Tea Lounge Franchise FDD, Profits & Costs (2025)
Tea Lounge is a specialty café franchise built around premium tea and a cozy lounge atmosphere. The concept originated in Brooklyn, New York, where the first shop opened in 2000 at 837 Union Street.
After more than a decade as a local favorite, the brand began franchising in 2012 and continues to operate from its Brooklyn headquarters. The menu features an extensive selection of loose-leaf teas, espresso-based beverages, baked items, light fare, and even cocktails.
Each location is designed as a comfortable gathering place where guests can meet friends, get work done, or simply relax. Its appeal spans dedicated tea enthusiasts as well as customers who want a café environment with more character and comfort.
Tea Lounge sets itself apart through its lounge-inspired design, versatile beverage line, and the ability to transition easily from daytime café service to a more social evening setting.
Initial Investment
How much does it cost to start a Tea Lounge franchise? It costs on average between $276,000 – $406,000 to start a Tea Lounge franchised store.
This investment covers the key expenses required to open a Tea Lounge location, such as build-out work, furnishings and equipment, starting inventory, and early operating costs. The total amount varies based on several elements, including the size and style of the Tea Lounge café, the market where it will operate, and whether the franchisee decides to lease or acquire the space. Tea Lounge offers 2 types of franchises:
| Type of Expenditure | Amount |
|---|---|
| Rose Tea Lounge™ Basic Model | $276,384 to $362,222 |
| Standard Model | $290,084 to $405,520 |
We are summarizing below the main costs associated with opening a Tea LoungeStandard Model. For more information on costs required to start a Tea Lounge franchise, refer to the Franchise Disclosure Document (Item 7).
| Type of Expenditure | Amount |
|---|---|
| Initial Franchise Fee | $49,000 – $49,000 |
| Technology | $10,500 – $12,000 |
| Equipment, Furniture and Fixtures | $84,500 – $115,800 |
| Real Estate | $4,984 – $24,720 |
| Leasehold Improvements | $70,000 – $100,000 |
| Utilities | $0 – $800 |
| Signage | $2,000 – $3,500 |
| Start Up Inventory | $34,500 – $36,000 |
| Grand Opening Marketing | $4,000 – $6,000 |
| Staffing | $6,500 – $9,500 |
| Uniforms | $200 – $500 |
| Insurance | $3,000 – $4,500 |
| Travel, Lodging and Meals for Initial Training Program | $3,600 – $5,200 |
| Licenses, Permits, Certifications and Professional Fees | $2,300 – $3,000 |
| Additional Funds (3 Months) | $15,000 – $35,000 |
| Total | $290,084 – $405,520 |
Franchise Disclosure Document
Frequently Asked Questions
How many Tea Lounge locations are there?
As of the latest available information, Tea Lounge operates 3 locations in the U.S.
What is the total investment required to open a Tea Lounge franchise?
The total investment required to open a Tea Lounge franchise ranges from $276,000 to $406,000.
What are the ongoing fees for a Tea Lounge franchise?
Tea Lounge franchisees pay a royalty fee of 5% of gross sales, and the advertising/marketing (ad-royalty) fee is 1% of gross sales.
Who owns Tea Lounge?
Tea Lounge is owned by Jonathan Spiel, who serves as CEO.
Disclaimer
Disclaimer: This content has been made for informational and educational purposes only. SharpSheets is an independent educational resource and is not affiliated with, endorsed by, or representing any franchisor mentioned on this website. Where noted, figures are taken from the franchisor’s Franchise Disclosure Document (FDD). In some cases, we may provide independent calculations or estimates based on publicly available information. We do not make any representation or warranties with respect to the accuracy, applicability, fitness, or completeness of the information presented in the article. You should not construe any such information or other material as legal, tax, investment, financial, or other professional advice. Nothing contained in this article constitutes a solicitation, recommendation, endorsement, advertisement, or offer to buy or sell any franchises, securities, or other financial instruments in this or in any other jurisdiction in which such solicitation or offer would be unlawful under the franchise and/or securities laws of such jurisdiction.
All content in this article is information of a general nature and does not address the detailed circumstances of any particular individual or entity. Nothing in the article constitutes professional and/or financial and/or legal advice, nor does any information in the article constitute a comprehensive or complete statement of the matters discussed or the law relating thereto. You alone assume the sole responsibility of evaluating the merits and risks associated with the use of any information or other content in this article before making any decisions based on such information or other content.
