Feng Cha
Food & Beverage · Coffee & Beverage
- Active units
- 72
- Royalty
- 5.0%
Franchised, year-end 2023
of weekly Net Sales
About Feng Cha
Feng Cha is a renowned teahouse brand that aims to bring people together through their exceptional products and services. With a mission to create and propagate the next generation of tea, Feng Cha is committed to offering a comfortable environment where customers can unwind and feel at home. Their stores are designed to melt away stress, and their friendly employees are always ready to lend a helping hand. Feng Cha takes pride in their mood-boosting drinks, which can be customized to suit everyone's tastes and preferences. Whether you're a tea enthusiast or just looking for a refreshing beverage, Feng Cha has something for everyone. Beyond their delicious drinks, Feng Cha is dedicated to providing a unique and cozy teahouse experience. They source only the finest ingredients for their quality drinks and fine pastries, ensuring that every visit is a delight for the senses. Even the music played in their stores is carefully chosen to guarantee a relaxing atmosphere. People of all ages and backgrounds are welcomed at Feng Cha to chat, hang out, study, and work. Visit Feng Cha and experience the joy of tea in a welcoming and inclusive environment.
Key terms
- Franchise fee
$35k
- Franchise deposit agreement credit
Nonrefundable $5,000 deposit credited toward Initial Franchise Fee upon signing Franchise Agreement.
- Discretionary reduced initial fees
Franchisor may offer reduced or no initial fees to experienced/multi-unit prospects or owners/employees/family; amount not defined.
- Brand fund
1.0% of Net Sales
- Footprint
1,200 – 2,500 sq ft
- Veteran discount
Not offered
Brand Percentile Rankings
Growth
- Total locations72
Franchised units open at year-end
- New openings26
Gross new units opened during the calendar year
- 1-year unit growth rate56.5%
Net unit growth versus prior year
- 3-year unit CAGR69.7%
Compound annual growth rate of unit count over the trailing 3 years
- Unit growth ratio26.0×
Cumulative opens / closures through year-end
Unit economics
- Annual unit volume (Median)—
Per FDD Item 19 disclosure
- Annual unit volume (25th percentile)—
Per FDD Item 19 disclosure
- Annual unit volume (75th percentile)—
Per FDD Item 19 disclosure
- 1-year Median AUV growth rate—
Year-over-year change in median AUV
- Store-level EBITDA Margin—
Median unit-level EBITDA / AUV
Investment profile
- Estimated initial investment$354k
Midpoint of estimated initial investment range
↓ Lower is better - Time to open105 months
Midpoint of average time from agreement to opening
↓ Lower is better - Royalty rate5.0%
Percent of net sales paid to the franchisor
↓ Lower is better - Sales-to-investment ratio—
Median AUV / estimated initial investment midpoint
- Cash-on-cash returns—
Median unit-level EBITDA / estimated initial investment midpoint. Steady-state estimate; year 1 returns will be lower as the unit ramps to median volumes.
Franchisee healthLocked
- Unit closure ratio
- Transfer vs. closure ratio
- Percent multi-unit franchisees
- Litigation rate
- EBITDA multiple on sales & transfers
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Sources
Financial and operating figures are sourced from the brand's Franchise Disclosure Documents. Brand percentile rankings are based on comparisons to other brands that include the same metrics in their Franchise Disclosure Documents.