Ume TeaFranchise Cost, Revenue & Review 2026
Data from FDD filing
FranchiseVerdict summary · 2026
A Ume Tea franchise requires a total initial investment of $161K – $427K, including a $30K franchise fee and an ongoing 4.0% royalty[2]. The 2025 FDD does not disclose unit-level revenue (no Item 19). Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $161K – $427K
- 21st pct Service Resta…
- Avg gross sales
- N/A
- 59th pct Service Resta…
- Royalty
- 4.0%
- 3rd pct Service Resta…
- Units
- 13
- 40th pct Service Resta…
- SBA default
- N/A
Quick verdict · Quick-Service Restaurants · color = vs category peers
Green = >15% above Quick-Service Restaurants avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Started franchising in 2024. Newer systems carry more uncertainty but may offer better territories.
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.
- Verdict A (Top Quintile) with a risk score of 47/100.
- 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
- Legal entity
- UMETEACA Inc
- Ultimate parent
- Umeteagroup Inc.
- Incorporated in
- CA
- HQ
- 3047 Teagarden Street, San Leandro, California 94577
- Auditor
- CliftonLarsonAllen LLP
- Audited financials
Independent franchisee associations
- Franchise Advisory Council (FAC)
Franchisee-led councils or alliances disclosed in Item 20. Indicates operator voice.
Affiliated brands
- Umeteagroup
Other brands the franchisor or its parent operates (Item 1).
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.
- CEO
- Zuoda Wang
- Headquarters
- CA
- Founded
- 2024
- FDD year
- 2025
- States available
- 2
FDD Item 7 · 2025 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $30K | $30K |
| Working capital (3–6 mo) | $30K | $50K |
| Equipment, build-out, other | $101K | $347K |
| Total initial investment | $161K | $427K |
Source: Ume Tea 2025 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $161K – $427K
- Better than avg vs category
- Liquid capital req'd
- $30K – $50K
- Below avg, review vs category
- Franchise fee
- $30K – $30K
- Better than avg vs category
- Royalty
- 4.0%
- Gross Sales · typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 6.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 4.0% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
| Technology fee | $300 |
| Transfer fee | $15K |
| Renewal fee | $5K |
| Total fee load | 6.0% of rev |
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
vs Quick-Service Restaurants averages
How Ume Tea Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 13
- Opened
- 2
- 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
- 11
- Corporate units in the system
- % franchised
- 15%
- vs corporate-owned
3-year detail · Item 20
- Opened (3yr)
- 4
- Transfers (3yr)
- 0
- Projected new
- 2
- Franchisor's next-year forecast
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 12 · 2 states reported
The Territory Map
FDD Item 12 reports the state count, but the specific list isn't in our current data. The map will appear once we re-extract from the FDD or enough franchisee contacts are available.
2
states with franchisees (per FDD Item 12)
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.
Risk analysis
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.
Litigation (Item 3)
Xiosheng Cai v. Umetea Inc. et al., Santa Clara County Superior Court, Case No. 24CV442084, filed June 27, 2024. Plaintiff claims to be franchisee alleging breach of franchise agreement, fraud, franchise law violations, tortious interference, and unfair competition. Seeks $600,000 in compensatory damages and punitive damages. Defendants deny wrongdoing. Motion to dismiss pending.
Largest disclosed settlement: $30,000
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · CliftonLarsonAllen LLP
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 47 / 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
| Initial term | 5 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 1 |
| Protected territory | No |
| Exclusive territoryℹ | No |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 20 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 10 days |
| Curable defaultsℹ | 4 |
| Mandatory arbitration | No |
| Jury trial waiver | Yes |
| Governing law | California |
| Litigation count | 1 |
View Item 3 litigation summary
Xiosheng Cai v. Umetea Inc. et al., Santa Clara County Superior Court, Case No. 24CV442084, filed June 27, 2024. Plaintiff claims to be franchisee alleging breach of franchise agreement, fraud, franchise law violations, tortious interference, and unfair competition. Seeks $600,000 in compensatory damages and punitive damages. Defendants deny wrongdoing. Motion to dismiss pending.
Items 10, 11
Training & Operations
- Classroom training
- 21 hrs
- On-the-job training
- 52 hrs
- Training location
- corporate office or Affiliate-Owned Ume Tea Store in Mountain View, California; Cupertino, California; or Milpitas, California
- Time to open
- 12 mo
- From signing to launch
- Franchisor financing
- Offered
- Item 10
- POS system
- Toast
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Toast
Item 20 · call current owners
Franchisee Contacts
1 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Ume Tea · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Ume Tea franchise?
The total investment to open a Ume Tea franchise ranges from $161K – $427K, with an initial franchise fee of $30K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Ume Tea franchise owners earn?
Ume Tea 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 Ume Tea's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Ume Tea (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 Ume Tea franchise locations are there?
As of their most recent FDD filing, Ume Tea has 13 total units in the United States, including 11 franchised units and 11 company-owned units. 2 new units were opened in the latest reporting year.
Is Ume Tea a good franchise to buy?
FranchiseVerdict rates Ume Tea as a A-grade franchise with a risk score of 47 out of 100, 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
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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.