About Tapioca Express Franchise
Tapioca Express is a beverage and food franchise offering a diverse menu of milk teas, flavored teas, juices, smoothies, freshly made juices, coffee, and cooked to order oriental snack items prepared with proprietary ingredients.
Franchising since 2002, the brand has been serving the bubble tea and specialty beverage market for over two decades.
The franchise fee is $15,000 for a traditional store and $9,000 for a kiosk format.
Tapioca Express Franchise Cost & Fees
Minimum Investment
$140K
Average Investment
$367K
Maximum Investment
$594K
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | Traditional store: $15,000; Kiosk: $9,000 | One-time payment upon signing |
| Royalty Fee | 2.5% of Net Sales or $500 per month, whichever is higher of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 0.5% of Net Sales or $100 per month, whichever is higher | National brand fund |
| Total Investment Range | $140,035 – $594,335 | Includes build-out, inventory, working capital |
The investment range of $140K–$594K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (2.5% of Net Sales or $500 per month, whichever is higher) and marketing fee (0.5% of Net Sales or $100 per month, whichever is higher) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $15,000 | $15,000 |
| Product Deposit Fee | $10,000 | $10,000 |
| Initial Training Fee | $3,000 | $3,000 |
| Site Evaluation Expenses | $500 | $3,000 |
| Travel, Living and Other Expenses for Training | $3,000 | $24,000 |
| Rent (1 month plus Security Deposit) | $3,000 | $30,000 |
| Utility and Other Security Deposit | $1,000 | $4,500 |
| Leasehold Improvement | $30,000 | $200,000 |
| Equipment | $43,400 | $139,200 |
| Furniture & Fixtures | $2,000 | $25,000 |
| Initial Inventory | $5,000 | $20,000 |
| Insurance | $2,000 | $30,000 |
| POS Subscription | $135 | $135 |
| Opening Advertisement | $1,000 | $5,000 |
| Grand Opening Marketing Materials | $3,000 | $3,000 |
| Business License | $1,000 | $3,000 |
| Additional Funds – 3 Months | $15,000 | $30,000 |
| Professional Fees | $2,000 | $6,000 |
| Wal-Mart Security Deposit – 3 months | $0 | $3,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | 25% of our then current franchise fee |
| Renewal Fee | Successor Agreement Fee: $3,000 for 2-year term; $5,000 for 5-year term; $2,250 for 3-years (Kiosk) |
| Technology Fee | POS Subscription: $135 (monthly) |
| Audit Fee | Costs of conducting audit, from about $500 to $3,000 |
| Additional Training Fee | $1,500 per person, plus expenses |
| Interest on Overdue Amounts | The lesser of 1.5% per month or the maximum rate allowed by applicable law |
| Deviation from Standard | $500 (second deviation), $1,000 (third deviation), $2,000 (each additional deviation) |
| Royalty & Marketing Payment Late Fee | $100 for Continuing Royalty Fee, $35 for Marketing Fee |
| Royalty & Marketing Report Late Fee | $20 per day (up to a maximum of $100) |
| Insufficient Funds Fee | $35 |
| Replacement Fee for Operations Manual | $75 |
| Insurance | Amount of unpaid premium |
| Management Fee | 10% of Net Sales, plus expenses |
| Costs and Attorneys’ Fees | Will vary under circumstances |
| Indemnification | Will vary under circumstances |
| Repair, Maintenance, and Remodeling/Redecorating | Will vary under circumstances |
| ServSafe (or similar) Certification | $150 per person or the then-current market rate |
| On-Site Training Fee | You pay all travel costs, including transportation, lodging and meals |
| Refresher Training Fee | $200 to $500 per person, plus expenses |
| Transfer Management Training | $600 |
| Gift Cards and Loyalty Cards | To be determined |
| Violation of Non-competition Covenant | 50% of Gross Sales of violating business or $800 per day per store, whichever is greater |
| Liquidated Damages | Will vary under the circumstances |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | 48-66 hours and lasts about 10 days |
| Classroom Training | 6-8 hours for Corporate & Training Overview, Store management & operations; 2-4 hours for POS Training |
| On-the-Job Training | 6-8 hours for Front counter operation I/II, Kitchen operation I/II/III; 2-3 hours for Store opening/closing procedures |
| Training Location | Our training facility at 1908 Central Avenue, S. El Monte, California, a Tapioca Express store at 228 W. Valley Boulevard, #105, Alhambra, California, and/or other facility in the vicinity of our above location. |
| Additional Training | Periodically offered additional training programs in greater Los Angeles area, fees ranging from $200-$500 per program. Mandatory attendance may be designated. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Designated Territory |
| Exclusive Territory | Yes |
| Territory Size | A radius of 0.5 mile from the Licensed Store. A margin of error of 1/10 of the radius in physical measurement is allowed. |
| Description | Franchisor and affiliates will not operate or grant franchises for Tapioca Express Stores or similar competitive businesses within the Designated Territory. However, franchisor may sell Tapioca Express Products anywhere, including within the Designated Territory, for festivals, cultural or trade exhibitions, or other public events. Non-traditional sites within the Designated Territory are not included. Franchisee may not sell products/services outside the Designated Territory or at wholesale. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | Three years |
| Renewal Term | Two years or five years |
| Renewal Fee | $3,000 for 2-year term; $5,000 for 5-year term; $2,250 for 3-years (Kiosk) |
| Renewal Conditions | Must give written notice, not be in default, sign then-current franchise agreement and general release, and pay a fee. May be asked to sign a contract with materially different terms and conditions, but territory boundaries remain same and fees not greater than those imposed on similarly situated franchisees. |
| Transfer Fee | 25% of our then current franchise fee |
| Transfer Conditions | Not in default, all payments made, transferee qualifies and signs new franchise agreement, franchisee signs release and other agreement. No transfer fee if to wholly-owned entity or among existing owners. |
| Termination for Cause | Breach of material obligation, failure to complete training, abandonment, insolvency, unauthorized transfer, misstatements, unauthorized use of marks/confidential information, breach of lease, failure to comply with health requirements, failure to properly develop store, failure to make payments, failure to pay taxes, failure to make reports, other failure of performance. Cure period up to 30 days depending on seriousness, or immediate termination for non-curable defaults. |
| Non-Compete Period | During the term of the franchise; 2 years after termination or expiration |
| Non-Compete Details | During term: Franchisee and related persons cannot be involved in a competing business. After term: Franchisee and related persons may not be involved in a competing business within 10 miles of any Tapioca Express store for two years. Subject to state law. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | No |
| Participation Details | Franchisor recommends personal participation but requires a full-time 'on premises' manager who has successfully completed training. Manager does not need ownership interest. All replacement managers must also complete training. If franchisee is an entity, individuals owning 10% or more interest must sign a spousal guaranty agreement. Franchisee and managers must sign confidentiality agreements and may be required to agree to non-competition covenants. |
| Required Suppliers | Franchisee must purchase Food Containers, certain equipment, products, and ingredients for food preparation, and all soft goods (napkins, paper cups, boxes, etc. with Trademarks) from the franchisor or designated suppliers. |
| Supply Restrictions | Franchisor is the only approved supplier for Food Containers and specified ingredients for Tapioca Express Products. Franchisor may require purchase of all soft goods with Trademarks from franchisor or designated supplier. Franchisee must submit unapproved products/suppliers for written approval, which may include inspection and testing at franchisee's expense. Approval process may take up to 3 months. |
| Franchisor Revenue from Suppliers | During fiscal year ended May 31, 2021, total revenue was $1,976,143, of which $1,651,445 (83.56%) was from sales of products to franchisees. $0.00 (0%) was from rebates or other payments from approved suppliers. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | We do not offer any direct or indirect financing to you. We do not guarantee your note, lease or obligations. |
Tapioca Express Franchise Earnings — Item 19
Tapioca Express 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.
Tapioca Express 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.
Tapioca Express Litigation & Risk Flags
Clean Litigation RecordTapioca Express 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.
Tapioca Express System Growth
Total Units
24
Franchised
24
Company-Owned
0
Tapioca Express currently operates 24 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 |
|---|---|---|---|
| 2020 | 1 | 6 | 32 |
| 2021 | 0 | 6 | 26 |
| 2022 | 0 | 2 | 24 |
Transfers: 2 | Closures: 14
State Registrations
Registered in 16 states: CA, CT, HI, IL, IN, MD, MI, MN, NY, ND, OR, RI, SD, VA, WA, WI
Franchisor Financials (Item 21)
Revenue
$2.1M
Net Income
$82K
Total Assets
$1.9M
Audited by YEH & ASSOCIATES, A Professional Accountancy Corporation for year ending May 31st.
Tapioca Express Franchise — FAQ
The total investment to open a Tapioca Express franchise ranges from $140,035 to $594,335, per their Franchise Disclosure Document. This includes the initial franchise fee of Traditional store: $15,000; Kiosk: $9,000. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
Tapioca Express charges a royalty fee of 2.5% of Net Sales or $500 per month, whichever is higher of gross sales, plus a 0.5% of Net Sales or $100 per month, whichever is higher contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the Tapioca Express 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 Tapioca Express to ensure you have the most up-to-date version.
Tapioca Express 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.
Tapioca Express has been franchising since 2002. The FDD shows an investment range of $140,035-$594,335, a 2.5% of Net Sales or $500 per month, whichever is higher 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 Traditional store: $15,000; Kiosk: $9,000 and the total investment ranges from $140,035 to $594,335 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 Tapioca Express and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with Tapioca Express or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com