Are you looking for a Bubble Tea Franchise? Starting a Kung Fu Tea franchise will be the best option and would certainly conclude your research for same.
In this guide, we’ll dive deep in to Bubble Tea industry growth prospects along with the Kung Fu Tea franchise with capital requirements, fee, profit, and step-by-step guidelines to get this franchise – and answer some common questions about the chain.
- Space required: Min. 500-1500 sq. ft.
- Franchise Fee: $37000
- Initial Supplies & Equipment: $25,000 to $35,000
- Training Fee: $10,000
- Royalty Fee: 3% of Net sales
- Marketing Fee: 2% of Gross sales
- Interior Cost: $30,000 to $40,000
- Total Initial Investment: $140,000 to $422,000(For Traditional)
Understanding the Bubble Tea Industry Growth Prospects
Bubble tea has become quite popular within a short period, thanks to its delectable taste, varieties of flavors, and eye-catching drinks. The rising demand for Tea, Coffee, and Hot Beverages over Carbonated drinks has fueled the growth prospects of Bubble or Boba Tea.
According to the Allied Market Research, the Bubble Tea market was estimated to be worth USD 2.4 Billion in 2019 and is projected to expand to USD 4.3 Billion by 2027, registering a remarkable CAGR growth of 7.8% over the forecast period of 2020–2027.
Kung Fu Tea Snippets
Kung Fu Tea is one of the rapidly growing bubble tea chains popularly known for serving varieties of tasty bubble tea, Milk Tea, Fruit punch, Slush, and much more. They have a wide presence of more than 350 outlets across multiple locations in the US.
Their robust expansion plan of outlets across the domestic and international market will generate numerous benefits to its franchisee unit holder to set up an outlet near their hometown.
Using three critical core principles: Fresh, Innovative, and Fearless, The Kung Fu chain has acquired a significant market share in the Bubble Tea industry that ultimately provides an edge over its competitors.
The Journey from serving delicious bubble tea and other beverages from a single outlet in 2009 to expanding to several cities with over 350 outlets and more upcoming plans for outlet expansion(Domestic and International) is mesmerizing. – Kung Fu Journey
Please continue reading if you are passionate about Bubble Tea franchises & this little snippet about the Kung Fu Tea brand excites you.
We will offer comprehensive and well-researched information regarding the Kung Fu Tea franchise, along with its requirements, fees, profit margin, and—most importantly—the reason “Why” you need it.
Table of Contents
Overview of Kung Fu Tea Franchise
Started in 2009 by Four Friends Michael, Allen, Ray, and Sean(Founder), Kung Fu Tea is one of the fastest-growing bubble tea chains in the US. They are known for serving 100% vegan and caffeine-free – varieties of beverages, specially Bubble tea(will discuss more in details).
They have a wide presence of over 350 outlets across multiple locations in the United states and other four countries.
Below is the range of products that Kung Fu Tea caters,
- Bubble Tea
- Milk Tea/Cap
- Slush
- Punch
- Yogurt
- Milk Strike
- Espresso
- and Other Items
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Why Consider owning a Kung Fu Tea Franchise Opportunities?
Owning a Kung Fu Tea outlet would undoubtedly be advantageous, given its history of outlet success, brand presence, and strong brand recognition. The following are the main benefits of owning this franchise:
- Experience & Expertise
- The franchise founders have vast experience in this industry, enabling them to gather and analyze the customer needs from their outlets which ultimately helps them innovate new ranges.
- Varieties and Freshness
- The chain offers varieties of beverages that are freshly brewed for every orders enabling them deliver fresh, delicious, high-quality beverages. It helps them attract and retain new customers and ultimately generating higher profit margin for them.
- Innovation
- As they say, Continuous Innovation drives overall business growth, and the Kung Fu Tea franchise is no exception. Its helps them to acquire new set of consumers and target audience.
- Reward Programs
- The Chain is constantly keeping up with the latest trends and brainstorming creative and inventive ways to serve beverages while enabling its customers to earn rewards for their purchases.
- Proven business model
- The Kung fu chain follows a proven business strategy that has given repetitive success over the years and ultimately enabled them to expand its outlets to multiple locations.
- End-to-End Support
- The franchise team offers ample support right from location screening, Interior designing, Procurement of equipment, training programs, robust raw material supply chain, inauguration, and other required support.
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How much does a Kung Fu Tea Franchise Cost?
The Kung Fu Tea’s franchise cost breakdown is pretty straightforward. However, one must understand that the there are several other cost involved in setting up an outlet other than the franchise fee.
The franchise caters multiple model to the interested applicants,
- Traditional Outlets
- Non-Traditional Outlets
Below is the cost involved in setting up an franchised outlet:
Traditional Outlets
These outlets are usually located at busy street and highways.
| Essentials | Cost and other descriptions |
|---|---|
| Space required | Min. 500 – 1500 sq. ft. |
| Franchise Fee | $37,000 |
| Initial Supplies & Equipment | $25,000 to $35,000 |
| Training Fee | $10,000 |
| Interior Cost(Includes Furniture, Décor, Light and other necessary ) | $30,000 to $40,000 |
| Billing Software(Includes POS, Computer and systems) | $2500 to $5000 |
| Interior Designing(3D Render of Shop) | $3500 to $5000 |
| Initial Inventory | $15,000 to $25,000 |
| Total Initial Investment | $140,000 to $422,000 |
Non-Traditional Outlets
Non-traditional Store (located in an airport, hotel or resort, military installation, school or university campus, train station, subway station, casino, theme park, sports stadium, enclosed shopping mall or similar location)
| Essentials | Cost and other descriptions |
|---|---|
| Space required | Min. 500 – 1500 sq. ft. |
| Franchise Fee | $25,000 |
| Initial Supplies & Equipment | $25,000 to $35,000 |
| Training Fee | $10,000 |
| Interior Cost(Includes Furniture, Décor, Light and other necessary ) | $30,000 to $40,000 |
| Billing Software(Includes POS, Computer and systems) | $2500 to $5000 |
| Interior Designing(3D Render of Shop) | $3500 to $5000 |
| Initial Inventory | $15,000 to $25,000 |
| Total Initial Investment | $123,000 to $275,000 |
To Summarize further, the Kung Fu tea franchise fee will cost around $37,000.
Please look at other major details about this franchise listed below,
| Royalty Fee | 3% on Net sales for Traditional Unit 4% on Net sales for Non-Traditional Unit |
| Technology Fee | $100 to $200 per month |
| Inventory Cost | $2,500 to $35,000 per month (Depending on sales volume) |
| Marketing Fee | 2% of Gross sales |
| Initial Marketing Program | $5000 |
*Please note the the Initial franchise fee is non-refundable.
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Kung Fu Tea Franchise Profit Margin
The profitability of any franchise depends on several factors such as Outlet location, customer footfall, product & service offering, and much more. However, one can anticipate a net profit margin of 15-20%(depending on mentioned parameters).
Kung Fu Tea Franchise ROI
With an Investment of over $140k for traditional unit and $120k for Non-traditional unit, franchisee owner can expect a payback period or ROI of 5-7 years. As far as, the Kung fu tea Franchise income is concerned, one can expect an overall income of approx. $40000 per annum.
Kung Fu Tea Franchise Requirements
- Interested applicants should at least have some years of experience in the food and beverages industry.
- The Applicants must meet the financial and site requirements suggested by the franchise i.e. $140,000 to $422,000 for Traditional unit and $123,000 to $275,000 for Non-traditional Unit.
- The franchisee must possess a record of good financial management and be financially ready to take up the risk of starting a business.
- One must follow the guidelines and adhere to the instructions set by the Beverages chain.
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How to open a Kung Fu Tea franchise?
To get a Kung Fu Tea franchise is quite simple; one has to visit their official website and fill up the required form for same. However, The highlighted link would take you to the franchise page. Scroll a bit and fill in the necessary details.
You are request to fill in the details like Name, phone number, email address, Preferred Location, Available capital, Investment timeframe.
Your franchising journey begins after you submit the form and a franchise team member contacts you by phone or email.
Official Details of Kung Fu Tea franchise
| Contact number | 1-855-KFT-9888 |
| Email Address | info@kfteausa.com |
Good Luck!! Happy Franchising!!
Conclusion
Started in 2009 by Four Friends Michael, Allen, Ray, and Sean(Founder), Kung Fu Tea is one of the rapidly growing bubble tea franchises. They are known for offering varieties of 100% vegan Bubble tea, Milk Tea, Slush, Punch, Yogurt and much more.
They have more than 350 locations spread throughout numerous cities in the US and other countries.
It also offers a franchise program for interested prospects with an initial investment of $140,000 to $422,000 for Traditional unit and $123,000 to $275,000 for Non-traditional Unit, provides an impressive profit margin of 18-22%.
That’s it from my side. Friends, I sincerely believe that my guide on “Start a Kung Fu Tea Franchise – Cost, Fee, & Profit” was quite extensive, helpful, and educational, but if you’d need more details, you can check out the franchise’s official website. If you like this piece, kindly let me know by leaving a comment and spreading the word to as many of your friends as you can; Your comments offer us more inspiration to keep producing high-quality material for you. Many thanks.
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FAQ
How much is Kung Fu Tea Franchise cost?
Ans: To set up a Kung Fu Tea outlet will cost you approx. $140,000 to $422,000 for Traditional unit and $123,000 to $275,000 for Non-traditional Unit. Below is the cost break up for traditional unit;
Space required: Min. 500-1500 sq. ft.
Franchise Fee: $37000
Initial Supplies & Equipment: $25,000 to $35,000
Training Fee: $10,000
Royalty Fee: 3% of Net sales
Marketing Fee: 2% of Gross sales
Interior Cost: $30,000 to $40,000
Total Initial Investment: $140,000 to $422,000Is Kung Fu Tea Franchise Profitable?
Ans: Any franchise’s profitability depends on several factors, including market conditions, site location, and consumer footfall. However, with an investment of $140,000 to $422,000, one can anticipate a net profit margin of 18-22%.
How much does a Kung Fu Tea franchise owners make?
Ans: The franchise’s core principles has enabled them to acquire an impressive market share which allows its franchisee unit holders to operate them seamlessly for long. However, after all cost cut and expenses, the franchisee owner can make a profit margin of 18-22%.
How long does it take to complete the Kung Fu Tea franchise process?
Ans: The complete application process involves steps from filling up the application form, Signing franchise agreement, Store renovation, Training Program to Store opening and further ongoing support. This entire application procedure will last for at least 45-75 days.
