The Spice & Tea Exchange franchise research

Investment by format

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

Investment sourceFDD p.19 ↗

Franchise fees and ongoing costs

Franchise fee

$38,750 · Extracted Item 5 scalar range, not a universal minimum or maximum; formats, eligibility, discounts and waivers require original-filing review.

Royalty

7% · Monthly royalty of the greater of 7% of Gross Sales or $1,750

Marketing contribution

1% (basis not captured; see original filing)

Technology fee

$300-$800 per month (Subscription, Support and Inventory Management Fee; high end for optional second POS)

Other fees

System Development Fee 1% of Gross Sales (may rise to 3%); Integrated Music System $90-$150/month; Kiosk Location Fee $1,500/year (kiosks only)

Working capital (FDD Item 7)

Item 7 gives 'Additional Funds - 6 months' (not 3 months): $10,000 to $50,000, including payroll during the initial six-month start-up period

Fees sourceFDD p.12 ↗

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.19 ↗

Franchise fee sourceFDD · page not captured ↗

Financial performance: Item 19

Item 19 captured

Yes

Metric / basis

Average, median, min and max gross sales and gross margin for comparable franchised units; company-owned unit reported separately; also multi-unit owner subsets

Reporting period

Calendar year 2025 (also 2024 and 2023)

Sample

84 comparable franchised units in 2025 (of 99 total units; 15 excluded for not operating full year under continuous ownership)

Reported average

$552,660

Reported median

$505,212

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.56 ↗

Unit growth: Item 20

Reporting year

2025

Scope

franchised outlets

Starting outlets

93

Year-end outlets

97

Net change

+4

Derivation

ending minus starting outlets

Openings

8

Terminations

0

Non-renewals

0

Other closures

4

Reacquisitions

0

Transfers

6

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.59 ↗

SBA loan history

Loan activity

18 approvals

Activity window

FY2021-FY2026 YTD; snapshot 2026-06-30

Median SBA loan

$210,000

Median loan window

FY2023-FY2026 YTD through 2026-06-30

Median loan sample

7 loans

Historical charge-off share

5.26%

Cohort

7(a) FY2010-2019 approvals

Numerator / denominator

1 / 19

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 The Spice & Tea Exchange franchise cost?

Unit Franchise Program (single store, leased space, excludes real estate purchase): $312,900 to $557,514; Area Development Program (3 stores; $90,000 development fee plus first store investment): $364,150 to $608,764 These are format-specific estimates, not a guaranteed cash requirement. Franchise fee: $38,750 · Extracted Item 5 scalar range, not a universal minimum or maximum; formats, eligibility, discounts and waivers require original-filing review..

Investment sourceFDD p.19 ↗

Franchise fee sourceFDD · page not captured ↗

How much do The Spice & Tea Exchange owners make?

Owner income is not captured. Gross sales and EBITDA are not owner pay. Item 19 metric: Average, median, min and max gross sales and gross margin for comparable franchised units; company-owned unit reported separately; also multi-unit owner subsets. Sample: 84 comparable franchised units in 2025 (of 99 total units; 15 excluded for not operating full year under continuous ownership). Period: Calendar year 2025 (also 2024 and 2023).

Item 19 performance sourceFDD p.56 ↗

What's the SBA charge-off rate for The Spice & Tea Exchange?

5.26%; numerator / denominator: 1 / 19. 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: $210,000; window: FY2023-FY2026 YTD through 2026-06-30; sample: 7 loans. Median financing is not total investment.

SBA loans sourceSBA data · Jun 30, 2026 ↗

Median SBA loan sourceSBA data · Jun 30, 2026 ↗