About Teapioca Lounge Franchise
Teapioca Lounge is a boba tea and dessert drink franchise offering high quality teas, boba, smoothies, Taiwanese shaved ice, and other dessert confections in a modern lounge setting designed for socializing and connection.
Franchising since 2015, the brand combines quality beverages with an inviting atmosphere where customers come for the drinks and stay for the experience.
The initial franchise fee is $0, making it a uniquely accessible entry point in the specialty beverage franchise space.
Teapioca Lounge Franchise Cost & Fees
Minimum Investment
$268K
Average Investment
$347K
Maximum Investment
$427K
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $0.00 | One-time payment upon signing |
| Royalty Fee | 5% of Gross Sales of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 2% - 1% based on Gross Sales volume (Business Branding Fund), $1,051.00 per month (Local Advertising Fee) | National brand fund |
| Total Investment Range | $267,650 – $427,200 | Includes build-out, inventory, working capital |
The investment range of $268K–$427K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (5% of Gross Sales) and marketing fee (2% - 1% based on Gross Sales volume (Business Branding Fund), $1,051.00 per month (Local Advertising Fee)) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| INITIAL FEES | $0 | $0 |
| TRAVEL AND LIVING EXPENSES WHILE TRAINING | $3,200 | $10,500 |
| RENT / REAL ESTATE DEPOSIT | $7,400 | $25,000 |
| REAL ESTATE SITE SELECTION | $0 | $0 |
| UTILITY AND MISCELLANEOUS SECURITY DEPOSITS | $300 | $1,800 |
| LEASEHOLD IMPROVEMENTS | $143,000 | $208,000 |
| FURNITURE, FIXTURES, AND EQUIPMENT | $45,000 | $55,000 |
| OPENING INVENTORY | $30,000 | $45,000 |
| OFFICE SUPPLIES AND OTHER OPENING ITEMS | $500 | $1,000 |
| GRAND OPENING | $10,000 | $15,000 |
| INSURANCE | $750 | $900 |
| SIGNAGE | $5,000 | $10,000 |
| LICENSING AND PERMITS | $500 | $1,000 |
| UNIFORMS | $500 | $1,000 |
| LEGAL / ACCOUNTING | $1,500 | $3,000 |
| ADDITIONAL FUNDS (Three Months) | $20,000 | $50,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $10,000.00 (Transfer Fee), $15,000.00 (Transfer Training Fee) |
| Renewal Fee | $8,750.00 |
| Technology Fee | $135.00 per week (Technology and Intranet Fee), $1,500.00 initial setup fee (Technology Setup Fees) |
| Audit Fee | All costs and expenses associated with audit (payable if understatement of 2% or more) |
| Insufficient Funds Fee | $50.00, or the maximum amount as permitted by State law |
| Insurance | Amount incurred |
| Policy Reimbursement | Amount incurred |
| Relocation Assistance | Costs of providing relocation assistance |
| Customer Service | $0 - $62.50/hr. |
| Additional Training | $500.00 per day |
| Additional Operations Assistance | $500.00 per day |
| Ongoing Training Programs | You are required to pay Your expenses as well as Your employees’ expenses for attending |
| Temporary Management Assistance | Rates as published in the Manual |
| National / Regional Meetings | $1,500 for two attendees (Non-attendance incurs an additional penalty of $2,000) |
| Indemnification / Legal Fees | All costs including attorney’s fees |
| Replacement Operations Manual(s) | $1,500.00 each |
| Liquidated Damages on Confidential Information Disclosure only | $20,000.00 per breach |
| Liquidated Damages | Amount varies |
| Prospective Supplier Sample Tests | $150.00, plus Actual costs incurred |
| Maintenance and Renovation | Amounts vary |
| Taxes | $0.00 currently. As determined by applicable |
| Advertising Cooperative | The amount will vary by cooperative |
| Telephone Directory Advertising | Varies according to area and type of listing |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | Approximately 59 hours for Business Establishment Training, 33 hours for Site Selection and Real Estate Training, 21 calendar days for Initial Ongoing Franchise Agreement Training, 1-2 eight-hour days for Pre-Soft Opening Training, and 1-2 eight-hour business days for Grand Opening Training. |
| Classroom Training | 59 hours (Business Establishment Training), 33 hours (Site Selection and Real Estate Training), 21 calendar days (Initial Ongoing Franchise Agreement Training) |
| On-the-Job Training | 8-16 hours (Pre-Soft Opening Training), 8-16 hours (Grand Opening Training) |
| Training Location | Franchisor's appointed location, online, or other designated locations. Some subjects may be trained at Your Location. |
| Additional Training | Franchisor may provide additional training and require the Manager, Franchisee’s other managers and/or employees to attend. A fee of $500.00 per day per additional trainee is charged. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Exclusive |
| Exclusive Territory | Yes |
| Territory Size | at least 1-mile radius |
| Description | An exclusive territory of at least a 1-mile radius around the Teapioca Business, delineated by a specific geographic boundary within a Metropolitan Statistical Area. The exact boundaries will be described in Exhibit 11 of the Ongoing Franchise Agreement. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | ten (10) years |
| Renewal Term | one (1) successive term of ten (10) years |
| Renewal Fee | $8,750.00 |
| Renewal Conditions | Franchisee must give timely written notice, attend refresher training, complete required maintenance/refurbishment, not be in material default, satisfy all monetary obligations, execute the then-current Ongoing Franchise Agreement (which may have materially different terms), comply with current qualifications and training, complete drug testing and background screening, provide updated certifications, and sign a general release. |
| Transfer Fee | $10,000.00 (Transfer Fee) plus $15,000.00 (Transfer Training Fee) |
| Transfer Conditions | Franchisor's consent is required, unless transferring to a controlled entity. Conditions include: Franchisor not exercising right of first refusal, all obligations owed to Franchisor are paid, transferor signs a general release, transferee meets business and financial standards, transferee and owners sign the then-current Ongoing Franchise Agreement and personally guarantee performance, transferee obtains all necessary consents and approvals, and pays transfer fees. For transfers to a controlled entity, a $500.00 fee applies, and the entity must be newly organized, entirely owned by franchisee, and assume all obligations. |
| Termination for Cause | Franchisor can terminate without opportunity to cure for: unauthorized transfer of interest, material misrepresentation, felony conviction, unauthorized use/disclosure of Marks/Confidential Information, abandonment of business for 3+ days, unauthorized transfer of control, repeated understatement of amounts due, bankruptcy/insolvency, misuse of Marks, deleterious conduct, repeated failure to cure defaults, default under other agreements, material misrepresentations in acquisition, or imminent danger to public health/safety. Curable defaults (30-day cure period, or 14 days for payments/training, 1 day for license loss, 24 hours for DOJ report) include: deleterious conduct, noncompliance with law/regulation, failure to comply with specifications, failure to make payments, failure to achieve performance standards, loss of license/certificate, failure to complete DOJ report/background check, failure to complete training, failure to begin operations within specified time, or failure to maintain primary manager supervision. |
| Non-Compete Period | two (2) years |
| Non-Compete Details | For two (2) years after termination or expiration, Franchisee, owners, family members, officers, directors, executives, or managers are prohibited from owning/working for a Competitive Business within 25 miles of the Approved Location or Exclusive Territory (whichever is greater), and within 25 miles of any other Teapioca Business. Also prohibited from soliciting/influencing consumers, employees, or business associates of Franchisor or other Franchisees. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | The Franchised Business must always be under the direct supervision of a Designated Manager, who speaks, reads and writes in English, which can be You. The Designated Manager must devote full time personal attention to the Franchised Business unless pre-approved in writing. At all times of operation, You may employ a Manager responsible for running the Franchised Business on a full-time basis. The Designated Manager must be the person You designate in writing to Us (and is approved by Us in writing). The primary responsibility for managing all aspects of the day-to-day affairs of the Franchised Business falls to the Designated Manager. You agree that Your Franchise is not a “passive” investment but requires You or Your Manager’s day-to-day supervision of the operation of Your Teapioca Franchised Business. |
| Required Suppliers | Franchisee must purchase approved brands and models from approved suppliers. You must purchase all products, goods, services, supplies, fixtures, materials or equipment and signs used in the operation of the Franchised Business that meet the specifications and quality standards established periodically by Teapioca and from suppliers and manufacturers approved by Teapioca. You must use only envelopes, business cards, letterhead, labels, and documentation imprinted with the Marks and colors as prescribed and approved by Teapioca. |
| Supply Restrictions | You may have to buy or lease items from the franchisor or a limited group of suppliers the franchisor designates. These items may be more expensive than similar items you could buy on your own. Franchisor reserves the right to approve sources of services or products sold in Franchised Businesses and may set specific specifications or standards. Franchisor may revise its Approved Supplier and Approved Supplies List. |
| Franchisor Revenue from Suppliers | $0.00 |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | Yes |
| Description | Franchisor does not offer in-house financing options but may assist franchisees in obtaining outside financing, such as SBA Loan programs. |
Teapioca Lounge Franchise Earnings — Item 19
Teapioca Lounge 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.
Teapioca Lounge 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.
Teapioca Lounge Litigation & Risk Flags
Clean Litigation RecordTeapioca Lounge 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.
Teapioca Lounge System Growth
Total Units
33
Franchised
33
Company-Owned
0
Teapioca Lounge currently operates 33 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 |
|---|---|---|---|
| 2020 | 3 | 1 | 20 |
| 2021 | 6 | 0 | 26 |
| 2022 | 7 | 0 | 33 |
Transfers: 1 | Closures: 0
State Registrations
Registered in 2 states: IN, MI
Franchisor Financials (Item 21)
Revenue
$1.1M
Net Income
$176K
Total Assets
$617K
Audited by Lin Accountancy Corporation for year ending December 31.
Teapioca Lounge Franchise — FAQ
The total investment to open a Teapioca Lounge franchise ranges from $267,650 to $427,200, per their Franchise Disclosure Document. This includes the initial franchise fee of $0.00. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
Teapioca Lounge charges a royalty fee of 5% of Gross Sales of gross sales, plus a 2% - 1% based on Gross Sales volume (Business Branding Fund), $1,051.00 per month (Local Advertising Fee) contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the Teapioca Lounge 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 Teapioca Lounge to ensure you have the most up-to-date version.
Teapioca Lounge 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.
Teapioca Lounge has been franchising since 2015. The FDD shows an investment range of $267,650-$427,200, a 5% of Gross Sales 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 $0.00 and the total investment ranges from $267,650 to $427,200 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 Teapioca Lounge and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with Teapioca Lounge or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com