About Milk Tea Lab Holding Franchise
Milk Tea Lab is a specialty beverage franchise focused on premium milk tea, boba drinks, and Asian inspired tea creations.
The brand has been franchising since 2022 and offers a menu of carefully crafted drinks that blend traditional tea recipes with modern flavors and presentations.
Each location serves as a destination for bubble tea enthusiasts and new customers discovering the world of specialty tea beverages.
Milk Tea Lab Holding Franchise Cost & Fees
Minimum Investment
$163K
Average Investment
$312K
Maximum Investment
$461K
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $48,000 | One-time payment upon signing |
| Royalty Fee | 5% of Gross Sales of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | From 1% to 3% of Gross Sales | National brand fund |
| Total Investment Range | $163,000 – $460,500 | Includes build-out, inventory, working capital |
The investment range of $163K–$461K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (5% of Gross Sales) and marketing fee (From 1% to 3% of Gross Sales) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $48,000 | $48,000 |
| Rent/Lease Deposit | $7,000 | $30,000 |
| Utility Deposits | $1,000 | $1,500 |
| Leasehold Improvements | $30,000 | $180,000 |
| Furniture and Fixtures | $5,000 | $20,000 |
| Initial Inventory | $5,000 | $10,000 |
| Insurance (6 months) | $2,000 | $5,000 |
| Signage | $5,000 | $20,000 |
| POS System and Computer Equipment | $2,000 | $7,000 |
| Equipment and Supplies | $20,000 | $50,000 |
| Grand Opening Advertising | $5,000 | $10,000 |
| Travel Expenses for Training | $2,000 | $4,000 |
| Business Licenses and Permits | $3,000 | $20,000 |
| Professional Fees | $3,000 | $5,000 |
| Additional Funds- 3 months | $25,000 | $50,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | 50% of the most current Initial Franchise Fee charged to a single MLT Outlet franchisee; $10,000 for each undeveloped Unit transferred under an ADA |
| Renewal Fee | 25% of the then-current Initial Franchise Fee charged to a single MLT Outlet franchisee |
| Technology Fee | Currently $25 per week, subject to change |
| Audit Fee | Cost of audit plus interest on underpayment |
| POS Fee | Currently $70 per week, subject to change |
| Interest | Highest applicable legal rate for open account business credit, not to exceed 1.5% per month |
| Late Fee | The higher of: (a) 5% of the amount due; and (b) $100 plus $100 for every week the report or fee is late |
| Additional Training and Additional Assistance | $3,500 per attendee |
| Products | Price List |
| Liquidated Damages | $250 per day |
| Indemnification | All costs including attorney's fees |
| Taxes | Actual cost |
| Costs and Attorneys’ Fees | Will vary under circumstances |
| Failure to Comply with the Dispute Resolution Provisions | $5,000 plus our expenses in curing your breach |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | a week and a half weeks of training |
| Classroom Training | 24 |
| On-the-Job Training | 32 |
| Training Location | San Jose, CA or other locations we designate |
| Additional Training | We periodically may provide and require that previously trained and experienced franchisees and/or managers attend and successfully complete additional training programs to be conducted at our headquarters. Attendance at these additional training programs will be at your sole expense. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Non-exclusive |
| Exclusive Territory | No |
| Territory Size | Generally, a 5-mile radius around your Outlet location, but may be larger in rural areas and smaller in densely populated areas. |
| Description | You are granted the rights to operate your Outlet at one specific location, which is to be selected by you and consented to by us. We also must consent to any relocation of your Outlet. Upon determination of the specific location of your Franchised Business, you and we will determine a specified limited distance from your location and describe that area in Exhibit I of the Franchise Agreement (the territory within this limited distance being referred to as your "Territory"). The boundaries and size of territories may vary among different franchisees, based on various factors we consider relevant, including, but not limited to: demographics, location of other Milk Tea Lab restaurants, degree of competition, population, traffic, etc. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years |
| Renewal Term | 2 additional terms of 10 years each |
| Renewal Fee | 25% of the then current Initial Franchise Fee for new Milk Tea Lab franchisees |
| Renewal Conditions | Give notice (180-365 days prior to term end), sign new agreement (which may have different terms), remodel and update Outlet to current standards, execute a general release. Renewal may be refused if franchisee has been notified of defaults more than 3 times during the term, even if cured. |
| Transfer Fee | 50% of the most current Initial Franchise Fee charged to a single MLT Outlet franchisee; $10,000 for each undeveloped Unit transferred under an ADA |
| Transfer Conditions | Transferee qualifies (meets franchisor standards, good moral character, credit rating, financial resources, competent qualifications), transfer fee paid, new franchise agreement signed (most current form), training of transferee completed, release signed by transferor and guarantors. Transferee and owners must not operate or have interest in a Competitive Business. |
| Termination for Cause | Curable defaults (30-day cure period): failure to substantially perform agreement terms/Manual obligations, loss of premises, default under lease, misrepresentation of Gross Sales/financial info, loss of required permits/licenses, repeated failures to comply (2+ times in 12 months), failure to keep Outlet open for 5 consecutive days, failure to pay lawful debt/tax, unauthorized transfer of control. Non-curable defaults (immediate termination): felony conviction/accusation, fraudulent activity, abandonment, bankruptcy/insolvency, 2+ insufficient funds checks, material misrepresentation in franchise application, misuse of Marks/Confidential Information, conduct reflecting unfavorably on System, violation of non-compete/confidentiality, immediate danger to public health/safety. |
| Non-Compete Period | During the term of the franchise and for 2 years after termination or expiration |
| Non-Compete Details | During the term, no direct/indirect services for, engagement in, or financial/equity interest in any Competitive Business (except as a duly licensed franchisee or <5% beneficial interest in a reporting company). After termination/expiration, no involvement in a Competitive Business for 2 years at the Site of the Franchised Business and within a 50-mile radius around any Milk Tea Lab restaurant. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | The Principal Owner is required to use his or her best efforts and be personally responsible for the day-to-day management of the Outlet, unless otherwise consented to by us. A qualified manager may be hired to operate day-to-day affairs, but the Principal Owner remains overall responsible. The franchisor must consent to any manager, and the initial designated manager must satisfactorily complete initial training. Principal Owners are required to carefully monitor and be responsible for the performance of anyone designated to manage or oversee the operation of the MTL Outlet. Managers and supervisory personnel must sign confidentiality and non-competition agreements. |
| Required Suppliers | You are required to purchase all products, services, supplies, inventory, computers, equipment, and materials required for the operation of your Outlet from manufacturers, suppliers, or distributors we designate, or from other suppliers who meet our specifications and standards as to quality, appearance, and service, and who adequately demonstrate their ability to supply the franchise needs in a timely and reliable manner ("Approved Suppliers"). |
| Supply Restrictions | We may develop a line of proprietary products which are an integral part of the System and which we and/or our affiliates may be an approved or the sole approved supplier of. You agree to purchase certain products listed in the Manual or as otherwise communicated to you from us or our affiliates or other approve suppliers. You may not continue to offer products or use suppliers we no longer approve. |
| Franchisor Revenue from Suppliers | During the last fiscal year, our affiliate received no revenue from products sold to franchisees. Neither we nor our affiliates have, as of the Issuance Date, received any rebates based on franchisee purchases. We estimate that approximately 90% to 97% of your expenditures for leases and purchases in establishing your Outlet and approximately 90% to 97% of your expenditures on an on-going basis will be for goods and services which must be purchased from either us or our affiliates or an Approved Supplier. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | We do not offer direct or indirect financing. We do not guaranty your note, lease or obligation. |
Milk Tea Lab Holding Franchise Earnings — Item 19
Milk Tea Lab Holding 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.
Milk Tea Lab Holding 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.
Milk Tea Lab Holding Litigation & Risk Flags
Clean Litigation RecordMilk Tea Lab Holding has no pending litigation actions listed in their FDD. There is also no bankruptcy history disclosed.
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Milk Tea Lab Holding System Growth
Total Units
8
Franchised
0
Company-Owned
8
Milk Tea Lab Holding currently operates 0 franchised locations and 8 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2020 | 0 | 0 | 5 |
| 2021 | 3 | 0 | 8 |
| 2022 | 0 | 0 | 8 |
Transfers: 0 | Closures: 0
State Registrations
Registered in 1 states: CA
Franchisor Financials (Item 21)
0
Net Income
$-24,237
Total Assets
$80K
Audited by Drenchko Stephanie, CPA for year ending December 31, 2022.
Milk Tea Lab Holding Franchise — FAQ
The total investment to open a Milk Tea Lab Holding franchise ranges from $163,000 to $460,500, per their Franchise Disclosure Document. This includes the initial franchise fee of $48,000. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
Milk Tea Lab Holding charges a royalty fee of 5% of Gross Sales of gross sales, plus a From 1% to 3% of Gross Sales contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the Milk Tea Lab Holding 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 Milk Tea Lab Holding to ensure you have the most up-to-date version.
Milk Tea Lab Holding 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.
Milk Tea Lab Holding has been franchising since 2022. The FDD shows an investment range of $163,000-$460,500, a 5% of Gross Sales royalty, and no Item 19 earnings disclosure. There is no pending litigation. Review the full FDD and contact current franchisees listed in Item 20 before making any investment decision.
The franchise fee is $48,000 and the total investment ranges from $163,000 to $460,500 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 Milk Tea Lab Holding and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with Milk Tea Lab Holding or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com