Krak Boba Franchise Cost, Revenue & Review 2026
- Investment
- $275K – $472K
- Disclosed sales
- partial, no system average
- SBA charge-off
- Limited · 11 loans
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Krak Boba is a bubble tea franchise serving milk teas, fruit teas, and boba drinks. Franchisees run the shops, managing drink prep, ingredient inventory, and counter service.
FranchiseVerdict summary · 2026
A Krak Boba franchise requires a total initial investment of $275K – $472K, including a $50K franchise fee and an ongoing 6.0% royalty[2]. The 2023 FDD on file does not yield a unit-revenue figure we can publish. FranchiseVerdict grade: C (Average), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: high - issued more than two years ago
Evidence: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✓ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored6 of 6 headline figures on this page cite a page of the filing.
Overview
- Investment
- $275K – $472K
- 11th pct Service Resta…
- Avg gross sales
- N/A
- Royalty
- 6.0%
- 25th pct Service Resta…
- Units
- 7
- 10th pct Service Resta…
- SBA charge-off
- N/A
Quick verdict · Full-Service Restaurants · color = vs category peers
Green = favorable by >10% vs Full-Service Restaurants median · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $275K – $472K including a $50K franchise fee, 6.0% ongoing royalty.
- RETURNSItem 19 reports outlet revenue, but not in a form that yields a per-outlet average we can compare across brands.
- RISKVerdict C (Average), verdict score 44/100 (higher is better).
- GROWTHNegative, pipeline stalled: 10 agreements signed but not yet open against 7 open outlets (Item 20).
- DATAItem 19 reports outlet revenue, but not in a form that yields a per-outlet average we can compare across brands. Ask franchisees directly for full unit-level revenue.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Krak Boba Franchising, LLC
- CEO title
- CEO
- Tin Do
- Incorporated in
- CA
- HQ
- 3907 Chicago Ave., Unit B, Riverside, CA 92507
- Auditor
- Smith, Buzzi & Associates, LLC
- Audited financials
- Franchisor revenue
- $316K
- Most recent fiscal year
Overview
About
- CEO
- Tin Do
- Headquarters
- CA
- Founded
- 2021
- FDD year
- 2023
- States available
- 1
Can you afford it, and what does the money buy?
Entry cost runs 45% below the typical full-service restaurants franchise.
Source: FDD 2023 · Items 5–7
Full Item 7 breakdown19 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Feenot refundable | $50K | $50K | |
| Your Training Expenses | $2K | $5K | |
| Premises Lease Deposit/Rent | $9K | $14K | |
| Utility Deposit | $1K | $2K | |
| Design & Architect Fees | $12K | $15K | |
| Professional Fees | $2K | $4K | |
| Leasehold Improvements, Construction and/or Remodeling | $100K | $225K | |
| Furniture, Fixtures, Equipment and Supplies | $51K | $66K | |
| Smallwares | $4K | $5K | |
| Signage | $5K | $8K | |
| Business Licenses and Permits | $2K | $5K | |
| Computer Systems | $2K | $3K | |
| Security System | $1K | $2K | |
| Initial Inventory - Tea and Cups | $11K | $28K | |
| Initial Inventory - Other Supplies | $5K | $6K | |
| Office Equipment and Supplies | $1K | $3K | |
| Grand Opening Advertising | $8K | $10K | |
| Insurance | $2K | $3K | |
| Operating Expenses/Additional Funds - 3 Months | $10K | $20K | |
| Total initial investment | $275K | $472K |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $275K – $472K
- Top 40% of category vs category
- Liquid capital req'd
- $10K – $20K
- Top 40% of category vs category
- Franchise fee
- $50K – $50K
- Top 40% of category vs category
- Royalty
- 6.0%
- typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 8.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.0% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
| Technology fee | $350 |
| Transfer fee | $37K |
| Renewal fee | $5K |
| Inventory (initial) | $11K – $28K |
| Total fee load | 8.0% of rev |
What do units actually make?
Source: FDD 2023 · Item 19
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
No Item 19 revenue figure for Krak Boba is on file. The return models need a revenue figure to start from, and the operating costs that turn gross sales into a profit are in no FDD. Enter your own and the calculator runs on your assumptions — nothing here is modelled until you do.
Returns model · single-unit ROIC
What would one Krak Boba unit return on the cash you put in?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for annual revenue, COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2023 FDD
Financial Performance
- Item 19 type
- gross revenue
- Sample size
- 6
- vs category median 18 · small
- Range (low → high)
- $433K→$1.0MCited, not corroborated — printed on page 46 of the 2023 FDD. Nothing else in our record independently restates or re-derives it.
- Cohort dispersion (min → max)
- Reporting year
- 2022
- Fiscal year the figures cover
- Source filing
- FDD 2023
- Disclosed in the 2023 filing, covering 2022
- Transparency
- 6 / 10
- vs category median 3 / 10 · above
Compared against 801 Full-Service Restaurants brands
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Fee burden
Total ongoing fee load of 8.0% (near the Full-Service Restaurants median).
Disclosure
Item 19 reports outlet revenue, but not in a form that yields a per-outlet average we can compare across brands.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Full-Service Restaurants medians
How Krak Boba Compares
Category median of published Full-Service Restaurants brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
Is the system healthy?
Source: FDD 2023 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 7
- Opened
- 6
- Last reporting year
- Closed
- 0
- Turnover rate
- N/A
- Company-owned
- 1
- Corporate units in the system
- % franchised
- 86%
- vs corporate-owned
Last fiscal year · Item 20 exits and transfers
- Signed, not yet open
- 10
- 1.43 per open outlet · Item 20 Table 5
- Projected new
- 10
- Franchisor's next-year forecast
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)
Where the owners are · Item 20 owner list
3 current owners across 3 states.
- FA 1
- PH 1
- TE 1
Counts only, from the list the franchisor prints in Item 20; 14 entries carry no state. Names and phone numbers are for your own due diligence and are not shown here.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 11
- Loan volume
- $2.4M
- Median loan
- $194K
- 50th percentile
- Charge-off rate
- Limited · 11 loans
- Limited SBA coverage: 11 loans, rate hidden until 10 have resolved and loans reach 2% of franchised units
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- Limited · 11 loans
- 5-yr charge-off
- Limited · 11 loans
- Loans approved 2021+
- Active lenders
- 2
- Defaults
- 0
- Typical loan rate
- 10.6%
- avg rate to borrowers
- Franchised industry avg
- 10.6%
- n=3,755 loans
- Jobs supported
- 102
- 4.9 per loan
- Lender concentration
- 80%
- top lender's share
Borrower mix: 100% went to startups / new businesses, 0% to established operators
Franchise vs independent — in snack and nonalcoholic beverage bars, franchised businesses charge off at 10.6% vs 8.9% for independents — franchising is associated with 19% higher SBA default risk in this category.
Top lenders financing Krak Boba franchisees
Explore lender portfolios on Bank Reports or regional data on State Reports.
Lender network · 7(a) + 504
SBA Lending Report
Full lending analysis for Krak Boba from SBA 7(a) FOIA data.
- Principal loss rate
- 0.0%
- Avg SBA guarantee
- 66%
- Avg interest rate
- 10.62%
- Lender concentration
- 80.0%
- Job velocity
- 4.9 per $100K
- NAICS benchmark
- 7.0%
- NAICS 722515
- Jobs supported
- 102
Top SBA lendersTop lender holds 80% of loans
| # | Lender | Loans | Volume | Default % |
|---|---|---|---|---|
| 1 | The Huntington National Bank | 8 | $1.5M | N/A |
| 2 | First Bank of the Lake | 2 | $592K | N/A |
Geographic failure vector
| State | Loans | Defaults | Rate |
|---|---|---|---|
| CACalifornia | 3 | 0 | -- |
| COColorado | 2 | 0 | -- |
| MNMinnesota | 2 | 0 | -- |
| NJNew Jersey | 2 | 0 | -- |
| FLFlorida | 1 | 0 | -- |
SBA 7(a) lending trend
Borrower profile
Source: SBA 7(a) + 504 FOIA loan-level data, matched by FranchiseVerdict
What could kill this investment?
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Litigation (Item 3)
Subject: officers or affiliates. The franchisor is not a named party in these cases.
No litigation required to be disclosed
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Smith, Buzzi & Associates, LLC
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Total revenues of $315,900 consisted entirely of franchise sales; royalties and cost of sales were $0. Audited statement of operations for year ended December 31, 2022 (Smith, Buzzi & Associates, LLC, Miami, FL). Net loss of $(184,105). Only one year of audited income statement available; franchisor formed December 1, 2021.
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
Score breakdown · what drove the 44 / 100 verdict
- 01MINOROnly 7 units in system with unknown growth trajectory suggests minimal brand traction and unproven scalability
- 02MINORHigh initial investment ($275k-$471k) relative to micro-franchise system size creates elevated risk if brand fails
- 03MINOR6% royalty on gross revenue (not net) means franchisees pay even during unprofitable months
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 8.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2023 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 1 |
| Territory type | Protected territory |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory radius | 3 mi |
| Territory population | 80,000 |
| Online sales rightsℹ | Granted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 25 mi |
| Right of first refusalℹ | Yes |
| RoFR response window | 30 days |
| Transfer requires consent | Yes |
| Termination notice | 5 days |
| Mandatory arbitration | No |
| Arbitration location | Garden Grove, CA |
| Jury trial waiver | No |
| Governing law | CA |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation required to be disclosed
Items 10, 11
Training & Operations
- Classroom training
- 20 hrs
- On-the-job training
- 20 hrs
- Training location
- Orange County, CA
- Ongoing training
- Required
- Field support
- 40 hrs/yr
- On-site visits per year
- Time to open
- 12 mo
- From signing to launch
- Site selection
- Franchisee with franchisor approval
- Franchisor financing
- Not offered
- Item 10
Items 5 & 11
Franchisor Support
Item 20 · call current owners
Franchisee Contacts
17 owners to call
Name · phone · city · state. Extracted from FDD Item 20
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Krak Boba franchise?
The total investment to open a Krak Boba franchise ranges from $275K – $472K, with an initial franchise fee of $50K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Krak Boba franchise owners earn?
Item 19 of the Krak Boba FDD discloses outlet figures from $433K to $1.0M but no single average across all outlets. These are gross sales figures, not profit; the Revenue section shows what the filing reports and on what basis. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Who owns Krak Boba?
Krak Boba is franchised by Krak Boba Franchising, LLC. Source: FDD Item 1, 2023 filing.
What is Item 19 in the Krak Boba FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the Krak Boba FDD and qualifies whose outlets they describe.
What is Krak Boba's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Krak Boba (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 Krak Boba franchise locations are there?
As of their most recent FDD filing, Krak Boba has 7 total units in the United States, including 6 franchised units and 1 company-owned units. 6 new units were opened in the latest reporting year.
Is Krak Boba a good franchise to buy?
FranchiseVerdict rates Krak Boba as a C-grade franchise with a verdict score of 44 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. 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
Are you the franchisor?
If you represent Krak Boba, you can request corrections or provide updated information.
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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.