Jazen Tea Franchise FDD, Costs & Fees (2024)

KEY FRANCHISE STATS

All you need to know about this franchise in a snapshot

Initial franchise fee
$10,000
Investment required
$73,000 - $390,000
Royalty fee
4.00%

Jazen Tea: Revolutionizing the Fruit and Boba Tea Experience

Jazen Tea, established in 2012 in San Jose, California, has carved out a niche in the fruit and boba tea market by prioritizing real fruits and fresh ingredients over powder mixes. This dedication to authenticity sets Jazen Tea apart. The company started franchising in 2014 and has since become a notable name in the Quick Service Restaurant (QSR) sector, catering to the rising demand for healthier dining options and providing a refreshing alternative to conventional fast food.

Located in the dynamic and diverse city of San Jose, Jazen Tea embodies the innovative and culturally rich environment of Silicon Valley. This technological hub greatly influences the brand's commitment to fresh, high-quality ingredients and health-conscious products.

San Jose's progressive ethos is evident in Jazen Tea's modern take on traditional tea, appealing to a community that values sustainability and wellness. The franchise model is designed to offer robust franchisee support, ensure operational excellence, and foster a community-centered approach, making it an attractive option for entrepreneurs eager to join the thriving healthy food industry.

Initial investment

Here's what you would need to invest if you were to start this franchise. These costs are provided by the franchisor in the Franchise Disclosure Document.

Jazen Tea offers 2 types of franchises:

Franchise Option Initial Investment
Stand-Alone Jazen Tea® Shop $182,600 to $389,930
Co-Branded Phở Hòa® Restaurant $73,000 to $112,000

We are summarizing below the main costs associated with opening a Stand-Alone Jazen Tea® Shop franchise.

For more information on the various types of franchises and its costs, refer to the Franchise Disclosure Document (Item 7).

Stand-Alone Jazen Tea® Shop

Type of Expenditure Amount
Real Estate Costs Including Security Deposit Payable to Landlord $16,000 - $79,200
Leasehold improvements; furniture and decorating costs $65,000 - $125,000
Equipment $29,000 - $35,000
Exterior Signs, Interior Menu Boards and Signs $4,000 - $6,000
Point-of Sale (POS) and Other Software, Computer Hardware and Business Equipment $8,600 - $14,730
Opening Inventory $15,000 - $30,000
Tableware, Smallware and Supplies $3,500 - $4,500
Professional Fees $12,000 - $30,000
Other Security Deposits and Pre-Paid Expenses $6,000 - $12,000
Advertising During Initial Period $2,500 - $4,500
Additional Funds (for first 3 months of operations) $10,000 - $35,000
Total $182,600 - $389,930

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Number of units

2023
Franchised units

11

12

11

Company-owned units

4

3

3

Total units

15

15

14

Franchise Disclosure Document

Training 

Jazen Tea offers an extensive training program for its franchisees, covering all aspects of operating a tea shop, from management to everyday tasks. The training includes:

Foundational Training

The initial training program is divided into two primary modules: Management Training and Opening Training. These modules cover the crucial elements of managing and running a Jazen Tea shop. The training content, duration, and delivery method are adaptable, ensuring that the program stays relevant and up-to-date with industry standards and Jazen Tea's operational needs.

Management Training

Before the shop opens, the franchisee, one of the franchisee's owners, or a management-level employee must complete the Basic Training program to the franchisor's satisfaction. This requirement emphasizes the necessity of a well-trained management team that can maintain Jazen Tea's high standards of service and operational efficiency.

Ongoing Training

Jazen Tea may provide ongoing training programs to address system updates, industry trends, and other pertinent topics. These programs aim to keep franchisees informed and proficient in managing their shops according to the franchisor's expectations. Attendance at specific continuing training sessions may be required for the franchisee's Certified Manager or other key personnel, ensuring that essential staff members stay knowledgeable about the latest operational practices and standards.

Territory Protection

Jazen Tea provides territory protection for its franchisees. When a franchisee selects a location for their Stand-Alone Jazen Tea® Shop outside a Metropolitan Urban Core Area, Jazen Tea assigns a specific territory as part of the franchise rights. Typically, this territory includes an area with a radius of approximately 3 miles from the front door of the franchisee's Stand-Alone Jazen Tea® Shop.

The exact boundaries of this territory are determined by Jazen Tea, based on nearby roads or other geographical or political landmarks. Jazen Tea ensures that no other Stand-Alone Jazen Tea® Shop will be opened or franchised within the assigned territory.

This means that the designated 3-mile territory will exclusively host the franchisee's Stand-Alone Jazen Tea® Shop, minimizing direct competition between Jazen Tea franchisees and allowing each franchisee to cater to their unique area. However, it is important to note that while Jazen Tea offers territorial protection, it does not grant the franchisee exclusive rights to serve all customers within their territory.

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