Sharetea Franchise Cost, Revenue & Review 2026
- Investment
- $225K – $555K
- Disclosed sales
- not disclosed
- SBA charge-off
- 9.1%
- on 30 loans
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Sharetea is a quick-service bubble-tea franchise serving milk teas, fruit teas, and toppings. Franchisees run compact shops managing drink prep, POS, and staffing.
FranchiseVerdict summary · 2026
A Sharetea franchise requires a total initial investment of $225K – $555K, including a $12K franchise fee and an ongoing 6.0% royalty[2]. This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. SBA 7(a) loans show a 9.1% charge-off rate across 30 loans[1]. FranchiseVerdict grade: B (Above average), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: 2025 filing · Data extracted: · Last cited check: · Staleness risk: medium - a newer filing may exist
Evidence: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✓ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored5 of 5 headline figures on this page cite a page of the filing.
Overview
- Investment
- $225K – $555K
- 31st pct Service Resta…
- Avg gross sales
- N/A
- Royalty
- 6.0%
- 48th pct Service Resta…
- Units
- 153
- 80th pct Service Resta…
- SBA charge-off
- 9.1%
- % of SBA 7(a) loans not repaid · median varies by category
Quick verdict · Quick-Service Restaurants · color = vs category peers
Green = favorable by >10% vs Quick-Service Restaurants median · 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 $225K – $555K including a $12K franchise fee, 6.0% ongoing royalty.
- RETURNSThis franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that.
- RISKVerdict B (Above average), verdict score 63/100 (higher is better). SBA loan charge-off rate of 9.1% across 30 loans (near or below the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- GROWTHNegative: net -6 franchised outlets in the latest year (10 opened, 16 closed); 11 signed but not yet open (Item 20).
- DATAThis franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Lilian USA LLC
- Parent company
- Lian Fa International Dining Business Corporation
- FDD Item 1, page 6 of the 2025 FDD
- Ultimate parent
- Lian Fa International Dining Business Corporation (Taiwan)
- FDD Item 1, page 6 of the 2025 FDD
- CEO title
- Chief Executive Officer
- Po-Yu Lai
- Incorporated in
- Delaware
- HQ
- One Commerce Center, 1201 Orange Street #600, Wilmington, DE 19899
- Auditor
- Kaizen CPA PLLC
- Audited financials
- Franchisor revenue
- $4.2M
- vs $4.7M prior year
Same owner · FDD Item 1, page 6
1 other brand on this site name Lian Fa International Dining Business Corporation (Taiwan) as parent or ultimate parent in their own FDD.
- UGC
Grouped by the owner's name as each filing prints it (this page: the 2025 FDD). Spelling variants of the same group may be listed apart; a brand is never grouped with an owner its filing does not name.
Overview
About
- CEO
- Po-Yu Lai
- Headquarters
- DE
- Founded
- 2015
- FDD year
- 2025
- States available
- 29
Can you afford it, and what does the money buy?
Entry cost runs 20% below the typical quick-service restaurants franchise.
Source: FDD 2025 · Items 5–7
FDD Item 7 · 2025 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $12K | $12K |
| Working capital (3–6 mo) | $20K | $80K |
| Equipment, build-out, other | $193K | $463K |
| Total initial investment | $225K | $555K |
Source: Sharetea 2025 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $225K – $555K
- Top 40% of category vs category
- Liquid capital req'd
- $20K – $80K
- Top 40% of category vs category
- Franchise fee
- $12K – $12K
- Top 40% of category vs category
- Royalty
- 6.0%
- Set by a formula · typical 6–8%
- Ad fund
- 3.0%
- typical 3–5%
- Total fee load
- 9.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.0% of gross sales |
| Marketing / ad fund | 3.0% |
| Technology fee | $50 |
| Transfer fee | $10K |
| Renewal fee | $26K |
| Inventory (initial) | $30K – $45K |
| Total fee load | 9.0% of rev |
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
Sharetea makes no financial performance representation in Item 19 of its FDD - a voluntary item under the FTC Franchise Rule - so no unit revenue figures are disclosed. The return models need a revenue figure to start from, and the operating costs that turn gross sales into a profit are in no FDD. Enter your own and the calculator runs on your assumptions — nothing here is modelled until you do.
Returns model · single-unit ROIC
What would one Sharetea unit return on the cash you put in?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for annual revenue, COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
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
No financial performance representation
This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that.
Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
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 9.0% — above the Quick-Service Restaurants median of 7.5%.
Disclosure
This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Operator retention
System roughly stable (+4.8% 3-year CAGR) with 153 units.
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 medians
How Sharetea Compares
Category median of published Quick-Service Restaurants brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
Is the system healthy?
Source: FDD 2025 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 153
- Opened
- 10
- Last reporting year
- Closed
- 16
- Turnover rate
- 10.5%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (3-yr)
- -3.8%
- Net unit change over 3 years
- 3-yr CAGR
- +4.8%
- Compounded over last 3 years
Last fiscal year · Item 20 exits and transfers
- Transferred
- 9
- Reacquired
- 0
- Franchisor bought back
- Signed, not yet open
- 11
- 0.07 per open outlet · Item 20 Table 5
- Projected new
- 26
- 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.
Where the owners are · Item 20 owner list
3 current owners across 3 states.
- CA 1
- IL 1
- OR 1
Counts only, from the list the franchisor prints in Item 20. Names and phone numbers are for your own due diligence and are not shown here.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 30
- Loan volume
- $11.9M
- Median loan
- $338K
- 50th percentile
- Charge-off rate
- 9.1%
- on 30 loans · 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)
- 90.9%
- 5-yr charge-off
- 0.0%
- Loans approved 2021+
- Active lenders
- 21
- Defaults
- 1
- Typical loan rate
- 7.9%
- avg rate to borrowers
- Franchised industry avg
- 10.6%
- brand beats franchise avg ↓
- Jobs supported
- 423
- 3.6 per loan
- Lender concentration
- 10%
- top lender's share
Borrower mix: 62% went to startups / new businesses, 38% to established operators
Franchise vs independent — in snack and nonalcoholic beverage bars, franchised businesses charge off at 10.6% vs 8.9% for independents — franchising is associated with 19% higher SBA default risk in this category.
Top lenders financing Sharetea franchisees
Showing 3 of 21 lenders. The full breakdown — every lender, state distribution, interest rates & risk ratings — is in the SBA Lending Report below.
Explore lender portfolios on Bank Reports or regional data on State Reports.
Lender network · 7(a) + 504
SBA Lending Report
Full lending analysis for Sharetea from SBA 7(a) FOIA data.
- Principal loss rate
- 1.6%
- Avg SBA guarantee
- 74%
- Avg interest rate
- 7.94%
- Avg chargeoff amount
- $196K
- Lender concentration
- 10.0%
- Job velocity
- 3.6 per $100K
- Startup risk premium
- +16.7pp
- NAICS benchmark
- 7.0%
- NAICS 722515
- Jobs supported
- 423
Top SBA lendersTop lender holds 10% of loans
| # | Lender | Loans | Volume | Default % |
|---|---|---|---|---|
| 1 | East West Bank | 3 | $730K | 0.0% |
| 2 | The Huntington National Bank | 3 | $794K | N/A |
| 3 | Readycap Lending, LLC | 3 | $1.2M | 0.0% |
| 4 | CDC Small Business Finance Corp. | 2 | $256K | 0.0% |
| 5 | GBC International Bank | 2 | $708K | N/A |
| 6 | Timberland Bank | 2 | $1.7M | N/A |
| 7 | Midwest Regional Bank | 1 | $407K | N/A |
| 8 | Bank of Hope | 1 | $420K | 0.0% |
| 9 | Mountain Pacific Bank | 1 | $400K | 0.0% |
| 10 | United Business Bank | 1 | $215K | 100.0% |
Geographic failure vector
| State | Loans | Defaults | Rate |
|---|---|---|---|
| CACalifornia | 12 | 1 | 16.7% |
| WAWashington | 11 | 0 | 0.0% |
| NCNorth Carolina | 2 | 0 | 0.0% |
| TXTexas | 2 | 0 | -- |
| ILIllinois | 1 | 0 | -- |
| KYKentucky | 1 | 0 | -- |
| NMNew Mexico | 1 | 0 | 0.0% |
SBA 7(a) lending trend
Borrower profile
Source: SBA 7(a) + 504 FOIA loan-level data, matched by FranchiseVerdict
What could kill this investment?
SBA loans charge off at 9.1% — 43% below the 16.0% national norm, i.e. lower lender-observed risk.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Six litigation matters but all trademark/territory disputes, mostly settled or involving the parent overseas; system is a healthy 153 units with strong financials (net worth $3.2M, net income $899,373). Item 19 not disclosed. Litigation count is moderate relative to system size and mostly IP-related.
Litigation (Item 3)
Subject: the franchisor is a named party (defendant).
Parent company Lian Fa has an ongoing trademark infringement suit against its Australian master franchisee (filed 2021). Lilian USA settled a franchisee protected-territory/trademark dispute (Tenmei Group, 2019) and a trademark infringement suit it filed against a third party (Yucheng Liu/Coolblue, settled March 2022). A personal injury suit naming Lilian USA as co-defendant (hot water burn incident) was settled. Lilian USA self-reported an unregistered franchise sale in Minnesota (consent order Sept 2022) and is subject to an ongoing Hawaii securities/franchise investigation opened March 2021. No bankruptcies disclosed.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Kaizen CPA PLLC
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Franchisor FY2024 revenue: Franchise Revenue $1,179,205 + Royalty Income $3,045,489 + Sales $6,910 = Total Revenue $4,231,604
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
- Can negotiate own supplier terms: No
Score breakdown · what drove the 63 / 100 verdict
- 01HIGH6 litigation matters (mostly trademark, several settled)
- 02MEDItem 19 not disclosed
- 03MINORStrong financials: net worth $3.18M, net income $899,373
- 04MINOR153 units, no going-concern or bankruptcy
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 9.0% 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 | 5 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 1 |
| Territory type | Protected territory |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory radius | 7 mi |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 3 mi |
| Right of first refusalℹ | Yes |
| RoFR response window | 30 days |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Curable defaultsℹ | 3 |
| Mandatory arbitration | No |
| Arbitration location | California |
| Governing law | California |
| Litigation count | 6 |
View Item 3 litigation summary
Parent company Lian Fa has an ongoing trademark infringement suit against its Australian master franchisee (filed 2021). Lilian USA settled a franchisee protected-territory/trademark dispute (Tenmei Group, 2019) and a trademark infringement suit it filed against a third party (Yucheng Liu/Coolblue, settled March 2022). A personal injury suit naming Lilian USA as co-defendant (hot water burn incident) was settled. Lilian USA self-reported an unregistered franchise sale in Minnesota (consent order Sept 2022) and is subject to an ongoing Hawaii securities/franchise investigation opened March 2021. No bankruptcies disclosed.
Items 10, 11
Training & Operations
- Classroom training
- 6 hrs
- On-the-job training
- 62 hrs
- Site selection
- Franchisee selects/negotiates site; franchisor must approve
- Franchisor financing
- Not offered
- Item 10
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
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Sharetea franchise?
The total investment to open a Sharetea franchise ranges from $225K – $555K, with an initial franchise fee of $12K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Sharetea franchise owners earn?
Sharetea makes no financial performance representation in Item 19 of its FDD - a voluntary item under the FTC Franchise Rule - so no unit revenue figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Who owns Sharetea?
Sharetea is franchised by Lilian USA LLC. Its parent company is Lian Fa International Dining Business Corporation. The ultimate parent named in the FDD is Lian Fa International Dining Business Corporation (Taiwan). Source: FDD Item 1, 2025 filing.
What is Item 19 in the Sharetea 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 Sharetea FDD and qualifies whose outlets they describe.
What is Sharetea's franchise failure rate?
Based on SBA 7(a) loan data, Sharetea has a charge-off rate of 9.1% across 30 loans, meaning 9.1% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many Sharetea franchise locations are there?
As of their most recent FDD filing, Sharetea has 153 total units in the United States, including 153 franchised units and 0 company-owned units. 10 new units were opened in the latest reporting year.
Is Sharetea a good franchise to buy?
FranchiseVerdict rates Sharetea as a B-grade franchise with a verdict score of 63 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. 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.