Teatop Franchise Cost, Revenue & Review 2026
Data from FDD filing
Analysis by FranchiseVerdict Research · Methodology
TEATOP is a bubble tea franchise serving milk teas, fruit teas, and boba drinks. Franchisees run the shops, managing drink prep, ingredient inventory, and counter service.
FranchiseVerdict summary · 2026
A TEATOP franchise requires a total initial investment of $141K – $298K, including a $40K franchise fee. The 2025 FDD does not disclose unit-level revenue (no Item 19). FranchiseVerdict grade: C (Average), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2025 FDD issuance
Overview
- Investment
- $141K – $298K
- 11th pct Service Resta…
- Avg gross sales
- N/A
- Royalty
- N/A
- Units
- 9
- 35th 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 avg · 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 $141K – $298K including a $40K franchise fee.
- RETURNSNo Item 19 financial performance data disclosed. The franchisor chose not to publish revenue figures.
- RISKVerdict C (Average), verdict score 45/100 (higher is better).
- DATANo 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
Corporate structure & franchisor financials
- Legal entity
- Teastar USA LLC
- Ultimate parent
- Zhen Ding Ji Tea Co., Ltd. (ZDJ)
- Predecessor
- Teastar L.L.C. (T-LLC)
- Prior franchisor entity
- CEO title
- Founder, Chief Executive Officer and Manager
- Kuo-Chen (David) Yang
- Founder active
- Yes
- Original founder still leading the business
- Incorporated in
- California
- HQ
- 19 Del Carlo, Irvine, California 92606-8823
- Auditor
- Schild & Co., Inc.
- Audited financials
- Franchisor revenue
- $13K
- vs $3K prior year
Affiliated brands
- is Zhen Ding Ji Tea Co
Other brands the franchisor or its parent operates (Item 1).
Overview
About
- CEO
- Kuo-Chen (David) Yang
- Headquarters
- CA
- Founded
- 2024
- FDD year
- 2025
- States available
- 4
Can you afford it, and what does the money buy?
Entry cost runs 67% below the typical quick-service restaurants franchise.
Source: FDD 2025 · Items 5–7
Full Item 7 breakdown15 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Feenot refundable | $40K | $40K | |
| Performance Bondnot refundable | $10K | $20K | |
| Training expenses | $10K | $15K | |
| Lease of Outlet premises and security deposit | $5K | $9K | |
| Leasehold improvements | $25K | $100K | |
| Equipment, furniture and fixtures | $20K | $40K | |
| Point of sale system | $3K | $5K | |
| Interior/exterior signs and graphics | $1K | $5K | |
| Professional fees | $2K | $3K | |
| Business licenses and permits | $1K | $5K | |
| Inventory to begin operating | $7K | $20K | |
| Grand opening advertising and promotion | $1K | $2K | |
| Business insurance | $1K | $3K | |
| Miscellaneous opening costs | $500 | $1K | |
| Additional funds - 3 months | $15K | $30K | |
| Total initial investment | $141K | $298K |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $141K – $298K
- Top 40% of category vs category
- Liquid capital req'd
- $15K – $30K
- Top 40% of category vs category
- Franchise fee
- $40K – $40K
- Middle of category vs category
- Royalty
- Greater of (i) 5% of “Gross Revenues” or (ii) $400
- Ad fund
- -n/d
- Total fee load
- 5.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty (flat) | Greater of 5% of Gross Revenues or $400 |
| Training fee | $750 |
| Transfer fee | $25K |
| Renewal fee | $0 |
| Total fee load | 5.0% of rev |
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
TEATOP did not disclose financial performance in FDD Item 19. The ROIC and return models require Item 19 revenue. Without it all inputs are estimates. You can still run the calculator with your own assumptions by entering an expected revenue figure.
Returns model · single-unit ROIC
What would one TEATOP unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
40%
Within the 30–60% "attractive franchise" band
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
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
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 5.0% — below the Quick-Service Restaurants average of 7.9%.
Disclosure
Franchisor chose not to disclose financial performance representations. You will need to gather unit economics directly from existing franchisees.
Multi-unit rate
Only 15% of franchisees own multiple units. Could indicate challenging economics or a young system where operators haven't had time to expand.
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 averages
How Teatop Compares
Is the system healthy?
Source: FDD 2025 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 9
- Opened
- 9
- Last reporting year
- Closed
- 0
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 0.0%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Multi-unit owners
- 15.0%
3-year detail · Item 20
- Opened (3yr)
- 0
- Closed (3yr)
- 0
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 0
- Reacquired (3yr)
- 0
- Franchisor bought back
- Projected new
- 8
- Franchisor's next-year forecast
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 4 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.
Available to sell in · Item 12
- California
- Maryland
States where the franchisor is registered to sell new franchises (FDD registration filings).
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
No SBA loan data available for this brand.
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
Early-stage franchisor (began franchising 2024) with 9 units and thin financials: net income of -$18,776 on just $13,200 revenue, though net worth is positive at $231,224. Financial distress flag is early-stage, no litigation or bankruptcy, and financials are audited. No Item 19 disclosure.
Litigation (Item 3)
No litigation required to be disclosed
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Schild & Co., Inc.
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
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 45 / 100 verdict
- 01MINOREarly-stage financial distress: net income -$18,776, revenue only $13,200
- 02MINORNo Item 19 earnings disclosure
- 03MINORNew franchisor (2024), only 9 units
- 04MINORPositive net worth $231,224, audited financials, zero litigation
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 5.0% 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 | 3 years |
|---|---|
| Renewal term | 3 years |
| Territory type | Radius or Map-defined area |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory radius | 0.3 mi |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 1 year |
| Non-compete (miles)ℹ | 25 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Curable defaultsℹ | 5 |
| Mandatory arbitration | Yes |
| Arbitration location | Orange County, California |
| Jury trial waiver | Yes |
| Governing law | California |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation required to be disclosed
Items 10, 11
Training & Operations
- Classroom training
- 240 hrs
- On-the-job training
- 80 hrs
- Training location
- On-site and off-site
- POS system
- Clover Station
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Clover Station
Item 20 · call current owners
Franchisee Contacts
10 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
TEATOP · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a TEATOP franchise?
The total investment to open a TEATOP franchise ranges from $141K – $298K, with an initial franchise fee of $40K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do TEATOP franchise owners earn?
TEATOP does not disclose average franchise owner earnings in their FDD Item 19. Not all franchisors are required to make financial performance representations. We recommend asking existing franchisees directly about their financial experience.
What is Item 19 in the TEATOP 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 TEATOP FDD and qualifies whose outlets they describe.
What is TEATOP's franchise failure rate?
SBA 7(a) loan charge-off data is not available for TEATOP (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 TEATOP franchise locations are there?
As of their most recent FDD filing, TEATOP has 9 total units in the United States, including 9 franchised units and 0 company-owned units. 9 new units were opened in the latest reporting year.
Is TEATOP a good franchise to buy?
FranchiseVerdict rates TEATOP as a C-grade franchise with a verdict score of 45 out of 100 (higher is better), based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. 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
Are you the franchisor?
If you represent TEATOP, you can request corrections or provide updated information.
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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.