The Spice & Tea Exchange Franchise FDD, Profits & Costs (2025)
Established in 2008, The Spice & Tea Exchange rapidly adopted franchising to expand its distinctive concept across the country.
The organization is driven by a goal to enhance and distribute a richer taste experience, providing a wide variety of teas, spices, and gourmet offerings that encourage patrons to delve into worldwide cuisines.
With its main office situated in the United States, The Spice & Tea Exchange has witnessed considerable growth, crediting its achievements to the high caliber of its offerings and engaging shopping experiences.
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Initial Investment
How much does it cost to start a The Spice & Tea Exchange franchise? It costs on average between $195,000 – $395,000 to start a The Spice & Tea Exchange franchised restaurant.
This includes costs for construction, equipment, inventory, and initial operating expenses. The exact amount depends on various factors, including the location, and whether the franchisee chooses to lease or purchase the property.
| Type of Expenditure | Amount |
|---|---|
| Franchise Fee – Single Unit | $38,750 |
| Establishment Fee | $95,000 – $125,000 |
| Construction, Improvements and Other Dress-Out, Architect Fees | $40,000 – $150,000 |
| Grand Opening Advertising | $5,000 – $5,000 |
| Professional Fees | $500 – $3,500 |
| Utility Deposits | $250 – $500 |
| Office Equipment | $350 – $2,500 |
| Rent and Security Deposits | $1,800 – $10,000 |
| Insurance (Premium for First Year) | $1,000 – $3,500 |
| State and Local Business Licenses, Permits and Filing Fees | $500 – $1,500 |
| Training Expenses | $1,500 – $5,000 |
| Additional Funds – 6 Months | $10,000 – $50,000 |
| Total Estimated Initial Investment | $194,650 – $395,250 |
Average Revenue (AUV)
How much revenue can you make with a The Spice & Tea Exchange franchise? A The Spice & Tea Exchange franchised restaurant makes on average $488,000 in revenue (AUV) per year.
Here is the extract from the Franchise Disclosure Document:
This compares to $587,000 yearly revenue for similar coffee and tea franchises.
Below are 10 The Spice & Tea Exchange competitors as a comparison:
The most profitable franchises to own in 2025
We have compiled the list of the top 400 franchises across 9 industries. Download the report below.
The Spice & Tea Exchange Franchise Disclosure Document
Frequently Asked Questions
How many The Spice & Tea Exchange locations are there?
As of the latest available data, The Spice & Tea Exchange operates over 60 locations across the United States. The majority of these are franchise-owned, with a smaller number being company-owned. The company has expanded significantly since its inception, establishing a presence in multiple states.
What is the total investment required to open a The Spice & Tea Exchange franchise?
The total investment required to open a The Spice & Tea Exchange franchise ranges from $195,000 to $395,000.
What are the ongoing fees for a The Spice & Tea Exchange franchise?
The Spice & Tea Exchange franchisees pay a 7% royalty fee on gross revenue and a 1% advertising fee. These fees support brand marketing and operational resources provided by the franchisor.
What are the financial requirements to become a The Spice & Tea Exchange franchisee?
To qualify as a franchisee for The Spice & Tea Exchange, franchisees are required to have a minimum net worth of $200,000, ensuring they possess sufficient overall financial stability. Additionally, applicants should have at least $60,000 in liquid capital, which provides the necessary funds to cover initial startup costs and operational expenses.
How much can a The Spice & Tea Exchange franchise owner expect to earn?
The average gross sales for a The Spice & Tea Exchange franchise are approximately $0.49 million per location. Assuming a 15% operating profit margin, $0.49 million yearly revenue can result in $74,000 EBITDA annually.
Who owns The Spice & Tea Exchange?
The Spice & Tea Exchange is a privately held company. As of 2017, Amy Freeman served as the Chief Executive Officer (CEO), and Penny Rehling held the position of Chief Operating Officer (COO).
The company operates a franchise model, with numerous locations owned and managed by individual franchisees. For instance, Tanner Gordon has been a franchise owner since January 2022.
Disclaimer
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