About Tiger Sugar Franchise
Tiger Sugar is a specialty beverage franchise known for its signature brown sugar boba tea, along with a curated menu of tea, coffee, and juice offerings.
Originating from Taiwan, the brand has built a loyal following with its visually striking layered drinks and distinctive tiger stripe aesthetic that has become iconic in the bubble tea space.
Tiger Sugar has been franchising since 2020 and continues to expand across the United States.
Tiger Sugar Franchise Cost & Fees
Minimum Investment
$306K
Average Investment
$424K
Maximum Investment
$542K
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $85,000 | One-time payment upon signing |
| Royalty Fee | 7% of Net Sales of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 1% of Net Sales to the Advertising Fund, plus an additional 1% of Net Sales on local advertising (total 2% of Net Sales) | National brand fund |
| Total Investment Range | $305,500 – $542,000 | Includes build-out, inventory, working capital |
The investment range of $306K–$542K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (7% of Net Sales) and marketing fee (1% of Net Sales to the Advertising Fund, plus an additional 1% of Net Sales on local advertising (total 2% of Net Sales)) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $85,000 | $85,000 |
| Initial Training and Support Fee | $15,000 | $15,000 |
| Store Design Fee | $6,000 | $6,000 |
| Business Licenses & Permits | $6,000 | $20,000 |
| Leasehold Improvements | $50,000 | $180,000 |
| Fixtures, Furnishings & Equipment | $45,000 | $50,000 |
| Computer and Point of Sale System | $3,000 | $5,000 |
| Architect/Engineering Fees | $0 | $14,000 |
| Rent, Security Deposits and Utility Deposits | $5,000 | $20,000 |
| Other Professional Fees | $1,000 | $5,000 |
| Insurance Deposit | $1,000 | $2,000 |
| Initial Inventory Of Food, Beverage, Paper Supplies and Small wares | $25,000 | $30,000 |
| Training Expenses | $500 | $5,000 |
| Grand Opening Advertising | $3,000 | $5,000 |
| Additional Funds (for the initial 3 months of operations) | $60,000 | $100,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | An amount equal to 50% of our then-current initial license fee |
| Renewal Fee | 50% of the Shop’s average monthly gross revenues during the period from month 25 through month 48 of the Term |
| Technology Fee | None currently, but may be implemented in the future |
| Audit Fee | All costs and expenses associated with the audit, reasonable accounting and legal costs |
| Additional on-site training and assistance | Our per-diem charge ($500.00, plus out of pocket costs), per trainer |
| Product/Supplier Testing | Our costs of testing and evaluation |
| Charges for "mystery customer" quality control evaluation | Will vary under circumstances, but not to exceed $1,500 per year |
| Late Fee and Interest on Overdue Payments | A late fee equal to 5% of your overdue amount, and interest equal to 1.5% per month (but not more than any maximum rate set by law) |
| Dues and Assessments Imposed by a Franchisee Advisory Council | As determined by a franchisee advisory council (if established) / Currently - none |
| Local Telephone and On-line Directories | Our cost and expense to advertise in local telephone and on-line directory if you fail to do so |
| Prohibited Product or Service Fine | $250 per day of use of unauthorized products or services |
| Insurance Procurement | Our cost to obtain insurance coverage if you fail to do so |
| Securities Offering | Our actual expenses |
| Costs and Attorneys' Fees | Our actual costs and expenses |
| Indemnification | Our actual costs and expenses |
| Store Refurbishment | None at this time |
| Gift Card Program | None at this time |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | 2 hours classroom, 37 to 52 hours on-the-job |
| Classroom Training | 2 hours |
| On-the-Job Training | 37 to 52 hours |
| Training Location | Virtual through videoconferencing, Tiger Sugar Store of our affiliate or Area Representative |
| Additional Training | Franchisor may require franchisees, Designated Principals, and General Managers to attend refresher courses, seminars, and other training programs, not exceeding four days per person annually, plus up to three days per person annually for conventions. Costs for transportation, lodging, meals, wages, and worker's compensation insurance are borne by the franchisee. If additional on-site training is requested, a per-diem charge of $500 per trainer plus out-of-pocket expenses will apply. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Protected |
| Exclusive Territory | No |
| Territory Size | The geographic definition of the Territory, if awarded, will be contained in the Franchise Agreement and will be determined based upon various factors such as (a) whether the Approved Location is an urban area or a suburban area, (b) the number of residents living in the area, (c) the number of people working in the area, and (d) the number of competitive Stores in the area, among other factors. |
| Description | Franchisees will not receive an exclusive territory and may face competition from other franchisees, company-owned outlets, or other distribution channels. A protected territory will be specified unless the store is in a Non-Traditional Site (e.g., mall food courts, airports, hospitals, etc.) or a very prominent location in a major city (e.g., Manhattan, Beverly Hills). The territory size is determined by factors like urban/suburban area, population, local workforce, and competition. The franchisor reserves the right to operate or license others to operate Tiger Sugar Stores outside the territory, sell products through alternative distribution channels, and acquire/operate similar businesses under different marks or as Tiger Sugar Stores, even if they impact the franchisee's sales. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 5 years |
| Renewal Term | One renewal term of 5 years |
| Renewal Fee | 50% of the Shop’s average monthly gross revenues during the period from month 25 through month 48 of the Term |
| Renewal Conditions | To renew, the franchisee must provide written notice (6-12 months prior to term end), satisfy all monetary and other outstanding obligations, be in substantial compliance with the agreement, execute a mutual general release, sign the then-current franchise agreement (which may have different terms/fees), comply with current qualification and training requirements, renovate premises to current standards, provide evidence of right to possession for the renewal term, and demonstrate sufficient financial resources. |
| Transfer Fee | An amount equal to 50% of our then-current initial license fee |
| Transfer Conditions | Conditions for franchisor approval of transfer include: all monetary and other outstanding obligations to franchisor/affiliates/approved suppliers must be satisfied; no default under the agreement; transferor(s) must execute a general release; transferee must be designated as a Principal and execute a written agreement to be bound, and guarantee performance; transferee must meet current application qualifications and demonstrate adequate financial resources; transferee may be required to execute the then-current franchise agreement and ancillary agreements; transferee may be required to upgrade the Franchised Store to current standards; transferor remains liable for pre-transfer obligations; transferee's Designated Principal/General Manager must complete training if lacking recent experience. |
| Termination for Cause | Termination by franchisor with cause can occur for reasons such as: default under the Franchise Agreement, bankruptcy, abandonment, conviction of felony, threat to public health/safety, loss of right to possession of premises, unauthorized transfer of rights/obligations, knowingly maintaining false books/records, disclosing confidential information, failure to comply with covenants, repeated defaults, cessation of operations for two consecutive days, or breach of any material provision not susceptible to cure. |
| Non-Compete Period | 2 years |
| Non-Compete Details | During the agreement term, franchisees are prohibited from diverting business to competitors, harming franchisor goodwill, soliciting franchisor/franchisee employees, or having more than a 1% interest in a Competitive Business (defined as a business with 50%+ tea product sales or similar to a Tiger Sugar Store). After termination or expiration, a two-year non-compete applies to operating a Competitive Business at the Approved Location and soliciting employees. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | The franchisee (or its Designated Principal, if an entity) must be involved in the general oversight and management of the Franchised Store. Either the Designated Principal or a General Manager (subject to franchisor approval) must assume full-time responsibility for daily supervision and operation. If the Designated Principal lacks necessary food service experience, a General Manager must be hired. Owners of beneficial interests (10% or more) in the franchisee entity may also be required to attend initial training. Store managers may be required to sign confidentiality and non-compete agreements. |
| Required Suppliers | Franchisees must purchase certain Products (tea products, proprietary paper goods, uniforms, creamer, syrup, certain equipment, and cookware) solely from the franchisor or its affiliates. An exception applies to New Jersey, Pennsylvania, Maryland, Virginia, and District of Columbia, where an affiliate sells products to the Area Representative, who then resells them to franchisees at a profit. |
| Supply Restrictions | All products sold or offered must meet franchisor standards and specifications and be approved. Franchisees must purchase, install, and use all specified fixtures, furnishings, equipment, decor, supplies, computers, communications hardware/software, signs, and materials. The franchisor may designate a single supplier (which may be the franchisor or an affiliate) for any items, requiring exclusive purchase from that supplier. Unapproved products or suppliers require written request and evaluation/testing, with costs borne by the franchisee. Approval may be withheld for any reason. |
| Franchisor Revenue from Suppliers | During calendar year 2023, the franchisor derived $3,000 in revenues from store design services. Affiliates Red Bubble Limited and Gain Power derived $1,922,483.29 and $1,310,338.00, respectively, from sales of specified items to franchisees. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | We do not offer direct or indirect financing. We do not guarantee your notes, leases or other obligations. |
Tiger Sugar Franchise Earnings — Item 19
Tiger Sugar 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.
Tiger Sugar 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.
Tiger Sugar Litigation & Risk Flags
1 Pending Action ListedReview the full FDD for details on pending litigation.
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Tiger Sugar System Growth
Total Units
64
Franchised
47
Company-Owned
17
Tiger Sugar currently operates 47 franchised locations and 17 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2021 | 22 | 0 | 33 |
| 2022 | 13 | 1 | 46 |
| 2023 | 18 | 5 | 64 |
Transfers: 0 | Closures: 5
State Registrations
Registered in 14 states: CA, HI, IL, IN, MD, MI, MN, NY, ND, RI, SD, VA, WA, WI
Franchisor Financials (Item 21)
Revenue
$1.9M
Net Income
$5K
Total Assets
$1.9M
Audited by JTC ACCOUNTANCY CORP for year ending December 31.
Tiger Sugar Franchise — FAQ
The total investment to open a Tiger Sugar franchise ranges from $305,500 to $542,000, per their Franchise Disclosure Document. This includes the initial franchise fee of $85,000. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
Tiger Sugar charges a royalty fee of 7% of Net Sales of gross sales, plus a 1% of Net Sales to the Advertising Fund, plus an additional 1% of Net Sales on local advertising (total 2% of Net Sales) contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the Tiger Sugar 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 Tiger Sugar to ensure you have the most up-to-date version.
Tiger Sugar 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.
Tiger Sugar has been franchising since 2020. The FDD shows an investment range of $305,500-$542,000, a 7% of Net Sales royalty, and includes an Item 19 earnings disclosure. There are 1 pending litigation action(s). Review the full FDD and contact current franchisees listed in Item 20 before making any investment decision.
The franchise fee is $85,000 and the total investment ranges from $305,500 to $542,000 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 Tiger Sugar and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with Tiger Sugar or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com