How Much Does a The Spice & Tea Exchange Franchise Cost?
Data from the 2025 Franchise Disclosure Document
Investment Summary
Total Investment
$299K – $532K
Franchise Fee
$39K
Royalty
greater of 7% of Gross Sales or $1,750
Ad Fund
1.0%
Cost Breakdown
Initial Franchise Fee
The initial franchise fee for The Spice & Tea Exchange is $39K. 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 The Spice & Tea Exchange franchise requires a total investment of $299K – $532K. 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 $50K.
Ongoing Costs
Beyond the initial investment, The Spice & Tea Exchange franchisees pay ongoing fees. The royalty structure is: greater of 7% of Gross Sales or $1,750. The advertising or brand fund contribution is 1.0% of gross sales. There is also a technology fee of $300.
Net Worth & Liquid Capital Requirements
The Spice & Tea Exchange requires working capital of $10K – $50K 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 The Spice & Tea Exchange's Item 19 financial performance representation:
Median gross sales: $487K
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 The Spice & Tea Exchange?
SBA Loans Issued
39
Default Rate
5.6%
The SBA (Small Business Administration) tracks loan performance for franchise brands. The Spice & Tea Exchange has 39 SBA-backed loans on record. The default rate is 5.6%, 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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