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.

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

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

Competitors

Below are some of

Kung Fu Tea

key competitors in the

Coffee & Tea

sector.

Franchise
Franchisees
Initial fee
Total investment
Revenue
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Gross Profit
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EBITDA
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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.

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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

Kahala Coffee Traders

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Franchisees

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5
+
67%
67%
Investment

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$88,000 - $517,000

It's Boba Time

It's Boba Time is a beverage franchise specializing in bubble tea and other specialty drinks. With a diverse menu and a focus on high-quality ingredients, it caters to a wide customer base seeking unique and flavorful beverages.

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62%
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Investment

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$466,000 - $597,000

7 Leaves

7 Leaves Cafe is a beverage franchise offering a variety of teas, coffees, and specialty drinks. It focuses on using fresh ingredients and traditional brewing methods to create authentic flavors.

Franchisees

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14
+
17%
17%
Investment

?

$244,000 - $490,000

Junbi

Junbi is a fast-casual beverage franchise specializing in matcha-based drinks. It combines traditional Japanese tea culture with modern flavors, aiming to provide health-conscious options in a contemporary setting.

Franchisees

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5
+
150%
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Investment

?

$269,000 - $576,000

Black Rifle Coffee

Black Rifle Coffee Company is a veteran-owned coffee franchise that offers premium coffee blends. It targets customers who appreciate a patriotic brand identity and supports veteran causes through its business operations.

Franchisees

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+
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Investment

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Qargo Coffee

Qargo Coffee is a specialty coffee franchise focused on premium beverages and a modern, inviting café atmosphere, aiming to deliver high-quality coffee experiences.

Franchisees

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n.a.
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$155,000 - $299,000