DING TEA

Item 7 lays out the financial entry: total initial investment spans $195,240 to $324,170, with $58,500 to the franchisor—broken into a $30,000 franchise fee, $12,000 for leasehold improvements, and other startup costs like $20,000 inventory and $15,000 training. Ongoing fees hit 3% royalty (implied via ad fund notes) plus a flat $500 monthly service fee and 3% marketing contribution. No Item 19 means no disclosed revenue or profit figures, forcing buyers to dig into alternatives like the two SBA loans averaging $249,500 each—suggesting some operators secure mid-six-figure financing but at potentially high interest in a tough lending environment for food/bev.

System maturity shows 101 locations, but growth reversed from 120 in 2024 to 100 in 2025—a 17% contraction amid 5 terminations and 19 non-renewals, far outpacing projected 15 new units. This Item 20 data points to operator dissatisfaction or market pressures from rivals like coffee giants and local shops. While headquarters in Wilmington, DE, under parent Chu Yu Hsiang backs uniformity via training and marketing, the high non-renewals scream for scrutiny—ideal for risk-tolerant buyers eyeing beverages, but Item 19's absence amplifies the gamble on unproven unit-level economics.