PresoteaFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Presotea franchise requires a total initial investment of $193K – $238K and an ongoing 5.0% royalty[2]. The 2024 FDD does not disclose unit-level revenue (no Item 19). Verdict grade: F. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2024 FDD issuance
Overview
- Investment
- $193K – $238K
- 29th pct Service Resta…
- Avg gross sales
- N/A
- 59th pct Service Resta…
- Royalty
- 5.0%
- 13th pct Service Resta…
- Units
- 20
- 47th pct Service Resta…
- SBA default
- 0.0%
- system-wide median varies by category
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
Franchised units fell from 21 to 20 over 3 years. Investigate why operators are leaving.
The franchisor's auditor raised doubt about continued operations. This is a serious risk signal.
Bottom line
- Total investment $193K – $238K including a $0 franchise fee, 5.0% ongoing royalty.
- No Item 19 financial performance data disclosed. The franchisor chose not to publish revenue figures.
- Verdict F (Bottom Quintile) with a risk score of 97/100.
- 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
- PRESOTEA (USA) CO., LTD.
- Parent company
- Presotea Co., Ltd
- CEO title
- President, Chief Financial Officer, Secretary, Director
- Mei Yen Chen
- CEO experience
- 18 yrs
- Years in role or industry
- Founder active
- Yes
- Original founder still leading the business
- Incorporated in
- DE
- HQ
- No.3 Fuxing St., Tucheng Dist., New Taipei City 236, Taiwan (R.O.C.)
- Auditor
- JTC Accountancy Corp
- Audited financials
- Franchisor revenue
- $117K
- vs $191K prior year
- ⚠ Going-concern note
- Disclosed in FDD 2024
- Status as of 2024; may have been resolved in a later filing we don't yet have.
Affiliated brands
- is Presotea Co
Other brands the franchisor or its parent operates (Item 1).
Overview
About
Presotea franchisees operate bubble tea and beverage shops, managing daily operations including drink preparation, customer service, inventory management, and point-of-sale systems. Franchisees are responsible for staffing, local marketing, and maintaining quality standards while paying 1.67% of gross revenues to the franchisor.
- CEO
- Mei Yen Chen
- Founded
- 2018
- FDD year
- 2024
- States available
- 20
FDD Item 7 · 2024 filing · 7 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Fee | — | — | |
| Training Feenot refundable | $20K | $20K | |
| Rent & Security Deposit for Warehouse (3 Months) | $3K | $10K | |
| Travel & Living Expenses While Attending Initial Training | $12K | $14K | |
| Insurance (3 months) | $10K | $20K | |
| Professional Fees | $10K | $25K | |
| Additional Funds (4-6 months) | $139K | $149K | |
| Total initial investment | $193K | $238K |
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
- $193K – $238K
- Better than avg vs category
- Liquid capital req'd
- $139K – $149K
- Below avg, review vs category
- Franchise fee
- N/A
- Better than avg vs category
- Royalty
- 5.0%
- percentage_of_gross · typical 6–8%
- Ad fund
- 1.7%
- typical 3–5%
- Total fee load
- 6.7%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 5.0% of gross sales |
| Marketing / ad fund | 1.7% of gross sales |
| Training fee | $20K |
| Transfer fee | $20K |
| Renewal fee | $50 |
| Inventory (initial) | $69K – $69K |
| Total fee load | 6.7% 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 Presotea Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 20
- Opened
- 1
- Last reporting year
- Closed
- 0
- Turnover rate
- 0.0%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Multi-unit owners
- 80.0%
- Net growth (yr3)
- +0.0%
- Net unit change last year
- 3-yr CAGR
- +81.8%
- Compounded over last 3 years
3-year detail · Item 20
- Closed (3yr)
- 8
- Terminated (3yr)
- 8
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 1
- Reacquired (3yr)
- 0
- Franchisor bought back
- Projected new
- 1
- Franchisor's next-year forecast
- Transfer rate
- 60.0%
- Owners selling to other franchisees
- Termination rate
- 40.0%
- Franchisor-initiated terminations
- Ceased ops
- 40.0%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 12 · 20 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.
20
states with franchisees (per FDD Item 12)
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA loan disclosures. This brand has only 2 7(a) loans on file; statistical reliability is limited below 10 loans.
- Total loans
- 2
- Loan volume
- $297K
- Median loan
- $149K
- average
- Charge-off rate
- 0.0%
- rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- N/A
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 2
- Defaults
- 0
Explore lender portfolios on Bank Reports or regional data on State Reports.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Presotea presents caution-level risk due to undisclosed unit economics, micro-scale system size, and financial structure that raises franchisor sustainability questions.
Litigation (Item 3)
0 case reference(s): 0 pending, 0 settled.
Largest disclosed settlement: $58,000
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · JTC Accountancy Corp⚠ 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: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
Score breakdown · what drove the 97 / 100 rating
- 01MEDNo average unit revenue or net income disclosed in Item 19 — impossible to evaluate ROI or payback period on $193k-$238k investment
- 02MINOROnly 20 total units with unknown growth trajectory — very small system raises questions about brand awareness, supply chain viability, and franchisor support infrastructure
- 03MINORZero franchise fee is unusual and may indicate either aggressive growth strategy or difficulty attracting franchisees, suggesting market headwinds
- 04MINOR1.67% royalty rate is low relative to QSR average (5-7%), which may signal franchisor financial constraints to support franchisees
- 05MINOR6-year term is shorter than industry standard (10 years), creating renewal uncertainty and limiting franchisee investment recovery window
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 | 6 years |
|---|---|
| Renewal term | 6 years |
| Territory type | Geographic |
| Protected territory | Yes |
| Exclusive territoryℹ | Yes |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | No |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| RoFR response window | 30 days |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Termination groundsℹ | 1 |
| Curable defaultsℹ | 1 |
| Mandatory arbitration | Yes |
| Arbitration location | California |
| Jury trial waiver | Yes |
| Governing law | Minnesota |
| Litigation count | 0 |
View Item 3 litigation summary
0 case reference(s): 0 pending, 0 settled.
Items 10, 11
Training & Operations
- Classroom training
- 88 hrs
- On-the-job training
- 32 hrs
- Training location
- On-site and corporate
- Ongoing training
- Required
- Site selection
- franchisor
- 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
Presotea · FDD (2024) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Presotea franchise?
The total investment to open a Presotea franchise ranges from $193K – $238K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Presotea franchise owners earn?
Presotea 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 Presotea's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Presotea (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 Presotea franchise locations are there?
As of their most recent FDD filing, Presotea has 20 total units in the United States, including 21 franchised units and 0 company-owned units. 1 new units were opened in the latest reporting year.
Is Presotea a good franchise to buy?
FranchiseVerdict rates Presotea as a F-grade franchise with a risk score of 97 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
Are you the franchisor?
If you represent Presotea, you can request corrections or provide updated information.
Claim this brandOther Quick-Service Restaurants franchises
Compare similar franchise opportunities in the Quick-Service Restaurants category
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.