Tea Lounge is a café franchise offering specialty teas, bubble tea, and light café fare in stylish modern settings, serving younger consumers and café-seekers, and known for trendy ambiance, customizable drinks and franchise-ready formula.
KEY FRANCHISE STATS
Franchisees
?
0
+
n.a.
n.a.
Franchise fee
?
$45,000
Investment
?
$276,000 - $406,000
Revenue (AUV)
?
Undisclosed
$0
+
n.a.
n.a.
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Tea Loungeis a specialty tea-café franchise that delivers a premium tea and café experience. It was founded in 2000 in Brooklyn, New York, where the first location opened at 837 Union Street. The franchise began expanding in 2012 and remains headquartered in Brooklyn, NY.
Tea Lounge offers a wide menu of loose-leaf teas, espresso drinks, baked goods, small plates, and cocktails. It positions itself as a relaxed, community-focused lounge where customers can socialize, work, or unwind. The brand appeals to both tea lovers and café-goers looking for a more elevated, comfortable environment.
What differentiates the Tea Lounge is its lounge-style ambiance, broad beverage selection, and its ability to operate as both a daytime café and an evening social space. The franchise model emphasizes strong support through training, site selection assistance, and marketing resources.
Initial investment
The initial investment required for a Tea Lounge franchise is $276,000 - $406,000. 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.
Tea Lounge offers 2 types of franchises:
Franchise Model
Initial Investment
Rose Tea Lounge™ Basic Model
$276,384 to $362,222
Standard Model
$290,084 to $405,520
We are summarizing below the main costs associated with opening a Tea Lounge Standard Model.
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
$49,000 - $49,000
Technology
$10,500 - $12,000
Equipment, Furniture and Fixtures
$84,500 - $115,800
Real Estate
$4,984 - $24,720
Leasehold Improvements
$70,000 - $100,000
Utilities
$0 - $800
Signage
$2,000 - $3,500
Start Up Inventory
$34,500 - $36,000
Grand Opening Marketing
$4,000 - $6,000
Staffing
$6,500 - $9,500
Uniforms
$200 - $500
Insurance
$3,000 - $4,500
Travel, Lodging and Meals for Initial Training Program
$3,600 - $5,200
Licenses, Permits, Certifications and Professional Fees
$2,300 - $3,000
Additional Funds (3 Months)
$15,000 - $35,000
Total
$290,084 - $405,520
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Tea Lounge offers 2 types of franchises:
Franchise Model
Initial Investment
Rose Tea Lounge™ Basic Model
$276,384 to $362,222
Standard Model
$290,084 to $405,520
We are summarizing below the main costs associated with opening a Tea Lounge Standard Model.
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
$49,000 - $49,000
Technology
$10,500 - $12,000
Equipment, Furniture and Fixtures
$84,500 - $115,800
Real Estate
$4,984 - $24,720
Leasehold Improvements
$70,000 - $100,000
Utilities
$0 - $800
Signage
$2,000 - $3,500
Start Up Inventory
$34,500 - $36,000
Grand Opening Marketing
$4,000 - $6,000
Staffing
$6,500 - $9,500
Uniforms
$200 - $500
Insurance
$3,000 - $4,500
Travel, Lodging and Meals for Initial Training Program
$3,600 - $5,200
Licenses, Permits, Certifications and Professional Fees
$2,300 - $3,000
Additional Funds (3 Months)
$15,000 - $35,000
Total
$290,084 - $405,520
Franchise Disclosure Document
Below is Tea Lounge's 2024 Franchise Disclosure Document. Upgrade to Pro or purchase the FDD to view and download the document.
Number of units
Tea Lounge had 3 total units in 2024, of which 0 were franchised-owned and 3 company-owned.
Tea Lounge provides a comprehensive training structure to prepare franchisees and their managers for business operations.
Initial Training: Franchisees must complete a 16-day program for the Basic Model or an 18-day program for the Standard Model at Tea Lounge’s headquarters in Elk Grove, California. This training is included in the franchise fee for up to three attendees and must be completed within 60 days before opening. Franchisees are responsible for travel, lodging, and related expenses.
Supplemental and Refresher Training: Additional training sessions, including refresher courses and ongoing education, may be held quarterly and are mandatory when required by the franchisor. These may be conducted on-site or virtually and could incur up to $200 per person per day. All costs related to participation, including travel and accommodations, are the franchisee’s responsibility.
Ongoing Support: Tea Lounge provides ongoing consultation, support via phone and email, access to updated training materials, and optional annual conferences. They also offer software training and operational updates to maintain consistency and quality across all franchise locations. Regular evaluations and site visits are conducted to ensure continued compliance and support franchise success.
Territory Protection
Tea Lounge provides franchisees with a “Protected Territory,” typically up to three miles in any direction from the business location. This protection applies unless the franchisee operates from a Non-Traditional Location (such as a hotel, airport, or stadium), where no protected territory is granted.
The franchisor determines the territory boundaries based on factors like population, demographics, and market potential. While franchisees have marketing and sales rights within their territory, they are restricted from soliciting business or engaging in "target marketing" in other franchisees’ areas or company-owned zones.
The franchisor reserves the right to operate through other channels like online platforms and mobile apps, even within a franchisee's territory, without providing compensation. If a franchisee defaults on the agreement, the franchisor may revoke or modify territorial rights with written notice.
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