FranchiseVerdict
Boba Cucue logo
FV-00345·MODERATEExcellent86

Boba Cucue

Formerly known as Boba Pub

Food & Beverage - Coffee & TeaFranchising since 2023Website
Investment
$200K – $383K
22nd pct Coffee & Tea
Avg revenue
$390K
3rd pct Coffee & Tea
Royalty
5.5%
45th pct Coffee & Tea
Units
14
57th pct Coffee & Tea
SBA default
0.0%
vs <3% typical

Bottom line

  • Total investment $200K – $383K including a $40K franchise fee, 5.5% ongoing royalty.
  • Average unit revenue of $390K/year.
  • Rated MODERATE with a risk score of 62/100. SBA loan default rate of 0.0% across 2 loans (below the industry average).
  • Emerging franchise — only 3 years of franchising with 14 units. Early-stage systems carry higher risk but may offer better territory availability.

Item 1 · who you're contracting with

The Franchisor

Legal entity
Boba Cutea US Group, LLC
Incorporated in
Arizona
HQ
694 S. Cooper Road, A1, Gilbert, AZ 85233
Auditor
Naper CPA Group
Audited financials
Franchisor revenue
$258K
vs $412K prior year

Yale framework · single-unit ROIC

Returns Analysis

Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.

The model · Yale framework

What would one Boba Cucue unit return on the cash you put in?

Revenue · per unit, per year
$
FDD Item 19 reports $390,306
Franchisor take · royalty + ad fund
Royaltytyp 68%
%
Ad fundtyp 35%
%
Operating costs · category default: restaurant
COGS
%
Labor
%
Rent / occupancy
%
Other operating
%
Total invested capital · what you actually put in
Initial investment
$
FDD Item 7: $200K–$383K
Working capital
$
FDD reports $25K–$50K

Unlevered ROIC · per unit

14%

Below typical band (30–60%)

0%30–60% Yale band80%

Store EBITDA · annual
$45K
EBITDA margin
11.5%
Total invested
$329K
Payback
88 mo
Unit-level only. A multi-unit portfolio gives up roughly 5–15% of this to shared services (corporate G&A) before reaching the ~10-unit break-even Yale describes.

Levered LBO scenario · Yale Crease Capital framing

What would 25 Boba Cucue units return on equity?

Edit assumptions

Equity IRR · 5-yr

49.9%

7.57× MOIC

Year-1 DSCR

1.88×

EBITDA ÷ debt service

Equity required

$351K

on $1.8M purchase

Total debt

$1.4M

SBA $0.9M + senior + seller note

Overview

About

Franchisees operate bubble tea retail locations serving specialty beverage drinks (boba tea, flavored teas, etc.). Day-to-day operations include inventory management, customer service, point-of-sale transactions, beverage preparation, and local marketing. Most locations appear to be small footprint retail shops or kiosks in high-traffic areas.

CEO
Chung Kit (Gary Lo)
Founded
2023
FDD year
2026
States available
5

Item 7 · what it costs

The Vitals

Total investment
$200K – $383K
All-in to open one unit
Liquid capital
$25K – $50K
Cash you must have on hand
Franchise fee
$40K
Royalty
5.5%
Gross Sales · typical 6–8%
Ad fund
1.0%
typical 3–5%
Total fee load
6.5%
vs 9–13% typical

Item 19

Financial Performance

Avg gross sales
$390K
Per unit, per year
Median gross sales
Item 19 type
Affiliate-owned outlet performance
Sample size
7 units
vs category median 13
Range (low → high)
$164K$412K
Cohort dispersion
Transparency
3 / 5
vs category median 2 / 5 · above
Revenue rank3th
vs Food & Beverage - Coffee & Tea peers
Investment cost rank22th
Lower investment ranks lower (better)
Royalty rate rank45th
Lower royalty = lower percentile (better)
Unit count rank57th
vs Food & Beverage - Coffee & Tea peers
Risk score rank37th
Lower risk = lower percentile (better)

Item 20 · unit dynamics

The Growth Chart

Total units
14
Opened
5
Last reporting year
Closed
0
Turnover rate
0.0%
Company-owned
4
Corporate units in the system
% franchised
71%
vs corporate-owned
Net growth (yr3)
+100.0%
Net unit change last year
2024
10+5
Franchised units
2025
5
Franchised units
2026
0
Franchised units

Year-over-year franchised unit counts and net change. Source: FDD Item 20.

Item 20 · 3 states with active franchisees

The Territory Map

Derived from franchisee contact records. Shows states with at least one current operator — not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).

AK
ME
VT
NH
MA
RI
CT
NY
NJ
PA
DE
MD
DC
WA
OR
CA
NV
ID
MT
WY
UT
CO
AZ
NM
ND
SD
NE
KS
OK
TX
MN
IA
MO
AR
LA
WI
IL
MS
TN
MI
IN
KY
AL
OH
WV
GA
VA
NC
SC
FL
HI
Registered · 3 states
Not registered

States derived from franchisee phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.

Government records

SBA Loan Data

Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.

Total loans
2
Loan volume
Avg loan
Default rate
0.0%
vs <3% typical · system-wide
5-yr default

FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17

Risk & Legal

62
Risk · 0-100
MODERATE62 / 100

Early-stage, undisclosed-profitability franchise with going concern warnings and minimal operational track record presents significant validation and financial transparency risks.

Score breakdown · what drove the 62 / 100 rating

  1. 01MINORNo net income disclosure (Item 19) prevents ROI validation despite $390K average revenue claims
  2. 02HIGHGoing Concern status is FALSE — suggests franchisor may have disclosed material uncertainties about viability
  3. 03MINORExtremely small system (14 units) with 100% YoY growth is mathematically suspect and indicates very recent or unstable expansion
  4. 04MEDHigh initial investment range ($199K-$383K) relative to disclosed revenue creates unclear payback period
  5. 05MINOR5.5% royalty on gross sales compounds profitability risk when net margins are unknown

Severity inferred from the FDD text · not a regulatory classification

FDD Items 5, 6, 12, 17 · continued from Risk & Legal

Contract & Territory Detail

Territory
Radius or other boundaries
Protected territory
Yes
Initial term
10 years
Renewal term
5 years
Online sales rights
Restricted
Franchisor can compete
Yes
Hire a manager?
Allowed
Litigation count
0
Right of first refusal
Yes
Franchisor can buy back on resale
Mandatory arbitration
Yes
Jury trial waiver
Yes
Non-compete
2 yrs
Post-termination restriction
Owner-operator
Optional
Governing law
Arizona

Item 11

Training & Operations

Classroom training
81 hrs
On-the-job training
48 hrs
POS system
POS/CRM system
Operating tech stack

Item 20

Franchisee Contacts

Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.

Franchisee contacts

14 numbers

Locked
(212) 416-••••
CA
(410) 576-••••
CA
(608) 266-••••
RI

One-time purchase · CSV download · Validation questions included

FDD download

Boba Cucue · FDD (2026) PDF

Single-page checkout · instant download · CSV export of contacts available separately above