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FranchiseVerdict

How Much Does a Kokee Tea Franchise Cost?

Data from the 2024 Franchise Disclosure Document

Investment Summary

Total Investment

$147K – $560K

Franchise Fee

$25K

Royalty

5.0%

Ad Fund

1.0%

Cost Breakdown

Initial Franchise Fee

The initial franchise fee for Kokee Tea is $25K. This one-time payment covers the right to operate under the brand, access to proprietary systems, and initial training programs.

Total Investment Range

Opening a Kokee Tea franchise requires a total investment of $147K – $560K. This range typically includes real estate or leasehold improvements, equipment and fixtures, initial inventory, signage, insurance, and working capital to sustain operations during the ramp-up period.

Working capital alone ranges from $34K to $129K.

Ongoing Costs

Beyond the initial investment, Kokee Tea franchisees pay ongoing fees. The royalty fee is 5.0% of gross sales (Monthly Gross Revenues). The advertising or brand fund contribution is 1.0% of gross sales.

Net Worth & Liquid Capital Requirements

Kokee Tea requires working capital of $34K – $129K to cover initial operating expenses. This is the liquid cash you should have available beyond the franchise fee and buildout costs.

What Can You Earn?

According to Kokee Tea's Item 19 financial performance representation:

$512KAvg. Gross Sales

This figure comes from Item 19 of the FDD. Gross sales are not the same as take-home profit. After deducting royalties, ad fund fees, rent, labor, and COGS, net income is typically a fraction of gross revenue.

How Do Banks View Kokee Tea?

SBA Loans Issued

2

Default Rate

N/A

The SBA (Small Business Administration) tracks loan performance for franchise brands. Kokee Tea has 2 SBA-backed loans on record. A lower default rate generally indicates that lenders view the franchise as a safer investment, though past performance does not guarantee future results.

Next Steps

Talk to current Kokee Tea franchise owners

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