Molly Tea Franchise Cost, Revenue & Review 2026
Data from FDD filing
Analysis by FranchiseVerdict Research · Methodology
Molly Tea is a premium tea franchise serving handcrafted jasmine milk teas and specialty tea drinks. Franchisees run the shops, managing drink prep, ingredient inventory, and counter service.
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). FranchiseVerdict grade: F (Weakest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2025 FDD issuance
Overview
- Investment
- $528K – $1.1M
- 25th pct Service Resta…
- Avg gross sales
- N/A
- Royalty
- 8.0%
- 35th pct Service Resta…
- Units
- 4
- 6th 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 $528K – $1.1M including a $50K franchise fee, 8.0% ongoing royalty.
- RETURNSInception-stage company (formed January 16, 2025); audited statements for the period from inception through April 30, 2025 report no revenue, a net loss of $38,845, and a total member's deficit of $(37,845).
- RISKVerdict F (Weakest tier), verdict score 25/100 (higher is better).
- FLAGAuditor 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
Corporate structure & franchisor financials
- Legal entity
- MOLLYTEA Franchising LLC
- Parent company
- Molly Tea IP Inc.
- Ultimate parent
- Molly Tea Limited
- CEO title
- Manager and Chief Executive Officer
- Biao Zhang
- 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
- CEO
- Biao Zhang
- Headquarters
- NJ
- Founded
- 2025
- FDD year
- 2025
- States available
- 0
Can you afford it, and what does the money buy?
Entry cost runs 30% below the typical full-service restaurants franchise.
Source: FDD 2025 · Items 5–7
Full Item 7 breakdown14 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
- Top 40% of category vs category
- Liquid capital req'd
- $50K – $100K
- Top 40% of category vs category
- Franchise fee
- $50K – $50K
- Top 40% of category vs category
- Royalty
- 8.0%
- percentage · 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 | $15K |
| Training fee | $6K |
| Transfer fee | $38K |
| Renewal fee | $38K |
| Inventory (initial) | $150K – $250K |
| Total fee load | 10.0% of rev |
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
Molly Tea 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 Molly Tea unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
7%
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: 2025 FDD
Financial Performance
Inception-stage company (formed January 16, 2025); audited statements for the period from inception through April 30, 2025 report no revenue, a net loss of $38,845, and a total member's deficit of $(37,845).
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 10.0% — above the Full-Service Restaurants average of 7.6%.
Disclosure
Franchisor chose not to disclose financial performance representations. You will need to gather unit economics directly from existing franchisees.
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 Molly Tea Compares
Is the system healthy?
Source: FDD 2025 · Item 20
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)
- Non-renewed
- 0
- Term expired, not renewed (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
- Opened (3yr)
- 0
- Closed (3yr)
- 0
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 0
- Reacquired (3yr)
- 0
- Franchisor bought back
- 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.
What could kill this investment?
The auditor flagged going-concern doubt (Item 21) — the single biggest risk here.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
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
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
- Can negotiate own supplier terms: No
Score breakdown · what drove the 25 / 100 verdict
- 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
What are you signing up for?
Ongoing fees run about 10.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2025 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 1 year |
|---|---|
| Renewal term | 1 year |
| Territory type | protected |
| Protected territory | Yes |
| 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 |
| RoFR response window | 30 days |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Curable defaultsℹ | 3 |
| Mandatory arbitration | Yes |
| Arbitration location | New York, New York |
| Jury trial waiver | No |
| Governing law | NY |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation disclosure provided in Item 3
Items 10, 11
Training & Operations
- Classroom training
- 56 hrs
- On-the-job training
- 160 hrs
- Training location
- Shenzhen, China (corporate office and affiliated Molly Tea stores)
- Ongoing training
- Required
- Time to open
- 7 mo
- From signing to launch
- Site selection
- franchisee with franchisor approval
- Franchisor financing
- Not offered
- Item 10
- POS system
- Resto and Chowbus
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Resto and Chowbus
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 Item 19 in the Molly Tea 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 Molly Tea FDD and qualifies whose outlets they describe.
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 F-grade franchise with a verdict score of 25 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 Molly Tea, 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.