Bottom line
- Total investment $220K – $495K including a $30K franchise fee, 5.0% ongoing royalty.
- Average unit revenue of $547K/year. Estimated payback in 2.9 years.
- Rated MODERATE with a risk score of 63/100.
Item 1 · who you're contracting with
The Franchisor
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 Nation unit return on the cash you put in?
Unlevered ROIC · per unit
18%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Boba Nation units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$547K
on $2.7M purchase
Total debt
$2.2M
SBA $1.4M + senior + seller note
Overview
About
Franchisees operate quick-service boba tea cafes, preparing and selling bubble tea drinks, smoothies, and related beverages. Daily operations include inventory management, staff scheduling, point-of-sale management, and customer service in leased retail locations. The business model relies on high-volume, low-margin drink sales with significant labor and supply chain dependencies.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 16 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).
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.
No SBA loan data available for this brand.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Boba Nation presents CAUTION-level risk due to underdeveloped franchise system (3 units), missing financial disclosures, franchisor going concern issues, and unverified unit economics in a highly saturated bubble tea market.
Score breakdown · what drove the 63 / 100 rating
- 01MINOROnly 3 existing units with unknown growth trajectory suggests extremely early-stage or stagnant system
- 02HIGHGoing Concern flag is FALSE, indicating potential financial instability at franchisor level
- 03MEDNo Item 19 (financial performance representations) disclosed — cannot validate claimed $546K average revenue
- 04MINORHigh investment range ($219K-$495K) relative to only 3-unit sample raises sustainability questions
- 05MINORNet income of $122K on $546K revenue (22.5% margin) seems optimistic without verified data
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
Item 11
Training & Operations
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
20 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Boba Nation · FDD (2025) PDF