Teapioca Lounge Franchise Cost, Revenue & Review 2026
- Investment
- $312K – $670K
- Disclosed sales
- partial, no system average
- SBA charge-off
- Under 10 loans (3)
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Teapioca Lounge is a bubble tea franchise serving boba milk teas, fruit teas, smoothies, and snacks. Franchisees run the shops, managing drink preparation, ingredient inventory, and counter service.
FranchiseVerdict summary · 2026
A Teapioca Lounge franchise requires a total initial investment of $312K – $670K, including a $44K franchise fee and an ongoing 5.0% royalty[2]. The 2025 FDD on file does not yield a unit-revenue figure we can publish. FranchiseVerdict grade: A (Strongest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: medium - issued 12 to 24 months ago; a newer filing is likely on file
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 scored4 of 4 headline figures on this page cite a page of the filing.
Overview
- Investment
- $312K – $670K
- 51st pct Service Resta…
- Avg gross sales
- N/A
- Outlet subset
- Royalty
- 5.0%
- 12th pct Service Resta…
- Units
- 36
- 59th pct Service Resta…
- SBA charge-off
- N/A
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 $312K – $670K including a $44K franchise fee, 5.0% ongoing royalty.
- RETURNSItem 19 reports outlet revenue, but not in a form that yields a per-outlet average we can compare across brands.
- RISKVerdict A (Strongest tier), verdict score 71/100 (higher is better).
- GROWTHPositive: net +4 franchised outlets in the latest year (4 opened, 0 closed); 8 signed but not yet open (Item 20).
- GROWTHSystem growing at 33.3% CAGR over 3 years with 36 total units. Strong expansion trajectory.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Teapioca International, LLC
- CEO title
- Chief Executive Officer
- Bao Phan
- Incorporated in
- Texas
- HQ
- 2851 Joe DiMaggio Blvd., Ste. 33 & 34, Round Rock, Texas 78665
- Auditor
- KWL LLP
- Audited financials
- Franchisor revenue
- $946K
- vs $1.1M prior year
- Management churn noted
- Frequent turnover
- Item 2 disclosed frequent executive changes
Overview
About
- CEO
- Bao Phan
- Headquarters
- TX
- Founded
- 2015
- FDD year
- 2025
- States available
- 5
Can you afford it, and what does the money buy?
Entry cost is about typical for a quick-service restaurants franchise (near the category median).
Source: FDD 2025 · Items 5–7
FDD Item 7 · 2025 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $44K | $44K |
| Working capital (3–6 mo) | $20K | $50K |
| Equipment, build-out, other | $248K | $576K |
| Total initial investment | $312K | $670K |
Source: Teapioca Lounge 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
- $312K – $670K
- Middle of category vs category
- Liquid capital req'd
- $20K – $50K
- Top 40% of category vs category
- Franchise fee
- $44K – $44K
- Bottom third — review vs category
- Royalty
- 5.0%
- typical 6–8%
- Ad fund
- 2% - 1% based on Gross Sales volume
- Total fee load
- 7.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 5.0% of gross sales |
| Technology fee | $8K |
| Training fee | $44K |
| Transfer fee | $10K |
| Renewal fee | $9K |
| Inventory (initial) | $30K – $51K |
| Total fee load | 7.0% of rev |
What do units actually make?
Source: FDD 2025 · Item 19
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
No Item 19 revenue figure for Teapioca Lounge is on file. 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 Teapioca Lounge 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, ad fund rate, 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
Reported for a subset of outlets rather than the whole system
- Item 19 type
- gross sales
- Sample size
- 26
- vs category median 19
- Reporting year
- 2024
- Fiscal year the figures cover
- Source filing
- FDD 2025
- Disclosed in the 2025 filing, covering 2024
Compared against 781 Quick-Service Restaurants brands
Item 19 · by group
What the filing does disclose
Item 19 of this FDD reports performance in more than one group. We publish no single average for this brand; the groups the filing does disclose are listed below, quoted from its own Item 19 table.
Each row below is quoted from the FDD's own Item 19 table. Gross sales are not profit.
Outlet subsetItem 19 detail
By years open
| Segment | Sample | Avg |
|---|---|---|
| 1-3 Years in Business (2023) | 4 | $480K |
| 4-6 Years in Business (2023) | 10 | $580K |
| 7-10 Years in Business (2023) | 4 | $569K |
| Over 10 Years in Business (2023) | 3 | $1.0M |
| 1-3 Years in Business (2024) | 10 | $495K |
| 4-6 Years in Business (2024) | 6 | $587K |
| 7-10 Years in Business (2024) | 7 | $480K |
| Over 10 Years in Business (2024) | 3 | $897K |
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 7.0% (near the Quick-Service Restaurants median).
Disclosure
Item 19 reports outlet revenue, but not in a form that yields a per-outlet average we can compare across brands.
Operator retention
System expanding at 33.3% CAGR over 3 years across 36 units — operators are staying and new ones are joining.
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 Teapioca Lounge 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
- 36
- Opened
- 4
- Last reporting year
- Closed
- 0
- Terminated
- 1
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 2.8%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (3-yr)
- +33.3%
- Net unit change over 3 years
- 3-yr CAGR
- +33.3%
- Compounded over last 3 years
Last fiscal year · Item 20 exits and transfers
- Terminated
- 1
- Not renewed
- 0
- Transferred
- 2
- Reacquired
- 0
- Franchisor bought back
- Signed, not yet open
- 8
- 0.22 per open outlet · Item 20 Table 5
- Projected new
- 9
- Franchisor's next-year forecast
- Transfer rate
- 5.6%
- Owners selling to other franchisees
- Termination rate
- 2.8%
- Franchisor-initiated terminations
- Ceased ops
- 2.8%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 12 · 5 states reported
The Territory Map
FDD Item 12 reports the state count, but the specific list isn't in our current data. The map will appear once we re-extract from the FDD or enough franchisee contacts are available.
5
states with franchisees (per FDD Item 12)
Fast growth in a small system. Newer franchisors expanding quickly may not yet have the support infrastructure of larger systems.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA loan disclosures. This brand has only 3 7(a) loans on file; statistical reliability is limited below 10 loans.
- Total loans
- 3
- Loan volume
- $966K
- Median loan
- $313K
- 50th percentile
- Charge-off rate
- Under 10 loans (3)
- Insufficient SBA coverage: 3 loans, rate hidden below 10
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- Under 10 loans (3)
- 5-yr charge-off
- Under 10 loans (3)
- Loans approved 2021+
- Active lenders
- 3
- Defaults
- N/A
Explore lender portfolios on Bank Reports or regional data on State Reports.
What could kill this investment?
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Boba QSR franchisor with 36 franchised units, healthy 33.3% net growth and very low 2.8% turnover. Audited financials, Item 19 disclosed, and no litigation, bankruptcy, distress, or going-concern note.
Litigation (Item 3)
Subject: officers or affiliates. The franchisor is not a named party in these cases.
No litigation required to be disclosed
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · KWL LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Item 8 discloses Franchisor's total FY2024 revenue of $1,138,117, of which $0 (0%) derived from Franchisees' required purchases or leases.
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 71 / 100 verdict
- 01HIGHNo litigation, bankruptcy, or going concern
- 02MINORStrong growth 33.3%, low turnover 2.8%
- 03MEDAudited, Item 19 disclosed
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 7.0% 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 | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | No territory protection |
| Protected territory | No |
| Exclusive territoryℹ | No |
| Territory radius | 1 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 | 25 mi |
| Right of first refusalℹ | Yes |
| RoFR response window | 14 days |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Curable defaultsℹ | 9 |
| Mandatory arbitration | No |
| Jury trial waiver | Yes |
| Governing law | Texas |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation required to be disclosed
Items 10, 11
Training & Operations
- Classroom training
- 92 hrs
- On-the-job training
- 160 hrs
- Training location
- On-site and corporate
- Ongoing training
- Required
- Site selection
- franchisor_assisted
- Franchisor financing
- Not offered
- Item 10
- POS system
- Linga POS
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Linga POS
Item 20 · call current owners
Franchisee Contacts
1 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 Teapioca Lounge franchise?
The total investment to open a Teapioca Lounge franchise ranges from $312K – $670K, with an initial franchise fee of $44K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Teapioca Lounge franchise owners earn?
Item 19 of the Teapioca Lounge FDD discloses figures for part of the system but no single average across all outlets. These are gross sales figures, not profit; the Revenue section shows what the filing reports and on what basis. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Who owns Teapioca Lounge?
Teapioca Lounge is franchised by Teapioca International, LLC. Source: FDD Item 1, 2025 filing.
What is Item 19 in the Teapioca Lounge 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 Teapioca Lounge FDD and qualifies whose outlets they describe.
What is Teapioca Lounge's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Teapioca 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 Teapioca Lounge franchise locations are there?
As of their most recent FDD filing, Teapioca Lounge has 36 total units in the United States, including 36 franchised units and 0 company-owned units. 4 new units were opened in the latest reporting year.
Is Teapioca Lounge a good franchise to buy?
FranchiseVerdict rates Teapioca Lounge as a A-grade franchise with a verdict score of 71 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.