Happy Lemon Franchise FDD, Profits, Costs & Fees (2024)

Happy Lemon, founded by Yummy-Town Group in 2006, is a global bubble tea franchise from Shanghai, China. The brand became known for its unique drinks, especially Salted Cheese Tea, which gained worldwide popularity. It started franchising in the U.S. in 2014, expanding rapidly across markets.

The company now operates over 2,000 stores globally, with more than 80 in the U.S. as of 2022. Its diverse offerings, such as Salted Cheese Tea, help set it apart in the bubble tea industry. Happy Lemon’s store formats include kiosks, take-out, and dine-in options.

The franchise continues to grow in the U.S., offering territories for new franchisees. It provides extensive support in training, marketing, and operations, making it a strong investment opportunity in the beverage market.

Initial Investment

How much does it cost to start a Happy Lemon franchise? It costs on average between $250,000 – $500,000 to start a Happy Lemon franchised restaurant.

This amount includes expenses such as franchise fees, store build-out, equipment, and initial inventory. The franchise fee itself is generally around $40,000, while other costs like leasehold improvements, signage, and working capital contribute to the overall investment.

Average Revenue (AUV)

How much revenue can you make with a Happy Lemon franchise? A Happy Lemon franchised restaurant makes on average $1 million in revenue (AUV) per year.

The revenue potential for a Happy Lemon franchise can vary significantly depending on factors such as location, store size, and customer traffic.

This compares to $587,000 yearly revenue for similar bubble tea franchises. Below are a few competitors as a comparison:

FranchiseInvestmentRevenue (AUV)
Sharetea$387,000 – $492,000$372,000
Coco Fresh Tea & Juice$221,000 – $454,000$482,000
Kung Fu Tea$169,000 – $378,000$347,000
Jazen Tea$73,000 – $390,000$1,203,000

Frequently Asked Questions

How many Happy Lemon locations are there?

As of the latest data, Happy Lemon operates over 2,000 locations worldwide. In the United States, there are more than 100 stores, with the majority being franchise-owned.

What is the total investment required to open a Happy Lemon franchise?

The total investment required to open a Happy Lemon franchise ranges from $250,000 to $500,000.

What are the ongoing fees for a Happy Lemon franchise?

Happy Lemon charges a royalty fee of 6% of gross sales for its franchisees, which covers ongoing support and use of the brand’s business systems. Additionally, there is a marketing fee set at 1% of gross sales, allocated toward national advertising efforts to enhance brand visibility.

What are the financial requirements to become a Happy Lemon franchisee?

To become a Happy Lemon franchisee, the financial requirements include a minimum net worth of $500,000 and at least $150,000 in liquid capital.

These financial benchmarks ensure that potential franchisees have sufficient resources to cover the initial investment, ongoing expenses, and any unforeseen costs associated with starting and operating a franchise.

How much can a Happy Lemon franchise owner expect to earn?

The average gross sales for a Happy Lemon franchise are approximately $1.0 million per location. Assuming a 15% operating profit margin, $1.0 million yearly revenue can result in $150,000 EBITDA annually.

Who owns Happy Lemon?

Happy Lemon is owned by the Yummy-Town Group, a company based in Taiwan. Yummy-Town Group is known for its role in popularizing Taiwanese bubble tea culture in regions like Mainland China and Hong Kong.

Disclaimer

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