TP TEA

Item 7 lays out a steep entry: $424,800 to $446,900 initial investment, including a $50,000 franchise fee, buildout for 1,000-1,500 sq ft shops, equipment, and initial inventory. Ongoing fees hit 6% of gross sales for royalties, plus a marketing fund up to 3% (not yet charged), with no fixed monthly minimums—a relief in a category where ad spend can balloon. Since franchising in 2018 under parent TPTEA Co., Ltd., the system ballooned from 12 locations in 2023 to 16 in 2024—a 33% jump—projecting 4 more units soon, signaling franchisor confidence despite the crowded beverage space targeting convenience-driven consumers.

Without Item 19, buyers must dig deeper into Item 20's health metrics: minimal terminations or transfers suggest stability, but the small footprint (just 16 U.S. units) means unproven scalability versus giants. Profitability hinges on high-traffic spots where $10-15 drinks fly off the menu, but razor-thin margins in foodservice demand flawless ops. For risk-tolerant buyers eyeing the $425K midpoint, this growth spurt offers upside in a $3B+ bubble tea market—but verify local saturation and supply chain via FDD Item 11 before committing.