Krak Boba Franchise FDD, Profits & Costs (2025)
Krak Boba is a modern boba tea franchise that first opened in Riverside, California in 2021. The brand draws its inspiration from the legend of King Krakus and the Dragon, a story that represents originality, resilience, and bold creativity.
Operated by Krak Boba Franchising LLC, the company focuses on delivering fun, customizable beverages in a lively and youthful setting. Its mission centers on combining flavor with a strong sense of brand personality that appeals to today’s trend-driven customers.
Based in Riverside, CA, Krak Boba began its franchising journey in the early 2020s and has grown quickly. The brand already has more than 25 locations in states such as California, Texas, Indiana, and Colorado, with expansion continuing.
The menu features an extensive lineup of milk teas, fruit teas, smoothies, coffee, and snack items. Drinks are branded as “elixirs,” emphasizing the company’s vision of energizing and uplifting its guests.
Initial Investment
How much does it cost to start a Krak Boba franchise? It costs on average between $275,000 – $472,000 to start a Krak Boba franchised restaurant.
This investment covers expenses such as construction, equipment, inventory, and the initial costs of running the business. The total required amount can vary depending on several factors, including the size and style of the boba shop, its location, and whether the franchisee decides to lease or purchase the property.
| Type of Expenditure | Amount |
|---|---|
| Initial Franchise Fee | $49,500 |
| Your Training Expenses | $2,000 to $5,000 |
| Premises Lease Deposit/Rent | $9,000 to $14,000 |
| Utility Deposit | $1,000 to $2,000 |
| Design & Architect Fees | $12,000 to $15,000 |
| Professional Fees | $2,000 to $4,000 |
| Leasehold Improvements, Construction and/or Remodeling | $100,000 to $225,000 |
| Furniture, Fixtures, Equipment and Supplies | $51,000 to $66,000 |
| Smallwares | $4,000 to $5,000 |
| Signage | $5,000 to $7,500 |
| Business Licenses and Permits | $1,500 to $5,000 |
| Computer Systems | $2,000 to $2,500 |
| Security System | $1,000 to $1,500 |
| Initial Inventory – Tea and Cups | $10,848 to $28,333 |
| Initial Inventory – Other Supplies | $4,500 to $6,000 |
| Office Equipment and Supplies | $1,000 to $3,000 |
| Grand Opening Advertising | $7,500 to $10,000 |
| Insurance | $1,500 to $2,500 |
| Operating Expenses/Additional Funds – 3 Months | $10,000 to $20,000 |
| TOTAL | $275,384 – $471,833 |
Average Revenue (AUV)
How much revenue can you make with a Krak Boba franchise? A Krak Boba franchised location makes on average $668,000 in revenue (AUV) per year.
Here is the extract from the Franchise Disclosure Document:
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Frequently Asked Questions
How many Krak Boba locations are there?
As of the latest available data, Krak Boba has 7 locations in the U.S. — 6 are franchise-owned and 1 is corporate-owned.
What is the total investment required to open a Krak Boba franchise?
The total investment required to open a Krak Boba franchise ranges from $275,000 to $472,000.
What are the ongoing fees for a Krak Boba franchise?
A Krak Boba franchise requires ongoing payments that include a 6% royalty fee on gross sales and a 2% marketing and advertising fee on gross sales. These fees support the brand’s continued development, national marketing efforts, and the operational systems provided to franchisees.
What are the financial requirements to become a Krak Boba franchisee?
To qualify as a Krak Boba franchisee, you need a minimum liquid capital of $150,000 to $200,000, with a total initial investment ranging from $275,384 to $471,833.
How much can a Krak Boba franchise owner expect to earn?
The average gross sales for a Krak Boba franchise are approximately $0.67 million per location. Assuming a 15% operating profit margin, $0.67 million yearly revenue can result in $101,000 EBITDA annually.
Who owns Krak Boba?
The Krak Boba franchise is owned by Krak Boba Franchising LLC, which oversees the brand’s operations, franchising, and expansion strategy.
Disclaimer
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