SH

SHARETEA

Sharetea is a franchise that allows operators to open tea shops offering gourmet coffees and teas, tea- and coffee-based beverages, bubble tea, compatible food products, and related supplies, accessories, and gifts under the proprietary Sharetea System, which includes specific designs, menus, and operational standards. The business model focuses on franchising these standardized tea shops in the United States, with affiliates handling company-owned and international locations. It targets the general public in a highly competitive beverage and snack market, competing with local businesses, national chains, grocery stores, and convenience outlets.

153
Locations
$225K–$555K
Investment
Since 2015
Franchising
Food & BeverageWilmington, DELian Fa International Dining Business CorporationDisclaimer

Franchise Costs


Franchise Fee
$12,000
Item 5 of FDD
Initial Investment Range
$224,600 $555,400
Low: $224,600High: $555,400
Item 7 of FDD
Royalty Rate
6.00%
of gross sales
Brand Fund
3.00%
Item 6 of FDD

6% royalty (min $1,200/mo) + est. 3% marketing fund

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 SHARETEA Compares


Key Insights

  • #2 largest franchise system in Beverages
  • Lower than average SBA loan default rate in Beverages
FranchiseInvestmentFeeRoyaltyLocations
SHARETEA
Current
$225K – $555K$12K6.0%153
KUNG FU TEA$169K – $378K$37K4.0%385
DING TEA$195K – $324K$30KN/A120
FiiZ Drinks$250K – $775K$40K8.0%63
BAMBU$159K – $328K$49K3.5%60
TIGER SUGAR$306K – $542K$85K7.0%47
Beverages Average
20 franchises
$281K – $629K$40K5.2%

* 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

Top States
1CA
55
2TX
25
3WA
17
4OR
6
5NC
6
6NV
5
7CO
4
8OK
3
9PA
3
10HI
3
11VA
3
12KY
3
13UT
3
14LA
2
15IL
2

+14 more states

SBA Loan History


Historical SBA 7(a) loan data for SHARETEA franchisees (20172025)

Total Loans
31
Average Loan
$393,365
Total Volume
$12.2M
Default Rate
3.2%

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.

Due Diligence


Litigation (Item 3)

Franchisee Cases1

Protected territory violation and trademark infringement dispute with franchisee Tenmei Group, LLC. Settled.

Bankruptcy (Item 4)

Bankruptcy HistoryNo
No bankruptcy history reported

System Health (Item 20)

Franchise system changes reported in the most recent fiscal year

Terminations
10
Non-Renewals
5
Reacquired
0
Ceased Ops
0
Transfers
9
Sold to Franchisees
0
Projected New
26

Frequently Asked Questions


The total initial investment to open a SHARETEA franchise ranges from $224,600 to $555,400. This includes a franchise fee of $12,000. Ongoing royalty fees are 6.0% of gross sales.

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