How Much Does a Kung Fu Tea Franchise Cost?
Data from the 2025 Franchise Disclosure Document
Investment Summary
Total Investment
$169K – $378K
Franchise Fee
$37K
Royalty
4.0%
Ad Fund
2.0%
Cost Breakdown
Initial Franchise Fee
The initial franchise fee for Kung Fu Tea is $37K. 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 Kung Fu Tea franchise requires a total investment of $169K – $378K. 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 $10K to $20K.
Ongoing Costs
Beyond the initial investment, Kung Fu Tea franchisees pay ongoing fees. The royalty fee is 4.0% of gross sales (Gross Sales). The advertising or brand fund contribution is 2.0% of gross sales. There is also a technology fee of $350.
Net Worth & Liquid Capital Requirements
Kung Fu Tea requires working capital of $10K – $20K 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?
Kung Fu Tea does not disclose earnings data in Item 19 of its Franchise Disclosure Document. Not all franchisors choose to publish financial performance representations, though this is a data point many prospective franchisees consider important.
How Do Banks View Kung Fu Tea?
SBA Loans Issued
21
Default Rate
0.0%
The SBA (Small Business Administration) tracks loan performance for franchise brands. Kung Fu Tea has 21 SBA-backed loans on record. The default rate is 0.0%, which is below the franchise industry average, indicating relatively lower lending risk. 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
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