Krak BobaFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
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]. Per the 2023 FDD, average unit revenue was $701K[2]. Verdict grade: B. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2023 FDD issuance
Overview
- Investment
- $275K – $472K
- 16th pct Service Resta…
- Avg gross sales
- $701K
- 5th pct Service Resta…
- Royalty
- 6.0%
- 26th pct Service Resta…
- Units
- 7
- 17th pct Service Resta…
- SBA default
- N/A
Quick verdict · Full-Service Restaurants · color = vs category peers
Green = >15% above Full-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
Bottom line
- Total investment $275K – $472K including a $50K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $701K/year.
- Verdict B (Above Average) with a risk score of 55/100.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Krak Boba Franchising LLC
- Incorporated in
- CA
- HQ
- 3907 Chicago Ave. Suite B, Riverside, CA 92507
- Auditor
- Smith, Buzzi & Associates, LLC
- Audited financials
- Franchisor revenue
- $0
- Most recent fiscal year
Overview
About
Franchisees operate quick-service boba tea shops, managing POS systems, preparing specialty tea and tapioca beverages, handling inventory, and managing 2-6 employees. Day-to-day operations involve customer service, quality control, scheduling, and local marketing to drive foot traffic in a location-dependent beverage retail model.
- CEO
- Tin Do
- Headquarters
- CA
- Founded
- 2021
- FDD year
- 2023
- States available
- 1
FDD Item 7 · 2023 filing · 20 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 | |
| Multi-Unit Development Feenot refundable | $120K | $290K | |
| Total initial investment | $395K | $762K |
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.
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
$70K
10.0% margin
Unlevered ROIC
18%
EBITDA / total invested capital
Payback
5.5 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $275K – $472K
- Better than avg vs category
- Liquid capital req'd
- $10K – $20K
- Better than avg vs category
- Franchise fee
- $50K – $50K
- Better than avg vs category
- Royalty
- 6.0%
- percentage_of_gross · 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 | $1K |
| Transfer fee | $37K |
| Renewal fee | $5K |
| Total fee load | 8.0% of rev |
Financial Performance
- Avg gross sales
- $701K
- Per unit, per year
- Median gross sales
- N/A
- Item 19 type
- Historic Financial Performance
- Sample size
- 6 units
- vs category median 13 · small
- Range (low → high)
- $433K→$1.0M
- Cohort dispersion (min → max)
- Transparency
- 6 / 5
- vs category median 4 / 5 · above
Compared against 1264 Full-Service Restaurants brands
vs Full-Service Restaurants averages
How Krak Boba Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 7
- Opened
- 6
- Last reporting year
- Closed
- 0
- Turnover rate
- 0.0%
- Company-owned
- 1
- Corporate units in the system
- % franchised
- 86%
- vs corporate-owned
3-year detail · Item 20
- Transfers (3yr)
- 0
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 17 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.
- Total loans
- 11
- Loan volume
- $2.4M
- Median loan
- $194K
- 50th percentile
- Charge-off rate
- N/A
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- N/A
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 2
- Defaults
- 0
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Krak Boba's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 2 lenders with concentration factor
- Per-state charge-off rates across 5 states
- Startup risk premium and job creation velocity
- 3-year lending trend
Instant access. No subscription.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Krak Boba is a pre-growth stage franchise with undisclosed profitability, uncertain unit economics, and franchisor going concern issues that make this a speculative, high-risk investment.
Litigation (Item 3)
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)
Score breakdown · what drove the 55 / 100 rating
- 01MINOROnly 7 units in system with unknown growth trajectory suggests minimal brand traction and unproven scalability
- 02MEDNet income not disclosed in FDD Item 19 — unable to validate $700,879 average revenue translates to actual profitability
- 03HIGHGoing Concern status is FALSE, indicating potential financial instability at franchisor level
- 04MINORHigh initial investment ($275k-$471k) relative to micro-franchise system size creates elevated risk if brand fails
- 05MINOR6% royalty on gross revenue (not net) means franchisees pay even during unprofitable months
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 | 5 years |
| Allowed renewalsℹ | 1 |
| Territory type | Radius/Population Density |
| Protected territory | Yes |
| Online sales rights | Granted |
| 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 | Yes |
| Jury trial waiver | Yes |
| Governing law | California |
| 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
- franchisor location and franchisee premises
- Ongoing training
- Required
- Field support
- 40 hrs/yr
- On-site visits per year
Items 5 & 11
Franchisor Support
Item 20 · call current owners
Franchisee Contacts
31 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Krak Boba · FDD (2023) PDF
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?
According to Item 19 of the Krak Boba FDD, the average gross sales per unit is $701K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
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 B-grade franchise with a risk score of 55 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.
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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.