Krak Boba Franchise Cost, Revenue & Review 2026
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 does not disclose unit-level revenue (no Item 19). FranchiseVerdict grade: C (Average), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2023 FDD issuance
Overview
- Investment
- $275K – $472K
- 11th pct Service Resta…
- Avg gross sales
- N/A
- Royalty
- 6.0%
- 24th 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 avg · 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.
- RETURNSTotal 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.
- RISKVerdict C (Average), verdict score 46/100 (higher is better).
- 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 68% below the typical full-service restaurants franchise.
Source: FDD 2023 · Items 5–7
Full Item 7 breakdown20 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.
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%
- percentage · 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
Krak Boba did not disclose financial performance in FDD Item 19. The ROIC and return models require Item 19 revenue. Without it all inputs are estimates. You can still run the calculator with your own assumptions by entering an expected revenue figure.
Returns model · single-unit ROIC
What would one Krak Boba unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
19%
Below the 30–60% attractive-franchise band
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
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.
- Item 19 type
- gross revenue
- Sample size
- 6
- vs category median 18 · small
- Range (low → high)
- $433K→$1.0M
- Cohort dispersion (min → max)
- Reporting year
- 2023
- Fiscal year the figures cover
- Source filing
- FDD 2023
- The FDD edition these figures were read from
- Transparency
- 6 / 10
- vs category median 3 / 10 · above
Compared against 805 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 average).
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 averages
How Krak Boba Compares
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
- 0.0%
- Company-owned
- 1
- Corporate units in the system
- % franchised
- 86%
- vs corporate-owned
3-year detail · Item 20
- Opened (3yr)
- 6
- Closed (3yr)
- 0
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 0
- Reacquired (3yr)
- 0
- Franchisor bought back
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)
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
- no resolved loans yet — rate needs a terminal outcome
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
- 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.
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.
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
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)
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 46 / 100 verdict
- 01MINOROnly 7 units in system with unknown growth trajectory suggests minimal brand traction and unproven scalability
- 02HIGHGoing Concern status is FALSE, indicating potential financial instability at franchisor level
- 03MINORHigh initial investment ($275k-$471k) relative to micro-franchise system size creates elevated risk if brand fails
- 04MINOR6% 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 |
| 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
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?
Krak Boba 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 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 46 out of 100 (higher is better), 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
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.