Teapioca Lounge Franchise FDD, Profits & Costs (2025)
Teapioca Lounge is a beverage franchise that blends the heritage of Asian tea traditions with the lively atmosphere of a contemporary American café. Established in 2010 in Austin, Texas, the brand has built a strong customer base through its wide-ranging menu of bubble teas, smoothies, fresh-brewed teas, and coffee creations.
Still headquartered in Austin, the company launched its franchising program in 2015, opening the door for entrepreneurs who share its vision of providing high-quality, customizable drinks in a friendly and inviting setting.
The menu reflects Teapioca Lounge’s dedication to flavor and choice, offering everything from classic milk teas and fruit-inspired beverages to specialty smoothies and rich espresso drinks. This variety ensures that guests of all preferences can find a drink they enjoy.
What sets Teapioca Lounge apart is the way it combines cultural authenticity with modern café design. Each location is crafted not only as a spot to enjoy a drink but also as a community space where people can gather, connect, and immerse themselves in an approachable take on Asian tea culture.
Initial Investment
How much does it cost to start a Teapioca Lounge franchise? It costs on average between $268,000 – $427,000 to start a Teapioca Lounge franchised restaurant.
This investment covers the costs of construction, equipment, initial inventory, and early operating expenses. The total amount can vary based on several factors, including the size and layout of the Teapioca Lounge location, its geographic market, and whether the franchisee decides to lease or purchase the property.
| Type of Expenditure | Amount |
|---|---|
| Initial Fees | $0 to $0 |
| Travel and Living Expenses While Training | $3,200 to $10,500 |
| Total for Training Only | $3,200 to $10,500 |
| Rent / Real Estate Deposit | $7,400 to $25,000 |
| Real Estate Site Selection | $0 to $0 |
| Utility and Miscellaneous Security Deposits | $300 to $1,800 |
| Leasehold Improvements | $143,000 to $208,000 |
| Furniture, Fixtures, and Equipment | $45,000 to $55,000 |
| Opening Inventory | $30,000 to $45,000 |
| Office Supplies and Other Opening Items | $500 to $1,000 |
| Grand Opening | $10,000 to $15,000 |
| Insurance | $750 to $900 |
| Signage | $5,000 to $10,000 |
| Licensing and Permits | $500 to $1,000 |
| Uniforms | $500 to $1,000 |
| Legal / Accounting | $1,500 to $3,000 |
| Additional Funds (Three Months) | $20,000 to $50,000 |
| Total (Single Unit) | $267,650 to $427,200 |
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Frequently Asked Questions
How many Teapioca Lounge locations are there?
As per the most recent figures, Teapioca Lounge operates 36 franchised locations and no company-owned stores.
What is the total investment required to open a Teapioca Lounge franchise?
The total investment required to open a Teapioca Lounge franchise ranges from $267,000 to $478,000.
What are the ongoing fees for a Teapioca Lounge franchise?
Teapioca Lounge franchisees pay an ongoing royalty fee of 5% of gross sales. In addition, they contribute 2% of sales toward marketing and advertising, which may include both national brand campaigns and local promotional efforts.
What are the financial requirements to become a Teapioca Lounge franchisee?
To qualify for a Teapioca Lounge franchise, candidates must meet specific financial requirements. The franchisor’s official guidelines state that applicants need at least $150,000 in liquid assets and a minimum net worth of $500,000.
Who owns Teapioca Lounge?
Teapioca Lounge franchise is owned by Teapioca International, LLC. This company serves as the franchisor, managing the brand’s expansion, operational support, and overall business system.
Disclaimer
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