Quick Verdict · who it fits
Kung Fu Tea fits first-time franchise buyers looking for a mid-scale food & beverage concept.
The numbers a buyer needs first — straight from the filing.
Initial investment (Item 7)
$169K - $378K
Franchise fee (Item 5)
$37K
Royalty (Item 6)
4% + 2% ad
System size (Item 20)
342 +17
Years in business
13+ yrs
Training (Item 11)
21 days
Item 3 litigation
4 suits
Model Kung Fu Tea's costs in the investment calculator → Prefilled from this filing — startup cost, cash flow and break-even.
Buyer qualifications
•No exclusive territory✓No bankruptcy disclosed•4 Item 3 cases
Data extracted from the 2026 FDD filed with state regulators. Fees and terms may have changed since filing — request the current FDD from the franchisor before deciding. Not legal, financial, or investment advice. Full disclaimer.
Drag to your projected annual sales. Royalty 4% + ad fund 2% on gross sales.
PROJECTED ANNUAL SALES$500,000
$100k$2M
Royalty (4%)
—
Ad fund (2%)
—
Total / year
—
▪ Of-sales fees only · excludes rent, labor, COGS, and one-time costs · for illustration
Free AI summary — the first read on the filing.
385
Total units open
36
Units opened last year
28
Units closed last year
8
Net unit growth
What our analysis flagged across the 2026 filing.
5
Risks to review
3
Strengths identified
4
Questions to ask
How Kung Fu Tea ranks against 749 Food & Beverage peers we've analyzed.
Initial investment
17th pct · of 749 peers
Franchise fee
53rd pct · of 749 peers
System size
87th pct · of 749 peers
Food & Beverage industry averages
Avg investment
$589K - $1.4M
Avg franchise fee
$37K
Avg system size
261
Franchises analyzed
749
Closest concepts by category and investment.
| Brand | Item 19 | Fee | Investment | Royalty | Units |
|---|---|---|---|---|---|
| Kung Fu Tea | None | $37K | $169K - $378K | 4% | 342 |
| Poke Co Holdings Llc (pokemoto)Similar price | None | $30K | $185K - $378K | 6% | 25 |
| Doctor's AssociatesBiggest system | None | $15K | $227K - $630K | 8% | 18,773 |
| Vintage Hospitality GroupTop-rated in category | Disclosed | $50K | $3.5M - $6.4M | 5.5% | 33 |
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Free explainers to go deeper before you sign.
Brand Analysis
Chipotle reported 4,186 company-operated restaurants and 15 international licensed restaurants as of June 30, 2026. None are franchised, there is no FDD, and there is nothing to apply for. Qdoba is the franchised version of the same order line, and its 12/25 FDD puts a traditional restaurant at $548,100 to $1,294,000.
Brand Analysis
Cracker Barrel Old Country Store, Inc. reported 656 company-operated stores in 43 states as of January 30, 2026, and the brand has never sold a franchise. Huddle House and Another Broken Egg cover the same daypart with filed FDDs, at $555,375 to $1,715,275 and $792,500 to $1,804,000.
Brand Analysis
The Häagen-Dazs Shoppe Company franchises the ice cream shops on a $30,000 fee and a 4% royalty, with a 2026 Item 7 range of $213,329 to $591,579. The trademark belongs to a different company, and the ice cream you are required to buy comes from a third.
Kung Fu Tea requires a $37,000 initial franchise fee and a total initial investment range of $169,000–$378,000, per the most recent FDD on file.
Kung Fu Tea is franchised by KF Tea Franchising LLC, the franchisor entity of record on its Franchise Disclosure Document. Item 1 of the FDD discloses the franchisor's corporate history, parents, and predecessors.
No. Kung Fu Tea does not include a financial performance representation in its FDD. Prospective buyers should rely on validation calls with existing franchisees and benchmark against industry medians.
Franchisees pay a royalty of 4% of Gross Sales and an advertising fund contribution of 2% of Gross Sales on gross sales as defined in Item 6 of the FDD.
As of their 2026 FDD, Kung Fu Tea has 342 total locations, with 17 new locations opened in the most recent reporting year. This information comes from Item 20 of the FDD.
Yes. Kung Fu Tea's most recent FDD documents approximately 21 days of initial training, typically split between classroom and on-site components. See Item 11 of the FDD for the full training and support schedule.
No. Kung Fu Tea does not grant exclusive territory rights under Item 12. The franchisor retains the right to operate or grant additional units inside or adjacent to your trade area.
Per the FDD, Kung Fu Tea discloses a renewal fee of $10,000, a transfer fee of $5,000. Review Items 10 and 17 for the full renewal and termination provisions.
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