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.
Disclaimer: This information was extracted using AI from public Franchise Disclosure Documents and should be independently verified. This is not financial or legal advice. Always review official FDD filings before making investment decisions.
Overview
Financial Requirements
4% royalty + 2% marketing fee + $140-$350/mo technology fee
Franchise Stats
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 to Other Beverages Franchises
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 Range | Franchise 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
* Data sourced from SBA 7(a) FOIA loan records. Default rate calculated from charged-off loans.
Franchisee Contacts
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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)
No bankruptcy history reported in the FDD.
System Health (Item 20)
Franchise system changes reported in the most recent fiscal year
Frequently Asked Questions
How much does it cost to open a KUNG FU TEA franchise?
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.
How many KUNG FU TEA franchise locations are there?
As of the 2025 FDD, KUNG FU TEA has 385 franchise locations. The company has been franchising since 2011.
Can you get an SBA loan for a KUNG FU TEA franchise?
Yes, SBA loans are available for KUNG FU TEA franchises. Historical data shows 24 SBA 7(a) loans have been approved for KUNG FU TEA franchisees, with an average loan amount of $261,425. The historical default rate is 0.0%.
Is KUNG FU TEA a good franchise to buy?
KUNG FU TEA shows several positive indicators: established brand with 385+ locations, low SBA loan default rate. However, franchise success depends on many factors including location, local market conditions, and owner involvement. We recommend speaking with existing franchisees and consulting with a franchise attorney before making a decision.
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