Kung Fu Tea Franchise Startup Cost, Revenue and Profit Margin

Owning a franchise can be a huge stepping stone for entrepreneurs interested in becoming part of a successful brand.

By owning part of this business, you become a partner in its success story and get to operate under its banner. Kung Fu Tea franchise gives you such an opportunity.

Read on to find the most relevant information about this franchise opportunity. The information here should enable you to decide if Kung Fu Tea franchise is the right choice for you or not.

Kung Fu Tea franchise offers prospective franchisees an opportunity to become part of its success story. Its products include several varieties of tea such as milk tea, bubble tea, and matcha among several others.

Whether you are interested in its traditional or non-traditional locations, Kung Fu Tea franchise has something for everyone.

How Much Profit Can You Make As A Kung Fu Tea Franchisee?

The profit potential of a franchise is one of the first things entrepreneurs or investors want to know. Kung Fu Tea franchise gives you earning opportunities. However, profitability isn’t attached to a definite number. This depends on multiple variables such as commercial lease rates, labor costs and local demand for tea products.

The location of your Kung Fu Tea franchise will influence profitability. The volume of investments is another factor to consider.

To get a better picture of what it takes to be profitable, you’ll need to contact the franchisor for further details.

Financial Obligations

As a prospective franchisee, owning a part of the Kung Fu Tea franchise comes with certain obligations. Only when these financial requirements are met do you become its franchisee. So, how much would it cost to own a Kung Fu Tea franchise?

Well, it depends on what is available and what you want. For more clarity, cost varies with franchise size or the number of units.

A 500 to 1,500 square feet traditional Kung Fu Tea franchise stores, for example, will cost between $140,000 to $422,000. Non-traditional stores, on the other hand, cost anywhere from $123,000 to $275,000. The latter are mostly located within resorts, airports, hotels, schools, campuses, subway stations, etc.

  • Franchise Fee

To become a Kung Fu Tea franchisee, you are required to pay a franchise fee. This will cost you around $37,000.

However, that’s not all as there are other fees such as the working capital ranging between $5,000 to $25,000. This includes a royalty fee of 4%. This is a percentage of gross sales. The royalty fee is on a monthly or quarterly basis to the franchisor.

It is important to note that the $37,000 franchise fee requirement only applies to traditional stores. Those for non-traditional stores are only available upon request.

  • Equipment Costs

Certain pieces of equipment are required for the smooth operation of a Kung Fu Tea franchise outlet. Getting this equipment will cost you between $25,000 to $35,000. This variation in the cost of equipment depends on the size of your franchise.

  • Renovation Costs

There’s no fixed cost attached to renovation. This largely depends on the size of your outlet. More detailed information about this is covered in the Franchise Disclosure Document (FDD).

  • Training Fee

All Kung Fu Tea franchisees undergo a compulsory training program. This seeks to provide them with all the basic skill requirements to help them succeed. Kung Fu Tea franchisees will have to pay a training fee of $10,000.

Number of Franchise Locations

The size and spread of a franchise are crucial to its perception by franchisees. Kung Fu Tea franchise has quite an impressive spread of outlets.

Currently, it has about 165 franchised locations spread across 29 states across the USA apart from its DC location. If this franchise isn’t yet in your location, you only need to wait some more.

You may want to find answers to when the franchise will be available. This can be done by contacting the franchise ore reaching it via email for further details.

Support

Kung Fu Tea franchise provides support to all its franchisees. You get guided through the whole process to help with the smooth running of your franchise. This greatly reduces the chances of making costly mistakes as you only need to stick to its operational templates.

Circulation of updates is also done to keep all franchisees abreast of happenings and changes to certain aspects of operations.

The Process

If you’ve found the information provided above to be interesting, you can go a step further by starting your application process. There are multiple steps involved. First, you’ll need to fill out its online form. This is found at the bottom of the page. All of the spaces or boxes will need to be carefully filled and sent.

Next, a Kung Fu Tea franchise sales representative contacts you. This doesn’t take long. Contact is established either through phone or email address. The representative schedules a physical interview. During the interview, questions are asked to know exactly what your needs are and to find out if you qualify.

You are also expected to ask questions to fully understand what it takes to be a Kung Fu Tea franchisee. You also get clarifications regarding all areas of operations especially the financial aspects of the contract.

  • Next Step

Having fully understood what is required of you and want to proceed, you receive the Franchise Disclosure Document. This contains the entire terms of the agreement. This will have to be fully digested and understood before signing. We recommend you seek the services of a legal expert to fully understand the legal terms first.

What follows is the process of finding a suitable storage location. However, Kung Fu Tea reserves the right to screening and final approval. You are expected to proceed to the signing of the franchise agreement as well as the lease for the approved store location. You don’t need to worry about how your store design or interior will look like.

That is because the franchisor has its design model all franchisees must stick to.

  • Training And Grand Opening

The training follows immediately and lasts 2 weeks. As its franchisee, you must be present and attend all training.

There’s also a slot for one other person (probably a manager). The grand opening follows immediately after. This event has the presence of a senior member of staff who stays and supervises for 2 weeks to help with the process from start.

The Kung Fu Tea franchise is a viable opportunity to consider. However, you must meet all the requirements given above to qualify. Further details are furnished during the application process.