FranchiseVerdict
Hechalou Tea logo
FV-01179·Minimal10

Hechalou Tea

Food & Beverage - Coffee & TeaFranchising since 2024Website
Investment
$268K – $474K
46th pct Coffee & Tea
Avg revenue
—
49th pct Coffee & Tea
Royalty
5.0%
17th pct Coffee & Tea
Units
1
6th pct Coffee & Tea
SBA default
—

Bottom line

  • Total investment $268K – $474K including a $42K franchise fee, 5.0% ongoing royalty.
  • No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
  • Insufficient data to generate a risk assessment.
  • Auditor disclosed a going-concern note — flagged doubt about the franchisor's ability to continue operations. Verify against the latest FDD.

Item 1 · who you're contracting with

The Franchisor

Legal entity
Hechalou International LLC
Parent company
Hechalou Tea Co., Ltd. [cite: 1927]
Incorporated in
Delaware [cite: 1815, 1924]
HQ
430 South Garfield Avenue, Suite 489, Alhambra, California 91801 [cite: 1815, 1924]
Auditor
JTC ACCOUNTANCY CORP [cite: 2567]
Audited financials
Franchisor revenue
$4K
Most recent fiscal year
⚠ Going-concern note
Disclosed in FDD 2025
Auditor flagged doubt about continued operations. Verify against the latest FDD before deciding.

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 Hechalou Tea unit return on the cash you put in?

Revenue · per unit, per year
$
Item 19 not disclosed — typing your own estimate
Franchisor take · royalty + ad fund
Royaltytyp 6–8%
%
Ad fundtyp 3–5%
%
Operating costs · category default: restaurant
COGS
%
Labor
%
Rent / occupancy
%
Other operating
%
Total invested capital · what you actually put in
Initial investment
$
FDD Item 7: $268K–$474K
Working capital
$
FDD reports $20K–$50K

Unlevered ROIC · per unit

24%

Below typical band (30–60%)

0%30–60% Yale band80%
Store EBITDA · annual
$98K
EBITDA margin
13.0%
Total invested
$406K
Payback
50 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.

Overview

About

A retail store that sells tea beverages including milk tea, fruit tea, boba tea, tea jellies and other specialty items, along with complementary menu items[cite: 1817, 1937].

CEO
Ethan Yi-Shen Fang
Founded
2024
FDD year
2025
States available
1

Item 7 · what it costs

The Vitals

Total investment
$268K – $474K
All-in to open one unit
Liquid capital
$20K – $50K
Cash you must have on hand
Franchise fee
$42K
Royalty
5.0%
Percentage [cite: 2013] · typical 6–8%
Ad fund
0.0%
typical 3–5%

Item 19

Financial Performance

This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.

Item 20 · unit dynamics

The Growth Chart

Total units
1
Opened
1
Last reporting year
Closed
0
Turnover rate
0.0%
Company-owned
0
Corporate units in the system
2023
1+1
Franchised units
2024
0
Franchised units
2025
0
Franchised units

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

Item 12 · 1 state reported

The Territory Map

FDD Item 12 reports the state count, but the specific list isn't in our current data. The map will appear once we re-extract from the FDD or enough franchisee contacts are available.

1

states with franchisees (per FDD Item 12)

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

—
Risk · 0-100

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

Contract & Territory Detail

Territory
Accepted Location [cite: 2277]
Protected territory
No
Initial term
5 years
Renewal term
5 years
Online sales rights
Restricted
Franchisor can compete
Yes
Hire a manager?
Allowed
Litigation count
2
Right of first refusal
No
Franchisor can buy back on resale
Mandatory arbitration
Yes
Jury trial waiver
Yes
Non-compete
2 yrs
Post-termination restriction
Owner-operator
Required
Governing law
California [cite: 2479, 3423]

Item 11

Training & Operations

Classroom training
8 hrs
On-the-job training
190 hrs

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

2 numbers

Locked
(503) 378-••••
OR
(626) 282-••••
CA

One-time purchase · CSV download · Validation questions included

FDD download

Hechalou Tea · FDD (2025) PDF

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

Includes AI-generated validation questions · CSV download