SHARETEA

Item 7 outlines Sharetea's initial investment from $275,600 to $606,400, covering build-out for tea shops serving bubble teas, coffees, and snacks in a cutthroat beverage sector. Upfront franchise fee hits $12,000, followed by 6% royalties (minimum $1,200 monthly), 3% brand fund, and $50 monthly software fees—stacking to notable ongoing costs without Item 19 revenue disclosure to benchmark returns. The lack of earnings data is a red flag, forcing reliance on averages like SBA loans: 31 approved at $393,365 each, with an impressively low 3.2% default rate suggesting viable cash flow for survivors.

System health shows 146 locations as of 2025, down 5% from 154 in 2024—indicating contraction amid 12 terminations and 9 transfers, plus a litigation note over alleged territory violations. This turnover hints at pressures from competition with giants and locals, potentially straining unit-level economics. Without disclosed revenues, the low SBA defaults offer optimism, but declining units question scalability; savvy investors will weigh if Sharetea's proprietary system can buck the trend in a maturing bubble tea market.