Kung Fu Tea
Food & Beverage · Coffee & Beverage
- Active units
- 378
- Royalty
- 4.0%
Franchised, year-end 2023
of weekly Net Sales
About Kung Fu Tea
Kung Fu Tea is a leading tea brand that originated in Taiwan and brought its authentic flavor to America, starting with New York City. With a mission to continuously improve their brand and beverages, Kung Fu Tea provides the most delicious and high-quality flavors to their customers. As America's largest bubble tea brand, they maintain uncompromisingly high standards. Using the art of '3T' Kung Fu, Kung Fu Tea brews every cup of tea at the perfect temperature using premium tea leaves. Their beverages are not only visually appealing but also strong inside-out, satisfying both your taste buds and your Instagram stories. Founded in 2010, Kung Fu Tea aims to elevate the world of made-to-order beverages with a fresh, innovative, and fearless approach. They believe in inspiring the community to dream big and live fearlessly. As part of their commitment to the bubble tea community, they founded National Bubble Tea Day on April 30, 2018. Kung Fu Tea's dedication to producing unrivaled quality and maintaining unquestionable authenticity sets them apart in the industry. With a focus on self-improvement and expanding capabilities, they invite customers to join them on their journey to achieve mastery in all aspects of life. Providing a 5-star experience and a cozy atmosphere, Kung Fu Tea is the perfect place to satisfy your cravings, socialize with friends and family, and be part of a fearless community.
Key terms
- Franchise fee
$37k
- Existing franchisee or non-traditional unit fee
Initial franchise fee reduced to 25,000 for existing franchisees or non-traditional units
- Franchise deposit credit
5,000 deposit credited against initial franchise fee upon signing; refundable only if application is rejected before evaluation begins
- Brand fund
2.0% of Net Sales
- Local advertising
0.0% of Net Sales
- Footprint
500 – 1,500 sq ft
- Development Fee (3-unit minimum)
$50k
- Additional units beyond 3 under Development Agreement
$13k
- Veteran discount
Not offered
Brand Percentile Rankings
Rankings compare brands in the same operating year. Fee and investment figures come from the FDD (2026 filing); filings on file: 2024, 2025, 2026.
Growth
- Total locations342
Franchised units open at year-end
- New openings17
Gross new units opened during the calendar year
- 1-year unit growth rate-11.6%
Net unit growth versus prior year
- 3-year unit CAGR-4.9%
Compound annual growth rate of unit count over the trailing 3 years
- Unit growth ratio0.3×
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$274k
Midpoint of estimated initial investment range
↓ Lower is better - Time to open5 months
Midpoint of average time from agreement to opening
↓ Lower is better - Royalty rate4.0%
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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Location footprint
Showing 335 of 398 mapped locations
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.