Jazen Tea®Franchise Cost, Revenue & Review 2026
Data from FDD filing
FranchiseVerdict summary · 2026
A Jazen Tea® franchise requires a total initial investment of $183K – $390K, including a $10K franchise fee and an ongoing 4.0% royalty[2]. The 2024 FDD does not disclose unit-level revenue (no Item 19). Verdict grade: F. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2024 FDD issuance
Overview
- Investment
- $183K – $390K
- 26th pct Service Resta…
- Avg gross sales
- N/A
- 59th pct Service Resta…
- Royalty
- 4.0%
- 3rd pct Service Resta…
- Units
- 13
- 40th 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
The system contracted 9% year-over-year. Investigate why units are closing.
Bottom line
- Total investment $183K – $390K including a $10K franchise fee, 4.0% ongoing royalty.
- No Item 19 financial performance data disclosed. The franchisor chose not to publish revenue figures.
- Verdict F (Bottom Quintile) with a risk score of 80/100.
- No Item 19 financial performance representation. Without franchisor-disclosed revenue data, you'll need to gather unit economics directly from existing franchisees.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- South Bay Soup Corporation
- Parent company
- Aureflam Corporation
- Incorporated in
- CA
- HQ
- 2372 Maritime Drive, Elk Grove, CA 95758
- Auditor
- Katz Cassidy
- Audited financials
- Franchisor revenue
- $1.3M
- vs $1.2M prior year
Overview
About
Jazen Tea franchisees operate specialty tea retail locations selling premium loose-leaf and brewed tea beverages, likely including customizable drinks and food pairings. Day-to-day operations involve customer service, inventory management, brewing/preparation, point-of-sale transactions, and local marketing. The franchise model depends on foot traffic, repeat customers, and brand recognition in competitive beverage markets.
- CEO
- Quoc Phan
- Headquarters
- CA
- Founded
- 2005
- FDD year
- 2024
- States available
- 4
FDD Item 7 · 2024 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $10K | $10K |
| Working capital (3–6 mo) | $10K | $35K |
| Equipment, build-out, other | $163K | $345K |
| Total initial investment | $183K | $390K |
Source: Jazen Tea® 2024 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $183K – $390K
- Better than avg vs category
- Liquid capital req'd
- $10K – $35K
- Better than avg vs category
- Franchise fee
- $10K – $10K
- Better than avg vs category
- Royalty
- 4.0%
- percentage_of_gross · typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 6.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 4.0% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
| Transfer fee | $3K |
| Renewal fee | $3K |
| Total fee load | 6.0% of rev |
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
vs Quick-Service Restaurants averages
How Jazen Tea® Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 13
- Opened
- 0
- Last reporting year
- Closed
- 1
- Turnover rate
- 7.7%
- Company-owned
- 3
- Corporate units in the system
- % franchised
- 77%
- vs corporate-owned
- Multi-unit owners
- 40.0%
- Net growth (yr3)
- -9.1%
- Net unit change last year
- 3-yr CAGR
- -16.7%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 0
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 6 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
Jazen Tea presents HIGH RISK due to a contracting unit base (-9.1% YoY), hidden financial metrics (no Item 19 disclosure), questionable franchisor going concern status, and a capital-intensive model lacking transparent return projections.
Audited financials (Item 21)
Yes · Katz Cassidy
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Score breakdown · what drove the 80 / 100 rating
- 01MEDSystem contracting sharply: 13 units with -9.1% YoY decline indicates deteriorating franchise health and market viability
- 02MINORNo financial performance disclosure (Item 19): Absence of average unit revenue and net income prevents ROI validation and hides profitability concerns
- 03HIGHGoing Concern status is FALSE: Franchisor may have disclosed financial instability or operational challenges to the FTC
- 04MEDHigh capital requirement ($182.6K–$389.9K) paired with undisclosed returns creates significant investment risk without performance benchmarks
- 05MINORLack of transparency on unit economics: 4% royalty structure cannot be evaluated without knowing actual sales figures or net margins
- 06MINORShrinking franchisee base suggests high failure rate, poor unit support, or unsustainable business model in beverage retail sector
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 | 5 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 2 |
| Territory type | Radius |
| 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 | 30 days |
| Mandatory arbitration | No |
| Jury trial waiver | Yes |
| Governing law | California |
| Litigation count | 0 |
Items 10, 11
Training & Operations
- Classroom training
- 16 hrs
- On-the-job training
- 56 hrs
- POS system
- Toast POS
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Toast POS
Item 20 · call current owners
Franchisee Contacts
19 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Jazen Tea® · FDD (2024) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Jazen Tea® franchise?
The total investment to open a Jazen Tea® franchise ranges from $183K – $390K, with an initial franchise fee of $10K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Jazen Tea® franchise owners earn?
Jazen Tea® does not disclose average franchise owner earnings in their FDD Item 19. Not all franchisors are required to make financial performance representations. We recommend asking existing franchisees directly about their financial experience.
What is Jazen Tea®'s franchise failure rate?
SBA 7(a) loan charge-off data is not available for Jazen Tea® (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 Jazen Tea® franchise locations are there?
As of their most recent FDD filing, Jazen Tea® has 13 total units in the United States, including 0 franchised units and 3 company-owned units.
Is Jazen Tea® a good franchise to buy?
FranchiseVerdict rates Jazen Tea® as a F-grade franchise with a risk score of 80 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.