Kung Fu Tea Franchise FDD, Profits & Costs (2025)
Kung Fu Tea, a popular bubble tea franchise, was founded in 2010 by four friends passionate about sharing bubble tea. Inspired by the values of kung fu—discipline, precision, and excellence—they built their brand on these principles.
Headquartered in Queens, New York, the first store opened in Flushing and quickly expanded across the U.S. Kung Fu Tea stands out for its commitment to high-quality ingredients, unique flavors, and customizable drinks, attracting a diverse customer base.
The franchise’s popularity has fueled international expansion, with locations in Canada, Australia, and Malaysia, capitalizing on the global bubble tea trend.
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Kung Fu Tea Franchise Initial Investment
It costs on average between $169,000 – $378,000 to start a Kung Fu Tea franchised restaurant.
This includes costs for construction, equipment, inventory, and initial operating expenses. The exact amount depends on various factors, including the type of restaurant you choose, the location, and whether the franchisee chooses to lease or purchase the property.
| Type of Expenditure | Amount |
|---|---|
| Initial franchise fee | $25,000 – $37,000 |
| Training fee | $12,500 |
| Equipment from our affiliate | $6,500 – $7,500 |
| Other equipment, furniture, fixtures and signage | $30,000 – $40,000 |
| Computers, printer, fax, and other hardware and business software | $2,500 – $5,000 |
| Prepaid rent and security deposit | $5,000 – $40,000 |
| Leasehold improvements and architectural costs | $40,000 – $150,000 |
| Interior design (3D rendering of shop) | $3,500 – $5,000 |
| Initial inventory of tea, coffee, cups, menu boards, and packaging materials | $15,000 – $25,000 |
| Initial marketing program | $5,000 |
| Insurance – liability and workers compensation – initial deposit | $5,000 – $20,000 |
| Travel, living expenses and salaries during initial training | $4,000 – $5,000 |
| Legal and accounting fees | $5,000 – $6,000 |
| Additional funds – first month | $10,000 – $20,000 |
| Total | $169,000 – $378,000 |
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Kung Fu Tea Franchise Disclosure Document
Frequently Asked Questions
How many Kung Fu Tea locations are there?
As of the latest data, Kung Fu Tea currently has a total of 380 locations across the United States, with 378 of them being franchised units and only 2 owned by the company itself.
The franchise has continued its growth since its founding in 2010, positioning itself as a leader in the bubble tea market.
What is the total investment required to open a Kung Fu Tea franchise?
The total investment required to open a Kung Fu Tea franchise ranges from $169,000 – $378,000.
What are the ongoing fees for a Kung Fu Tea franchise?
For a Kung Fu Tea franchise, the ongoing fees include a royalty fee of 4% of gross sales and a marketing fee of 2% of gross sales. These fees are crucial for franchisees, covering ongoing support from the franchisor and contributing to national and regional marketing efforts aimed at driving customer traffic.
What are the financial requirements to become a Kung Fu Tea franchisee?
To become a Kung Fu Tea franchisee, the financial requirements include having a minimum net worth of $300,000 to $500,000. Additionally, you need to have liquid assets of at least $44,250.
These financial requirements ensure that potential franchisees have the financial stability to open and operate a franchise while covering startup and operational costs effectively.
Who owns Kung Fu Tea?
Kung Fu Tea is owned by Kung Fu Tea Group, which was founded by four friends: Allen Wang, Ray Ku, Michael Chen, and Sean T.
These entrepreneurs launched the brand in 2010, aiming to bring authentic bubble tea to the United States. Their vision and partnership have helped Kung Fu Tea grow into one of the largest bubble tea franchises in the country.
Disclaimer
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