Ug Franchise Cost, Revenue & Review 2026
Data from FDD filing
Analysis by FranchiseVerdict Research · Methodology
UG is a beverage franchise operating shops that sell specialty tea-based drinks and snacks. Franchisees run the shops, managing drink prep, inventory, and counter service.
FranchiseVerdict summary · 2026
A UG franchise requires a total initial investment of $284K – $679K, including a $15K franchise fee and an ongoing 6.0% royalty[2]. The 2025 FDD does not disclose unit-level revenue (no Item 19). FranchiseVerdict grade: D (Below average), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2025 FDD issuance
Overview
- Investment
- $284K – $679K
- 12th pct Service Resta…
- Avg gross sales
- N/A
- 0 outlets
- Royalty
- 6.0%
- 24th pct Service Resta…
- Units
- 0
- 0th pct Service Resta…
- SBA charge-off
- N/A
Quick verdict · Full-Service Restaurants · color = vs category peers
Green = favorable by >10% vs Full-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 $284K – $679K including a $15K franchise fee, 6.0% ongoing royalty.
- RETURNSNo Item 19 financial performance data disclosed. The franchisor chose not to publish revenue figures.
- RISKVerdict D (Below average), verdict score 38/100 (higher is better).
- FLAGBankruptcy history disclosed in the FDD. Review Item 4 for details before proceeding.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- UNI GREEN INC
- Parent company
- Lian Fa International Dining Business Corporation
- Predecessor
- businesses that offered
- Prior franchisor entity
- CEO title
- Chairman, President
- Kai Lung Cheng
- Incorporated in
- Delaware
- HQ
- 131 Continental Drive, Suite 301, Newark, Delaware 19713
- Auditor
- KAIZEN CPA PLLC
- Audited financials
Affiliated brands
- might provide to you as disclosed in this FDD
Other brands the franchisor or its parent operates (Item 1).
Overview
About
- CEO
- Kai Lung Cheng
- Headquarters
- DE
- Founded
- 2024
- FDD year
- 2025
- States available
- 0
Can you afford it, and what does the money buy?
Entry cost runs 59% below the typical full-service restaurants franchise.
Source: FDD 2025 · Items 5–7
Full Item 7 breakdown38 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Franchise Fee | $15K | $15K | |
| Technology Transfer Fee | $30K | $30K | |
| Store Pre-opening Fee | $12K | $12K | |
| Design | $3K | $3K | |
| Security Deposit | $10K | $10K | |
| Equipment Fee | $88K | $130K | |
| Utensils | $7K | $7K | |
| Inventory | $15K | $35K | |
| Related Personnel Cost for initial training | $2K | $4K | |
| Rent for the Tea Shop | $2K | $10K | |
| Rental for Warehouse | $0 | $5K | |
| Renovation | $55K | $300K | |
| Licenses, Permits, Fees and Deposit | $10K | $12K | |
| Point of Sale System | $4K | $5K | |
| Office Equipment & Supplies | $500 | $500 | |
| Uniforms | $1K | $2K | |
| Insurance | $5K | $15K | |
| Advertisement | $5K | $5K | |
| Additional Funds - 3 Months | $20K | $80K | |
| Area Development Fee | $100K | $100K | |
| Total initial investment | $1.1M | $2.7M |
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
- $284K – $679K
- Top 40% of category vs category
- Liquid capital req'd
- $20K – $80K
- Top 40% of category vs category
- Franchise fee
- $15K – $15K
- Top 40% of category vs category
- Royalty
- 6.0%
- percentage_of_gross · typical 6–8%
- Ad fund
- 3.0%
- typical 3–5%
- Total fee load
- 9.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.0% of gross sales |
| Marketing / ad fund | 3.0% of gross sales |
| Technology fee | $50 |
| Transfer fee | $10K |
| Renewal fee | $30K |
| Total fee load | 9.0% of rev |
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
UG 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 UG unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
13%
Below 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 9.0% — above the Full-Service Restaurants average of 7.6%.
Disclosure
Franchisor chose not to disclose financial performance representations. You will need to gather unit economics directly from existing franchisees.
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 Full-Service Restaurants averages
How Ug Compares
Is the system healthy?
Source: FDD 2025 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 0
- Opened
- 0
- Last reporting year
- Closed
- 0
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Company-owned
- 0
- Corporate units in the system
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
- 0
- Franchisor's next-year forecast
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
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
Pre-opening brand (is_pre_opening=true) with 0 units. financial_distress flagged but with no operating history this reflects startup status rather than failure. No litigation, no bankruptcy, no going-concern note; no Item 19 (nothing to disclose yet).
Litigation (Item 3)
0 case reference(s): 3 pending, 0 settled.
Bankruptcy (Item 4)
Disclosed in last 7 years
Bankruptcy Code required to be disclosed in this Item. No such proceedings are currently pending, and none have occurred within the 10-year period immediately before the issuance date of this FDD.
Audited financials (Item 21)
Yes · KAIZEN CPA PLLC
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Must buy proprietary products: No
- Restricted to system-approved products: No
Score breakdown · what drove the 38 / 100 verdict
- 01MEDPre-opening / zero units, limited history
- 02MINORfinancial_distress flagged but consistent with startup stage
- 03HIGHNo litigation, bankruptcy, or going-concern note
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 9.0% 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 | 5 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 1 |
| Territory type | Radius/Zip Code |
| Protected territory | Yes |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Termination groundsℹ | 2 |
| Curable defaultsℹ | 1 |
| Mandatory arbitration | Yes |
| Governing law | California |
| Litigation count | 0 |
View Item 3 litigation summary
0 case reference(s): 3 pending, 0 settled.
Items 10, 11
Training & Operations
- Classroom training
- 8 hrs
- On-the-job training
- 85 hrs
- Training location
- On-site and corporate
- Franchisor financing
- Offered
- Item 10
Items 5 & 11
Franchisor Support
Item 20 · call current owners
Franchisee Contacts
2 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
UG · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a UG franchise?
The total investment to open a UG franchise ranges from $284K – $679K, with an initial franchise fee of $15K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do UG franchise owners earn?
UG 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 UG 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 UG FDD and qualifies whose outlets they describe.
What is UG's franchise failure rate?
SBA 7(a) loan charge-off data is not available for UG (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.
Is UG a good franchise to buy?
FranchiseVerdict rates UG as a D-grade franchise with a verdict score of 38 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 UG, 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.