Nap TeaFranchise Cost, Revenue & Review 2026
Data from FDD filing
FranchiseVerdict summary · 2026
A Nap Tea franchise requires a total initial investment of $624K – $777K, including a $300K franchise fee and an ongoing 4.0% royalty[2]. The 2026 FDD does not disclose unit-level revenue (no Item 19). Verdict grade: B. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2026 FDD issuance
Overview
- Investment
- $624K – $777K
- 88th pct Service Resta…
- Avg gross sales
- N/A
- 59th pct Service Resta…
- Royalty
- 4.0%
- 3rd pct Service Resta…
- Units
- 0
- 0th pct Service Resta…
- SBA default
- N/A
Quick verdict · Quick-Service Restaurants · color = vs category peers
Green = >15% above Quick-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 2026. 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 $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.
- Verdict B (Above Average) with a risk score of 62/100.
- 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
- Nap Tea USA Corp
- Parent company
- Nap Tea Co., Ltd. (Nap Tea-Taiwan)
- Ultimate parent
- Nap Tea Co., Ltd. (Taiwan)
- CEO title
- Chief Executive Officer and Managing Director
- Cheng Han Lin
- Founder active
- Yes
- Original founder still leading the business
- Incorporated in
- DE
- HQ
- 131 Continental Dr., Suite 301, Newark DE 19713
- Auditor
- Simon & Edward, LLP
- Audited financials
- Franchisor revenue
- $0
- vs $0 prior year
- ⚠ Going-concern note
- Disclosed in FDD 2026
- Auditor flagged doubt about continued operations. Verify against the latest FDD before deciding.
Independent franchisee associations
- Independent Franchisee Association
Franchisee-led councils or alliances disclosed in Item 20. Indicates operator voice.
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.
- CEO
- Cheng Han Lin
- Founded
- 2024
- FDD year
- 2026
- States available
- 0
FDD Item 7 · 2026 filing · 14 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Subfranchise Feenot refundable | $300K | $300K | |
| Security Deposit | $30K | $30K | |
| Training Expensesnot refundable | $8K | $10K | |
| Point of Sale systemnot refundable | $2K | $3K | |
| Software Upgrade Feenot refundable | $3K | $3K | |
| Interior/Exterior Signs and Graphicsnot refundable | $100K | $140K | |
| Professional Feesnot refundable | $5K | $10K | |
| Business Licenses and Permitsnot refundable | $3K | $5K | |
| Leaseholdnot refundable | $50K | $80K | |
| Inventory and Supplies | $20K | $40K | |
| Equipmentnot refundable | $45K | $60K | |
| Advertising and Promotion | $25K | $30K | |
| Business Insurance | $3K | $6K | |
| Additional Funds - 3 monthsnot refundable | $30K | $60K | |
| Total initial investment | $624K | $777K |
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
- $624K – $777K
- Below avg, review vs category
- Liquid capital req'd
- $30K – $60K
- Below avg, review vs category
- Franchise fee
- $300K – $300K
- Below avg, review vs category
- Royalty
- 4.0%
- percentage · typical 6–8%
- Ad fund
- $20,000-$30,000 (Year 1), $10,000-$15,000 (Year 2+)
- Total fee load
- 4.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 4.0% of gross sales |
| Training fee | $600 |
| Transfer fee | $35K |
| Renewal fee | $50K |
| Total fee load | 4.0% of rev |
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
vs Quick-Service Restaurants averages
How Nap Tea Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 0
- 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)
- Company-owned
- 0
- Corporate units in the system
- Multi-unit owners
- 14.3%
3-year detail · Item 20
- Transfers (3yr)
- 0
- Projected new
- 6
- 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
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.
Litigation (Item 3)
No litigation is required to be disclosed in this Item
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Simon & Edward, LLP⚠ Going-concern note flagged
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
- Can negotiate own supplier terms: No
Score breakdown · what drove the 62 / 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
| Initial term | 5 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 1 |
| Territory type | Population base |
| Protected territory | Yes |
| Exclusive territoryℹ | Yes |
| Territory population | 5,000,000 |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Not allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 1 year |
| Non-compete (miles)ℹ | 25 mi |
| Right of first refusalℹ | No |
| Transfer requires consent | Yes |
| Termination notice | 60 days |
| Termination groundsℹ | 3 |
| Curable defaultsℹ | 4 |
| Mandatory arbitration | Yes |
| Arbitration location | California |
| Governing law | California |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation is required to be disclosed in this Item
Items 10, 11
Training & Operations
- Classroom training
- 80 hrs
- On-the-job training
- 0 hrs
- Training location
- On-site and corporate
- Time to open
- 9 mo
- From signing to launch
- Franchisor financing
- Offered
- Item 10
Items 5 & 11
Franchisor Support
Item 20 · call current owners
Franchisee Contacts
2 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Nap Tea · FDD (2026) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Nap Tea franchise?
The total investment to open a Nap Tea franchise ranges from $624K – $777K, with an initial franchise fee of $300K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Nap Tea franchise owners earn?
Nap 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 Nap Tea's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Nap 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.
Is Nap Tea a good franchise to buy?
FranchiseVerdict rates Nap Tea as a B-grade franchise with a risk score of 62 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.