About Teazzi USA Franchise
Teazzi is a specialty tea shop franchise focused on Taiwanese style boba bubble teas, infused tea beverages, and other specialty drinks and menu items.
Franchising since 2023, the brand offers both individual unit and area development opportunities, allowing owners to operate a single shop or develop multiple locations within a designated market.
The initial franchise fee is $50,000.
Teazzi USA Franchise Cost & Fees
Minimum Investment
$288K
Average Investment
$450K
Maximum Investment
$612K
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $50,000 | One-time payment upon signing |
| Royalty Fee | 4% of Gross Sales of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | Up to 1% of Gross Sales, not currently assessed | National brand fund |
| Total Investment Range | $288,250 – $611,500 | Includes build-out, inventory, working capital |
The investment range of $288K–$612K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (4% of Gross Sales) and marketing fee (Up to 1% of Gross Sales, not currently assessed) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $50,000 | $50,000 |
| Construction and Leasehold Improvements | $60,000 | $150,000 |
| Lease Deposits and Rent – Three Months | $4,000 | $30,000 |
| Furniture, Fixtures and Equipment | $20,000 | $80,000 |
| Signage | $3,000 | $5,000 |
| Computer, Software and Point of Sales System | $2,500 | $5,000 |
| Grand Opening Marketing | $2,000 | $10,000 |
| Initial Inventory | $100,000 | $150,000 |
| Utility Deposits | $500 | $3,000 |
| Insurance Deposits – Three Months | $500 | $2,000 |
| Travel for Initial Training | $7,500 | $10,000 |
| Professional Fees | $7,500 | $15,000 |
| Licenses and Permits | $500 | $750 |
| Printing, Stationery, and Office Supplies | $250 | $750 |
| Additional Funds – Three Months | $30,000 | $100,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $15,000 |
| Renewal Fee | $5,000 |
| Technology Fee | Up to $500 per month |
| Audit Fee | Cost of audit |
| Franchisee Directed Local Marketing | 2% of Gross Sales |
| Annual Conference Attendance Fee | Our then current conference fee, not greater than $1,500 |
| Additional Employee Initial Training | Our then current training fee, currently $300 per person per day |
| Supplemental On-Site Training | Our then current daily rate per trainer, plus expenses we incur. Current rate is $300 per day |
| Interest | 18% per annum from due date |
| Reporting Non-Compliance | $150 per occurrence |
| Operations Non-Compliance | $450 to $1,000 per occurrence |
| Payment Non-Compliance | $150 per occurrence |
| Quality Assurance Audit | Actual costs incurred by us or fees designated by us |
| Collections | Actual fees, costs, and expenses |
| NSF Check Fee of Failed Electronic Fund Transfer | 5% of amount or $50, whichever is greater, or maximum fee allowed by law |
| Non-Compliance | Actual fees, costs, and expenses |
| Supplier Review | Actual fees, costs, and expenses |
| Management Service | Actual costs incurred by us |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | five day period (40 hours) |
| Classroom Training | 24 |
| On-the-Job Training | 16 |
| Training Location | On-line web based conference and Franchisee’s Tea Shop Location |
| Additional Training | The franchisor may require supplemental on-site training for the franchisee and/or Operating Manager, provided at a rate of $300 per trainer per day plus incurred travel, meals, and accommodation expenses. A fee of $300 per additional person per day applies for initial training beyond the Managing Owner and three designated managers. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Protected from other franchisees, but non-exclusive regarding franchisor and its affiliates or other channels of distribution. |
| Exclusive Territory | No |
| Territory Size | Generally a distance of two miles from the Tea Shop Location in all directions travelable by road, but may be smaller based on population density, demographics, and geographical boundaries. |
| Description | Once an approved Tea Shop Location is secured, the franchisor designates an area around it as the "Designated Territory." This territory is typically a two-mile radius but can vary based on demographics, geography, and whether the location is non-traditional (e.g., shopping mall, airport). The franchisor will not establish or grant another franchisee the right to operate a Tea Shop within the franchisee's Designated Territory, provided the franchisee is in compliance with the agreement. However, the franchisor and its affiliates retain the right to operate Tea Shops outside the Designated Territory, acquire or merge with competitive businesses, and distribute products through alternative channels (e.g., internet, supermarkets) within or outside the Designated Territory. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | five years |
| Renewal Term | one additional five year term |
| Renewal Fee | $5,000 |
| Renewal Conditions | To renew, the franchisee must be in compliance with the Franchise Agreement, provide 180 days written notice, sign the then-current Franchise Agreement and related agreements, sign a general release, pay a renewal fee, remodel and upgrade the Tea Shop to current standards, secure legal right to occupy premises, and ensure Owners and Spouses comply with their agreements and personally guarantee the new terms. |
| Transfer Fee | $15,000 |
| Transfer Conditions | Transfers require prior written consent from the franchisor. Conditions for approval include: 30 days written notice, satisfaction of all monetary and other obligations, no default, transferee bound by all terms, transferee's owners/spouses execute guaranty and general release, transferee may be required to execute a new standard franchise agreement and upgrade the facility, transferee employees complete training, franchisor approval of transfer terms, confidentiality agreements, and compliance with all applicable laws. |
| Termination for Cause | The franchisor can terminate the agreement for various defaults, including: franchisee insolvency or bankruptcy, abandonment of obligations, failure to meet development schedule, three or more curable defaults, intentional refusal to comply with terms, operating in violation of laws posing a threat to public health/safety, loss of leasehold interest, providing false information, unauthorized transfer of interests, disclosure of confidential information, engaging in activities harmful to the brand, breach of ancillary agreements, conviction of a felony, unethical conduct, failure to complete training, misuse of licensed marks, or failure to comply with Anti-Terrorism Laws. Curable defaults (e.g., failure to pay fees, failure to timely lease/open, failure to comply with operational standards) have a 10 or 30-day cure period. |
| Non-Compete Period | 24 months |
| Non-Compete Details | During the term of the franchise and for 24 months after termination or expiration (Post-Term Restricted Period), the franchisee, its owners, and their spouses are prohibited from owning, operating, managing, funding, or performing services for any competitive business. This restriction applies within the Designated Territory and a 25-mile radius around it, as well as a 25-mile radius around any other Teazzi Tea Shop. Disclosure of Confidential Information to immediate family members who then engage in prohibited activities is also restricted. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | The franchisee or its designated managing shareholder, member, or partner (Managing Owner) must be personally responsible for the management and overall supervision of the Tea Shop and must complete the initial training program. While personal day-to-day participation is recommended, an Operating Manager meeting franchisor standards, completing training, and signing confidentiality agreements may be hired for on-site supervision. For multiple Tea Shops, each must be managed and supervised on-site by an Operating Manager. |
| Required Suppliers | Teazzi Co., Ltd. is an approved supplier for smallwares, uniforms, System Supplies (tea leaves, toppings, flavored syrups, powders, non-dairy creamers, kitchen equipment, Teazzi Branded merchandise). Branded furniture, fixtures, and signage must be purchased from designated exclusive suppliers. Clover is the designated supplier for point of sale, online ordering, customer rewards, and gift card systems. All branded marketing materials must be purchased from the franchisor or its designated exclusive supplier. |
| Supply Restrictions | Franchisees must purchase or lease certain source-restricted goods and services that meet franchisor specifications from approved or designated suppliers, which may include the franchisor or its affiliates. The franchisor may designate itself or a third party as the sole and exclusive supplier for certain items. If no supplier is designated, franchisees must use suppliers meeting franchisor specifications. The franchisor reserves the right to modify supplier lists and specifications. |
| Franchisor Revenue from Suppliers | The franchisor and/or its affiliates may receive rebates, payments, and other material benefits from suppliers based on franchisee purchases. As of December 31, 2022, the franchisor had not received revenue from franchisee purchases of source-restricted products or services, or from any required purchases or leases. |
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 other obligation. |
Teazzi USA Franchise Earnings — Item 19
Teazzi USA 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.
Teazzi USA 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.
Teazzi USA Litigation & Risk Flags
Clean Litigation RecordTeazzi USA 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.
Teazzi USA System Growth
Total Units
3
Franchised
0
Company-Owned
3
Teazzi USA currently operates 0 franchised locations and 3 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2020 | 1 | 0 | 2 |
| 2021 | 1 | 0 | 3 |
| 2022 | 0 | 0 | 3 |
Transfers: 0 | Closures: 0
State Registrations
Registered in 23 states: California, Connecticut, Florida, Hawaii, Illinois, Indiana, Kentucky, Maine, Maryland, Michigan, Minnesota, Nebraska, New York, North Carolina, North Dakota, Rhode Island, South Carolina, South Dakota, Texas, Utah, Virginia, Washington, Wisconsin
Franchisor Financials (Item 21)
0
Net Income
$-38
Total Assets
$5K
Audited by WENHAO LIANG Certified Public Accountant for year ending December 31, 2022.
Teazzi USA Franchise — FAQ
The total investment to open a Teazzi USA franchise ranges from $288,250 to $611,500, 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.
Teazzi USA charges a royalty fee of 4% of Gross Sales of gross sales, plus a Up to 1% of Gross Sales, not currently assessed contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the Teazzi USA 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 Teazzi USA to ensure you have the most up-to-date version.
Teazzi USA 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.
Teazzi USA has been franchising since 2023. The FDD shows an investment range of $288,250-$611,500, a 4% 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 $288,250 to $611,500 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 Teazzi USA and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with Teazzi USA or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com