Tapioca Express

Item 7 lays out the financial entry: $30,000 franchise fee plus total initial investment of $250,000-$509,100 for traditional cafés or kiosks, covering buildout, equipment, inventory, and three months' working capital. Ongoing fees hit 4% royalty on gross sales, 1.5% brand/ad fund, and potential up to $500/month technology fee (not currently assessed). With only 15 franchised units and 2 corporate locations as of 2025 FDD, the system's small scale amplifies risks—down 12% from 17 locations in 2024, per Item 20 summary. This contraction raises flags on Item 20 details like openings (few projected), transfers, and renewals, suggesting limited momentum despite franchising since 2002.

Item 19 delivers the earnings hook: average gross revenue of $713,236 across units, but median at just $295,263 highlights extreme skew—likely a handful of high-volume spots like prime mall kiosks driving the average up. No net profit figures disclosed, so operators face slim margins after 5.5% fees, rent, labor in competitive QSR beverage space. For boba enthusiasts eyeing quick-service snacks and delivery, the low unit count means sparse peer validation via Item 20 contacts, but multi-unit (3-5) deals could scale if you nail location. Overall, volatile sales and shrinkage make this a high-risk play unless you have retail expertise and capital buffer.