The Spice & Tea Exchange Franchise FDD, Costs & Fees (2025)

KEY FRANCHISE STATS

All you need to know about this franchise in a snapshot

Franchisees

?

81
+
13%
13%
Investment required

?

$195,000 - $395,000
Revenue (AUV)

?

$488,000
Undisclosed
Pro
+
67.3%
+
xx%
-xx%
67.3%
Initial franchise fee

?

$38,750
Royalty fees

?

7.00%
+
1% to 3%
Operating Profit

?

n.a.

Pro
Franchisees

?

81
+
13%
13%
Investment required

?

$195,000 - $395,000
Franchise fee

?

$38,750
Royalty fees

?

7.00%
+
1% to 3%
Revenue (AUV)

?

$488,000
Undisclosed
Pro
+
67.3%
+
xx%
-xx%
67.3%
Operating Profit

?

n.a.

Pro

The Spice & Tea Exchange: Crafting a Flavorful Journey Through Franchising

Established in 2008, The Spice & Tea Exchange swiftly adopted the franchising model within the same year to expand its distinctive concept across the nation. Dedicated to enhancing and sharing a more flavorful lifestyle, the company provides a wide array of spices, teas, and gourmet treats, encouraging customers to discover international tastes.

Based in the United States, The Spice & Tea Exchange has seen substantial growth, crediting its success to a blend of high-quality products and engaging customer experiences.

The brand's inviting store ambiance, knowledgeable staff, and interactive blending stations make each visit a sensory adventure. As the company continues to grow, it remains committed to its core values of quality, exploration, and community.

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.

Type of Expenditure Amount (Low) Amount (High)
Franchise Fee – Single Unit $38,750 $38,750
Establishment Fee $95,000 $125,000
Construction, Improvements and other dress-out, Architect Fees $40,000 $150,000
Grand Opening Advertising $5,000 $5,000
Professional Fees $500 $3,500
Utility Deposits $250 $500
Office Equipment $350 $2,500
Rent and Security Deposits $1,800 $10,000
Insurance (premium for first year) $1,000 $3,500
State and local business licenses, permits and filing fees $500 $1,500
Training Expenses $1,500 $5,000
Additional Funds - 6 months $10,000 $50,000
Total Estimated Initial Investment Under the Unit Franchise Program (Excluding Real Estate and/or Building Purchase Costs) $194,650 $395,250

Franchise Disclosure Document

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Competitors

Franchise
Franchisees
Growth
Initial fee
Investment
Revenue
Gross Profit
Operating Profit
Industry

81

+
13%
13%
No growth
New

$38,750

$195,000

-

$395,000

n.a.

$488,000

Pro

n.a.

Pro

n.a.

Pro

Food & Beverage

Training 

The franchisor offers a well-structured initial training program tailored for franchisees and their management teams.

Initial Training Program

The Spice & Tea Exchange franchise delivers an Initial Training Program overseen by seasoned professionals experienced in franchise retail and the spice and tea industry. This comprehensive program includes both classroom and hands-on training, covering all essential aspects of operating a franchise.

Compliance with Local Laws

Franchisees must be aware of and comply with additional training requirements mandated by their state or local authorities before opening their business. It is their responsibility to ensure adherence to these regulations, which may include specific training prerequisites.

On-Site Training

In addition to classroom instruction, The Spice & Tea Exchange offers on-site training provided by members of the corporate team. This Opening Team supports the store's launch, offering between 68 to 105 man-hours of practical, day-to-day operational training.

Periodic Training Courses

To stay current with new procedures, products, and operational standards, franchisees and their managers are required to attend periodic training sessions organized by The Spice & Tea Exchange. These sessions ensure ongoing compliance and operational excellence, and there may be associated fees.

Additional Training

When necessary, franchisees may be required to participate in additional or refresher training to maintain alignment with The Spice & Tea Exchange's standards. This supplementary training might be at the franchisee's expense, ensuring continuous adherence to operational best practices.

Territory Protection

The Spice & Tea Exchange franchise provides franchisees with a designated location, known as the "Site," situated within a "Protected Area" inside a larger "Market Area." Typically, the minimum Protected Area covers a 1-mile radius from the center of the Site. In urban settings, however, the franchisor may choose a smaller radius or an alternative method to define the Protected Area.

As long as franchisees adhere to the Franchise Agreement, the franchisor commits not to establish or grant another franchise for a Store within the franchisee's Protected Area. This protection ensures exclusivity within the specified radius but does not extend to the broader Market Area. Franchisees are generally expected to focus their marketing efforts within their Market Area.

Despite this territorial protection, the franchisor reserves the right to utilize other distribution channels, such as the Internet, catalog sales, telemarketing, or direct marketing, to sell products anywhere, including within the franchisee's Market Area or Protected Area, using different trademarks than those specified in the Franchise Agreement.

Number of units

2023
Franchised units

72

79

81

Company-owned units

1

1

1

Total units

73

80

82

Competitors

Happy Lemon

Investment required
$298,000
-
$587,000
Franchisees
106
+
16%
16%

Haraz Coffee House

Investment required
$350,000
-
$518,000
Franchisees
14
+
n.a.
n.a.

Tiger Sugar

Investment required
$306,000
-
$542,000
Franchisees
47
+
147%
147%

Chatime

Investment required
$281,000
-
$494,000
Franchisees
10
+
-17%
-17%

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