Boba NationFranchise Cost, Revenue & Review 2026
Data from FDD filing
FranchiseVerdict summary · 2026
A Boba Nation franchise requires a total initial investment of $220K – $495K, including a $30K franchise fee and an ongoing 5.0% royalty[2]. Per the 2025 FDD, average unit revenue was $547K[2]. Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $220K – $495K
- 38th pct Service Resta…
- Avg gross sales
- $547K
- 12th pct Service Resta…
- Royalty
- 5.0%
- 13th pct Service Resta…
- Units
- 3
- 14th pct Service Resta…
- SBA default
- N/A
Quick verdict · Quick-Service Restaurants · color = vs category peers
Green = >15% above Quick-Service Restaurants avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Franchised units fell from 1 to 0 over 3 years. Investigate why operators are leaving.
34% cash-on-cash return (based on P&L Bottom Line). Above the 20% threshold most investors target.
Bottom line
- Total investment $220K – $495K including a $30K franchise fee, 5.0% ongoing royalty.
- Average unit revenue of $547K/year, with an estimated 34% cash-on-cash return (based on P&L Bottom Line).
- Verdict A (Top Quintile) with a risk score of 41/100.
- Revenue data based on only 2 reporting units. Treat as directional, not definitive. Ask franchisees directly for current unit economics.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Boba Nation Franchise LLC
- Incorporated in
- CA
- HQ
- 2200 Eastridge Loop #1105, San Jose CA 95122
- Auditor
- Perviz M Guard, CPA
- Audited financials
- Franchisor revenue
- $514K
- vs $30K prior year
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.
- CEO
- Baltej Singh Sra
- Founded
- 2021
- FDD year
- 2025
- States available
- 1
FDD Item 7 · 2025 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $30K | $30K |
| Working capital (3–6 mo) | $7K | $15K |
| Equipment, build-out, other | $183K | $450K |
| Total initial investment | $220K | $495K |
Source: Boba Nation 2025 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$87K
16.0% margin
Unlevered ROIC
24%
EBITDA / total invested capital
Payback
4.2 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $220K – $495K
- Better than avg vs category
- Liquid capital req'd
- $7K – $15K
- Better than avg vs category
- Franchise fee
- $25K – $30K
- Better than avg vs category
- Royalty
- 5.0%
- Gross Revenues · typical 6–8%
- Ad fund
- 1.0%
- typical 3–5%
- Total fee load
- 6.0%
- vs 9–13% typical
- Payback period
- 2.9 yrs
- From FDD / Item 19
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 5.0% of gross sales |
| Marketing / ad fund | 1.0% of gross sales |
| Technology fee | $0 |
| Transfer fee | $23K |
| Renewal fee | $10K |
| Total fee load | 6.0% of rev |
A 6.0% total fee load is unusually lean. More of each revenue dollar stays with the franchisee.
Financial Performance
- Avg gross sales
- $547K
- Per unit, per year
- Median gross sales
- N/A
- Avg p&l bottom line
- $123K
- Reported as P&L Bottom Line in FDD Item 19
- Cash-on-cash
- 34.4%
- Based on P&L Bottom Line / investment midpoint
- Item 19 type
- Actual results of affiliate-owned outlets
- Sample size
- 2 units
- vs category median 28 · small
- Range (low → high)
- $407K→$687K
- Cohort dispersion (min → max)
- Transparency
- 9 / 5
- vs category median 4 / 5 · above
Compared against 453 Quick-Service Restaurants brands
vs Quick-Service Restaurants averages
How Boba Nation Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 3
- Opened
- 0
- Last reporting year
- Closed
- 0
- Turnover rate
- 0.0%
- Company-owned
- 2
- Corporate units in the system
- % franchised
- 33%
- vs corporate-owned
- Net growth (yr3)
- +0.0%
- Net unit change last year
3-year detail · Item 20
- Transfers (3yr)
- 0
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 contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
No SBA loan data available for this brand.
Risk analysis
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.
Audited financials (Item 21)
Yes · Perviz M Guard, CPA
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Score breakdown · what drove the 41 / 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
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | Radius or population |
| Protected territory | Yes |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| Termination notice | 5 days |
| Mandatory arbitration | No |
| Jury trial waiver | Yes |
| Governing law | California |
| Litigation count | 0 |
Items 10, 11
Training & Operations
- Classroom training
- 22 hrs
- On-the-job training
- 58 hrs
- POS system
- Square POS
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Square POS
Item 20 · call current owners
Franchisee Contacts
20 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Boba Nation · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Boba Nation franchise?
The total investment to open a Boba Nation franchise ranges from $220K – $495K, with an initial franchise fee of $30K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Boba Nation franchise owners earn?
According to Item 19 of the Boba Nation FDD, the average gross sales per unit is $547K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Boba Nation's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Boba Nation (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
How many Boba Nation franchise locations are there?
As of their most recent FDD filing, Boba Nation has 3 total units in the United States, including 1 franchised units and 2 company-owned units.
Is Boba Nation a good franchise to buy?
FranchiseVerdict rates Boba Nation as a A-grade franchise with a risk score of 41 out of 100, based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
For franchisors
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.