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.
- Rated MODERATE with a risk score of 65/100.
- Auditor disclosed a going-concern note — flagged doubt about the franchisor's ability to continue operations. Verify against the latest FDD.
Item 1 · who you're contracting with
The Franchisor
Yale framework · single-unit ROIC
Returns Analysis
Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.
The model · Yale framework
What would one Molly Tea unit return on the cash you put in?
Unlevered ROIC · per unit
11%
Below typical band (30–60%)
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.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
No SBA loan data available for this brand.
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.
Score breakdown · what drove the 65 / 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
Item 11
Training & Operations
Item 20
Franchisee Contacts
Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.
Franchisee contacts
1 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Molly Tea · FDD (2025) PDF