Do you want to open a bubble tea shop business by buying Share Tea franchise? If YES, here is how much it cost to open Share Tea franchise successfully. If you are looking towards opening a Share Tea Franchise, it will be nice for you to have a preview of what the company represents before going ahead to make enquiries about the total cost of opening the franchise in your location.
Share Tea was founded in 1992 and they began franchising in 1992, about 28 years ago. The company has her corporate head office in Taiwan. Share Tea also provides franchising opportunities and currently they have 500 franchise units in the United States of America.
Share Tea’s mission is to introduce the most authentic Taiwanese tea-drinking culture to the world! So far, Share Tea has become a well-known and popular Bobatea brand in the Bay Area, and also has the No.1 market share with total 15 licensed stores in California.
By the end of 2015, Share Tea had officially opened 18 licensed stores in the U.S.A. You can find them in China, HK, Macao, Canada, UK, Dubai, Singapore, Malaysia, Philippine, Brunei, Indonesia, Korea, Cambodia, Sarawak and Australia with over 500 chain stores and franchises.
While Sharetea has its roots in Taiwan, its brand is growing on a global footprint. This means that customers from their other stores around the world will become your customers when they are traveling near your location. Here are areas where you are expected to spend money and the cost associated with it;
Financial Investment Required to Open Share Tea Franchise
1. Initial Investment Range: $260,000
2. Franchise Fee: $22,500
3. Royalty Fee: 5 percent of Gross Sales
And the Due Date for this fee is Paid by electronic funds transfer every Friday for the preceding Reporting Period. The amount of the Royalty Fee for any renewal term will be that provided in the Franchise Agreement executed for such renewal term.
Please note that “Gross Revenues” include all revenues generated from the provision of any and all services and/or the sale of any and all products and, whether by the franchisee or a third-party provider, that relate to or arise from the Franchised Business. It does not include taxes collected from customers.
- Local Advertising Spend, Local Marketing Fund, or Cooperative Advertising Contribution: At least 1 percent per calendar year and the Due Date: for this is Monthly.
Please note that each local advertising Cooperative may elect to increase the monthly contribution if approved by a two-thirds majority of the members, and the minimum contribution is subject to adjustment by an amount not to exceed the increase in the CPI.
Centers owned by Share Tea and its affiliates are also members of their respective local Cooperative and each company-owned Center has the same voting rights as the franchised locations within the Cooperative. If the company-owned Centers comprise the majority of a given Cooperative, the maximum and minimum fees for that Cooperative will be consistent with the range stated in this Item 6.
- Liquidated Damages Under Area Development Agreement: This fee varies but the Due Date is Payable within 30 days of the termination of the Development Agreement.
- Audit Costs: All costs and expenses associated with the audit, reasonable accounting and legal costs.
- Indemnity: This fee will vary under the circumstances and the Due Date is As incurred.
Please note that you must reimburse Share Tea if it is held liable for claims arising out of your franchise operations.
- Insurance: Reimbursement of costs the franchisor’s out-of-pocket costs.
- Equipment, Supply, or Supplier Testing or Inspecting: Fee not to exceed the actual costs of inspecting and testing. (Due Date: Due on receipt of invoice.)
Please note that This fee covers the cost of testing or inspecting equipment, supplies, or suppliers you propose.
- POS Hardware and Software: Depends upon vendor and products purchased. (Due Date: Depends upon vendor and products purchased.)
- Attorneys’ Fees and Costs: Will vary under circumstances. (Due Date: As incurred.)
Payable to Share Tea if it is forced to retain independent counsel and seek damages or injunctive relief to enforce the Franchise Agreement (whether or not suit is filed) or if Share Tea is required to defend your unsuccessful claim against it.
- Veteran Incentives: This is open for negotiation with the company.
- Term of Agreement and Renewal: The length of the initial franchise term is 5 years. If requirements are met, franchisees can renew for one additional term of 5 years.
- Financial Assistance: Share Tea has relationships with third-party sources which offer financing to cover the following: franchise fee, startup costs, equipment, inventory, accounts receivable, and payroll et al. Please note that they also provide assistance in terms of purchasing, and vendor qualification. You’ll be able to take advantage of our purchasing contracts, giving you access to our national buying power, via our long-term relationships with well-respected purveyors
- Initial Investment: $260,000
- Net-worth Requirement: $25,000
- Liquid Cash Requirement: $100,000
- Ongoing Initial Franchise Fee: $22,500
- Ongoing Royalty Fee: 5%
- Fill out the Application Form
- Qualification process will be handled by Sharetea HQ in Taiwan.
- Sharetea HQ will contact you via phone or email.
- Communicate with Sharetea representatives to go over all the details.
- Sign the Franchise Pre-Contract to protect the exclusive right to franchise in the area. The purpose of signing the pre-contract is to protect your exclusive right to franchise in the city. Once a pre-contract is secured, you can start the site search without any concern.
- Look for the best possible store location in the area if you haven’t found one already. You can do Sharetea business from 1,000 to 1,200 square feet.
- Get lease of approved store location from the landlord.
- Sign the Final Contract with Sharetea and prepare to run your own business!