Kung Fu Tea franchise research

Investment by format

Format-specific estimates only. Do not combine one format's minimum with another format's maximum.

Investment sourceFDD p.20 ↗

Franchise fees and ongoing costs

Franchise fee

$25,000 to $37,000 · Extracted Item 5 scalar range, not a universal minimum or maximum; formats, eligibility, discounts and waivers require original-filing review.

Royalty

4% · 4% of Gross Sales, paid monthly on the 10th day for prior month's Gross Sales

Marketing contribution

2% (basis not captured; see original filing)

Technology fee

Up to $350 per month (may only increase up to third-party cost); not currently charged

Other fees

Promotions fee 7.25% of each customer purchase using the KFT Group App; customer loyalty program costs when billed; required inventory purchases from us/affiliate $2,500 to $35,000 per month

Working capital (FDD Item 7)

Additional funds – first month: $10,000 to $20,000 standard unit ($15,000 for non-traditional); covers payroll, utilities, telephone and KFT Group App/POS payments. Item 7 gives a first-month figure, not three months.

Fees sourceFDD p.14 ↗

Working capital is drawn from Item 7. The Investment source below locates the investment section, not an independently verified working-capital scalar.

Investment sourceFDD p.20 ↗

Franchise fee sourceFDD · page not captured ↗

Financial performance: Item 19

Item 19 captured

No

Metric / basis

none

Reporting period

Not captured

Sample

Not captured

Reported average

Not captured

Reported median

Not captured

Owner income is not captured. Gross sales and EBITDA are not owner pay. Results depend on the disclosed metric, sample and period; consult the full filing.

Item 19 performance sourceFDD p.53 ↗

Unit growth: Item 20

Reporting year

2025

Scope

franchised outlets

Starting outlets

387

Year-end outlets

344

Net change

-43

Derivation

ending minus starting outlets

Openings

17

Terminations

58

Non-renewals

0

Other closures

2

Reacquisitions

0

Transfers

26

Transfers are not closures. Net change is ending minus starting outlets for the stated scope and year, or complete openings less terminations, non-renewals, other closures and reacquisitions. Missing inputs stay unknown.

Unit growth sourceFDD p.54 ↗

SBA loan history

Loan activity

18 approvals

Activity window

FY2021-FY2026 YTD; snapshot 2026-06-30

Median SBA loan

$275,500

Median loan window

FY2023-FY2026 YTD through 2026-06-30

Median loan sample

4 loans

Historical charge-off share

Suppressed: fewer than 10 seasoned loans

Cohort

7(a) FY2010-2019 approvals

Numerator / denominator

0 / 2

Formula

CHGOFF / (PIF + CHGOFF + EXEMPT) × 100

This is a historical loan-level share, not a franchise failure probability or location survival rate. Loan size is not total investment. Other loan statuses are excluded from the seasoned denominator. Activity combines 7(a) and 504 approvals, excluding canceled and not-funded records; this is not a rolling five-year count. FY2024-25 franchise tags are sparse after directory suspension; fewer tagged loans do not establish brand decline. Recent charge-off cohorts are immature.

SBA loans sourceSBA data · Jun 30, 2026 ↗

Median loan amounts are financing context, not startup cost. The median window is separate from the seasoned charge-off cohort.

Median SBA loan sourceSBA data · Jun 30, 2026 ↗

Questions before you invest

How much does Kung Fu Tea franchise cost?

Standard unit: $169,000 to $378,000; Non-traditional unit: $184,000 to $269,500; Dual-concept standard unit: $164,000 to $373,000; Dual-concept non-traditional unit: $179,000 to $264,500; Multi-unit agreement, first unit standard (3 units; plus $12,500 per unit after the third): $219,000 to $428,000; Multi-unit agreement, first unit non-traditional (3 units; plus $12,500 per unit after the third): $234,000 to $319,500 These are format-specific estimates, not a guaranteed cash requirement. Franchise fee: $25,000 to $37,000 · Extracted Item 5 scalar range, not a universal minimum or maximum; formats, eligibility, discounts and waivers require original-filing review..

Investment sourceFDD p.20 ↗

Franchise fee sourceFDD · page not captured ↗

How much do Kung Fu Tea owners make?

Owner income is not captured. Gross sales and EBITDA are not owner pay. Item 19 metric: none. Sample: Not captured. Period: Not captured.

Item 19 performance sourceFDD p.53 ↗

What's the SBA charge-off rate for Kung Fu Tea?

Suppressed: fewer than 10 seasoned loans; numerator / denominator: 0 / 2. Historical 7(a) FY2010-2019 approvals; CHGOFF / (PIF + CHGOFF + EXEMPT) × 100, snapshot 2026-06-30. This is not a franchise failure probability. Median SBA loan: $275,500; window: FY2023-FY2026 YTD through 2026-06-30; sample: 4 loans. Median financing is not total investment.

SBA loans sourceSBA data · Jun 30, 2026 ↗

Median SBA loan sourceSBA data · Jun 30, 2026 ↗