About The Spice & Tea Exchange Franchise
The Spice & Tea Exchange is a specialty retail franchise offering over 140 fresh spices, more than 80 exclusive hand mixed seasonings, and a wide selection of loose leaf teas in a vibrant, sensory rich shopping environment.
Customers can see, smell, and sample products before purchasing, creating an engaging retail experience.
The brand has been franchising since 2008 under The Spice & Tea Exchange Holdings, LLC.
The Spice & Tea Exchange Franchise Cost & Fees
Minimum Investment
$195K
Average Investment
$295K
Maximum Investment
$395K
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $38,750 | One-time payment upon signing |
| Royalty Fee | 7% of your Gross Sales of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | System Development Fee: Currently 1% of Gross Sales (can be increased to 3%); Local Advertising Requirement: 1% of Gross Sales; Local Advertising Cooperative Fee: Up to 2% of Gross Sales (if established) | National brand fund |
| Total Investment Range | $194,650 – $395,250 | Includes build-out, inventory, working capital |
The investment range of $195K–$395K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (7% of your Gross Sales) and marketing fee (System Development Fee: Currently 1% of Gross Sales (can be increased to 3%); Local Advertising Requirement: 1% of Gross Sales; Local Advertising Cooperative Fee: Up to 2% of Gross Sales (if established)) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Franchise Fee – Single Unit | $38,750 | $38,750 |
| Establishment Fee | $95,000 | $125,000 |
| Construction, Improvements and other dress-out, Architect Fees | $40,000 | $150,000 |
| Grand Opening Advertising | $5,000 | $5,000 |
| Professional Fees | $500 | $3,500 |
| Utility Deposits | $250 | $500 |
| Office Equipment | $350 | $2,500 |
| Rent and Security Deposits | $1,800 | $10,000 |
| Insurance (premium for first year) | $1,000 | $3,500 |
| State and local business licenses, permits and filing fees | $500 | $1,500 |
| Training Expenses | $1,500 | $5,000 |
| Additional Funds - 6 months | $10,000 | $50,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $10,000 |
| Renewal Fee | $10,000 |
| Technology Fee | Subscription and Support Fee: $65 to $250 per month; Integrated Music System Fee: $25 to $35 per month |
| Audit Fee | Cost of inspection or audit plus travel and lodging |
| Seasonal Inventory | $1,000 - $15,000 |
| Spice UniversiTea Attendance Fee | $500 per person attending training |
| Additional on-site Training or Assistance | Our then-current per diem fee not to exceed $500 per day per trainer, plus travel costs and expenses |
| Transferee Training Fee | $5,000 |
| Administrative Fee | 15% of any amount we pay on your behalf |
| Interest | Lesser of 18% per year or highest contract rate of interest allowed by law |
| Late Payment Penalties | 15% of the late amount |
| Costs and Attorneys’ Fees | Our actual costs and attorneys’ fees |
| Indemnification | Our actual costs will vary according to loss |
| Site Relocation Fee | $7,500 plus expenses incurred |
| Business Management Fee | Up to 10% of your Gross Sales or $5,000 per month, whichever is greater, plus expenses |
| Product and Service Sales/Mark-Ups | Varies under the circumstances |
| Unauthorized Vendor/Product Fee | $250 per item type, per occurrence |
| Hard Copy Manual Fee | Our current costs to produce the hard copy of our Manual |
| Annual Conference | $500 per attendee |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | 29-62 classroom hours and 68-105 on-the-job hours |
| Classroom Training | 29-62 |
| On-the-Job Training | 68-105 |
| Training Location | Our Headquarters or a designated location (e.g., The Spice & Tea Exchange Operations Center in St. Augustine, Florida) |
| Additional Training | We may require you to attend periodic refresher training courses. Existing franchisees or employees attending Spice UniversiTea training will pay a $500 fee per person. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Protected |
| Exclusive Territory | No |
| Territory Size | A minimum of a one (1) mile radius from the center of the Site, with the right to designate a smaller radius or different means of measuring in urban areas. |
| Description | The franchise is granted for a specific approved location (the “Site”) within a designated “Protected Area” and “Market Area”. The minimum Protected Area is a one (1) mile radius from the center of the Site, but may be smaller in urban areas. You will not receive an exclusive territory and may face competition from other franchisees, company-owned outlets, or other channels of distribution or competitive brands controlled by the franchisor. Marketing activities are generally confined to the Market Area. The franchisor retains the right to sell products through alternative channels of distribution (internet, catalog sales, etc.) even within your Protected Area without compensation to you. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years from the date a Lease for the Site is signed |
| Renewal Term | 4 successive, additional five 5-year periods |
| Renewal Fee | $10,000 |
| Renewal Conditions | Notify franchisor 180 days prior to expiration, demonstrate right to operate at site (or substitute), complete required renovations, not be in breach of agreements, satisfy all monetary obligations, sign then-current franchise agreement (may have different terms), satisfy current training requirements, sign a general release, and pay a $10,000 successor fee. |
| Transfer Fee | $10,000 |
| Transfer Conditions | All monetary obligations satisfied, all existing defaults cured, franchisor and transferee execute a general release, provide proposed purchase agreement and supporting documents, transferee meets educational/managerial/business standards, possesses good moral character/business reputation/credit rating, has aptitude/ability to conduct business, has adequate financial resources, is not in the same business as franchisor (unless existing System franchisee), transferee executes then-current franchise agreement, transferee completes training and pays training fee, comply with post-termination provisions, obtain all permits/licenses, lessors/other parties consent (if required), transfer complies with all laws, purchase price/terms not burdensome, franchisor approval does not waive claims, franchisor may disclose revenue reports to prospective transferee, franchisor may withhold/condition consent, franchisee responsible for broker commissions, and cannot sell/transfer customer list without consent. |
| Termination for Cause | Franchisor may terminate with cause for various defaults, including failure to pay sums owed, under-reporting sales, failure to maintain inventory, failure to open on time, interruption of service, failure to supervise, quality control issues, adverse conduct, license/permit failures, insufficient funds (3+ times in 12 months), breach of other agreements, misuse of proprietary marks/confidential information, health code violations, in-term restrictive covenant violations, liens, insolvency, abandonment, unauthorized products/services, unapproved purchases, insurance failures, government regulations non-compliance, government actions against franchisee, or personal use of Store property. Some defaults allow a 30-day cure period, others result in immediate termination. |
| Non-Compete Period | 2 years after termination or expiration |
| Non-Compete Details | During the term of the franchise, neither you nor your owners (or their spouses/children) may have a direct/indirect interest in, perform services for, or engage in any Competitive Business (similar products/services) wherever located, unless your TSTE® business is managed by an individual who completed training. After termination/expiration, for 2 years, neither you nor your owners may have a direct/indirect interest in any Competitive Business operating at the Site, within 30 miles of the Site, or within 30 miles of any other Store or Market Area in operation or under construction. You also cannot interfere with franchisor's business relationships or solicit customers/suppliers for competitive business purposes. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | You (or at least one of your principals if you are a corporation or partnership) must at all times faithfully, honestly and diligently perform your obligations, continuously exert best efforts to promote the brand, and not engage in conflicting business activities. A Principal Owner (at least 20% ownership) must have day-to-day management responsibility, be actively employed full-time to manage the Store's operations, and be bound by a Confidentiality Agreement. All owners of a business entity franchisee must personally guarantee obligations under the Franchise Agreement. |
| Required Suppliers | You are required to purchase the Establishment Package from us. You are currently required to purchase from our affiliate TSTE® Distribution, all of the Products and Services, supplies, and inventory (including seasonal inventory) you will use in the operation of your Store. |
| Supply Restrictions | The majority of equipment, inventory, supplies and services you purchase for your Store must be purchased from suppliers we designate or approve and according to our System Standards. We may require you to purchase from us or our affiliates all of the goods and services we require you to use, and we or our affiliates may purchase such items from others and require you to purchase them from us. |
| Franchisor Revenue from Suppliers | During 2021, our affiliate TSTE® Distribution received $9,793,651.84 from franchisee required purchases. In 2021, our affiliate TSTE® Development received $558,400.00 from franchisee required purchases. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | We do not offer direct or indirect financing. We will not guarantee your note, lease, or other obligations. |
The Spice & Tea Exchange Franchise Earnings — Item 19
Average Revenue
$486K
Median Revenue
$423K
Revenue Range
$68K – $1.8M
Sample Size
57 units
Past financial performance does not guarantee future results. Individual results will vary.
The Spice & Tea Exchange Litigation & Risk Flags
Clean Litigation RecordThe Spice & Tea Exchange 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.
The Spice & Tea Exchange System Growth
Total Units
82
Franchised
81
Company-Owned
1
The Spice & Tea Exchange currently operates 81 franchised locations and 1 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2019 | 9 | 3 | 72 |
| 2020 | 7 | 6 | 73 |
| 2021 | 8 | 0 | 81 |
Transfers: 8 | Closures: 9
State Registrations
Registered in 15 states: CA, FL, HI, IL, IN, MD, MI, MN, NY, ND, RI, SD, VA, WA, WI
Franchisor Financials (Item 21)
Revenue
$3.1M
Net Income
$1.9M
Total Assets
$4.5M
Audited by TAMA BUDAJ RAAB CERTIFIED PUBLIC ACCOUNTANTS for year ending December 31st.
The Spice & Tea Exchange Franchise — FAQ
The total investment to open a The Spice & Tea Exchange franchise ranges from $194,650 to $395,250, per their Franchise Disclosure Document. This includes the initial franchise fee of $38,750. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
The Spice & Tea Exchange charges a royalty fee of 7% of your Gross Sales of gross sales, plus a System Development Fee: Currently 1% of Gross Sales (can be increased to 3%); Local Advertising Requirement: 1% of Gross Sales; Local Advertising Cooperative Fee: Up to 2% of Gross Sales (if established) contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the The Spice & Tea Exchange 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 The Spice & Tea Exchange to ensure you have the most up-to-date version.
According to the Item 19 financial performance representation in their FDD, The Spice & Tea Exchange franchise owners report average revenue of $486K and median revenue of $423K. This is based on a sample of 57 units. Past performance does not guarantee future results.
The Spice & Tea Exchange has been franchising since 2008. The FDD shows an investment range of $194,650-$395,250, a 7% 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 $38,750 and the total investment ranges from $194,650 to $395,250 depending on location size and market. A minimum of $10,000 in liquid capital is required. 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 The Spice & Tea Exchange and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with The Spice & Tea Exchange or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com