Bubble tea franchise serving a wide range of tea-based beverages, including milk teas and fruit teas, with customizable sweetness and toppings.
KEY FRANCHISE STATS
Franchisees
?
385
+
14%
14%
Franchise fee
?
$37,000
Investment
?
$169,000 - $378,000
Revenue (AUV)
?
Undisclosed
$0
+
n.a.
n.a.
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Established in 2010 in Flushing, Queens, New York, Kung Fu Tea has rapidly ascended to become the largest bubble tea brand in the United States. Headquartered in New York City, the company began franchising in 2011 and has since expanded to over 350 locations nationwide.
Kung Fu Tea specializes in a diverse array of beverages, including bubble teas, milk teas, slushes, punches, and yogurt-based drinks. The brand distinguishes itself by emphasizing freshly brewed teas, customizable sweetness and ice levels, and a commitment to authentic flavors.
This dedication to quality and innovation has solidified Kung Fu Tea's position as a leader in the competitive bubble tea market.
Initial investment
The initial investment required for a Kung Fu Tea franchise is
$169,000 - $378,000.
That is the total cost you would need to finance if you were to start this franchise.
These costs are provided by the franchisor in the Franchise Disclosure Document.
Kung Fu Tea offers 2 types of franchises:
Type of Unit
Initial Investment
Kung Fu Tea Nontraditional Unit
$184,000 to $269,500
Kung Fu Tea Standard Unit
$169,000 to $378,000
We are summarizing below the main costs associated with opening a Kung Fu Tea Standard Unit.
For more information on the various types of franchises and its costs, refer to the Franchise Disclosure Document (Item 7).
Type of Expenditure
Amount
Initial franchise fee
$25,000 – $37,000
Training fee
$12,500
Equipment from our affiliate
$6,500 – $7,500
Other equipment, furniture, fixtures and signage
$30,000 – $40,000
Computers, printer, fax, and other hardware and business software
$2,500 – $5,000
Prepaid rent and security deposit
$5,000 – $40,000
Leasehold improvements and architectural costs
$40,000 – $150,000
Interior design (3D rendering of shop)
$3,500 – $5,000
Initial inventory of tea, coffee, cups, menu boards, and packaging materials
$15,000 – $25,000
Initial marketing program
$5,000
Insurance – liability and workers compensation – initial deposit
$5,000 – $20,000
Travel, living expenses and salaries during initial training
$4,000 – $5,000
Legal and accounting fees
$5,000 – $6,000
Additional funds – first month
$10,000 – $20,000
Total
$169,000 – $378,000
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Kung Fu Tea offers 2 types of franchises:
Type of Unit
Initial Investment
Kung Fu Tea Nontraditional Unit
$184,000 to $269,500
Kung Fu Tea Standard Unit
$169,000 to $378,000
We are summarizing below the main costs associated with opening a Kung Fu Tea Standard Unit.
For more information on the various types of franchises and its costs, refer to the Franchise Disclosure Document (Item 7).
Type of Expenditure
Amount
Initial franchise fee
$25,000 – $37,000
Training fee
$12,500
Equipment from our affiliate
$6,500 – $7,500
Other equipment, furniture, fixtures and signage
$30,000 – $40,000
Computers, printer, fax, and other hardware and business software
$2,500 – $5,000
Prepaid rent and security deposit
$5,000 – $40,000
Leasehold improvements and architectural costs
$40,000 – $150,000
Interior design (3D rendering of shop)
$3,500 – $5,000
Initial inventory of tea, coffee, cups, menu boards, and packaging materials
$15,000 – $25,000
Initial marketing program
$5,000
Insurance – liability and workers compensation – initial deposit
$5,000 – $20,000
Travel, living expenses and salaries during initial training
$4,000 – $5,000
Legal and accounting fees
$5,000 – $6,000
Additional funds – first month
$10,000 – $20,000
Total
$169,000 – $378,000
Franchise Disclosure Document
Below is Kung Fu Tea's 2025 Franchise Disclosure Document. Upgrade to Pro or purchase the FDD to view and download the document.
Number of units
Kung Fu Tea had 387 total units in 2025, of which 385 were franchised-owned and 2 company-owned.
Kung Fu Tea offers a comprehensive training program to ensure franchisees are well-prepared to operate their stores effectively. This program includes both on-the-job and classroom training, each lasting approximately 80 hours.
The training covers various aspects of the business, such as:
Product Preparation: Learning the techniques for crafting the brand's signature beverages to maintain consistent quality across all locations.
Store Operations: Understanding daily operational procedures, including inventory management, equipment maintenance, and customer service standards.
Marketing and Sales: Gaining insights into effective marketing strategies and sales techniques to attract and retain customers.
Financial Management: Acquiring knowledge on managing finances, including budgeting, accounting, and financial reporting.
Territory Protection
Kung Fu Tea provides its franchisees with exclusive territorial rights, ensuring that no other franchisee can operate within a designated area. This exclusivity helps franchisees build a loyal customer base without direct competition from the same brand nearby.
The size and boundaries of each territory are determined based on factors like population density and market potential. This strategic approach aims to balance market saturation and franchisee success, fostering a supportive environment for business growth.
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