Bubble tea, also known as boba tea, has taken the world by storm with its unique flavors and customizable options. This growing popularity makes investing in a bubble tea franchise a potentially lucrative opportunity in 2024. In this blog, we’ll explore the costs, profit potential, and application process for a bubble tea franchise. Additionally, we’ll address some frequently asked questions (FAQs) to provide a comprehensive guide for aspiring entrepreneurs.
Investing in a bubble tea franchise offers several advantages:
The initial investment for a bubble tea franchise varies based on the brand, location, and store size. On average, the costs are as follows:
Franchise Fee-5 lakh +GST
Estimated setup cost-4 to 6 lakhs
Royalty Fee-8 to 10%
Working Capital-5 lakh
Franchise Agreement-5 years
Total Investment-16 lakhs
A bubble tea franchise can generate revenue through several channels:
Bubble tea businesses typically enjoy high profit margins due to the relatively low cost of ingredients. Profit margins can range from 20% to 35%. After accounting for operating expenses such as rent, salaries, utilities, and royalty fees, franchisees can expect a net profit margin of 18% to 25%.
Profit Margin-18 to 25%
Return on Investment-12 months
Start by researching different bubble tea franchises. Consider factors such as brand reputation, initial investment, support, and training provided.
Reach out to the franchisor to express your interest. Most franchises have an inquiry form on their website.
The FDD provides detailed information about the franchise, including fees, obligations, and financial performance.
Many franchises offer a discovery day where potential franchisees can visit the headquarters, meet the team, and learn more about the business.
Arrange financing to cover the initial investment. This may involve personal savings, bank loans, or investor funding.
Once you are satisfied with the terms, sign the franchise agreement and pay the initial franchise fee.
Undergo the training provided by the franchisor and set up your store. This includes leasehold improvements, purchasing equipment, and hiring staff.
Launch your bubble tea store with a grand opening event to attract customers and create buzz in the community.
To open a Bubble Tea franchise, costs 16 lakhs, including the franchise fee, setup cost, working capital, and others.
As a franchisee of Bubble Tea, you will expect a profit margin of 18 to 25% on the total sales.
To set up Bubble Tea Franchise requires an area between 150 to 250 sq ft.
In conclusion, Bubble Tea Franchise Cost, Profit, and How to Apply in 2024, Dr. Bubble Tea is the finest franchise opportunity for people who thought of starting businesses in beverages with an affordable investment. It might be an amazing choice with a decent investment of Rs. 16 lakhs, a 25% profit margin, a 1-year ROI period, training, and ongoing support from the brand. But also consider competition for the tea in your area and the brand charging 8 to 10% royalty fees for support.
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