Pekoe Tea BarFranchise Cost, Revenue & Review 2026
Data from FDD filing
FranchiseVerdict summary · 2026
A Pekoe Tea Bar franchise requires a total initial investment of $496K – $855K, including a $40K franchise fee and an ongoing 6.0% 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
- $496K – $855K
- 81st pct Service Resta…
- Avg gross sales
- N/A
- 59th pct Service Resta…
- Royalty
- 6.0%
- 44th pct Service Resta…
- Units
- 5
- 22nd 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 2025. Newer systems carry more uncertainty but may offer better territories.
Bottom line
- Total investment $496K – $855K including a $40K franchise fee, 6.0% 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.
- No Item 19 financial performance representation. Without franchisor-disclosed revenue data, you'll need to gather unit economics directly from existing franchisees.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Pekoe Franchise, Inc.
- Incorporated in
- FL
- HQ
- 3276 South White Road, San Jose, CA 95148
- Auditor
- Smith, Buzzi & Associates, LLC.
- Audited financials
Overview
About
Pekoe Tea Bar franchisees operate specialty tea retail locations focused on serving premium loose-leaf tea beverages and related products. Day-to-day operations involve beverage preparation, customer service, inventory management of tea products, and retail point-of-sale functions in a café-style environment.
- CEO
- Angela Vo
- Headquarters
- CA
- Founded
- 2024
- FDD year
- 2025
- States available
- 3
FDD Item 7 · 2025 filing · 16 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Feenot refundable | $40K | $40K | |
| Traveling and Living Expenses while Training | $3K | $5K | |
| Real Property Rent and Security Deposits (3 mos) | $12K | $30K | |
| Leasehold Improvements | $350K | $600K | |
| Furniture, Fixtures, and Decor | $15K | $20K | |
| Initial Inventory and Supplies | $6K | $10K | |
| Signage | $4K | $8K | |
| Grand Opening Advertising | $4K | $8K | |
| Licenses, Permits, and Certifications | $750 | $2K | |
| Insurance (3 Months) | $1K | $5K | |
| Kitchen Equipment | $25K | $50K | |
| TV, Cameras, and other Supplies | $5K | $21K | |
| Computer Hardware, Software, and POS System | $3K | $4K | |
| Professional Fees | $2K | $3K | |
| Additional Funds (3 months) | $25K | $50K | |
| Area Development Fee | $80K | $120K | |
| Total initial investment | $576K | $975K |
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
- $496K – $855K
- Below avg, review vs category
- Liquid capital req'd
- $25K – $50K
- Near category avg vs category
- Franchise fee
- $40K – $40K
- Below avg, review vs category
- Royalty
- 6.0%
- Gross Revenue · typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 8.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.0% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
| Transfer fee | $10K |
| Renewal fee | $5K |
| Total fee load | 8.0% 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 Pekoe Tea Bar Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 5
- Opened
- 0
- Last reporting year
- Closed
- 0
- Turnover rate
- 0.0%
- Company-owned
- 5
- Corporate units in the system
- % franchised
- 0%
- vs corporate-owned
- Multi-unit owners
- 5.9%
3-year detail · Item 20
- Transfers (3yr)
- 0
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 5 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator. Not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
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
Pekoe Tea Bar presents HIGH RISK due to going concern status, micro-scale unit count, missing financial performance data, and unproven expansion model with minimal corporate infrastructure.
Litigation (Item 3)
No litigation is required to be disclosed in this Item.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Smith, Buzzi & Associates, LLC.
Score breakdown · what drove the 75 / 100 rating
- 01HIGHGoing concern warning indicates financial instability or viability questions at corporate level
- 02MEDOnly 5 units systemwide suggests extremely limited scale, unproven business model, and high failure risk
- 03MINORNo Item 19 (average revenue/net income) disclosure prevents ROI validation and hides performance data
- 04MINORHigh investment range ($496k-$855k) paired with no revenue disclosure creates severe information asymmetry
- 05MEDNo disclosed unit growth trajectory raises questions about brand momentum and franchisee recruitment
- 06MINOREarly-stage franchisor with minimal operating history likely lacks operational infrastructure and support systems
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 | 10 years |
|---|---|
| Renewal term | 10 years |
| Territory type | Radius |
| Protected territory | Yes |
| Online sales rights | 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 | 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
- 0 hrs
- On-the-job training
- 40 hrs
- Training location
- On-site at franchisee's restaurant and franchisor's location
- Ongoing training
- Required
- POS system
- Square POS
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Square POS
Item 20 · call current owners
Franchisee Contacts
6 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Pekoe Tea Bar · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Pekoe Tea Bar franchise?
The total investment to open a Pekoe Tea Bar franchise ranges from $496K – $855K, with an initial franchise fee of $40K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Pekoe Tea Bar franchise owners earn?
Pekoe Tea Bar 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 Pekoe Tea Bar's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Pekoe Tea Bar (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 Pekoe Tea Bar franchise locations are there?
As of their most recent FDD filing, Pekoe Tea Bar has 5 total units in the United States, including 0 franchised units and 5 company-owned units.
Is Pekoe Tea Bar a good franchise to buy?
FranchiseVerdict rates Pekoe Tea Bar 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.