About Moge Tee Franchise
Moge Tee is a specialty tea and beverage franchise offering premium milk teas, fruit teas, cheese teas, and other Asian inspired drinks.
The brand has been franchising since 2019 and has built a following among tea enthusiasts with its high quality ingredients, creative drink combinations, and visually appealing presentations.
Each location serves as a neighborhood destination for handcrafted beverages made to order.
Moge Tee Franchise Cost & Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $40,000 | One-time payment upon signing |
| Royalty Fee | 3% of Gross Sales of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 2% of Gross Sales | National brand fund |
| Total Investment Range | $158,700 – $269,300 | Includes build-out, inventory, working capital |
The investment range of $159K–$269K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (3% of Gross Sales) and marketing fee (2% of Gross Sales) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial franchise fee (Note 1) | $40,000 | $40,000 |
| Initial training (Note 2) | $10,000 | $10,000 |
| Travel, living expenses and salaries during initial training (Note 3) | $500 | $10,000 |
| Leasehold expense, including security deposit (Note 4) | $11,000 | $20,000 |
| Architect, engineer and other design professionals (Note 5) | $2,000 | $10,000 |
| Leasehold improvements, signage, furniture (Note 6) | $40,000 | $80,000 |
| Menus | $100 | $500 |
| Equipment from our affiliate (Note 7) | $15,000 | $18,000 |
| Point of sale (POS) and other software, computer hardware and business equipment | $3,500 | $4,000 |
| Other equipment | $11,000 | $17,500 |
| Setup fee for our app | $100 | $100 |
| Initial inventory of proprietary products (Note 8) | $13,000 | $15,000 |
| Initial inventory of other products and supplies (one month) (Note 9) | $3,000 | $5,000 |
| Insurance premiums (three months) (Note 10) | $1,000 | $1,200 |
| Grand opening advertising (Note 11) | $500 | $5,000 |
| Legal and accounting fees (Note 12) | $2,000 | $8,000 |
| Additional funds – first three months (Note 13) | $6,000 | $25,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $5,000 |
| Renewal Fee | 25% of our then-current Initial franchise fee for a new Möge Tee franchise |
| Audit Fee | Cost of audit plus interest on any overdue amount at the maximum rate allowable by law. |
| Menus | Our costs to print and ship |
| Proprietary products | $4,000 to $25,000 per month depending on sales volume |
| Conference fee | $500 |
| Late fees | Lesser of 18% per year or the maximum lawful rate, plus bank charges |
| Late report fee | $150 per late report per week (or portion of a week) past the due date |
| Field assistance and training after opening | The then-current rate of our personnel, currently $200 per day plus expenses for each person we send |
| Management fee | 10% of gross sales plus expenses |
| Insurance fee | Our actual costs and expenses |
| Relocation fee | $5,000 |
| Product or supplier evaluation | Cost of inspection and cost of test plus our administrative costs |
| Indemnification | Our actual costs |
| Attorneys' fees and costs | Our actual costs |
| Returned check/EFT fee | $50 for each NSF or EFT returned |
| Remedial work | Our actual costs and a 25% service charge on labor and materials |
| Prohibited product or service fee | $1,000 for the first 10 days after we notify you plus $100 per additional day if you continue to purchase, use or sell unauthorized products or services. |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | Approximately two weeks (120 hours) |
| Classroom Training | 8 |
| On-the-Job Training | 88 |
| Training Location | Moge Tee HQ Office in NYC and One of The Corporate Stores |
| Additional Training | The franchisor provides refresher courses and training for additional/replacement managers. Fees apply for additional personnel ($2,000 per person) and non-mandatory/remedial training ($200 per day plus expenses). Franchisees pay travel, living expenses, and salaries for personnel attending training. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Defined territory |
| Exclusive Territory | Yes |
| Territory Size | Approximately 5 city blocks or 0.5 miles (Metropolitan Urban Core Area); approximately 1 mile (urban area not in Metropolitan Urban Core Area); entirety of non-traditional venue. |
| Description | If located in a Metropolitan Urban Core Area, the territory is approximately 5 city blocks or 0.5 miles, whichever is less, drawn from the front door of the shop, with boundaries identified by closest roads or geographic/political boundaries. If in an urban area not within a Metropolitan Urban Core Area, it's approximately 1 mile from the front door. For non-traditional venues (e.g., airports, malls, stadiums), the territory is the entirety of that venue. The franchisor retains rights to establish Möge Tee shops in non-traditional venues within the territory and to market/sell products under the Möge Tee trademark through other channels (grocery stores, website) without compensation to the franchisee. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | Ten years, or the end date of your lease if it is for a shorter period of time |
| Renewal Term | 10-year term |
| Renewal Fee | 25% of our then-current Initial franchise fee for a new Möge Tee franchise |
| Renewal Conditions | Franchisee must notify franchisor 12-24 months before term end, repair and update equipment/premises, sign a new franchise agreement (which may contain materially different terms), sign a general release, comply with current financial qualifications and training requirements, not be in default, not have received more than three default notices in 24 months, and have the right to possession of premises for the duration of the renewal term. |
| Transfer Fee | $5,000 |
| Transfer Conditions | The proposed transferee, its managers, directors, officers and owners must be individuals of good character with sufficient business experience, aptitude, and financial resources to operate the Franchised Business and otherwise meet the franchisor's then applicable standards for a new Möge Tee franchisee. The transferee may not be or be owned directly or indirectly by a Competitive Business. The franchisee must cure any default under the agreement, pay all fees and amounts owed, and obtain landlord consent if required. The transferee must sign a new franchise agreement and guaranty, and the premises must be upgraded and remodeled to current standards. The franchisor must approve the material terms and conditions of the transfer, and any financing must be subordinate to the franchisor's obligations. |
| Termination for Cause | Misrepresentation, failure to complete training, failure to open business on time, closure by government agency, unauthorized disclosure of confidential information, unauthorized use of Marks, attempted unauthorized transfer, failure to pay taxes, failure to maintain insurance, criminal conviction, breach of noncompete, bankruptcy/insolvency, abandonment of business, default under another Möge Tee franchise agreement, dishonest/unethical conduct. |
| Non-Compete Period | During term: indefinite. After termination/expiration: two years. |
| Non-Compete Details | During the term of the franchise, the franchisee (and owners/immediate family) cannot directly or indirectly have an interest in, perform services for, or divert business to a Competitive Business anywhere Möge Tee operates. After termination/expiration, for two years, the franchisee (and owners/immediate family) cannot have an interest in a Competitive Business within the territory or 10 miles of any Möge Tee shop, perform services for such a business, or divert business to a competitor. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | The managing owner must be an owner of an equity or voting interest and devote full-time attention to direct, day-to-day supervision. The operating manager (who can be the same person) must also actively manage the business. If the operating manager ceases active management or the business is not managed properly, the franchisor may appoint a manager at the franchisee's expense. |
| Required Suppliers | Franchisees must purchase all Möge Tee proprietary products from King Bubble USA Inc. or designated/approved suppliers. These include beverage cups, bags, seals, branded teas, syrup mixes, dried products (tapioca pearls), uniforms, and certain equipment (tea brewing machines, fructose dispenser, tapioca cooker). The franchisor also supplies all menus, posters, signage, and marketing collaterals. |
| Supply Restrictions | Approximately 30% to 50% of expenditures for leases and purchases are subject to sourcing restrictions. Proprietary products must be from the franchisor or its affiliate, King Bubble USA Inc., or designated third-party suppliers. King Bubble USA Inc. is currently the only supplier for proprietary products. The franchisor specifies milk and fruit suppliers. |
| Franchisor Revenue from Suppliers | $1,768,610 |
Moge Tee Franchise Earnings — Item 19
Moge Tee 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.
Moge Tee Litigation & Risk Flags
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Moge Tee System Growth
Moge Tee currently operates 36 franchised locations and 12 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2019 | 3 | 0 | 4 |
| 2020 | 13 | 0 | 17 |
| 2021 | 19 | 1 | 36 |
Transfers: 1 | Closures: 1
State Registrations
Registered in 12 states: CA, IL, IN, MD, MI, NY, ND, RI, SD, VA, WA, WI
Franchisor Financials (Item 21)
Audited by WEI WEI & CO., LLP for year ending December 31.
Moge Tee Franchise — FAQ
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