Franopolis

    Kung Fu Tea

    Franchise research report · reviewed 2026 disclosure data

    Researching Kung Fu Tea franchise opportunities? Every figure below is cited to the FDD.

    Reviewed sources

    Kung Fu Tea franchise specializes in freshly brewed teas, fruit drinks, and customizable bubble tea beverages served at locations across the United States.

    Headline figures

    Quick facts

    How much does it cost to open a Kung Fu Tea franchise?
    The Kung Fu Tea Franchise Disclosure Document reports separate estimated initial investments by format: $169,000–$378,000 for standard — total (note 12) (2026 FDD, Item 7, PDF p. 19); $184,000–$269,500 for nontraditional — total (note 12) (2026 FDD, Item 7, PDF p. 21); $219,000 for threeunitrights+firststandard total (2026 FDD, Item 7, PDF p. 23); $234,000 for threeunitrights+firstnontraditional total (2026 FDD, Item 7, PDF p. 23). These formats are not combined. Each is the franchisor's disclosed estimate, not a quote. Details
    What ongoing fees does Kung Fu Tea charge?
    The disclosed ongoing royalty is $4 (2026 FDD, Item 6, PDF p. 14). The brand or advertising fund contribution is $2 (2026 FDD, Item 6, PDF p. 14). Other recurring fees are listed in Item 6. Details
    Does Kung Fu Tea disclose financial performance (Item 19)?
    No. The reviewed Kung Fu Tea FDD states that it does not make a financial performance representation in Item 19. Details
    How many Kung Fu Tea locations are there?
    The FDD reports 346 outlets at the end of 2025 (2026 FDD, Item 20, PDF p. 50). Existing locations do not indicate territory availability. Details

    From reviewed FDD figures only. Not a recommendation or projection.

    What the disclosures show

    1. 1The 2026 FDD (Item 7) estimates opening costs separately by format: $169,000 – $378,000 (Standard — Total (Note 12)); $184,000 – $269,500 (Nontraditional — Total (Note 12)); $219,000 (Threeunitrights+firststandard total); $234,000 (Threeunitrights+firstnontraditional total); several initial fee options apply.
    2. 2The franchisor makes no financial performance representation in Item 19.
    3. 3Outlets declined by 43 in 2025, to 346 (United States, as labeled in the FDD, Item 20).

    From reviewed FDD figures only. Not a recommendation or projection.

    Costs · Items 5–7

    What does it cost to open?

    Estimated opening costs and the fees payable to the franchisor.

    Startup Investment — Item 7

    Range across 4 single-unit formats

    2026 FDD · Item 7

    Formats disclosed in Item 7 (4)

    Each format has its own total. The total depends on the format you choose.

    • Standard — Total (Note 12)PDF p. 19$169,000 – $378,000
    • Nontraditional — Total (Note 12)PDF p. 21$184,000 – $269,500
    • Threeunitrights+firststandardPDF p. 23$219,000
    • Threeunitrights+firstnontraditionalPDF p. 23$234,000

    Ongoing Fees — Item 6

    Selected recurring charges; payment bases and conditions remain attached to each fee.

    Royalty 4% — 4%Main ongoing fee

    49 reported fees, each with its payment basis, are listed below; they haven't been sorted into recurring, initial and occasional groups yet.

    Financial Performance — Item 19

    What results are disclosed—and for which locations?

    No financial performance representation in Item 19

    The reviewed 2026 FDD for Kung Fu Tea has no Item 19 figures on record. Franopolis does not estimate revenue or earnings in their place; ask the franchisor and current owners what unit-level information they can share.

    Outlet Changes — Item 20

    How has the outlet count changed?

    United States, as labeled in the FDD · counts as of 2025 of each year.

    2026 FDD · Item 20 · PDF p. 50

    Net −34 outlets, 2023–2025

    0380202338920243462025+9−43

    Year-end counts reported in Item 20. The scale starts at zero, so the line looks nearly flat; the labels between the dots show each year's change. Openings and closures for 2025 haven't been pulled from the Item 20 tables yet, so no turnover or churn is shown.

    Questions to investigate

    Prompts based on what this brand's reviewed disclosures do and don't show — not conclusions. Join free as a member to save questions to your research.

    For the franchisor

    • Which line items in the 2026 Item 7 estimate ($169,000 – $378,000) vary most by market, and why?

    • Which initial fee option would apply to my situation, and what conditions or discounts affect it?

    • Kung Fu Tea reports no financial performance figures in Item 19. What information can you share about unit-level results?

    • Reported units decreased from 389 to 346 in 2025. What drove the change?

    • Is a territory available in my area, and how is it defined in my agreement?

    For current and former owners

    • How did your actual startup costs and timeline compare with the Item 7 estimate?

    • How many hours a week do you work in the business, and in what role?

    • What support from the franchisor has been most and least useful?

    For your advisors

    • Ask a franchise attorney to review the territory, renewal, transfer and termination terms.

    • Ask an accountant to build a cash-flow plan using your own assumptions, not the franchisor's.

    Sources & vintage history

    Every displayed fact is retained with its disclosure vintage, item, page, and reviewed status. Prior vintages remain on file rather than being overwritten.

    Citations (2026 FDD)

    1. [1]Outlet counts — Item 20, Table 1 · PDF p. 50

    "PDF p." is the page in the PDF file; "printed p." is the number printed on the FDD page. Source document: FDD

    Territory & operations

    These are contract disclosures, not confirmation that any territory is currently available.

    Legal & agreement

    Franchisor financial statements

    Fiscal yearMeasureReported value
    2025assets current assets operating cash$141,483
    2025accounts receivable, net$393,068
    2025due from related parties, net$255,060
    2025prepaid expenses and other current assetsMore than one value recorded for this year — open the FDD source before comparing$15,534
    2025security deposits$129,141
    2025property and equipment, net$1,940
    2025capitalized software development costs, net$67,741
    2025other assets$10,853
    2025total assets$2,775,821
    2025deferred franchise incomeMore than one value recorded for this year — open the FDD source before comparing$948,304
    2025deferred other revenueMore than one value recorded for this year — open the FDD source before comparing$104,083
    2025operating lease liabilities, current portion$302,459
    2025total current liabilities$1,574,223
    2025operating lease liabilities, net of current portion$1,465,461
    2025total liabilities$6,532,065
    2025revenues franchise and training fee income$1,986,365
    2025royalty fee income$3,610,681
    2025marketing fee income$2,000,060
    2025expenses general and administrative$4,897,972
    2025selling$2,529,147
    2025total expenses$7,427,119
    2025gross operating profit$301,147
    2025non-operating income other income$13,560
    2025provision for income taxes$9,807
    2025members'More than one value recorded for this year — open the FDD source before comparing-$3,861,144
    2025members' distributions-$200,000
    2025cash flows from operating activities net income adjustments to reconcile net income to net cash$304,900
    2025from operating activities credit loss expense$160,141
    2025depreciation and amortizationMore than one value recorded for this year — open the FDD source before comparing$70,526
    2025amortization of right-of-use assets$617,792
    2025prepaid expenses and other current assetsMore than one value recorded for this year — open the FDD source before comparing-$12,035
    2025due to/from related parties$180,030
    2025other assets and security deposits-$6,889
    2025accounts payable and accrued expenses$1,882
    2025deferred franchise incomeMore than one value recorded for this year — open the FDD source before comparing-$1,416,424
    2025deferred other revenueMore than one value recorded for this year — open the FDD source before comparing$30,000
    2025operating lease liabilities-$662,671
    2025net cash from operating activities-$793,666
    2025cash flows from financing activities distributions to members-$200,000
    2025net change in cash-$993,666
    2025cash beginning of year$1,135,149
    2025end of yearMore than one value recorded for this year — open the FDD source before comparing$141,483
    2025supplemental cash flow information cash paid for interest$9,210
    2025general and administrative expenses licensing fees$2,000,000
    2025payroll, payroll taxes and employee benefitsMore than one value recorded for this year — open the FDD source before comparing$1,030,142
    2025operating lease and related costs$643,972
    2025dues and subscriptions$283,142
    2025utilities$85,747
    2025insurance$12,715
    2025miscellaneous expenses$12,939
    2025depreciation and amortizationMore than one value recorded for this year — open the FDD source before comparing$2,784
    2025bank charges$1,723
    2025total general and administrative expenses$4,897,972
    2025payroll, payroll taxes and employee benefitsMore than one value recorded for this year — open the FDD source before comparing$362,457
    2025software development expense$1,700
    2025commission$16,655
    2025amortization$67,742
    2025meals and entertainment$78,750
    2025total selling expenses$2,529,147
    2025deferred franchise incomeMore than one value recorded for this year — open the FDD source before comparing$3,492,381
    2025operating lease right-of-use assets$1,761,001
    2025travel$348,362
    2025total liabilities and members'$2,775,821
    2025net income$304,900
    2025accounts receivable-$60,918
    2025legal and professional fees$482,708
    2025end of yearMore than one value recorded for this year — open the FDD source before comparing-$3,756,244
    2025liabilities and members'$219,377
    2025other income$131,160
    2025income before provision for income taxes$314,707
    2025members'More than one value recorded for this year — open the FDD source before comparing-$3,756,244
    2025total current assets$805,145
    2025total revenues$7,728,266
    2025office expenses$181,959
    2025credit loss expense$160,141
    2025selling expenses marketing and advertising$1,653,481
    2024accounts receivable, net$492,291
    2024due from related parties, net$435,090
    2024total current assets$2,066,029
    2024property and equipment, net$3,765
    2024capitalized software development costs, net$135,483
    2024operating lease right-of-use assets$554,653
    2024other assets$5,887
    2024total assets$2,893,994
    2024deferred franchise incomeMore than one value recorded for this year — open the FDD source before comparing$1,261,083
    2024operating lease liabilities, current portion$606,451
    2024total current liabilities$2,159,112
    2024deferred franchise incomeMore than one value recorded for this year — open the FDD source before comparing$4,596,026
    2024total liabilities$6,755,138
    2024total liabilities and members'$2,893,994
    2024revenues franchise and training fee income$1,792,879
    2024marketing fee income$2,322,341
    2024other income$51,540
    2024total revenues$8,357,328
    2024expenses general and administrative$4,483,687
    2024selling$3,094,902
    2024total expenses$7,578,589
    2024income before provision for income taxes$832,013
    2024provision for income taxes$6,160
    2024net income$825,853
    2024members'More than one value recorded for this year — open the FDD source before comparing-$4,028,062
    2024members' distributions-$658,935
    2024end of yearMore than one value recorded for this year — open the FDD source before comparing-$3,861,144
    2024from operating activities credit loss expense$18,633
    2024depreciation and amortizationMore than one value recorded for this year — open the FDD source before comparing$70,301
    2024amortization of right-of-use assets$613,283
    2024accounts receivable$58,405
    2024prepaid expenses and other current assetsMore than one value recorded for this year — open the FDD source before comparing-$1,615
    2024due to/from related parties-$619,281
    2024accounts payable and accrued expenses-$129,773
    2024deferred franchise incomeMore than one value recorded for this year — open the FDD source before comparing-$816,129
    2024deferred other revenueMore than one value recorded for this year — open the FDD source before comparing$2,500
    2024net cash from operating activities-$633,286
    2024cash beginning of year$2,427,370
    2024supplemental cash flow information cash paid for interest$5,500
    2024operating lease and related costs$626,080
    2024legal and professional fees$295,770
    2024dues and subscriptions$193,410
    2024utilities$89,296
    2024miscellaneous expenses$29,706
    2024credit loss expense$18,633
    2024total general and administrative expenses$4,483,687
    2024selling expenses marketing and advertising$2,053,461
    2024payroll, payroll taxes and employee benefitsMore than one value recorded for this year — open the FDD source before comparing$526,013
    2024commission$28,164
    2024meals and entertainment$41,850
    2024total selling expenses$3,094,902
    2024insurance$8,040
    2024liabilities and members'$217,495
    2024non-operating income other income$53,274
    2024general and administrative expenses licensing fees$2,000,000
    2024operating lease liabilities-$655,286
    2024cash flows from financing activities distributions to members-$658,935
    2024cash flows from operating activities net income adjustments to reconcile net income to net cash$825,853
    2024end of yearMore than one value recorded for this year — open the FDD source before comparing$1,135,149
    2024software development expense$22,889
    2024deferred other revenueMore than one value recorded for this year — open the FDD source before comparing$74,083
    2024net change in cash-$1,292,221
    2024security deposits$128,177
    2024members'More than one value recorded for this year — open the FDD source before comparing-$3,861,144
    2024gross operating profit$778,739
    2024royalty fee income$4,190,568
    2024other assets and security deposits-$177
    2024depreciation and amortizationMore than one value recorded for this year — open the FDD source before comparing$2,561
    2024office expenses$156,698
    2024amortization$67,741
    2024payroll, payroll taxes and employee benefitsMore than one value recorded for this year — open the FDD source before comparing$1,061,765
    2024travel$354,784
    2024bank charges$1,728
    2024prepaid expenses and other current assetsMore than one value recorded for this year — open the FDD source before comparing$3,499
    2024assets current assets operating cash$1,135,149
    2023revenues franchise and training fee income$1,805,499
    2023royalty fee income$4,712,285
    2023marketing fee income$2,572,364
    2023other income$43,043
    2023expenses general and administrative$4,408,092
    2023total expenses$7,931,954
    2023gross operating profit$1,201,237
    2023income before provision for income taxes$1,201,237
    2023provision for income taxes$717
    2023net income$1,200,520
    2023end of yearMore than one value recorded for this year — open the FDD source before comparing-$4,028,062
    2023cash flows from operating activities net income adjustments to reconcile net income to net cash$1,200,520
    2023from operating activities credit loss expense$13,147
    2023accounts receivable$15,131
    2023due to/from related parties-$234,603
    2023other assets and security deposits$705
    2023deferred other revenue-$65,000
    2023operating lease liabilities-$620,602
    2023net cash from operating activities$924,183
    2023cash flows from financing activities distributions to members-$672,000
    2023net change in cash$249,162
    2023cash beginning of year$2,178,208
    2023end of yearMore than one value recorded for this year — open the FDD source before comparing$2,427,370
    2023general and administrative expenses licensing fees$2,000,000
    2023payroll, payroll taxes and employee benefitsMore than one value recorded for this year — open the FDD source before comparing$967,768
    2023operating lease and related costs$625,578
    2023legal and professional fees$299,298
    2023dues and subscriptions$185,199
    2023utilities$76,746
    2023insurance$26,182
    2023miscellaneous expenses$22,772
    2023equipment rental$8,414
    2023depreciation and amortizationMore than one value recorded for this year — open the FDD source before comparing$1,832
    2023bank charges$1,561
    2023total general and administrative expenses$4,408,092
    2023selling expenses marketing and advertising$2,018,684
    2023payroll, payroll taxes and employee benefitsMore than one value recorded for this year — open the FDD source before comparing$871,891
    2023travel$362,588
    2023software development expense$137,653
    2023commission$43,452
    2023amortization$67,741
    2023prepaid expenses and other current assets$25,963
    2023deferred franchise income-$46,288
    2023total selling expenses$3,523,862
    2023amortization of right-of-use assets$604,802
    2023cash flows from investing activities purchase of property and equipment-$3,021
    2023members' distributions-$672,000
    2023supplemental cash flow information cash paid for interest$500
    2023office expenses$179,595
    2023selling$3,523,862
    2023members'-$4,556,582
    2023total revenues$9,133,191
    2023depreciation and amortizationMore than one value recorded for this year — open the FDD source before comparing$69,573
    2023accounts payable and accrued expenses-$39,165
    2023credit loss expense$13,147
    2023meals and entertainment$21,853

    These figures describe the franchisor company, not individual franchise locations.

    SBA-backed loans to franchisees

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    Source: U.S. Small Business Administration 7(a) & 504 FOIA data. Loan volume is not a measure of franchisee success.

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    At a glance

    Business history

    Not reviewed

    Owner participation

    Not reviewed

    Territory language

    Litigation disclosure

    Not reviewed

    Bankruptcy disclosure

    Not reviewed

    Agreement term

    Not reviewed

    Independent analysis of franchisor-provided data. Not investment advice. Franopolis does not distribute FDDs.