About Ding Tea (unit offering) Franchise
Ding Tea is a beverage franchise specializing in gourmet teas, coffee, flavored tea based drinks, and bubble tea, alongside compatible food products.
The brand brings a premium tea experience to the market with a diverse menu of customizable beverages.
The franchise fee is $30,000, and the company has been franchising since 2019 under Chu Yu Hsiang Co., Ltd.
Ding Tea (unit offering) Franchise Cost & Fees
Minimum Investment
$195K
Average Investment
$260K
Maximum Investment
$324K
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $30,000 | One-time payment upon signing |
| Royalty Fee | $500 per month (Service Fee) of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | Approximately 3% of Gross Monthly Sales | National brand fund |
| Total Investment Range | $195,240 – $324,170 | Includes build-out, inventory, working capital |
The investment range of $195K–$324K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty ($500 per month (Service Fee)) and marketing fee (Approximately 3% of Gross Monthly Sales) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Franchise Fee | $30,000 | $30,000 |
| Design and Floor Plan Fee | $500 | $500 |
| Refundable Security Deposit | $10,000 | $10,000 |
| Six-month Service Fees Prepayment | $3,000 | $3,000 |
| Related Personnel Cost for initial training (note 1) | $2,500 | $5,000 |
| Equipment | $10,000 | $10,000 |
| Utensils | $5,000 | $5,000 |
| Rent for the Tea Shop (note 2) | $2,800 | $5,500 |
| Rental for Warehouse (note 2) | $2,000 | $3,000 |
| Renovation (note 3) | $50,000 | $100,000 |
| Opening Inventory (note 4) | $25,000 | $30,000 |
| Licenses, Permits, Fees and Deposit | $1,800 | $3,500 |
| Point of Sale System (note 5) | $1,850 | $2,000 |
| Office Equipment & Supplies | $120 | $500 |
| Uniforms | $670 | $670 |
| Insurance (note 6) | $4,500 | $15,000 |
| Advertisement | $500 | $500 |
| Additional Funds – 3 Months (note 7) | $45,000 | $100,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $10,000 |
| Renewal Fee | $15,000 |
| Technology Fee | $60 monthly maintenance for POS System |
| Audit Fee | Cost of audit |
| Opening Inventory | $25,000 to $30,000 |
| Late Payment Interest | 5% per month or highest rate allowed by law |
| Manual Replacement Fee | $200 |
| Liquidated Damages for violating the Franchise Agreement | $20,000 per breach |
| Cost and Attorney Fees | Will vary under circumstances |
| Indemnification | Will vary under circumstances |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | Minimum of 7 calendar days (up to 10 calendar days) |
| Classroom Training | 23 hours |
| On-the-Job Training | 19 hours |
| Training Location | Designated training facility (may not be in the United States, specifically mentions Taiwan). On-site pre-opening training at the Tea Shop site is also mentioned. |
| Additional Training | Yes, post-opening telephone and e-mail assistance, on-site post-opening assistance (at additional cost), and mandatory attendance at training courses, seminars, conferences, or other programs (at additional cost of up to $500 per person per day plus expenses). |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Exclusive with Right of First Refusal (ROFR) |
| Exclusive Territory | Yes |
| Territory Size | 3 miles direct line distance (ROFR Territory) |
| Description | The franchisee receives an exclusive territory. However, the franchisor reserves the right to distribute goods or services through the Internet or other electronic means. The franchisee has a right of first refusal (ROFR) if the franchisor desires to open another Ding Tea Tea Shop targeting the same type clientele within a three-mile direct line distance of the site in the same commercial district, center, village, city, or county line, whichever is smaller. Certain unique locations like public transportation facilities, sports facilities, university campuses, shopping malls, and business plazas are excluded from the ROFR Territory. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 3 years |
| Renewal Term | 3 years |
| Renewal Fee | $15,000 |
| Renewal Conditions | Franchisee must give written notice 180 days before term end, be solvent, not have abandoned the outlet, not endanger public health/safety or harm the brand, not have submitted false reports. Must sign franchisor's then-current standard Franchise Agreement or an addendum, satisfy all monetary and material obligations, and may be required to update Trade Dress and equipment. |
| Transfer Fee | $10,000 |
| Transfer Conditions | Requires franchisor's prior written consent (not unreasonably withheld). Proposed assignee must complete application, demonstrate skills, qualifications, moral/ethical reputation, and economic resources. Assignee and principal equity owners must assume all obligations. Franchisee must have completed all material obligations. Assignee's General Manager must complete training. Franchisee pays a $10,000 transfer fee. |
| Termination for Cause | Franchisor can terminate immediately without cure period for reasons like bankruptcy/insolvency, abandonment for 5 consecutive business days, mutual agreement, material misrepresentations or conduct harming brand, failure to comply with laws/regulations after 10 days notice, repeated noncompliance, knowingly false records or 5% underreporting, or imminent danger to public health/safety. For other defaults, a 60-day cure period is provided. |
| Non-Compete Period | During the term of the agreement, and for 1 year after termination or expiration |
| Non-Compete Details | During the term, franchisee (or principal equity owner) cannot directly or indirectly own, manage, operate, assist, or hold interest in any competing business where 50% or more of sales include gourmet teas, coffee, flavored tea-based beverages, bubble tea, and compatible food products/accessories, other than authorized by the agreement. Post-termination/expiration, for one year, cannot operate, manage, own, assist, or hold interest in any competing business selling equivalent goods/services within a 25-mile radius of the ROFR Territory or any other authorized retail location selling similar products. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | If the franchisee is an individual, they must perform all obligations or designate an approved Principal Operator. If an entity, an approved individual must be named as the Principal Operator to assume primary responsibility for management. If neither the General Manager nor Assistant Manager is a Principal Equity Owner, at least one Principal Equity Owner must directly oversee or participate personally in the operation. The franchisee must devote continuous best efforts and personal attention to the business. |
| Required Suppliers | Yes, franchisees must source products from franchisor-approved suppliers. The franchisor and its parent company, Chu Yu Hsiang, are approved suppliers, but not exclusive for all items. Franchisees are required to purchase certain raw materials and supplies from the franchisor, which facilitates shipping through its designated U.S. warehouse. |
| Supply Restrictions | Franchisees must purchase certain raw materials and supplies from the franchisor or its designated warehouse. For other items, they must use franchisor-approved suppliers. The franchisor may designate exclusive suppliers for some categories like beverage syrup, proprietary teas, purchasing, distribution, POS equipment, and internet access. Franchisees can suggest alternative suppliers, but approval is at the franchisor's sole discretion, based on specifications, capacity, consistency, and economies of scale. |
| Franchisor Revenue from Suppliers | Yes, the franchisor's parent company, Chu Yu Hsiang Co., Ltd., derived $5,353,212 in revenue from mandatory purchases and leases by Ding Tea subfranchisors in 2023, representing 78.2% of its total revenue. Chu Yu Hsiang Co., Ltd. will earn approximately 17.5% (not exceeding 21%) profit from raw materials, machinery, and supplies orders placed by franchisees. |
Ding Tea (unit offering) Franchise Earnings — Item 19
Ding Tea (unit offering) does not make an Item 19 financial performance representation in their FDD. This means they do not disclose revenue, profit, or earnings data for franchised locations. Before investing, ask the franchisor directly for franchisee contact information so you can speak with existing owners about their actual financial performance.
Ding Tea (unit offering) does not include an Item 19 financial performance representation in their FDD. Contact information for current and former franchisees is listed in Item 20 of the FDD.
Ding Tea (unit offering) Litigation & Risk Flags
1 Pending Action ListedReview the full FDD for details on pending litigation.
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Ding Tea (unit offering) System Growth
Total Units
135
Franchised
135
Company-Owned
0
Ding Tea (unit offering) currently operates 135 franchised locations and 0 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2021 | 22 | 2 | 116 |
| 2022 | 34 | 28 | 122 |
| 2023 | 30 | 17 | 135 |
Transfers: 1 | Closures: 47
State Registrations
Registered in 9 states: CA, HI, IL, MD, MI, MN, NY, VA, WA
Franchisor Financials (Item 21)
Revenue
$413K
Net Income
$319K
Total Assets
$3.1M
Audited by Chen & Fan Accountancy Corporation for year ending December 31.
Ding Tea (unit offering) Franchise — FAQ
The total investment to open a Ding Tea (unit offering) franchise ranges from $195,240 to $324,170, per their Franchise Disclosure Document. This includes the initial franchise fee of $30,000. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
Ding Tea (unit offering) charges a royalty fee of $500 per month (Service Fee) of gross sales, plus a Approximately 3% of Gross Monthly Sales contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the Ding Tea (unit offering) Franchise Disclosure Document free on this page. The FDD is a public document filed with state franchise registries. Always also request the current FDD directly from Ding Tea (unit offering) to ensure you have the most up-to-date version.
Ding Tea (unit offering) does not provide an Item 19 financial performance representation in their FDD, which means they do not disclose franchisee revenue or earnings data. Prospective investors should contact existing franchisees directly (listed in Item 20 of the FDD) to gather real-world financial performance information.
Ding Tea (unit offering) has been franchising since 2019. The FDD shows an investment range of $195,240-$324,170, a $500 per month (Service Fee) royalty, and no Item 19 earnings disclosure. There are 1 pending litigation action(s). Review the full FDD and contact current franchisees listed in Item 20 before making any investment decision.
The franchise fee is $30,000 and the total investment ranges from $195,240 to $324,170 depending on location size and market. Contact the franchisor directly for current net worth and liquid capital requirements, territory availability, and application details.
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Data Source & Disclaimer: This website is for informational purposes only. It is not an offer to sell or buy a franchise. This profile is based on publicly available FDD data sourced from state franchise registry filings. All information is for research purposes only and does not constitute legal, financial, or investment advice. Data may be outdated or contain errors. Always obtain the current FDD directly from Ding Tea (unit offering) and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with Ding Tea (unit offering) or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com