Bubble tea is a popular drink in the United States. But it’s also becoming more and more popular in other parts of the world. If you want to open your own bubble tea franchise, you should know how much it costs and if it makes sense financially. This article will cover everything you need to know about owning a bubble tea franchise so that you can make an informed decision about whether or not becoming an owner is right for you.
What is bubble tea?
Bubble tea is a drink that combines different flavors of tea with fruit, jelly and tapioca pearls. It’s also known as pearl milk tea or boba due to the chewy tapioca balls that are added to the beverage.
Bubble tea originated in Taiwan in the 1980s. The term bubble tea was coined by a Taiwanese tea shop owner who wanted his customers to be able to distinguish between his drinks and those offered by his competitors. He put together two English words—boba (bubbles) and tee (tea)—and voila! Bubble tea was born.
Today there are many variations on this classic recipe including green tea, oolong, black or purple teas, coconut milks instead of regular dairy milk and more!
If you want to start your own business, opening a bubble tea franchise is worth considering
If you have always wanted to own your own business and are thinking about starting a bubble tea franchise, it’s worth considering. Some people love this drink so much that they want to open their own bubble tea business—and it can be an affordable and profitable venture for many people.
Bubbles are popular worldwide! You’ll be selling something people love all over the world. Which means that no matter where you live or move your store will still make money because customers will come out of curiosity alone;
It’s very affordable compared with other businesses such as fast food chains or coffee shops because most franchises only require $10k-$25k upfront costs plus royalty fees each month depending on how much space they use inside.
How much does a franchise cost?
The franchise fee is the amount you pay to become an official franchisee. This amount varies across companies, but it’s usually around $15,000 to $30,000.
The royalty fee is how much you pay for your regular supplies and services from the franchisor (the company who owns the brand). The royalty fee is usually between 3 and 7% of gross sales each month. Depending on your location and other factors like whether or not you have a drive-thru window or food service license. For example: If you sell one smoothie for $8 every day in your store, then that means that each month they make about $1120 in sales with 7% royalties paid out to their franchisor ($76).
Is there a minimum investment required?
Yes. The initial investment ranges from $15-20,000 for smaller franchises to as high as $250,000 for larger ones. Then there are ongoing expenses such as rent/mortgage payments and payroll taxes that will come out of your pocket each month until the profits start rolling in.
Is it profitable to own a bubble tea franchise?
Profitability depends on the location and business model. Some franchises are profitable, some are not. It’s important to choose a franchise that is profitable for you. In general, some franchises have better profit margins than others; some franchises have higher costs than others.
What are the main benefits of opening a franchise?
Franchises allow you to take advantage of pre-established systems, processes and procedures. In addition, franchises tend to be very successful because they have been proven by other businesses and have proven track records. This can be a huge benefit for new business owners who may not have experience in the industry or specific niche.
Franchises also offer a high level of support from the parent company and often have access to resources that would otherwise be difficult for an independent business to obtain. For example, many franchisors offer training programs, marketing support and technical assistance to help franchisees get off on the right foot.
How long does a bubble tea franchise last?
You can expect to be in business for at least 10 years, but if you run a successful franchise, it may last for much longer than that. A bubble tea franchise has a lifespan that’s similar to other fast-casual restaurants. This means you’ll have the opportunity to make significant profits from the beginning and continue building on those profits over time.
With the popularity of bubble tea growing by 22% over the next 5 years, there’s no doubt that this industry will be around for some time!
Ask for an estimate of different franchises
The cost of opening a bubble tea franchise depends on the type of shop that you want to open. For example, if you plan to open a premium shop with high-end products and services, then it will cost more than opening an ordinary store with mediocre products and services. However, if you are not sure about how much it will cost for your bubble tea franchise, then it is best to contact the most prominent bubble tea franchise directly so that they can give you an estimate.
Can you own two franchise locations?
Not only can you own two franchise locations, but it’s actually encouraged. In fact, many bubble tea franchises will not allow an individual to own more than one franchise location unless they have had years of experience in the industry.
The reason for this is simple:
Your business plan needs to be sound and sustainable before you start opening new locations. If necessary, hire a consultant who can help create a solid business plan that will support your expansion efforts and make sure all of your efforts are aligned with what your customers want.
A good location is essential (and expensive)
When searching for locations for your new business. Keep in mind that most people will not drive out of their way just to go shopping at your place of business. That means that if there are other stores nearby that offer similar products or services. Then they will be more likely to choose those places over yours because they’re closer and more convenient.
Labor costs include wages, payroll taxes and worker’s compensation insurance premiums. A typical employee earns approximately $15 per hour — but this number varies based on location and experience level. In addition to paying employees hourly wages. You’ll also have to pay them benefits. Such as paid sick leave and health insurance coverage. these costs vary by state but typically add an additional 12 percent onto payroll expenses.
Closing Thoughts: Is it worth owning a bubble tea franchise?
If you’re interested in starting your own business and making a living. Then owning a bubble tea franchise may be the perfect choice for you. Because of its popularity and growing demand. The bubble tea industry can be lucrative for those who have experience running a business. And because it involves working with people every day. This type of franchise is ideal for those who enjoy interacting with others on a regular basis.
If this sounds like something that interests you. Then consider furthering your education by learning more about how to open up your own bubble tea shop today!
If you’re thinking about starting your own business, a bubble tea franchise is worth considering. With its growing popularity and relatively low startup cost, it can offer an affordable way to get into the food service industry. However, there are some challenges that come with opening up your first location. Such as finding an ideal location or hiring staff—so it’s important to take this decision seriously.