FranchiseVerdict
FV-02736·MODERATEExcellent81

Tiger Sugar

Food & Beverage - Coffee & TeaFranchising since 2020
Investment
$307K – $550K
61st pct Coffee & Tea
Avg revenue
49th pct Coffee & Tea
Royalty
7.0%
84th pct Coffee & Tea
Units
63
79th pct Coffee & Tea
SBA default
0.0%
vs <3% typical

Bottom line

  • Total investment $307K – $550K including a $85K franchise fee, 7.0% ongoing royalty.
  • No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
  • Rated MODERATE with a risk score of 59/100. SBA loan default rate of 0.0% across 2 loans (below the industry average).
  • Auditor disclosed a going-concern note — flagged doubt about the franchisor's ability to continue operations. Verify against the latest FDD.

Item 1 · who you're contracting with

The Franchisor

Legal entity
Tiger Sugar Franchise USA Inc.
Parent company
Tiger Sugar International Co., Ltd.
Incorporated in
New York
HQ
14223 37th Ave., Unit 5A, Flushing, NY 11354
Auditor
JTC Accountancy Corp
Audited financials
Franchisor revenue
$1.9M
vs $1.6M prior year
⚠ Going-concern note
Disclosed in FDD 2025
Auditor flagged doubt about continued operations. Verify against the latest FDD before deciding.

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 Tiger Sugar 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: restaurant
COGS
%
Labor
%
Rent / occupancy
%
Other operating
%
Total invested capital · what you actually put in
Initial investment
$
FDD Item 7: $307K–$550K
Working capital
$
FDD reports $60K–$100K

Unlevered ROIC · per unit

15%

Below typical band (30–60%)

0%30–60% Yale band80%

Store EBITDA · annual
$75K
EBITDA margin
10.0%
Total invested
$509K
Payback
81 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

Tiger Sugar franchisees operate bubble tea retail locations serving specialty drinks featuring brown sugar toppings and premium tea ingredients. Day-to-day operations include drink preparation, inventory management of tea and tapioca supplies, customer service, and point-of-sale transactions in high-traffic retail spaces.

CEO
MING-TSUNG YANG
Founded
2019
FDD year
2025
States available
29

Item 7 · what it costs

The Vitals

Total investment
$307K – $550K
All-in to open one unit
Liquid capital
$60K – $100K
Cash you must have on hand
Franchise fee
$85K
Royalty
7.0%
Net Sales · typical 6–8%
Ad fund
1.0%
typical 3–5%
Total fee load
8.0%
vs 9–13% typical

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
63
Opened
5
Last reporting year
Closed
6
Turnover rate
9.5%
Company-owned
18
Corporate units in the system
% franchised
71%
vs corporate-owned
Net growth (yr3)
-2.2%
Net unit change last year
3-yr CAGR
+66.7%
Compounded over last 3 years
2023
45-2
Franchised units
2024
46
Franchised units
2025
27
Franchised units

Year-over-year franchised unit counts and net change. Source: FDD Item 20.

Item 20 · 17 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).

AK
ME
VT
NH
MA
RI
CT
NY
NJ
PA
DE
MD
DC
WA
OR
CA
NV
ID
MT
WY
UT
CO
AZ
NM
ND
SD
NE
KS
OK
TX
MN
IA
MO
AR
LA
WI
IL
MS
TN
MI
IN
KY
AL
OH
WV
GA
VA
NC
SC
FL
HI
Registered · 17 states
Not registered

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.

Total loans
2
Loan volume
Avg loan
Default rate
0.0%
vs <3% typical · system-wide
5-yr default

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

Risk & Legal

59
Risk · 0-100
MODERATE59 / 100

Tiger Sugar presents caution-level risk: declining unit growth, regulatory compliance issues, non-transparent financials, and high capital requirements with unclear returns.

Score breakdown · what drove the 59 / 100 rating

  1. 01MINORUnit count declining 2.2% year-over-year suggests market saturation or underperformance
  2. 02MINORNo average revenue or net income disclosure in FDD Item 19 prevents ROI validation
  3. 03MED2021 Maryland Securities Commissioner consent order reveals compliance failures and regulatory risk
  4. 04MEDHigh initial investment ($307k-$550k) combined with undisclosed profitability creates significant downside exposure
  5. 05MINOR5-year term is shorter than industry standard, creating renewal uncertainty and reduced payback horizon

Severity inferred from the FDD text · not a regulatory classification

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

Contract & Territory Detail

Territory
Radius
Protected territory
Yes
Initial term
5 years
Renewal term
5 years
Online sales rights
Restricted
Franchisor can compete
Yes
Hire a manager?
Allowed
Litigation count
1
Right of first refusal
Yes
Franchisor can buy back on resale
Mandatory arbitration
Yes
Jury trial waiver
Yes
Non-compete
2 yrs
Post-termination restriction
Owner-operator
Required
Governing law
New York

Item 11

Training & Operations

Classroom training
2 hrs
On-the-job training
37 hrs

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

29 numbers

Locked
(626) 616-••••
CA
(954) 860-••••
FL
(248) 635-••••
MI

One-time purchase · CSV download · Validation questions included

FDD download

Tiger Sugar · FDD (2025) PDF

Single-page checkout · instant download · CSV export of contacts available separately above