Molly TeaFranchise Cost, Revenue & Review 2026
Data from FDD filing
FranchiseVerdict summary · 2026
A Molly Tea franchise requires a total initial investment of $528K – $1.1M, including a $50K franchise fee and an ongoing 8.0% royalty[2]. The 2025 FDD does not disclose unit-level revenue (no Item 19). Verdict grade: D. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $528K – $1.1M
- 34th pct Service Resta…
- Avg gross sales
- N/A
- 28th pct Service Resta…
- Royalty
- 8.0%
- 44th pct Service Resta…
- Units
- 4
- 10th 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
Started franchising in 2025. Newer systems carry more uncertainty but may offer better territories.
The franchisor's auditor raised doubt about continued operations. This is a serious risk signal.
Bottom line
- Total investment $528K – $1.1M including a $50K franchise fee, 8.0% ongoing royalty.
- No Item 19 financial performance data disclosed. The franchisor chose not to publish revenue figures.
- Verdict D (Below Average) with a risk score of 75/100.
- Auditor disclosed a going-concern note, which 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
- MOLLYTEA Franchising LLC
- Parent company
- Molly Tea IP Inc.
- Ultimate parent
- Molly Tea International Limited
- CEO title
- Manager and Chief Executive Officer
- Biao Zhang (Zhang Biao)
- Founder active
- Yes
- Original founder still leading the business
- Incorporated in
- DE
- HQ
- 6 Kilmer Road, Suite B, Edison, New Jersey 08817
- Auditor
- CBIZ CPAs P.C.
- Audited financials
- Franchisor revenue
- $0
- Most recent fiscal year
- ⚠ Going-concern note
- Disclosed in FDD 2025
- Auditor flagged doubt about continued operations. Verify against the latest FDD before deciding.
Affiliated brands
- MollyTea Shops
- MollyTea Supplychain
- Molly Tea
- MollyTea USA
- MollyTea Holding
- Shenzhen Molly Tea Food and Beverage Management Co
Other brands the franchisor or its parent operates (Item 1).
Overview
About
Franchisees operate Molly Tea beverage retail locations, likely serving specialty tea drinks and related products. Day-to-day operations include inventory management, customer service, point-of-sale transactions, staff supervision, and adherence to brand standards for product preparation and store presentation.
- CEO
- Biao Zhang (Zhang Biao)
- Headquarters
- NJ
- Founded
- 2025
- FDD year
- 2025
- States available
- 0
FDD Item 7 · 2025 filing · 14 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Feenot refundable | $50K | $50K | |
| Pre-Opening Travel, Lodging, and Meals for Initial Training | $15K | $30K | |
| Lease Deposit (3 months' rent) | $15K | $75K | |
| Leasehold Improvements | $50K | $200K | |
| Point of Sale Systems and Computer Hardware and Software | $3K | $10K | |
| Initial Inventory and Supplies (3 months) | $150K | $250K | |
| Business Store Licenses, Permits, etc. (first year) | $15K | $15K | |
| Equipment, Furniture and Fixtures | $150K | $300K | |
| Signage | $5K | $15K | |
| Insurance Premiums (first 3 months) | $3K | $5K | |
| Security and Utility Deposits | $5K | $20K | |
| Architect, Engineer and Other Professional Fees | $2K | $8K | |
| Advertising and Promotion/Grand Opening (3 months) | $15K | $30K | |
| Additional Funds (3 months) | $50K | $100K | |
| Total initial investment | $528K | $1.1M |
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
- $528K – $1.1M
- Better than avg vs category
- Liquid capital req'd
- $50K – $100K
- Better than avg vs category
- Franchise fee
- $50K – $50K
- Better than avg vs category
- Royalty
- 8.0%
- Gross Sales · typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 10.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 8.0% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
| Technology fee | $20K |
| Training fee | $6K |
| Inventory (initial) | $150K – $250K |
| Total fee load | 10.0% of rev |
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
vs Full-Service Restaurants averages
How Molly Tea Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 4
- Opened
- 0
- Last reporting year
- Closed
- 0
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Turnover rate
- 0.0%
- Company-owned
- 4
- Corporate units in the system
- % franchised
- 0%
- vs corporate-owned
3-year detail · Item 20
- Transfers (3yr)
- 0
- Projected new
- 28
- Franchisor's next-year forecast
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
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
Molly Tea is a pre-revenue stage franchise with minimal unit count, no financial transparency, short contract term, and unprotected territory—presenting substantial execution and profitability risk.
Litigation (Item 3)
No litigation disclosure provided in Item 3
Largest disclosed settlement: $50,000
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · CBIZ CPAs P.C.⚠ Going-concern note flagged
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Kickbacks from required suppliers: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 75 / 100 rating
- 01MINOROnly 4 units system-wide indicates minimal scale, unproven model, and high failure risk
- 02MINORNo average revenue or net income disclosure (Item 19) prevents ROI validation and suggests weak unit economics
- 03MINOR1-year term is unusually short and creates instability; most franchises offer 5-10 year terms
- 04MINORUnprotected territory creates direct competition risk from other franchisees and franchisor expansion
- 05MINORWide investment range ($527.5K-$1.1M) with no clear cost breakdown raises transparency concerns
- 06MED8% royalty on undisclosed revenue makes it impossible to model profitability or break-even timeline
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 | 1 year |
|---|---|
| Renewal term | 1 year |
| Protected territory | No |
| Exclusive territoryℹ | No |
| Online sales rightsℹ | 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 | Yes |
| Jury trial waiver | Yes |
| Governing law | New York |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation disclosure provided in Item 3
Items 10, 11
Training & Operations
- Classroom training
- 112 hrs
- On-the-job training
- 208 hrs
- Training location
- On-site and classroom
- Site selection
- franchisee
- POS system
- Resto and Chowbus
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Resto and Chowbus
Item 20 · call current owners
Franchisee Contacts
1 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Molly Tea · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Molly Tea franchise?
The total investment to open a Molly Tea franchise ranges from $528K – $1.1M, 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 Molly Tea franchise owners earn?
Molly 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 Molly Tea's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Molly 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 Molly Tea franchise locations are there?
As of their most recent FDD filing, Molly Tea has 4 total units in the United States, including 0 franchised units and 4 company-owned units.
Is Molly Tea a good franchise to buy?
FranchiseVerdict rates Molly Tea as a D-grade franchise with a risk score of 75 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.