FranchiseVerdict
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FV-02032·MODERATEStandard76

Presotea

OtherFranchising since 2019Website
Investment
$193K – $238K
63rd pct Other
Avg revenue
50th pct Other
Royalty
1.7%
1st pct Other
Units
20
48th pct Other
SBA default
0.0%
vs <3% typical

Bottom line

  • Total investment $193K – $238K including a $0 franchise fee, 1.7% ongoing royalty.
  • No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
  • Rated MODERATE with a risk score of 64/100. SBA loan default rate of 0.0% across 4 loans (below the industry average).
  • Auditor disclosed a going-concern note — 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
Incorporated in
Delaware
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.

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 Presotea unit return on the cash you put in?

Revenue · per unit, per year
$
Item 19 not disclosed — typing your own estimate
Franchisor take · royalty + ad fund
Royaltytyp 68%
%
Ad fundtyp 35%
%
Operating costs · category default: generic
COGS
%
Labor
%
Rent / occupancy
%
Other operating
%
Total invested capital · what you actually put in
Initial investment
$
FDD Item 7: $193K–$238K
Working capital
$
FDD reports $139K–$149K

Unlevered ROIC · per unit

34%

In Yale's "attractive" band (30–60%)

0%30–60% Yale band80%

Store EBITDA · annual
$122K
EBITDA margin
16.3%
Total invested
$359K
Payback
35 mo
Unit-level only. A multi-unit portfolio gives up roughly 5–15% of this to shared services (corporate G&A) before reaching the ~10-unit break-even Yale describes.

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

Item 7 · what it costs

The Vitals

Total investment
$193K – $238K
All-in to open one unit
Liquid capital
$139K – $149K
Cash you must have on hand
Franchise fee
$0
Royalty
1.7%
percentage of gross revenues · typical 6–8%
Ad fund
5.0%
typical 3–5%
Total fee load
6.7%
vs 9–13% typical

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

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
2022
20±0
Franchised units
2023
20
Franchised units
2024
11
Franchised units

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)

Government records

SBA Loan Data

Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.

Total loans
4
Loan volume
Avg loan
Default rate
0.0%
vs <3% typical · system-wide
5-yr default

FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17

Risk & Legal

64
Risk · 0-100
MODERATE64 / 100

Presotea presents caution-level risk due to undisclosed unit economics, micro-scale system size, and financial structure that raises franchisor sustainability questions.

Score breakdown · what drove the 64 / 100 rating

  1. 01MEDNo average unit revenue or net income disclosed in Item 19 — impossible to evaluate ROI or payback period on $193k-$238k investment
  2. 02MINOROnly 20 total units with unknown growth trajectory — very small system raises questions about brand awareness, supply chain viability, and franchisor support infrastructure
  3. 03MINORZero franchise fee is unusual and may indicate either aggressive growth strategy or difficulty attracting franchisees, suggesting market headwinds
  4. 04MINOR1.67% royalty rate is low relative to QSR average (5-7%), which may signal franchisor financial constraints to support franchisees
  5. 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

Territory
Geographic
Protected territory
Yes
Initial term
6 years
Renewal term
6 years
Online sales rights
Restricted
Franchisor can compete
No
Hire a manager?
Allowed
Litigation count
0
Right of first refusal
Yes
Franchisor can buy back on resale
Mandatory arbitration
Yes
Jury trial waiver
Yes
Non-compete
2 yrs
Post-termination restriction
Owner-operator
Required
Governing law
Minnesota

Item 11

Training & Operations

Classroom training
88 hrs
On-the-job training
32 hrs

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

2 numbers

Locked
(714) 860-••••
CA
(408) 329-••••
CA

One-time purchase · CSV download · Validation questions included

FDD download

Presotea · FDD (2024) PDF

Single-page checkout · instant download · CSV export of contacts available separately above