Bottom line
- Total investment $141K – $298K including a $40K franchise fee.
- No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
- Rated MODERATE with a risk score of 65/100.
- 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
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 TEATOP unit return on the cash you put in?
Unlevered ROIC · per unit
43%
In Yale's "attractive" band (30–60%)
Overview
About
TEATOP franchisees operate bubble tea/milk tea retail locations, managing POS systems, inventory, beverage preparation, and customer service. Day-to-day involves staffing, sourcing tea/tapioca supplies, managing 3-8 employees, and maintaining brand standards across a protected territory.
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 · 10 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.
No SBA loan data available for this brand.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
TEATOP presents significant risk due to lack of financial transparency, micro-unit system size, and inability to project returns on a six-figure investment.
Score breakdown · what drove the 65 / 100 rating
- 01MEDNo average revenue or net income disclosed (Item 19) — impossible to validate ROI on $140.5K-$297.5K investment
- 02MINORExtremely small system (9 units) with unknown growth trajectory — high failure/saturation risk
- 03MEDHigh initial investment relative to undisclosed earnings — potential negative cash flow
- 04MINORMinimum royalty floor of $400/month ($4,800/year) creates cash drain even during slow periods
- 05MINOR3-year term is short — rebuilds relationship every 36 months, creates instability
- 06HIGHNo litigation disclosure provided — unclear if disputes exist but unreported
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
17 numbers
One-time purchase · CSV download · Validation questions included
FDD download
TEATOP · FDD (2026) PDF