The Spice & Tea Exchange Franchise Review & Verdict (2026)

Product details

Product details

Contents

Key facts


The Verdict

Quick Verdict · who it fits

The Spice & Tea Exchange fits first-time franchise buyers looking for a mid-scale retail concept.

✓ Strengths

⚠ Risks to review

Key FDD Facts

The numbers a buyer needs first — straight from the filing.

Initial investment (Item 7)

$313K - $558K

Franchise fee (Item 5)

$39K

Royalty (Item 6)

7% + 1% ad

Item 19 median rev

$505k all franchised units

System size (Item 20)

97 +8

Agreement term

10 yrs

Years in business

18+ yrs

Company-owned units

1

Model The Spice & Tea Exchange's costs in the investment calculator → Prefilled from this filing — startup cost, cash flow and break-even.

Buyer qualifications

•No exclusive territory•Owner-operator required✓No bankruptcy disclosed

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.

What you'd pay the franchisor

Drag to your projected annual sales. Royalty 7% + ad fund 1% on gross sales.

PROJECTED ANNUAL SALES$510,000

$100k$2M

Royalty (7%)

Ad fund (1%)

Total / year

▪ Of-sales fees only · excludes rent, labor, COGS, and one-time costs · for illustration

Executive Summary

Free AI summary — the first read on the filing.

Key Numbers

98

Total units open

8

Units opened last year

4

Units closed last year

4

Net unit growth

AI Due Diligence Findings PREMIUM

What our analysis flagged across the 2026 filing.

4

Risks to review

3

Strengths identified

5

Questions to ask

Industry Benchmarks

How The Spice & Tea Exchange ranks against 118 Retail peers we've analyzed.

Initial investment

76th pct · of 118 peers

Franchise fee

54th pct · of 118 peers

System size

54th pct · of 118 peers

Retail industry averages

Avg investment

$247K - $707K

Avg franchise fee

$37K

Avg system size

238

Franchises analyzed

118

How The Spice & Tea Exchange stacks up

Closest concepts by category and investment.

Brand Item 19 Fee Investment Royalty Units
The Spice & Tea Exchange Disclosed $39K $313K - $558K 7% 97
Shift Arcade VenturesSimilar price Disclosed $50K $281K - $566K 1
7-ElevenBiggest system Disclosed $163K - $1.7M 45–56% 7,229
Byrider Franchising PartnersTop-rated in category Disclosed $60K $947K - $1.6M 1–2.5% 81

Compare side-by-side ↗

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Frequently Asked Questions

How much does a The Spice & Tea Exchange franchise cost?

The Spice & Tea Exchange requires a $38,750 initial franchise fee and a total initial investment range of $312,900–$557,514, per the most recent FDD on file.

Who owns The Spice & Tea Exchange?

The Spice & Tea Exchange is franchised by SPICE & TEA EXCHANGE FRANCHSING 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.

Does The Spice & Tea Exchange disclose financial performance (Item 19)?

Yes. The Spice & Tea Exchange discloses Item 19 financial performance representations with reported revenue around $505,212. See the financials sub-page for the full distribution.

What ongoing fees does The Spice & Tea Exchange charge?

Franchisees pay a royalty of 7% and an advertising fund contribution of 1.0% on gross sales as defined in Item 6 of the FDD.

How many The Spice & Tea Exchange locations are there?

As of their 2026 FDD, The Spice & Tea Exchange has 97 total locations, with 8 new locations opened in the most recent reporting year. This information comes from Item 20 of the FDD.

Does The Spice & Tea Exchange grant exclusive territory?

No. The Spice & Tea Exchange 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.

What are the renewal and exit terms?

Per the FDD, The Spice & Tea Exchange discloses an initial agreement term of 10 years, a renewal fee of $10,000, a transfer fee of $15,000. Review Items 10 and 17 for the full renewal and termination provisions.

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