KUNG FU TEA
Kung Fu Tea offers franchises for operating retail shops that sell brewed tea, bubble tea, coffee, juices, smoothies, and other hot and cold drinks prepared according to proprietary recipes using specified ingredients and equipment. The business model includes single-unit franchises, multi-unit development agreements requiring a minimum of three shops in a defined geographic area, and dual-branding options with TKK Fried Chicken. They target the established Asian-American market as well as the developing broader U.S. beverage market, serving customers of all ages who enjoy freshly made teas and drinks.
Franchise Costs
4% royalty + 2% marketing fee + $140-$350/mo technology fee
Financial Performance
Item 19 Financial Performance
This franchise did not provide Item 19 financial performance data.
Be careful if you are interested in investing. The lack of financial performance representations may indicate limited data or varying results across franchises.
Extracted Item 19 Section
How KUNG FU TEA Compares
Key Insights
- One of the lowest investment costs in Beverages (ranked #3 of 20)
- #1 largest franchise system in Beverages
- One of the lowest SBA loan default rates in Beverages
| Franchise | Investment | Fee | Royalty | Locations |
|---|---|---|---|---|
KUNG FU TEA Current | $169K – $378K | $37K | 4.0% | 385 |
| SHARETEA | $225K – $555K | $12K | 6.0% | 153 |
| DING TEA | $195K – $324K | $30K | N/A | 120 |
| FiiZ Drinks | $250K – $775K | $40K | 8.0% | 63 |
| BAMBU | $159K – $328K | $49K | 3.5% | 60 |
| TIGER SUGAR | $306K – $542K | $85K | 7.0% | 47 |
Beverages Average 20 franchises | $281K – $629K | $40K | 5.2% | – |
* Comparison based on latest FDD filings. Investment ranges from Item 7, fees from Item 5. Showing top 5 of 20 Beverages franchises by location count.
Locations & Growth
Outlet Growth Over Time
Total outlets at end of each year
Geographic Distribution (2024)
Outlets by state across the United States
+26 more states
SBA Loan History
Historical SBA 7(a) loan data for KUNG FU TEA franchisees (2016 – 2025)
Loans by Year
SBA 7(a) loan activity over time
* Data sourced from SBA 7(a) FOIA loan records. Default rate calculated from charged-off loans.
Franchisee Contacts
398 franchisee contacts on file from official FDD filings.
| Name | SBA Loan |
|---|---|
John Smith ABC Franchise LLC | $350,000 2023 · Active |
John Smith ABC Franchise LLC | $350,000 2023 · Active |
John Smith ABC Franchise LLC | $350,000 2023 · Active |
John Smith ABC Franchise LLC | $350,000 2023 · Active |
John Smith ABC Franchise LLC | $350,000 2023 · Active |
398 Contacts Available
Unlock all KUNG FU TEA franchisee contacts with verified contact information
Due Diligence
Litigation (Item 3)
Trademark infringement, unfair competition, false designation of origin, and breach of contract against Tea N’ Boba Enterprises LLC and individuals (likely former franchisee).
Bankruptcy (Item 4)
System Health (Item 20)
Franchise system changes reported in the most recent fiscal year
Frequently Asked Questions
The total initial investment to open a KUNG FU TEA franchise ranges from $169,000 to $378,000. This includes a franchise fee of $37,000. Ongoing royalty fees are 4.0% of gross sales.
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