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.
- Rated CAUTION with a risk score of 70/100.
- 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
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 Pekoe Tea Bar unit return on the cash you put in?
Unlevered ROIC · per unit
11%
Below typical band (30–60%)
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.
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.
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 phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.
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
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.
Score breakdown · what drove the 70 / 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
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
6 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Pekoe Tea Bar · FDD (2025) PDF