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Kung Fu Tea Franchise FDD, Costs & Fees (2025)

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.

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

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.

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

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Number of units

Training

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.

Competitors

Below are some of

Kung Fu Tea

key competitors in the

Coffee & Tea

sector.

Franchise
Franchisees
Initial fee
Total investment
Revenue
Upgrade
Gross Profit
Upgrade
EBITDA
Upgrade

385

New
+
14%
14%

$37,000

$169,000

$378,000

n.a.

$0

$xxx,xxx

n.a.

xx%

n.a.

n.a.

xx%

n.a.

Competitors

TPTEA Tea Shop

TPTEA Tea Shop is a Taiwanese bubble-tea franchise offering premium brewed tea, milk tea and tapioca drinks, serving global tea lovers and on-the-go customers, and known for strong tea bases, efficient service and authentic Taiwanese tea craftsmanship.

Franchisees

?

16
+
78%
78%
Investment

?

$425,000 - $447,000

Peet's Coffee

Peet's Coffee is a specialty coffeehouse franchise offering handcrafted espresso drinks, brewed coffees, and light café fare, serving serious coffee lovers and commuters, and known for dark, deeply roasted beans, rigorous sourcing, and influential West Coast coffee heritage.

Franchisees

?

0
+
n.a.
n.a.
Investment

?

$1,035,000 - $1,697,000

Sugar Llamas

Sugar Llamas is a dessert and coffee franchise offering made-to-order mini donuts, ice cream and espresso drinks, serving families, students and late-night snackers, and known for whimsical llama branding, hot bite-sized donuts and colorful, Instagrammable combinations.

Franchisees

?

0
+
n.a.
n.a.
Investment

?

$252,000 - $368,000

Molly Tea

Molly Tea is a modern chain tea-shop franchise offering jasmine-based milk teas, floral fruit teas, and specialty drinks, serving young bubble-tea fans worldwide, and known for jasmine-forward aroma, elegant branding, and lifestyle-oriented, photogenic store environments.

Franchisees

?

1
+
n.a.
n.a.
Investment

?

$528,000 - $1,108,000

Delah Coffee

Delah Coffee is a specialty coffeehouse franchise offering Yemeni-inspired coffee, espresso drinks, and light bites, serving coffee enthusiasts and social café guests, and known for authentic Arabic coffee traditions, carefully sourced beans, and welcoming, culture-rich spaces.

Franchisees

?

0
+
n.a.
n.a.
Investment

?

$282,000 - $424,000

Arwa Coffee

Arwa Coffee is a specialty coffee brand offering Yemeni-inspired coffees, espresso drinks, and café fare, serving commuters and neighborhood guests, and known for drive-thru convenience, ethically sourced beans, and highlighting the heritage and flavors of Yemeni coffee culture.

Franchisees

?

1
+
n.a.
n.a.
Investment

?

$243,000 - $610,000

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