FranchiseVerdict
TEALUX CAFÉ logo
FV-02568·AVOIDMinimal24FDD 2021

Tealux Café

Education - Children's ProgramsWebsite
Investment
100th pct Children's Pr…
Avg revenue
69th pct Children's Pr…
Royalty
Units
100th pct Children's Pr…
SBA default

Bottom line

  • Total investment —.
  • No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
  • Rated AVOID with a risk score of 94/100.
  • 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
TEALUX CAFÉ
Incorporated in
Virginia
HQ
7870 Tidewater Dr #201, Norfolk, VA 23505

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 TEALUX CAFÉ 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: education
COGS
%
Labor
%
Rent / occupancy
%
Other operating
%
Total invested capital · what you actually put in
Initial investment
$
Working capital
$
Item 7 didn't break this out — defaulted to ~10% of annual revenue

Unlevered ROIC · per unit

32%

In Yale's "attractive" band (30–60%)

0%30–60% Yale band80%

Store EBITDA · annual
$105K
EBITDA margin
14.0%
Total invested
$325K
Payback
37 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

TEALUX CAFÉ franchisees operate specialty tea and café retail locations, likely preparing and serving premium tea beverages, light food items, and related products to customers in a café setting. Day-to-day operations would include inventory management, beverage preparation, customer service, POS management, and compliance with franchisor standards.

Founded
2021
FDD year
2021

Item 7 · what it costs

The Vitals

Total investment
All-in to open one unit
Liquid capital
Cash you must have on hand
Franchise fee
Royalty
n/d
Ad fund
n/d

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
Opened
Last reporting year
Closed

No multi-year history disclosed and no opening/closing activity in the last reporting year.

Government records

SBA Loan Data

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

No SBA loan data available for this brand.

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

Risk & Legal

94
Risk · 0-100
AVOID94 / 100

TEALUX CAFÉ presents extreme investment risk with going concern status, complete financial opacity, unknown system size, and undisclosed material terms—avoid until comprehensive FTC disclosure provided.

Score breakdown · what drove the 94 / 100 rating

  1. 01HIGHGoing Concern status indicates financial distress or viability questions at franchisor level
  2. 02MEDZero disclosed investment range suggests either pre-launch stage or intentional opacity
  3. 03MINORUnknown unit count and growth metrics prevent assessment of system health and trajectory
  4. 04MINORNo financial disclosure (revenue/net income) violates FTC Item 19 transparency standards
  5. 05MINORUnknown royalty rate raises concerns about hidden or variable fee structures
  6. 06MEDIncomplete franchise agreement terms (unknown duration) suggest underdeveloped offering
  7. 07HIGHLack of litigation disclosure combined with going concern status suggests potential legal/financial problems
  8. 08HIGHUnknown unit count combined with going concern likely indicates rapid unit contraction or failed launch
  9. 09MINORTerritory protection claim cannot be verified without franchise agreement review
  10. 10MINOROverall data absence suggests either early-stage franchisor, dormant system, or reluctance to disclose performance

Severity inferred from the FDD text · not a regulatory classification

FDD Items 5, 6, 12, 17 · continued from Risk & Legal

Contract & Territory Detail

Territory
Exclusive
Protected territory
Yes
Litigation count
0
Right of first refusal
Yes
Franchisor can buy back on resale
Mandatory arbitration
Yes
Governing law
Texas

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.

No franchisee contacts available for TEALUX CAFÉ. This brand's FDD Item 20 did not include a contactable franchisee list.