How Much Does It Cost to Franchise a Boba? - A Comprehensive Breakdown of Boba Franchise Expenses

Are you considering opening a boba franchise? In this blog post, we’ll provide a comprehensive breakdown of the costs associated with franchising a boba business, helping potential entrepreneurs understand the financial aspects of this exciting opportunity in the bubble tea industry.

So, How Much Does It Cost to Franchise a Boba?

The total cost to franchise a boba business can range from $50,000 to $422,000, depending on the specific franchise brand. This estimate includes various expenses such as franchise fees, build-out and equipment costs, working capital, inventory, and ongoing royalties and marketing fees. Let’s take a closer look at each of these components and some popular boba franchise brands with their respective costs.

Franchise Fees and Popular Boba Franchise Brands

Boba franchise fees vary depending on the brand and location. Here are some examples of popular boba franchise brands and their respective costs:

  • Bee & Tea: $50,000 to $150,000
  • Chatime: $50,000 to $150,000
  • Milk Tea Lab: $163,000 –$460,500
  • Gong Cha: $150,000 to $300,000
  • Jazen Tea: $150,000 to $300,000
  • Kung Fu Tea: up to $422,000
  • Tapioca Express: up to $250,000

These fees cover initial training, support, and the rights to use the boba brand name.

Build-out and Equipment Costs

Setting up a boba franchise requires an investment in build-out and equipment costs, including leasehold improvements, commercial-grade kitchen appliances, and furniture. These costs can range from $100,000 to $300,000, depending on the size and location of the boba store.

Working Capital and Inventory

New boba franchisees should have enough working capital to cover initial inventory, operating expenses, and payroll for the first few months. This amount can range from $20,000 to $50,000.


Royalties and Marketing Fees

Boba franchises typically charge royalties, usually around 5-8% of gross sales, and a marketing fee, around 1-3% of gross sales. These fees are paid on an ongoing basis and contribute to the boba franchisor’s support and marketing efforts.

Conclusion: In summary, the total cost to franchise a boba business can vary significantly depending on the specific brand, ranging from $50,000 to $422,000. Potential boba franchisees should carefully consider their financial capabilities and conduct thorough research before committing to a boba franchise. You may also wonder Why Milk Tea Lab is the Ideal Boba Franchise for Aspiring Bubble Tea Entrepreneurs?

Scroll to Top