The Spice & Tea Exchange Franchise FDD, Profits & Costs (2025)
The Spice & Tea Exchange is a specialty retail franchise that began in 2005 under the name Old Florida Spice Traders in St. Augustine, Florida. The concept officially rebranded and started franchising in 2008, operating under The Spice & Tea Exchange Franchising, LLC.
The company is headquartered in Palm Harbor, Florida. Since launching its franchise model, it has steadily grown across the United States.
The franchise offers a unique in-store experience centered around high-quality spices, handcrafted blends, loose-leaf teas, salts, sugars, and related accessories. Customers are encouraged to explore the aromas and textures of products before purchasing, creating an immersive shopping experience.
The Spice & Tea Exchange began franchising in 2008 and currently operates approximately 94 locations across the United States.
Initial Investment
How much does it cost to start a The Spice & Tea Exchange franchise? It costs on average between $299,000 – $532,000 to start a The Spice & Tea Exchange franchised restaurant.
This includes costs for construction, equipment, inventory, and initial operating expenses. The exact amount depends on various factors, including the location, and whether the franchisee chooses to lease or purchase the property.
| Type of Expenditure | Amount |
|---|---|
| Franchise Fee – Single Unit | $38,750 |
| Establishment Fee | $134,910 to $149,900 |
| Seasonal Inventory Order | $2,000 to $20,000 |
| Construction/Build-Out, Tea Bar Equipment, Dress-Out | $104,000 to $238,000 |
| Grand Opening Advertising | $3,000 to $5,000 |
| Professional Fees | $500 to $3,500 |
| Utility Deposits | $250 to $500 |
| Office Equipment | $350 to $4,000 |
| Rent and Security Deposits | $1,800 to $10,000 |
| Insurance (premium for first year) | $1,000 to $3,500 |
| State and Local Business Licenses, Permits & Fees | $500 to $4,000 |
| Training Expenses | $1,500 to $5,000 |
| Additional Funds – 6 Months | $10,000 to $50,000 |
| TOTAL ESTIMATED INITIAL INVESTMENT | $298,560 to $532,150 |
Average Revenue (AUV)
How much revenue can you make with a The Spice & Tea Exchange franchise? A The Spice & Tea Exchange franchised restaurant makes on average $487,000 in revenue (AUV) per year.
Here is the extract from the Franchise Disclosure Document:
This compares to $587,000 yearly revenue for similar coffee and tea franchises.
Download the Franchise Disclosure Document
Frequently Asked Questions
How many The Spice & Tea Exchange locations are there?
As of the latest available data, The Spice & Tea Exchange operates 94 locations across the United States, with 93 of these being franchise-owned. The company has expanded significantly since its inception, establishing a presence in multiple states.
What is the total investment required to open a The Spice & Tea Exchange franchise?
The total investment required to open a The Spice & Tea Exchange franchise ranges from $299,000 to $532,000.
What are the ongoing fees for a The Spice & Tea Exchange franchise?
The Spice & Tea Exchange franchisees pay a 7% royalty fee on gross revenue and a 1% advertising fee. These fees support brand marketing and operational resources provided by the franchisor.
What are the financial requirements to become a The Spice & Tea Exchange franchisee?
To qualify as a franchisee for The Spice & Tea Exchange, franchisees are required to have a minimum net worth of $200,000, ensuring they possess sufficient overall financial stability. Additionally, applicants should have at least $60,000 in liquid capital, which provides the necessary funds to cover initial startup costs and operational expenses.
How much can a The Spice & Tea Exchange franchise owner expect to earn?
The average gross sales for a The Spice & Tea Exchange franchise are approximately $0.49 million per location. Assuming a 15% operating profit margin, $0.49 million yearly revenue can result in $74,000 EBITDA annually.
Who owns The Spice & Tea Exchange?
The Spice & Tea Exchange is a privately held company. As of 2017, Amy Freeman served as the Chief Executive Officer (CEO), and Penny Rehling held the position of Chief Operating Officer (COO).
The company operates a franchise model, with numerous locations owned and managed by individual franchisees. For instance, Tanner Gordon has been a franchise owner since January 2022.
Disclaimer
Disclaimer: This content has been made for informational and educational purposes only. 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.
