Bottom line
- Total investment $624K – $777K including a $300K franchise fee, 4.0% 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 Nap Tea unit return on the cash you put in?
Unlevered ROIC · per unit
11%
Below typical band (30–60%)
Overview
About
Nap Tea franchisees operate beverage retail locations serving specialty tea products, likely positioning rest/wellness positioning alongside traditional café service. Day-to-day operations include inventory management, customer service, point-of-sale transactions, and beverage preparation in a small retail format, similar to bubble tea or coffee shop models.
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
Pre-revenue franchise system with zero operating units, undisclosed unit economics, and corporate financial concerns creates extreme uncertainty around investment viability and franchisor support capability.
Score breakdown · what drove the 65 / 100 rating
- 01MEDZero existing franchised units indicates brand has never successfully scaled or all units have failed/closed
- 02MINORNo Item 19 financial disclosure (average revenue/net income) prevents validation of $624k-$777k investment ROI
- 03MINORHigh franchise fee ($300k) represents 48% of total investment with zero proven unit economics to justify it
- 04MINOR5-year term is shorter than industry standard (10 years), suggesting franchisor may lack confidence in model longevity
- 05HIGHGoing Concern status indicates potential financial instability at corporate level, raising questions about franchisor viability
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
2 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Nap Tea · FDD (2026) PDF