How to Start Kung Fu Tea Franchise In USA ?

Overview

Kung Fu Tea is the biggest bubble beverage brand in the United States. Kung Fu Tea is a flourishing brand and is always ahead of its competitors because of its unique innovations. Its fresh products are giving the pure essence to its menu. Its new 3D techniques are unique and its hand-picked fresh ingredients are the real thrive. In 2013 Kung Fu Tea USA Inc started offering franchises in the USA under the company name Kung Fu Tea. 

This growing brand, established in 2010 has more than 300 sites and is headquartered in New York. With a variety of hot and cold beverages, they are leading and are becoming a perfect tea point in the country.

Benefits

Are you eager to know about the Kung Fu tea franchise Benefits, this brand is unique and is providing unique benefits to its franchisees. They are innovative, thus their benefits are unique and the reason behind their success.

Fresh: they are known for their fresh beverages and their deduction process results in outstanding fresh, original, and high-quality beverages. Its juicy flavored beverages are made with freshly squeezed fruits. They use freshly handpicked leaves and fresh ingredients while preparing their beverages. Its unique fresh recipes are the reason behind its success.

Reward Program: They are active and always follow the latest trends and find innovative ways to serve their beverages. The Kung Fu Tea app rewards program helps in earning rewards on your purchase while having its beverages. You can earn bubbles with this app and can redeem them to get free drinks. To skip long queues you can use its Order Ahead feature and pick up your favorite beverage without wasting time. 

Fearless: they are fearless and are challenging their competitors because they strive to remain fresh and innovative. Their focus is to make bubble tea accessible to every beverage lover. Its fresh and innovative efforts are helping it grow rapidly and its target is to spread its footprints all over the world.

Innovative: this brand is innovative and with its creativity, they are ahead of everyone in this industry. They are using 3D energy to create low-calorie and sugar-free beverages. They have collaborated with the game community to take its brand ahead of every other competitor. 

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Requirements

If you are eager to know what to spend at the start of the Kung fu tea franchise business, then the below-mentioned details will help you in understanding its requirements.

  • Initial Franchise Fee $25,000 – $37,000
  • Net Worth Requirement $500,000 – $700,000
  • Cash Requirement $250,000 – $350,000
  • 4% of the Royalty Fee 
  • 2% of Ad Royalty Fee 
  • 10 years of Term Agreement 

Cost

Kung fu tea franchise Cost ranges from $166,500 and $375,500, this is its estimated total investment. 

  • Initial franchise fee of $25,000 to $37,000 
  • Training fee of $10,000 to $10,000
  • Equipment from our affiliate $6,500 to $7,500
  • Other equipment, furniture, fixtures, and signage $30,000 to $40,000
  • Computers, printer, fax, and other hardware and business software $2,500 to $5,000
  • Prepaid rent and security deposit of $5,000 to $40,000
  • Leasehold improvements and architectural costs of $40,000 to $150,000
  • Interior design (3D rendering of the shop) $3,500 to $5,000
  • Initial inventory of tea, coffee, cups, menu boards, and packaging materials $15,000 to $25,000
  • Initial marketing program $5,000 to $5,000
  • Insurance – liability and workers’ compensation – initial deposit of $5,000 to $20,000
  • Travel, living expenses, and salaries during initial training $4,000 to $5,000
  • Legal and accounting fees of $5,000 to $6,000
  • Additional funds for the first month $10,000 to $20,000.
  • Total $166,500 to $375,500

Profit

Its franchise is worth investing in, on average its franchisees earn profits of $113,036 per year. You can start to see the difference after the completion of one year when its gross profit margin will steadily climb to 15%. You can see an average gross margin of 56% after two years in this business.

  • As per its latest FDD, Kung Fu Tea made $2,467,310
  • Its estimated average franchise revenue was $335,688

Based on a midpoint investment of $271,000 they can make the following profit margin and annual profits.

  • At an average of 10% profit margin it will take 10 years for franchise owners to recoup their investment.
  • At an average of 15% profit margin it will take 7 years for franchise owners to recoup their investment. 
  • At a 10% to 15% profile margin it yields $33,568 to $50,353 estimated annual profits.
  • At an average of 20% profit margin it will take 6 years for franchise owners to recoup their investment.
  • At a 20% profile margin it yields $67,137 estimated annual profits.

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Menu

The menu of this biggest bubble or boba tea brand has been categorized into Classic Tea, Classical Hot Tea, Yogurt, Seasonal Special, Milk Tea, Punch, Espresso, and many more.

Classic Tea: Black Tea, Green Tea, Oolong Tea, Honey Tea, Melon Tea, Melon Green Tea, Honey Black Tea, Honey Green Tea, Honey Oolong Tea, Honey Longan Jujube Tea. 

Classical Hot Tea: Black Tea, Green Tea, Oolong Tea, Honey Tea, Winter Melon Tea, Winter Melon Green Tea, Honey Black Tea, Hot Green Tea, Hot Oolong Tea, Hot Longan Jujube Tea.

Yogurt: Green Tea, Grapefruit, Orange.

Seasonal Special: Pumpkin Oolong Milk Tea, Pumpkin Hot Oolong Milk Tea, Hot Brown Sugar Ginger.

Milk Tea: Kung fu, Kung fu Green, Oolong, Thai, Almond, Coconut, Honey, Honey Green, Honey Oolong, Winter Melon, Rosehip, Taro Milk Green Tea, Taro, Coffee.

Hot Milk Tea: Hot Kung fu, Hot Kung fu Green, Hot Oolong, Thai, Almond, Coconut, Honey, Honey Green, Honey Oolong, Winter Melon Green. 

Punch Honey Lemonade, Grapefruit Green, Lychee Black, Lychee, Mango Green, Orange Green, Passion Fruit Green, Peach Oolong, Rosehip Lemonade, Strawberry Lemon Green, Strawberry Lemonade, Sunshine Pineapple.

Milk Strike: Chai, Ginger, Original, Oreo, Matcha, Red Bean, Herbal Jelly.

Hot Milk Strike Chai, Ginger, Wow, Original, Oreo, Matcha, Red Bean, Herbal Jelly.

Espresso: Signature Coffee, Latte, Mocha, Cappuccino, Caramel Macchiato, Pumpkin Coffee.

Locations

The network of Kung fu tea Locations is increasing rapidly, at present they are operating with more than 300 locations. The Kung fu tea brand has been growing constantly in America since its launch in New York. In America, its network has spread to Texas, New York, Virginia, California, Maryland, Pennsylvania, Massachusetts, New Jersey, Georgia, Florida, and much more. Here is the list of top USA states with the most Kung fu tea Locations.

Texas has 36 locations for every 805441 people, which is about 14% of its total locations.

New York has 35 locations for every 555816 people, which is about 14% of its total locations.

Virginia has 19 locations for every 449237 people, which is about 7% of its total locations.

Application

If you are interested and want to apply for Kung fu, here is the road map for its application process.

  • Fill out its online inquiry form and get started.
  • Once they receive your inquiry form they will come in contact with you via email or phone. 
  • To go into detail about Kung fu, schedule an interview to know more about its franchising. 
  • Once you dig deep, you will receive its FDD, review it. 
  • They will help you in the site selection process and will provide you with the best location.
  • Sign its franchise agreement, now you are the owner of its franchise. Congratulations, get started. 

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Conclusion

This unique brand of bubble tea is famous for its natural ingredients and this uniqueness is attracting beverage lovers to this brand. Their drinks are different from other beverage industries helping franchisees to gain upper hand in the competitive market. They are growing because of their freshly natural ingredients and are providing opportunities for investors. If you want to grow with this profitable franchise then apply for its franchise and grow successfully.

FAQ’s

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