Bottom line
- Total investment $161K – $427K including a $30K franchise fee, 4.0% ongoing royalty.
- No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
- Rated CAUTION with a risk score of 69/100.
- 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 Ume Tea unit return on the cash you put in?
Unlevered ROIC · per unit
36%
In Yale's "attractive" band (30–60%)
Overview
About
Ume Tea franchisees operate bubble tea and specialty tea retail locations, serving prepared beverages and related products to walk-in and potentially online customers. Day-to-day operations include inventory management, beverage preparation, point-of-sale management, and staff scheduling across the 13 locations in the current system.
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 · 15 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
Ume Tea presents HIGH RISK due to active litigation involving fraud allegations, false going concern status, missing financial disclosures (Item 19), minimal system size, and unprotected territory — proceed only with extreme caution and independent legal/financial review.
Score breakdown · what drove the 69 / 100 rating
- 01HIGHActive litigation alleging breach of franchise agreement, fraud, and franchise law violations with $600,000 damages claim filed June 2024
- 02HIGHGoing concern status is FALSE — indicates potential financial instability or viability concerns at corporate level
- 03MEDNo average revenue or net income disclosure (Item 19 missing) — cannot assess realistic ROI on $160,700–$427,100 investment
- 04MINOROnly 13 units system-wide with unknown growth trajectory — suggests either new/stalled brand with minimal track record
- 05MINORZero territory protection — franchisees face direct competition from other Ume Tea locations and no geographic exclusivity
- 06MEDHigh investment-to-unit ratio ($160K–$427K) with 4% royalty but no disclosed profitability metrics creates blind investment risk
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
16 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Ume Tea · FDD (2025) PDF