8/10

Franchimp Summary Rating

8 /10
Lower than 22% of peers

Franchise Summary

Description
The franchises offered in this Franchise Disclosure Document is for the operation of Tastea tea bars serving handcrafted fresh smoothies, teas, and other specialty beverages and fried food items in a quick-service restaurant environment under the “Tastea” trade name and trademarks.
Company Background
Tastea Franchising is a tea bar franchise that offers freshly brewed flavored ice teas, smoothies, slushies, shaved ice and other specialty beverages. Tastea has over 30 different flavors of tea to choose from as well as other food items like popcorn chicken, french fries or fish balls.
Franchise Opportunity
It's no secret that Americans love their tea. However, most people don't have the time or inclination to brew a pot at home. Tea is a great drink for any occasion, but it's not always convenient to make it yourself. You might be busy at work, out running errands, or just too tired to bother. Tastea solves this problem by offering fresh brewed ice tea and other specialty drinks in a quick and convenient setting. Our tea bars are perfect for on-the-go adults and kids alike.
Corporate Structure
Tastea Franchising, LLC is a California limited liability company formed on September 9, 2013. Their principal business address is 11612 Knott Street #G5, Garden Grove, California 92841. They began offering Tastea franchises in 2014.
Investment and Franchisee Fees
Under the Single Tastea Tea Bar Program, you will sign a Franchise Agreement to operate a single Tastea Tea Bar. The franchisor estimates your total initial investment to begin operations of a single Tastea Tea Bar will range from approximately $368,300 to $654,500. Included in the estimate is $74,500 to $80,500 that must be paid to the franchisor or their affiliate which is comprised of the Initial Franchise Fee of $40,000 and $34,500 to $40,500 in fees and expenditures. Under the Area Development Program, the franchisor assigns a defined area within which you must develop and operate a minimum of three Tastea Tea Bars within a specified period of time. If you sign an Area Development Agreement, the franchisor estimates your total initial investment will range from $428,300 to $804,500. Included in the estimate is $134,500 to $230,500 that you must pay to the franchisor or their affiliate which is comprised of the Development Fee of $100,000 (for 3 units) to $190,000 (for 6 units) and $34,500 to $40,500 in fees and expenditures for your first Tastea Tea Bar unit.

Tastea Franchise System Development in 2017

FAQ

How much investment do I need to start my own Tastea business?
Franchisees typically require at least $368 to $804 investment to get their Tastea business started
What are the initial franchise fees for Tastea?
Franchisees typically need to pay at least $134 in fees directly to Tastea in order to earn the right to launch their business
How much money can I make with a Tastea franchise? What are the average revenues for a typical Tastea business?
We haven’t done the math on how much revenue a typical Tastea brings in each year. We estimate that other franchisees in the Food & Beverage industry generate $1,201,697 revenue, so we would expect Tastea to generate a similar amount
How long do I need to commit to running a Tastea unit? What is my contractual commitment?
Tastea franchisees are typically required to sign up to a 10 year contract initially. The renewal length is 5 years. You can of course exit early but don’t expect to get any refund!

Accessibility

8 /10
The Franchisor's investment costs ranges from $213,540 to $475,750 which is Much Lower than the $0 to $0 average in the QSR industry
What determines the investment cost?
Item 7 of the Franchise Disclosure Document lays out the full list of initial investment costs, including the fee payable to the franchisor, security deposits, equipment, professional fees etc

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