Teapioca Lounge
Bottom line
- Total investment $312K – $670K including a $44K franchise fee, 5.0% ongoing royalty.
- No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
- Rated MODERATE with a risk score of 62/100. SBA loan default rate of 0.0% across 6 loans (below the industry average).
- No protected territory and the franchisor reserves the right to compete in your area. Clarify territorial boundaries before signing.
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 Teapioca Lounge unit return on the cash you put in?
Unlevered ROIC · per unit
21%
Below typical band (30–60%)
Overview
About
Franchisees operate bubble tea/boba tea retail locations, managing inventory, point-of-sale operations, staff scheduling, and customer service. Day-to-day activities include preparing tea beverages, managing a counter-service model, processing transactions, and maintaining product quality in a competitive QSR environment.
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 · 19 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
Teapioca Lounge presents meaningful financial opacity and going concern risks, compounded by limited territory protection and a small, modestly-growing franchise system.
Score breakdown · what drove the 62 / 100 rating
- 01MINORNo financial disclosure (Item 19) — cannot validate claimed profitability or ROI
- 02HIGHGoing Concern status is FALSE — indicates potential financial instability at corporate level
- 03MINORUnprotected territory — franchisees compete directly with other brand locations and independents
- 04MINORNo franchise fee but high unit investment ($311k-$670k) — may indicate difficulty attracting franchisees or hidden costs
- 05MINOROnly 36 units with modest 12.5% YoY growth — small and slow-growing system increases business risk
- 06MINORModest 5% royalty may mask insufficient corporate support and underfunded marketing/training
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
26 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Teapioca Lounge · FDD (2025) PDF