KF Tea Franchising LLC
Franchise Fee Breakdown
Initial Franchise Fee (Item 5)
FDD Item 5Franchise Fee
$37K
Paid at signing, before opening
Industry Average
$38K
Food & Beverage sector avg (351 franchises)
Fee Percentile
52th
Above-average fee vs. peers
Ongoing Royalty & Advertising Fees (Item 6)
FDD Item 6Royalty Rate
4% of Gross Sales
Paid on gross sales, ongoing
Ad Fund / Marketing Fee
2% of Gross Sales
Contributed to brand advertising fund
Combined Ongoing Fee Impact
On a hypothetical $500,000 annual revenue unit, a franchisee would pay approximately royalties plus ad fund contributions each year, in addition to the initial franchise fee. These are separate from other operating costs and the initial investment.
Renewal Fee (Item 10)
FDD Item 10Renewal Fee
$10K
Paid to renew the franchise agreement
Transfer Fee (Item 17)
FDD Item 17Transfer Fee
$5K
Charged when selling or transferring your franchise to a new owner
A transfer fee of $5K applies when you sell your KF Tea Franchising LLC franchise. Factor this into your exit strategy and overall investment analysis.
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Data shown is extracted from the 2025 Franchise Disclosure Document filed with state regulators. Fees, investment ranges, and other terms may have changed since this filing. Always request the current FDD directly from the franchisor before making any investment decisions. This information is not financial, legal, or investment advice. Full disclaimer.