Rose Tea Lounge™Franchise Cost, Revenue & Review 2026
Data from FDD filing
FranchiseVerdict summary · 2026
A Rose Tea Lounge™ franchise requires a total initial investment of $276K – $406K, including a $45K franchise fee and an ongoing 6.0% royalty[2]. The 2025 FDD does not disclose unit-level revenue (no Item 19). Verdict grade: B. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $276K – $406K
- 53rd pct Service Resta…
- Avg gross sales
- N/A
- 59th pct Service Resta…
- Royalty
- 6.0%
- 44th pct Service Resta…
- Units
- 4
- 17th 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 2024. Newer systems carry more uncertainty but may offer better territories.
Bottom line
- Total investment $276K – $406K including a $45K franchise fee, 6.0% ongoing royalty.
- No Item 19 financial performance data disclosed. The franchisor chose not to publish revenue figures.
- Verdict B (Above Average) with a risk score of 57/100.
- 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
- RTL Franchising, Inc.
- Incorporated in
- CA
- HQ
- 9160 E Stockton Blvd Suite 120, Elk Grove, California 95624
- Auditor
- Ellsworth & Stout, LLC
- Audited financials
- Franchisor revenue
- $0
- Most recent fiscal year
Overview
About
Rose Tea Lounge franchisees operate specialty tea lounges serving premium loose-leaf teas, tea-based beverages, and likely light food/pastry items. Day-to-day operations involve inventory management of tea selection, customer service in a lounge setting, beverage preparation, and maintaining the branded atmosphere. The model appears venue-based rather than delivery/wholesale.
- CEO
- Danh Cong Pham
- Headquarters
- CA
- Founded
- 2024
- FDD year
- 2025
- States available
- 1
FDD Item 7 · 2025 filing · 15 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Feenot refundable | $49K | $49K | |
| Technology | $11K | $12K | |
| Equipment, Furniture and Fixtures | $85K | $116K | |
| Real Estate | $5K | $25K | |
| Leasehold Improvements | $70K | $100K | |
| Utilities | $0 | $800 | |
| Signagenot refundable | $2K | $4K | |
| Start Up Inventory | $35K | $36K | |
| Grand Opening Marketing | $4K | $6K | |
| Staffing | $7K | $10K | |
| Uniforms | $200 | $500 | |
| Insurance | $3K | $5K | |
| Travel, Lodging and Meals for Initial Training Program | $4K | $5K | |
| Licenses, Permits, Certifications and other Professional Fees | $2K | $3K | |
| Additional Funds (3 Months) | $15K | $35K | |
| Total initial investment | $290K | $406K |
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
- $276K – $406K
- Near category avg vs category
- Liquid capital req'd
- $15K – $35K
- Better than avg vs category
- Franchise fee
- $45K – $49K
- Below avg, review vs category
- Royalty
- 6.0%
- percentage_of_gross · 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 | $110 |
| Training fee | $200 |
| Transfer fee | $10K |
| Renewal fee | $0 |
| 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 Rose Tea Lounge™ Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 4
- Opened
- 1
- 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
- 4
- Corporate units in the system
- % franchised
- 0%
- vs corporate-owned
3-year detail · Item 20
- Transfers (3yr)
- 0
- Projected new
- 3
- Franchisor's next-year forecast
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 3 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
Rose Tea Lounge presents HIGH RISK due to going concern issues, minimal system size, complete absence of financial transparency, and unproven unit economics that fail basic due diligence standards.
Litigation (Item 3)
No litigation required to be disclosed
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Ellsworth & Stout, LLC
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
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: No
Score breakdown · what drove the 57 / 100 rating
- 01HIGHGoing Concern status = False indicates serious financial viability questions about the franchisor
- 02MINOROnly 4 units systemwide suggests minimal brand traction, market validation failure, or recent contraction
- 03MEDNo Item 19 financial disclosure (Avg Revenue & Net Income not disclosed) prevents ROI analysis and suggests weak unit economics
- 04MINORHigh initial investment ($276k-$405k) with unproven returns creates significant capital-at-risk exposure
- 05MINORTiny franchise system (4 units) offers minimal peer support network and suggests franchisor may lack operational infrastructure
- 06MINORUnknown growth trajectory with stagnant unit count indicates lack of franchisee demand or failed recruitment efforts
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 | 5 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 1 |
| Territory type | Radius |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory radius | 3 mi |
| Online sales rightsℹ | 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 | 60 days |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | California |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation required to be disclosed
Items 10, 11
Training & Operations
- Classroom training
- 25 hrs
- On-the-job training
- 156 hrs
- Training location
- Franchisor location and on-site
- Ongoing training
- Required
Items 5 & 11
Franchisor Support
Item 20 · call current owners
Franchisee Contacts
3 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Rose Tea Lounge™ · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Rose Tea Lounge™ franchise?
The total investment to open a Rose Tea Lounge™ franchise ranges from $276K – $406K, with an initial franchise fee of $45K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Rose Tea Lounge™ franchise owners earn?
Rose Tea Lounge™ 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 Rose Tea Lounge™'s franchise failure rate?
SBA 7(a) loan charge-off data is not available for Rose Tea Lounge™ (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 Rose Tea Lounge™ franchise locations are there?
As of their most recent FDD filing, Rose Tea Lounge™ has 4 total units in the United States, including 0 franchised units and 4 company-owned units. 1 new units were opened in the latest reporting year.
Is Rose Tea Lounge™ a good franchise to buy?
FranchiseVerdict rates Rose Tea Lounge™ as a B-grade franchise with a risk score of 57 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.