About Steep Me Franchise
Steep Me is a specialty tea franchise that brings the growing demand for premium loose leaf teas and wellness beverages into a retail and cafe format.
Each location offers a curated selection of teas, tea based drinks, and related accessories in a welcoming environment designed for tea enthusiasts and casual drinkers alike.
The brand taps into the expanding consumer interest in health conscious beverages and alternatives to traditional coffee shops.
Steep Me Franchise Cost & Fees
Minimum Investment
$238K
Average Investment
$325K
Maximum Investment
$412K
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $30,000 | One-time payment upon signing |
| Royalty Fee | 6% of your gross sales of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 1% of your gross sales (Marketing Fund Contribution), 3% of your gross sales (Local Marketing/Required Spending), and up to 5% of gross sales (Market Cooperative Contribution) | National brand fund |
| Total Investment Range | $237,683 – $412,100 | Includes build-out, inventory, working capital |
The investment range of $238K–$412K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (6% of your gross sales) and marketing fee (1% of your gross sales (Marketing Fund Contribution), 3% of your gross sales (Local Marketing/Required Spending), and up to 5% of gross sales (Market Cooperative Contribution)) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial franchise fee (see Note 1) | $30,000 | $30,000 |
| Rent and Lease Security Deposit (see Note 2) | $3,683 | $12,600 |
| Utilities | $400 | $2,000 |
| Leasehold Improvements | $25,000 | $65,000 |
| Market Introduction Program | $3,600 | $6,000 |
| Furniture, Fixtures, and Equipment | $80,000 | $120,000 |
| Computer Systems | $1,500 | $4,000 |
| Insurance | $1,800 | $10,000 |
| Signage | $3,000 | $15,000 |
| Office Expenses | $3,500 | $5,000 |
| Inventory (see Note 3) | $40,000 | $60,000 |
| Pre-Opening Wages | $0 | $10,000 |
| Licenses and Permits | $700 | $1,500 |
| Professional Fees (lawyer, accountant, etc.) | $1,500 | $3,000 |
| Travel, lodging and meals for initial training | $3,000 | $8,000 |
| Additional funds (for first 3 months) (see Note 4) | $40,000 | $60,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $10,000 plus any broker fees and other out-of-pocket costs we incur |
| Technology Fee | $90 per month (Software subscription) |
| Audit Fee | Our actual cost (Payable only if (1) you have failed to submit required reports or other non-compliance, or (2) the audit concludes that you under-reported gross sales by more than 3% for any 4-week period) |
| Ecommerce Sales Commission | 0-10% for $0-$100, 13% for $101-$300, 15% for $301+, plus 10% bonus for $1,000+ monthly orders |
| Replacement / Additional Training fee | Currently, $350 per day |
| Third party vendors | Pass-through of costs, plus reasonable administrative charge. Currently, none. |
| Non-compliance fee | $500, then $250 per week until corrected |
| Reimbursement | Amount that we spend on your behalf, plus 10% |
| Late fee | $100 plus interest on the unpaid amount at a rate equal to 18% per year |
| Insufficient funds fee | $30 |
| Costs of collection | Our actual costs |
| Special support fee | Currently, $600 per day, plus our expenses |
| Customer complaint resolution | Our expenses |
| Special inspection fee | Currently $600, plus our out-of-pocket costs |
| Non-compliance cure costs and fee | Our out-of-pocket costs and internal cost allocation, plus 10% |
| Liquidated damages | An amount equal to royalty fees and marketing fund contributions for the lesser of (i) 2 years or (ii) the remaining weeks of the franchise term. |
| Indemnity | Our costs and losses from any legal action related to the operation of your franchise |
| Prevailing party’s legal costs | Our attorney fees, court costs, and other expenses of a legal proceeding |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | Initial Training Program: 27 hours classroom, 19 hours on-the-job. Additional Training Program: 30 hours classroom, 15 hours on-the-job. |
| Classroom Training | 27 hours (Initial Training Program), 30 hours (Additional Training Program) |
| On-the-Job Training | 19 hours (Initial Training Program), 15 hours (Additional Training Program) |
| Training Location | Fargo, ND or Your Location (Initial Training Program); Fargo, ND or Your Location (Additional Training Program) |
| Additional Training | If you send a manager or other employee to our training program after you open, we will charge our then-current training fee (currently $350 per day). We do not currently require additional training programs or refresher courses, but we have the right to do so. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Exclusive |
| Exclusive Territory | Yes |
| Territory Size | Approximately 50,000 people or a 3-mile radius from the location, whichever is less. |
| Description | Your territory will usually be specified as a radius around your location; however, we may use other boundaries (such as county lines or other political boundaries, streets, geographical features, or trade area). We will not establish a company-owned or franchised outlet selling similar goods/services under the same/similar trademarks within your territory. If a Multi-Unit Development Agreement (MUDA) is signed, you do not receive an exclusive territory as an area developer and may face competition from franchisor-owned outlets or other franchisees. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years from date of franchise agreement. |
| Renewal Term | Up to 2 additional 5-year terms. |
| Renewal Conditions | To renew, you must give advance notice (90-180 days prior to term end); be in compliance with all contractual obligations; renovate to then-current standards; sign then-current form of franchise agreement and related documents (including personal guaranty); sign general release. |
| Transfer Fee | $10,000 plus any broker fees and other out-of-pocket costs we incur |
| Transfer Conditions | Pay transfer fee; buyer meets our standards; buyer is not a competitor; buyer and its owners sign then-current franchise agreement and related documents (including personal guaranty); you’ve made all payments and are in compliance; buyer completes training program; you sign a general release; business complies with then-current system specifications (including remodel, if applicable). |
| Termination for Cause | Non-payment (10 days to cure); other curable defaults (30 days to cure); non-curable defaults (misrepresentation, false information, bankruptcy, loss of possession, violation of law/confidentiality/non-compete/transfer restrictions, slander/libel, refusal to cooperate with inspection/audit, cease operations for >5 days, significant danger to health/safety, multiple defaults, cross-termination, felony conviction, acts materially affecting brand). |
| Non-Compete Period | During the term of the franchise (in-term) and for two years after termination or expiration (post-term). |
| Non-Compete Details | In-term: Neither franchisee, any owner, nor spouse of an owner shall directly or indirectly have ownership interest in, lend money, provide financial assistance or services to, or be employed by, any Competitor. Post-term: Same restrictions within five miles of former territory or any other Steep Me business operating on termination date. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | No |
| Participation Details | You must designate one person as your 'Principal Executive' who owns at least 10% of the business, completes initial training, and makes reasonable efforts to attend required meetings (cannot fail to attend more than three consecutive meetings). The Principal Executive does not have to serve as a day-to-day general manager. If the business is an entity, all owners must sign a Guaranty and Non-Compete Agreement. The business must always be under the on-site supervision of the Principal Executive or a general manager who has completed training. |
| Required Suppliers | Franchisee must purchase required items from our affiliate (Capitol Tea Company, LLC) and approved vendors as prescribed in the Brand Standards/Operations Manual. This primarily includes tea products and supplies. |
| Supply Restrictions | Franchisor has the right to require purchase or lease of all goods, services, supplies, fixtures, equipment, inventory, computer hardware and software, real estate, or comparable items either from franchisor/designee, approved suppliers, or according to specifications. Franchisor's affiliate, Capitol Tea Company, LLC, is currently a supplier of tea products and inventory. Franchisor reserves the right to be a sole supplier for additional goods/services. Alternative suppliers require written approval based on criteria like capacity, quality, financial stability, reputation, reliability, inspections, product testing, and performance reviews. |
| Franchisor Revenue from Suppliers | Franchisor will derive revenue from required purchases and leases by franchisees. Total revenue in the prior fiscal year was $0. Percentage of total revenues from required purchases or leases was 0%. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | We do not offer direct or indirect financing. We do not guarantee your note, lease or obligations. |
Steep Me Franchise Earnings — Item 19
Average Revenue
$199K
Sample Size
2 units
Past financial performance does not guarantee future results. Individual results will vary.
Steep Me Litigation & Risk Flags
Clean Litigation RecordSteep Me 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.
Steep Me System Growth
Total Units
2
Franchised
0
Company-Owned
2
Steep Me currently operates 0 franchised locations and 2 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 | 2 |
| 2021 | 0 | 0 | 2 |
| 2022 | 0 | 0 | 2 |
Transfers: 0 | Closures: 0
State Registrations
Registered in 15 states: CA, HI, IL, IN, MD, MI, MN, NY, ND, OR, RI, SD, VA, WA, WI
Franchisor Financials (Item 21)
0
Total Assets
$1K
Audited by Omar Alnuaimi, CPA for year ending December 31.
Steep Me Franchise — FAQ
The total investment to open a Steep Me franchise ranges from $237,683 to $412,100, 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.
Steep Me charges a royalty fee of 6% of your gross sales of gross sales, plus a 1% of your gross sales (Marketing Fund Contribution), 3% of your gross sales (Local Marketing/Required Spending), and up to 5% of gross sales (Market Cooperative Contribution) contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the Steep Me 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 Steep Me to ensure you have the most up-to-date version.
According to the Item 19 financial performance representation in their FDD, Steep Me franchise owners report average revenue of $199K. This is based on a sample of 2 units. Past performance does not guarantee future results.
Steep Me has been franchising since 2023. The FDD shows an investment range of $237,683-$412,100, a 6% of your gross sales royalty, and includes an 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 $30,000 and the total investment ranges from $237,683 to $412,100 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 Steep Me and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with Steep Me or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com