About Molly Tea Franchise
Molly Tea is a specialty tea franchise offering a diverse menu of milk teas, whipped cream drinks, fruit teas, oat milk teas, coffee beverages, pastries, and other compatible food products to the general public.
The brand has been franchising since 2025 under Molly Tea IP Inc., entering the booming specialty tea market with a broad beverage menu designed to appeal to a wide range of tastes and preferences.
The franchise fee is $50,000.
Molly Tea Franchise Cost & Fees
Minimum Investment
$528K
Average Investment
$818K
Maximum Investment
$1.1M
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $50,000 | One-time payment upon signing |
| Royalty Fee | 8% of Gross Sales of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | Up to 2% of Gross Sales | National brand fund |
| Total Investment Range | $527,500 – $1,108,000 | Includes build-out, inventory, working capital |
The investment range of $528K–$1.1M reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (8% of Gross Sales) and marketing fee (Up to 2% of Gross Sales) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $50,000 | $50,000 |
| Pre-Opening Travel, Lodging, and Meals for Initial Training | $15,000 | $30,000 |
| Lease Deposit (3 months’ rent) | $15,000 | $75,000 |
| Leasehold Improvements | $50,000 | $200,000 |
| Point of Sale Systems and Computer Hardware and Software | $3,000 | $10,000 |
| Initial Inventory and Supplies (3 months) | $150,000 | $250,000 |
| Business Store Licenses, Permits, etc. (first year) | $15,000 | $15,000 |
| Equipment, Furniture and Fixtures | $150,000 | $300,000 |
| Signage | $5,000 | $15,000 |
| Insurance Premiums (first 3 months) | $2,500 | $5,000 |
| Security and Utility Deposits | $5,000 | $20,000 |
| Architect, Engineer and Other Professional Fees | $2,000 | $8,000 |
| Advertising and Promotion/Grand Opening (3 months) | $15,000 | $30,000 |
| Additional Funds (3 months) | $50,000 | $100,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | 75% of the then current Franchise Fee plus out of pocket costs and expenses |
| Renewal Fee | 75% of the then initial franchise fee at the time of renewal |
| Technology Fee | $10,000 to $20,000 per year |
| Audit Fee | Reimbursement of our audit expenses (payable only if an audit reveals an underpayment of 2% or more) |
| Minimum Local Advertising Expenditure | Currently, $0. May be required in the future up to $3,000 per quarter |
| Advertising Cooperative | Amount determined by the Advertising Cooperative |
| Additional Trainings/Retraining | $2,500 per person, plus reimbursement for travel expenses, lodging and food and a reasonable fee (currently $300 a day) |
| Late Fee | $250 for each delinquent report or payment |
| Interest | 18% per annum or the maximum lawful rate, whichever is less |
| Additional On-Site Assistance | Reimbursement for travel expenses, lodging and food and, at our option, a reasonable fee, not to exceed $1,000 |
| Background Search | Reimbursement for our cost of a third-party background search |
| Customer Complaint Fee | Reimbursement of our expenses |
| Insurance | Reimbursement, plus a 10% administrative fee |
| Inspection and Testing for Unapproved Suppliers, Products or Equipment | Cost of inspection, if applicable, and cost of any test |
| Relocation Fee | Reimbursement to us for our reasonable costs and expenses |
| Tax Payment | Reimbursement |
| Indemnification | Varies depending upon the claim and its resolution |
| Costs and Legal Fees | Actual legal fees and expenses |
| Prohibited Product or Service Fee | $1,500 a day for each day the infraction occurs |
| Unauthorized Advertising Fee | $10,000 per infraction |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | 27 days (7 days corporate office/business location + 20 days on-location) |
| Classroom Training | 56 hours |
| On-the-Job Training | 160 hours |
| Training Location | Room 311, 3F, building 2, Baoyi Creative Park, Xin'an street, Bao'an District, Shenzhen and Molly Milk Tea store in Qinchengda and Kexing Science Park, China |
| Additional Training | We may periodically make other mandatory or optional training available to your employees, as well as other programs, seminars and materials, and you must ensure that all employees, as we may direct, satisfactorily complete any required training within the time specified. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Non-exclusive |
| Exclusive Territory | No |
| Description | The Territory may be located within specific zip codes, counties or other natural boundaries. Your Territory may be based in part on population density, number of restaurants within the Territory, current and projected market demand, potential customer base, the population base, growth trends of population, demographics of the surrounding area, apparent degree of affluence of population, access and visibility, the density of residential and business entities, traffic patterns and other economic, demographic and geographic factors determined by us in our sole discretion. We will assign you a Territory as we deem appropriate for your Franchised Business in our sole discretion. The minimum Territory granted to a franchisee may be the franchisee’s business location with no corresponding geographic protection. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 1 year |
| Renewal Term | Indefinite successive periods of 1 year each |
| Renewal Fee | 75% of the then initial franchise fee at the time of renewal |
| Renewal Conditions | Franchisee is in compliance with all terms of the Agreement and any Ancillary Agreement, has not failed on two or more separate occasions during any twelve (12) consecutive month period or more than three times during any Term to comply with obligations, has provided satisfactory evidence of right to occupy premises, has completed all required maintenance, refurnishing, renovating and remodeling, has executed Franchisor’s then-current form of franchise agreement and any other Ancillary Agreements, has paid the renewal fee and reimbursement for costs, and has complied with current qualification and training requirements, and has executed a general release. |
| Transfer Fee | 75% of the then current Franchise Fee plus out of pocket costs and expenses |
| Transfer Conditions | Franchisee is in full compliance; Franchisee and Principals remain liable; proposed transferee meets Franchisor's criteria (business experience, aptitude, assets, financial resources, good character, not engaged in competitive business, cooperates with due diligence); transferee and owners execute all instruments (new franchise agreement, guaranty); Franchisee assigns lease; Franchisee and Principals execute general release; Franchisee delivers Confidential Information; Franchisee pays transfer fee; transferee complies with application requirements; Franchisee and Principals comply with other conditions. |
| Termination for Cause | Bankruptcy; appointment of a receiver; assignment for benefit of creditors; three or more defaults within a consecutive 12-month period; failure to acquire premises; conviction of felony or unlawful act; breaches of competition, non-solicitation, confidentiality covenants; misrepresentations or omissions; loss of possession/control of premises; violation of transfer restrictions; libel/defamation; cessation of operations for more than two consecutive days; cross-termination; acts materially/unfavorably affecting System/Marks; or any other breach that cannot be cured. |
| Non-Compete Period | 2 years after expiration, termination or approved transfer |
| Non-Compete Details | During the term and for two years after, Franchisee and Principals may not divert business or customers, or own, maintain, advise, operate, engage in, or be employed by, or have an Equity Interest in a business that is the same or similar to a Molly Tea Store or which offers similar products/services. During the term, this applies to any business in the United States. After termination/transfer, it applies within the Territory or a 10-mile radius of the Molly Tea Store or any Molly Tea Store operating/under construction in the US. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | Your or your Operating Principal or a fully-trained manager must devote his or her full time and best efforts to the management of your Molly Tea Store. You or your Operating Principal are not required to devote your full time to your Molly Tea Store if you have a fully-trained manager who will devote his/her full time to the management of the Molly Tea Store. The manager must have an equity interest or a profit interest of not less than ten percent (10%) in you (if the Franchisee is an entity) or in your Molly Tea Store. |
| Required Suppliers | Franchisee must purchase fixtures, furniture, equipment (including sealing machines, tea brewing machines, sugar dispensers, ice makers, refrigerated cabinets, worktables, signage and digital menu displays) and computer systems, interior and exterior signage, graphics and decor; products which must be purchased from us (tea leaves, syrup, fruit juice, coffee beverage concentrated cream, cup packaging materials); products which are to be purchased from approved suppliers (fresh milk, fresh fruits, whip cream, oat milk, nitrous oxide chargers, white granulated sugar, disinfectant chemicals); uniforms, memorabilia, and all merchandise and items intended for retail sale; advertising, point-of-purchase materials, and other printed promotional materials; stationery, contracts, and forms; paper cups, paper bags, packaging, and supplies bearing our Marks; and all other goods and/or services as we may require. |
| Supply Restrictions | We reserve the right to have items sourced exclusively from our Suppliers including a single Supplier (which may be us or one of our affiliates) or a limited number of Suppliers. If we have designated an approved Supplier for a product, we do not permit franchisees to contract with any alternative suppliers for those product(s), nor do we issue specifications for these items. |
| Franchisor Revenue from Suppliers | Molly Tea Supplychain LLC, an affiliate, will derive revenue from franchisee purchases. Franchisor may receive rebates/consideration from suppliers in the future. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | We do not offer, either directly or indirectly, any financing. We do not guarantee your note, lease or other obligation. |
Molly Tea Franchise Earnings — Item 19
Molly Tea 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.
Molly Tea 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.
Molly Tea Litigation & Risk Flags
Clean Litigation RecordMolly Tea 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.
Molly Tea System Growth
Total Units
4
Franchised
0
Company-Owned
4
Molly Tea currently operates 0 franchised locations and 4 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2022 | 0 | 0 | 0 |
| 2023 | 0 | 0 | 0 |
| 2024 | 4 | 0 | 4 |
Transfers: 0 | Closures: 0
State Registrations
Registered in 14 states: CA, HI, IL, IN, MD, MI, MN, NY, ND, RI, SD, VA, WA, WI
Franchisor Financials (Item 21)
Revenue
$55K
Net Income
$-38,845
Total Assets
$101K
Audited by CBIZ CPAs P.C. for year ending December 31.
Molly Tea Franchise — FAQ
The total investment to open a Molly Tea franchise ranges from $527,500 to $1,108,000, per their Franchise Disclosure Document. This includes the initial franchise fee of $50,000. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
Molly Tea charges a royalty fee of 8% of Gross Sales of gross sales, plus a Up to 2% of Gross Sales contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the Molly Tea 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 Molly Tea to ensure you have the most up-to-date version.
Molly Tea 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.
Molly Tea has been franchising since 2025. The FDD shows an investment range of $527,500-$1,108,000, a 8% 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 $50,000 and the total investment ranges from $527,500 to $1,108,000 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 Molly Tea and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with Molly Tea or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com