Teaspoon Franchise FDD, Profits & Costs (2025)
Teaspoon is a women-led bubble tea franchise that first opened in Los Altos, California, in 2015. The company is now based in San Jose and has grown into a recognizable brand with locations throughout the United States.
In 2016, Teaspoon launched its franchising program, giving entrepreneurs the chance to share in its proven business model and passion for quality beverages.
The brand is known for its handcrafted boba creations, designed to brighten the day of every customer who walks through the door.
Its menu highlights an array of options, from classic milk teas to refreshing fruit teas and indulgent snow ice desserts. Each item is crafted with attention to detail, ensuring consistency in flavor and presentation. Teaspoon also prioritizes creating a warm, inviting atmosphere where guests can relax and enjoy their drinks.
A major point of distinction for Teaspoon is its dedication to fostering community and meaningful connections. Built on principles of gratitude and care, the franchise nurtures strong bonds with both customers and franchise owners.
Initial Investment
How much does it cost to start a Teaspoon franchise? It costs on average between $245,000 – $548,000 to start a Teaspoon franchised restaurant.
This includes expenses for build-out, equipment, inventory, and initial operating costs. The total investment can vary based on several factors, such as the size and layout of the Teaspoon location, the market in which it operates, and whether the franchisee decides to lease or buy the property.
| Type of Expenditure | Amount |
|---|---|
| Initial Franchise Fee | $45,000 |
| Leased Real Estate (includes first, last and security deposit) | $15,000 – $50,000 |
| Training Expenses | $5,000 – $20,000 |
| Furniture, Fixtures, Equipment | $40,000 – $80,000 |
| Office Equipment, Supplies, POS System | $4,500 – $13,000 |
| Build Out, Improvements | $80,000 – $230,000 |
| Initial Inventory | $5,000 – $15,000 |
| Permits, Licenses, Insurance, Utility Deposits, Professional Fees | $10,000 – $30,000 |
| Marketing and Grand Opening | $10,000 – $15,000 |
| Additional Funds and Working Capital (First 3 Months) | $30,000 – $50,000 |
| TOTAL | $244,500 – $548,000 |
Average Revenue (AUV)
How much revenue can you make with a Teaspoon franchise? A Teaspoon franchised location makes on average $504,000 in revenue (AUV) per year.
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Frequently Asked Questions
How many Teaspoon locations are there?
As of the most recent data available, Teaspoon operates more than 80 locations across the United States.
What is the total investment required to open a Teaspoon franchise?
The total investment required to open a Teaspoon franchise ranges from $245,000 to $548,000.
What are the ongoing fees for a Teaspoon franchise?
Franchisees of Teaspoon pay a royalty fee of 5% of gross sales, which covers ongoing brand support, training, and operational guidance. In addition, they contribute an advertising fee of about 2% of gross sales to support national marketing campaigns and promotional efforts.
What are the financial requirements to become a Teaspoon franchisee?
Potential Teaspoon franchisees must have at least $100,000 in liquid capital—that is, readily accessible funds to cover startup costs and early operations. In addition, they need a minimum personal net worth of $300,000, encompassing the value of assets minus liabilities.
How much can a Teaspoon franchise owner expect to earn?
The average gross sales for a Teaspoon franchise are approximately $0.5 million per location. Assuming a 15% operating profit margin, $0.5 million yearly revenue can result in $75,000 EBITDA annually.
Who owns Teaspoon?
The Teaspoon franchise is owned by Amy Lai, who co-founded the brand in 2015 in Los Altos, California.
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