Tiger Sugar

Tiger Sugar Franchise FDD, Costs & Fees (2025)

Tiger Sugar offers a variety of bubble tea drinks with a focus on unique flavors and high-quality ingredients, providing a refreshing and trendy beverage option.

Founded in 2017 in Taichung, Taiwan, Tiger Sugar has quickly become a prominent name in the global dessert beverage scene, best known for its signature brown sugar boba milk tea. What started as a local favorite soon turned into an international brand, with its headquarters now based in Flushing, New York.

The company began offering franchise opportunities in 2020, allowing business owners across the globe to introduce Tiger Sugar’s distinctive drinks to new markets. Its expansion has been fueled by a loyal fan base drawn to its unique and flavorful offerings.

At the heart of the brand’s success is its iconic brown sugar boba milk. This drink is crafted through a proprietary 8-hour preparation technique that involves slow-cooking syrups and tapioca pearls. The result is a perfectly balanced combination of tea, milk, and syrup that delivers a rich and satisfying taste experience in every cup.

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
Initial Franchise Fee $85,000
Initial Training and Support Fee $15,000
Store Design Fee $6,000
Business Licenses & Permits $6,000 to $20,000
Leasehold Improvements $50,000 to $180,000
Fixtures, Furnishings & Equipment $45,000 to $50,000
Computer and Point of Sale System $3,000 to $5,000
Architect/Engineering Fees $0 to $14,000
Rent, Security Deposits and Utility Deposits $5,000 to $20,000
Other Professional Fees $1,000 to $5,000
Insurance Deposit $1,000 to $2,000
Initial Inventory of Food, Beverage, Paper Supplies and Smallwares $25,000 to $30,000
Training Expenses $500 to $5,000
Grand Opening Advertising $3,000 to $5,000
Additional Funds (for the initial 3 months of operations) $60,000 to $100,000
TOTAL ESTIMATED INITIAL INVESTMENT $305,500 to $542,000

Franchise Disclosure Document

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Competitors

Below are some of

Tiger Sugar

key competitors in the

Coffee & Tea

sector.

Started franchising
Franchisees

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Franchise fee

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Royalty fee

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Investment

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Revenue (AUV)

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Gross Profit

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EBITDA

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Home-based

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Passive investment

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FDD
Tiger Sugar
2020
47
+
147%
147%
$85,000
7.00%

$306,000

-

$542,000

n.a.

$0

Upgrade

n.a.

n.a.

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n.a.

n.a.

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2011
5
+
67%
67%
$30,000
6.00%

$88,000

-

$517,000

Upgrade

n.a.

$0

n.a.

n.a.

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n.a.

n.a.

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2011
76
+
62%
62%
$45,000
5.00%

$466,000

-

$597,000

Upgrade

n.a.

$0

n.a.

n.a.

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n.a.

n.a.

Upgrade
Upgrade
Upgrade
2017
14
+
17%
17%
$35,000
6.00%

$244,000

-

$490,000

Upgrade

n.a.

$0

n.a.

n.a.

Upgrade

n.a.

n.a.

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Upgrade
Upgrade
2020
5
+
150%
150%
$30,000
6.00%

$269,000

-

$576,000

Upgrade

n.a.

$0

n.a.

n.a.

Upgrade

n.a.

n.a.

Upgrade
No
Upgrade
No
Yes
Upgrade
Yes
2017
18
+
125%
125%
$35,000
6.00%

$1,594,000

-

$3,314,000

Upgrade

n.a.

$0

n.a.

n.a.

Upgrade

n.a.

n.a.

Upgrade
Upgrade
Upgrade
2020
2
+
n.a.
n.a.
$50,000
6.00%

$155,000

-

$299,000

Upgrade

n.a.

$0

n.a.

n.a.

Upgrade

n.a.

n.a.

Upgrade
Upgrade
Upgrade

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Total investment

?

Revenue (AUV)

?

Revenue growth (last 3 years)

?

Profit margin

?

Franchise Disclosure Documents
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Training

Tiger Sugar provides a structured set of training programs to prepare franchisees and their teams for operating a store. The training includes both mandatory and optional components, each designed to ensure consistency and operational readiness across locations.

  1. Initial Training Program: Franchisees, their Designated Principals, and General Managers must attend a two to three-week initial training program provided by Tiger Sugar at a designated location. This training includes instruction on store operations and the proprietary system, and must be completed at least 30 days prior to the store opening.
  2. Pre-Opening and Opening Assistance: Tiger Sugar offers on-site assistance during the pre-opening and grand opening phase. Representatives are sent to help establish standard operating procedures and assist in staff training, though franchisees must cover any travel-related expenses if additional days are requested.
  3. Refresher Training: Franchisees may be required to attend annual refresher courses, seminars, or conventions. This training is typically limited to four days per person each year, with an additional three days allowed for attending conventions.

Territory Protection

Tiger Sugar provides a form of territory protection to its franchisees, but it comes with significant limitations. Franchisees generally receive a defined Territory as outlined in their Franchise Agreement, within which Tiger Sugar agrees not to establish or license another traditional Tiger Sugar store.

This protection is not contingent on sales performance, and once granted, the territory boundaries cannot be altered before the agreement ends.

However, this protection does not equate to exclusivity. Tiger Sugar retains the right to operate or license stores at Non-Traditional Sites—like airports, hospitals, malls, or stadiums—even if those sites fall within the defined Territory.

Number of units

2024
Franchised units

19

27

47

Company-owned units

14

19

17

Total units

33

46

64

Competitors

Kahala Coffee Traders

Franchisees

?

5
+
67%
67%
Investment

?

$88,000 - $517,000

It's Boba Time

Franchisees

?

76
+
62%
62%
Investment

?

$466,000 - $597,000

7 Leaves

Franchisees

?

14
+
17%
17%
Investment

?

$244,000 - $490,000

Junbi

Franchisees

?

5
+
150%
150%
Investment

?

$269,000 - $576,000

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