renew, the franchisee must be solvent, not have abandoned the Outlet, not be operating in a manner that endangers public health/safety or harms the brand, not have submitted false reports, sign the then-current Renewal Franchise Agreement (which may have materially different terms), and make physical modifications to the Outlet to comply with current system requirements. |
| Transfer Fee | $25,000 |
| Transfer Conditions | The proposed assignee must qualify as a new franchisee, pay the transfer fee, have the purchase agreement approved, complete initial training, and sign a release and the current franchise agreement. The franchisor has a right of first refusal. |
| Termination for Cause | The franchisor can immediately terminate for reasons such as franchisee bankruptcy/insolvency, abandonment of the franchise, material misrepresentations, engaging in conduct unfavorably impacting the brand, failure to comply with laws/regulations, repeated noncompliance, seizure of business by government/creditor, felony conviction, or an audit revealing significant underreporting. For other material breaches, the franchisor may terminate after 60 days' (California) written notice and opportunity to cure. |
| Non-Compete Period | 1 year after termination or expiration |
| Non-Compete Details | During the term of the franchise, franchisees and Principal Equity Owners cannot operate, manage, own, assist, or hold an interest in any competing business selling goods or services equivalent to TEATOP Products without prior written consent. After termination or expiration, this restriction applies for one year within a 25-mile radius of the former Outlet or any other authorized TEATOP retail location. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | Principal Equity Owners are required to personally participate in the direct "on premises" management and operation of the Outlet. Franchisees must employ a designated General Manager (who may be a Principal Equity Owner) and an Assistant Manager, both of whom must successfully complete initial training. The General Manager must devote full-time to the management, operation, and development of the business. |
| Required Suppliers | Franchisees must purchase all Required Inventory (proprietary teas and other proprietary ingredients) from the franchisor's affiliate ZDJ. The POS system is also provided by ZDJ. Logoed t-shirts, hats, and aprons for staff must be acquired from designated vendors. |
| Supply Restrictions | Franchisees must purchase items bearing trademarks only from designated or approved suppliers. All fixtures, equipment, food preparation/storage equipment, display cases, cash registers, computer systems, storefront, supplies, and signs must be approved by the franchisor to meet specifications and standards. The franchisor may designate single or multiple suppliers. |
| Franchisor Revenue from Suppliers | In 2021, ZDJ (an affiliate) derived $498,812 (6.59% of its total revenues) from required purchases of proprietary food ingredients by TEATOP franchisees. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | We do not offer direct or indirect financing. We do not guarantee your note, lease or obligation. |
Tea Top Franchise Earnings — Item 19
Tea Top 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.
Tea Top 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.
Tea Top Litigation & Risk Flags
Clean Litigation RecordTea Top 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.
Tea Top System Growth
Total Units
8
Franchised
8
Company-Owned
0
Tea Top currently operates 8 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 | 0 | 9 |
| 2020 | 0 | 2 | 7 |
| 2021 | 1 | 0 | 8 |
Transfers: 0 | Closures: 2
State Registrations
Registered in 2 states: CA, MD
Franchisor Financials (Item 21)
Revenue
$1K
Net Income
$-9,995
Total Assets
$137K
Audited by OneStop Financial Services, Inc. for year ending December 31.
Tea Top Franchise — FAQ
The total investment to open a Tea Top franchise ranges from $130,500 to $277,500, per their Franchise Disclosure Document. This includes the initial franchise fee of $40,000. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
Tea Top charges a royalty fee of $400 per month of gross sales, plus a Amount of assessment (variable), if two-thirds of affected franchisees agree by affirmative vote. No current mandatory advertising fees. contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the Tea Top 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 Tea Top to ensure you have the most up-to-date version.
Tea Top 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.
Tea Top has been franchising since 2017. The FDD shows an investment range of $130,500-$277,500, a $400 per month royalty, and no 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 $40,000 and the total investment ranges from $130,500 to $277,500 depending on location size and market. A minimum of $15,000 in liquid capital is required. 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 Tea Top and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with Tea Top or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com