Pekoe Tea Bar Franchise Cost, Revenue & Review 2026
Data from FDD filing
Analysis by FranchiseVerdict Research · Methodology
Pekoe Tea Bar is a tea franchise serving premium loose-leaf teas and specialty tea beverages. Franchisees run the shops, managing tea prep, inventory, and counter service.
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). FranchiseVerdict grade: C (Average), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2025 FDD issuance
Overview
- Investment
- $496K – $855K
- 76th pct Service Resta…
- Avg gross sales
- N/A
- Royalty
- 6.0%
- 46th pct Service Resta…
- Units
- 5
- 24th pct Service Resta…
- SBA charge-off
- N/A
Quick verdict · Quick-Service Restaurants · color = vs category peers
Green = favorable by >10% vs Quick-Service Restaurants avg · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $496K – $855K including a $40K franchise fee, 6.0% ongoing royalty.
- RETURNSStartup franchisor incorporated November 19, 2024; audited financials consist of an opening balance sheet only, as of February 13, 2025. No income statement (no revenue) was required or presented.
- RISKVerdict C (Average), verdict score 39/100 (higher is better).
- DATANo 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
Corporate structure & franchisor financials
- Legal entity
- Pekoe Franchise, Inc.
- CEO title
- CEO
- Angela Vo
- Incorporated in
- FL
- HQ
- 3276 South White Road, San Jose, CA 95148
- Auditor
- Smith, Buzzi & Associates, LLC
- Audited financials
Overview
About
- CEO
- Angela Vo
- Headquarters
- CA
- Founded
- 2024
- FDD year
- 2025
- States available
- 3
Can you afford it, and what does the money buy?
Entry cost is about average for a quick-service restaurants franchise.
Source: FDD 2025 · Items 5–7
Full Item 7 breakdown16 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
- Bottom third — review vs category
- Liquid capital req'd
- $25K – $50K
- Middle of category vs category
- Franchise fee
- $40K – $40K
- Middle of category vs category
- Royalty
- 6.0%
- percentage · 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 |
| Technology fee | $500 |
| Transfer fee | $10K |
| Renewal fee | $5K |
| Inventory (initial) | $6K – $10K |
| Total fee load | 8.0% of rev |
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
Pekoe Tea Bar did not disclose financial performance in FDD Item 19. The ROIC and return models require Item 19 revenue. Without it all inputs are estimates. You can still run the calculator with your own assumptions by entering an expected revenue figure.
Returns model · single-unit ROIC
What would one Pekoe Tea Bar unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
15%
Below the 30–60% attractive-franchise band
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2025 FDD
Financial Performance
Startup franchisor incorporated November 19, 2024; audited financials consist of an opening balance sheet only, as of February 13, 2025. No income statement (no revenue) was required or presented.
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Fee burden
Total ongoing fee load of 8.0% (near the Quick-Service Restaurants average).
Disclosure
Franchisor chose not to disclose financial performance representations. You will need to gather unit economics directly from existing franchisees.
Multi-unit rate
Only 6% of franchisees own multiple units. Could indicate challenging economics or a young system where operators haven't had time to expand.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Quick-Service Restaurants averages
How Pekoe Tea Bar Compares
Is the system healthy?
Source: FDD 2025 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 5
- 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)
- 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
- Opened (3yr)
- 0
- Closed (3yr)
- 0
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 0
- Reacquired (3yr)
- 0
- Franchisor bought back
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 12 · 3 states reported
The Territory Map
FDD Item 12 reports the state count, but the specific list isn't in our current data. The map will appear once we re-extract from the FDD or enough franchisee contacts are available.
3
states with franchisees (per FDD Item 12)
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.
What could kill this investment?
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
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 required to be disclosed in Item 3.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Smith, Buzzi & Associates, LLC
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: Yes
Score breakdown · what drove the 39 / 100 verdict
- 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
What are you signing up for?
Ongoing fees run about 8.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2025 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Territory type | exclusive |
| Protected territory | Yes |
| Exclusive territoryℹ | Yes |
| Territory radius | 5 mi |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 25 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Arbitration location | California (where franchisor headquarters are located) |
| Jury trial waiver | No |
| Governing law | CA |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation required to be disclosed in Item 3.
Items 10, 11
Training & Operations
- Classroom training
- 0 hrs
- On-the-job training
- 40 hrs
- Training location
- Affiliate outlet in San Jose, CA or another franchise training center designated by franchisor
- Ongoing training
- Required
- Field support
- 40 hrs/yr
- On-site visits per year
- Time to open
- 7 mo
- From signing to launch
- Site selection
- Franchisee with franchisor approval
- Franchisor financing
- Not offered
- Item 10
- POS system
- Square POS
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Square POS
Item 20 · call current owners
Franchisee Contacts
1 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 Item 19 in the Pekoe Tea Bar FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the Pekoe Tea Bar FDD and qualifies whose outlets they describe.
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 C-grade franchise with a verdict score of 39 out of 100 (higher is better), 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
Are you the franchisor?
If you represent Pekoe Tea Bar, you can request corrections or provide updated information.
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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.