Home » The Ultimate Guide to Growth with Kung Fu Tea Franchise

The Ultimate Guide to Growth with Kung Fu Tea Franchise

Kung Fu tea Franchise
Spread the love

Kung fu tea franchise is a sucessful business prototype model that is known for its unique selling proposition. The model allows people to own and operate their own business by providing them with the necessary tools and resources needed to succeed. The business offers a variety of products and services, including Kung fu tea, which is a popular drink from China.

The franchise is a great opportunity for people who are looking for an opportunity to own and operate their own business. The franchise provides the necessary tools and resources needed to succeed, including a training program that will teach you the basics of the business. In this article you will find about this franchise,which offers a variety of support services, including marketing and financial assistance.

They currently have over 250 locations in the United States. A prospective opportunity is being offered by Kung Fu Tea to become a successful business owner and be a part of their success journey. Kung fu tea has all of the options for brewing franchising lovers, whether traditional or non-traditional.

What is the Kung fu tea franchise?

Kung fu tea franchise is a new venture in the United States that is rapidly expanding in the bubble tea category of the brewing and beverage industry. According to kung fu tea FDD data, kung fu tea opened franchises in 33 states and the District of Columbia. Kung fu tea has grown to become one of America’s largest made-to-order bubble brands, with over 200 locations across the country. 

The retail operations of retail shops selling a variety of bubble tea, oriental style brewing tea, coffee, juices, and other smoothies and drinks are being offered to franchisees. If you agree to open and operate multiple kung fu shops within an agreed geographic area for a specific period of time, the kung fu will also offer multi-unit franchises in traditional and non-traditional locations.

People who want to open a soft drink and coffee shop should think about kung fu. It is advised to get a preview of the company before proceeding, as well as an idea of the cost and opportunity of the location you are considering.I will inform you about Kung Fu Tea franchising in this article.

Kung fu tea opportunity

Though bubble tea originated in Asia, it has recently gained popularity in Western countries. According to the Tea Association of the United States’ forecast, the ready-to-drink tea sector will grow by 12- 15% per year. 

The opportunity was explained by Kung Fu Tea’s brand improvement mission and vision of inspiring the community to enjoy life. The benefits of kung fu tea include its high markup, high food quality, products made from natural ingredients, quick service, and easy entry.

Their market is expanding in tandem with their popularity. Kung fu tea launched its franchise program in 2013, and by 2017, it had expanded to 127 locations, indicating a positive trend for the company. As you can see, the establishment of kung fu has gained popularity.

 If you look at this company’s turnover rate, it’s decently low at 2, which indicates a very good level of rate to be at as low turnover rates show good indications, especially when it operates 127 outlets. The company is now operating its largest chain, which is expected to exceed 361 units this year.

The Truth About Kung Fu Tea Franchise

Kung Fu Tea, founded on April 30, 2010, in New York, has grown to become the largest bubble tea brand in America, with over 250 locations across the country. Kung fu tea’s mission is to continue to improve its brand, products, and services, as well as customers’ experiences with high-quality beverages, and to inspire people. 

Kung fu tea is a rapidly expanding coffee and brewing franchise. Kung Fu Tea provides a variety of hot and cold beverages as well as an atmosphere that entices customers and encourages them to return again and again. Kung Fu Tea launches its franchising program in 2013. 

Kung fu tea Franchise Information

There’s a Kung Fu Tea in your area! This popular Asian tea company has over 160 stores in the US and Canada, and they offer a wide variety of tea flavors, as well as a variety of food items to accompany their drinks.

Kung Fu Tea is a business that sells tea and related items. These stores typically offer a wide variety of tea flavors, as well as a variety of food items to accompany their drinks.

Kung Fu Tea Franchise Information
Industry TypeFood and Beverage
Sub CategoryCafe Shop Franchise
Year EstablishedApril 30, 2010
Company Name
Founder and Management HeadMichael Jiang
· Allen Wang
Franchising Started2013
Franchise Expansion PlanThe United States & Canada
Australia
Cambodia
Number of Units350+
Social Media HandlesFacebook
Twitter
Youtube
Instagram
Company Office locationNew York, United States, New York City 10007

Kung fu tea Franchise Requirements

You do not need any specific educational qualifications to obtain a kung fu tea franchise. Franchisees come from a variety of backgrounds. 

What you will need is a suitable location for the franchise as well as the initial financial requirements. Otherwise, they will provide all plan and operational management training.

How much does a Kung fu tea franchise cost

Kung Fu tea initial investment costs approximately $140,000 to $422,000 for traditional locations and $123,000 to $275,000 for non-traditional locations such as airports, hotels, schools, or universities, where the initial franchise fee costs approximately $25,000 to $37,000. 

Initial working capital of $5,000 to $25,000 is required to open a Kung fu franchise where the royalty fee is 4%, the advertisement fee is 2%, and the training fees are $10,000.

The cost of the equipment ranges from $25,000 to $35,000, and renovation costs will be included.

If you want to take on more franchises, each additional franchise fee will be $25,000 USD

Kung fu tea franchise franchise cost

The below tables will help you understand kung fu tea franchise requirements to get started and know the detailed cost to franchise kung fu tea.

Kung fu tea franchise Franchise Facts
Kung Fu Franchise Fee$37,000
Initial Investment$124,050 – $428,050
Royalty Fee4.0%
Advertising Fee2.0%
Term of Agreement10 Years
Is franchise term renewable?Yes, 10 Years
Renewable Franchise Fees50% of Initial Franchise Fees 

All the above facts and figures in this article are based on the updated kung fu tea franchise disclosure document.

Kung fu tea Training & Support Offered

Kung Fu will provide the franchisee with initial training after signing the franchise agreement and obtaining the lease for the store location. Training will be provided for one or two people and will last three weeks. 

A senior staff member or franchise manager will be assigned to you for two weeks to assist you with the store’s opening and initial smooth operation.

Kung fu tea Operations & support

A senior staff member a franchise manager from Kung fu tea will provide operational in-house support for two weeks. They also offer store layout and interior design services. In addition, ongoing assistance and advertising support will be provided.

What is the Kung fu tea Term of Agreement and Renewal?

The initial franchise term is ten years. If all requirements are met, franchise owners can extend the term of their franchise for an additional ten years.

Does Kung fu tea provide Financial Assistance?

Yes, Kung Fu Tea offers financial assistance to qualified franchise owners through third-party sources. These franchise loans cover the franchise fee, equipment costs, inventory, start-up costs, accounts receivable, and payroll, among other things.

Reasons Why Everyone Loves Kung fu tea franchise

The benefits of kung fu tea for business owners include

How much do Kung fu tea franchise owners make?

It is challenging to determine the precise amount because kung fu tea does not provide its financial report. However, other analyses reveal that owners might earn up to $127,611 each year, which is a very respectable sum.

What is Kung fu tea franchise profit?

The kung fu tea franchise profit formula is a mystery to many tea drinkers. Many people are curious about how much profit a Kung fu tea can make. However, there is no definitive answer to this question.

Rather, it depends on a number of factors, including the size and location of the franchise, the type of tea served, and the marketing strategy employed.

As per the 2019 franchise disclosure document, the average franchise annual revenue of franchises is $ 335,688.The Kung Fu tea franchise profit margin can be as low as 20% to as high as 30%.

The below tables shows the potential franchise profit of Kung Fu Tea.

Profit MarginFranchise Profit
20%$ 67,138
22.50%$ 75,530
25%$ 83,922
27.50%$ 92,314
30%$ 100,706

Is the Kung Fu tea franchise worth the investment?

When it comes to investing, there are a lot of factors to take into account. One of the most important factors is the potential return on investment. If a business or investment is not likely to provide a return, it may not be worth your time or money. 

In terms of Kung Fu Tea, there are a few things you should consider. The first is the cost of the franchise. The franchise fee is $37,000, and there is an initial investment of $400,000. This initial investment is required in order to open a franchise. The second thing to consider is the potential for growth. 

On this aspect of resale of the Kung Fu tea cafe, you can expect 0.25-0.40 multiple of net sales of $ 335,688.The resell value is in the range of $ 84,000 to $ 134,275.

This resale value of a Kung Fu Tea Cafe shop is 30-40% of the Kung Fu tea franchise cost.

This resale cost of the Kung Fu tea franchise is very low as compared to the initial cost to start this business.

Kung fu tea franchise reviews

There’s something about Kung fu tea that just makes it so popular. Perhaps it’s the calming, invigorating effects that the drink can have or the sense of community that comes with drinking it in groups. 

Whatever the reason, there are now a number of Kung fu tea franchises across the country. So if you’re looking for a new way to relax, or to meet new friends, consider checking out one of these establishments.

Franchise Deck Analysis and Overview

The kung fu franchise is a relatively new enterprise, but forecasts indicate that the brewing and beverage sector will experience yearly growth of between 12 and 15 percent. According to reports from 2020, kung fu tea operates 95 franchises in the south and covers 33 US states including Washington, DC. 

Along with conventional and nonconventional locations, they also provide multi-unit franchise opportunities and work with other companies. Starting in 2013, they opened 127 stores in only four years, which is a good number, but we must consider the turnover ratio, which indicates the health of the franchise business. Kung fu has a turnover ratio of 2, which is a significantly low turnover ratio. 

However, one of the negative points is the lack of financial transparency. In addition, they have over 200 locations in the United States. So you can join them in inspiring the beverage industry and running your business with a new, fearless, and innovative approach.

Conclusion 

Kung fu tea is a relatively new franchise in the brewing industry that is doing well and expanding. This type of product is expected to grow in the American-Asian market over time. Kung fu is a ten-year-old, successful business in the US market that is expected to grow rapidly in the Asian market.

They also collaborate with other brands, such as TKK fried chicken and Yasubee Ramen, to provide franchises with additional income sources and services that add value to their customer positioning. 

This is a recession-proof business because even during pandemics when most of the brewing and beverage industries fall, kung fu continues to grow despite all odds. People interested in kung fu franchises should talk to as many other kung fu tea franchisees as possible before starting their own.

Existing franchises of Kung Fu Tea can leave their feedback in the comment section below.

You can also explore other cafe franchise opportunities like

  1. Black Rifle Coffee Franchise
  2. Smoothie King Franchise
  3. Biggby Coffee Franchise
  4. Starbucks Franchise
  5. Jamba Juice Franchise
  6. Clean Juice Franchise

Kung fu tea franchise

Competition Analysis of Kung Fu Tea Franchise

Cost to FranchiseFran FeesRoyaltyy + Ad feesExpected ProfitRecoup of CapitalFD Rating
Sharetea franchise$386,900 to $492,200$ 48,0006%+ 2%$ 45,000 to$ 64,8005.8 to 8.3 years3.7/5.0.
Ding Tea Franchise$123,000to $422,000$ 20,0004%+ 2%$ 57,6006 to 8 years3.3/5.0.
Kung Fu Tea Franchise$124,050 to $428,050$37,0004% +2%$ 65,000- $ 100,0004 to 6 years3.5/5.0
Boba Time Tea Franchise$389,100 to $531,700$ 40,0005% +2%$ 96,867 to            $ 134,1233 to 5.5 years4.0/5.0.
Gong Cha Franchise$177,430 to$335,400$41,5005.5% + 2%$ 45,000 to $ 64,8006 to 9 years3.7/5.0.
Happy Lemon Franchise $309,000 to $509,000.$25,000 to$40,000.7% + 2%$ 50,625 to$ 72,9006 to 9 years3.6/5.0.

1 thought on “The Ultimate Guide to Growth with Kung Fu Tea Franchise”

Leave a Reply

Your email address will not be published.