Bottom line
- Total investment $225K – $649K including a $12K 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 69/100. SBA loan default rate of 0.0% across 54 loans (below the industry average).
- 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 Sharetea unit return on the cash you put in?
Unlevered ROIC · per unit
14%
Below typical band (30–60%)
Overview
About
Sharetea franchisees operate bubble tea/milk tea retail locations, managing daily operations including beverage preparation, inventory management, point-of-sale transactions, and customer service in a QSR environment. The business model relies on high-volume transactions at relatively low per-unit margins with significant labor and ingredient costs.
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 · 14 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.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Sharetea presents HIGH RISK due to a contracting franchise system, active multi-jurisdictional litigation, regulatory investigations, and complete absence of earnings disclosure—indicating both franchisor instability and franchisee profitability concerns.
Score breakdown · what drove the 69 / 100 rating
- 01MINORUnit count declining 3.8% YoY (153 units) signals system contraction and potential market saturation or franchisee dissatisfaction
- 02HIGHMultiple active litigation cases including trademark infringement (domestic and Australia), territory violation claims, and personal injury tort create legal/financial exposure
- 03MINORState regulatory investigations in Minnesota and Hawaii for unregistered franchise offers suggest compliance failures and potential franchise disclosure violations
- 04MINORNo average revenue or net income disclosure (no Item 19) prevents validation of ROI claims and profitability benchmarks
- 05HIGHGoing Concern status False raises questions about franchisor financial stability and ability to support franchisees long-term
- 06MEDHigh investment ceiling ($648,800) paired with declining units and undisclosed earnings creates significant downside risk
- 07MINOR6% royalty on gross sales (not net) compounds profitability pressure in low-margin beverage retail
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
20 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Sharetea · FDD (2025) PDF