Best Bubble Tea Franchises in 2025: Cost Breakdown and Brand Comparison

Looking to tap into one of the fastest-growing trends in food and beverage? Bubble tea has transformed into a global, billion-dollar industry—making it a smart opportunity for new and seasoned entrepreneurs alike. In this guide, we’ll explore the best bubble tea franchises to consider, along with costs, profit potential, and what it takes to launch your own shop successfully.

Why Invest in Bubble Tea Franchise?

With the global bubble tea market projected to surpass $4.3 billion by 2027, investing in a bubble tea franchise is more than just riding a trend—it’s entering a proven, fast-growing food and beverage segment. Whether you're a first-time entrepreneur or a seasoned investor, a franchise model offers several strategic advantages.

Proven Business Model with Lower Risk

Unlike starting an independent tea shop from scratch, a franchise provides a turnkey business model that has already been tested and optimized across multiple locations. Operations, recipes, marketing, and sourcing are systematized, allowing franchisees to focus on execution rather than experimentation.

This reduces startup guesswork and significantly lowers the risk of failure, especially in competitive urban markets. In fact, food franchises generally report higher success rates in their first five years compared to independent businesses.

Brand Recognition and Loyal Customer Base

Well-established bubble tea brands like Gong Cha, CoCo Fresh Tea & Juice, and Kung Fu Tea have built strong global recognition and cult-like customer loyalty. As a franchisee, you immediately benefit from:

• Brand equity and built-in demand

• Repeat traffic from customers who trust the logo and taste

• Easier customer acquisition through national marketing campaigns

This means you can generate revenue faster and stand out in crowded beverage markets where building a new brand would take years.

Ongoing Support and Training from the Franchisor

Most reputable bubble tea franchises offer comprehensive training programs that cover everything from drink preparation and inventory management to customer service and team leadership.

Support typically includes:

• Pre-opening site selection and store setup

• Staff training and onboarding

• Centralized supply chain and POS systems

• Ongoing marketing guidance and seasonal promotions

This level of support ensures that even those with no prior foodservice experience can run a successful location with confidence.

Scalability and Multi-Unit Potential

Once you've mastered your first store, many bubble tea franchisors offer multi-unit franchise options, allowing you to expand your footprint and increase revenue. This scalability is ideal for:

• Investors seeking long-term passive income

• Entrepreneurs aiming to build a regional brand presence

• Groups or families looking to grow a family-run business

With high product margins, low food waste, and a relatively simple menu structure, bubble tea franchises are uniquely positioned for efficient scaling across diverse locations—from malls and college campuses to high-street kiosks and ghost kitchens.

Best Bubble Tea Franchise Brands 

Choosing the right bubble tea franchise can significantly influence your success. Below are some of the most reputable and high-performing bubble tea franchise brands globally and regionally. Each offers unique strengths, varying levels of brand equity, market penetration, and franchise support.

Gong Cha

Origin: Taiwan | Markets: Global (Asia, North America, Australia, UK)

Franchise Fee: Varies by region (~USD $30,000–$40,000)

Strengths:

• One of the world’s largest and most recognized bubble tea chains

• Premium tea positioning with customizable drinks

• Strong brand reputation and standardized operations

Best for: Investors seeking a well-established, international brand with robust franchisor support.

Kung Fu Tea

Origin: United States (founded by Taiwanese entrepreneurs) | Markets: USA, Canada, Australia

Franchise Fee: USD $37,000 (est.)

Strengths:

• Market leader in the U.S. with modern branding and strong digital presence

• Mobile app, loyalty program, and influencer marketing

• Heavy focus on operational training and in-store tech integration

Best for: North American entrepreneurs looking for tech-forward, urban-focused growth.

Sharetea

Origin: Taiwan | Markets: Over 15 countries

Franchise Fee: USD $22,500–$40,000

Strengths:

• Balanced brand between tradition and innovation

• Known for authentic milk teas and fruit-based drinks

• Simple operations and relatively low startup investment

Best for: Franchisees seeking a trusted name with lower initial capital requirements.

CoCo Fresh Tea & Juice

Origin: Taiwan | Markets: Asia, North America, Europe

Franchise Fee: Available upon inquiry

Strengths:

• One of the largest tea franchises in Asia

• Offers a wide range of teas, slushes, and fresh juices

• High-volume store models in malls and transit hubs

Best for: High-traffic retail environments and experienced operators.

Tiger Sugar

Origin: Taiwan | Markets: Asia, USA, Canada, Middle East

Franchise Fee: Varies (limited availability due to exclusivity)

Strengths:

• Famous for its brown sugar boba and “tiger-stripe” drinks

• Buzz-worthy brand with viral appeal and premium image

• Typically smaller menus, focused operations

Best for: High-traffic lifestyle centers and social-media-driven markets.

Happy Lemon

Origin: China | Markets: Asia, USA, Canada

Franchise Fee: USD $40,000+ (varies by territory)

Strengths:

• Known for creative drinks like salted cheese foam tea

• Strong Gen Z brand appeal

• Offers kiosk and full-store formats

Best for: Younger demographics and operators looking to enter malls or food courts.

Chatime

Origin: Taiwan | Markets: 38+ countries

Franchise Fee: USD $20,000–$35,000

Strengths:

• One of the fastest-growing bubble tea brands

• Strong presence in Australia, Southeast Asia, Canada

• Broad global supply chain and consistent marketing support

Best for: Multi-unit or international franchisees seeking scalability.

Bubble Tea Franchise Costs & Investment

Understanding the full financial picture is essential before investing in a bubble tea franchise. While this business model offers lower risk and faster time-to-market compared to independent startups, there are significant upfront and recurring costs to consider. Let’s break it down:

Initial Costs

Launching a bubble tea franchise typically requires an initial investment of $100,000 to $350,000 USD, depending on the brand, location, and store size. Key components include:

• Franchise Fee: Most bubble tea brands charge a franchise fee ranging from $20,000 to $50,000, which grants you the right to operate under their brand and access training, recipes, and support.

• Equipment & Build-Out: This includes blenders, tea brewers, sealing machines, refrigerators, and POS systems. Store build-out also covers furniture, signage, counters, plumbing, and décor—costing anywhere from $50,000 to $150,000 depending on size and location.

• Initial Inventory, Uniforms & Licenses: Expect to invest in starter ingredient stock, branded packaging, uniforms, local health permits, and business licenses. This setup typically runs between $5,000 and $15,000.

Tip: Kiosk formats or small takeout-only units can reduce total startup costs significantly.

How to Start a Boba Tea Business and Build a Brand That Stands Out

Ongoing Costs

After the store is open, franchisees must budget for monthly operating expenses. These include:

• Royalties & Marketing Fees: Most brands charge 5%–8% of gross sales as royalties, plus an additional 1%–3% for marketing contributions.

• Staffing, Ingredients & Packaging: Labor costs depend on location, but you’ll need staff for drink prep, cleaning, and cashier roles. Ingredient costs (tea, boba, syrups, milk) typically account for 20%–30% of sales, with packaging also a key expense.

• Rent, Utilities & Maintenance: Rent can vary widely based on city and site type (mall vs. street), but expect $2,000 to $10,000 per month. Other operating costs include electricity, water, internet, repairs, and equipment servicing.

Profit Potential & ROI

Bubble tea franchises are known for strong unit economics, thanks to high margins and low food waste.

• Average Sales Per Location: Most successful locations report annual gross revenues between $250,000 and $600,000, depending on foot traffic and brand recognition.

• Break-Even Timeline: The average break-even point ranges from 12 to 24 months, with lower build-out costs enabling faster returns.

• Profit Margins: After operating expenses and royalty fees, net profit margins typically range from 10% to 20%, depending on store efficiency and pricing strategy.

Example: A store making $400,000 in annual sales with 15% net margin generates ~$60,000 in profit per year.

How to Choose the Best Bubble Tea Franchise

With dozens of bubble tea brands available globally, choosing the right franchise opportunity can be overwhelming. Each brand differs in startup costs, operational complexity, target market, and growth potential. Here’s a practical framework to help you evaluate and select the best bubble tea franchise for your goals.

Assess the Brand’s Reputation and Market Presence

Choose a franchise with a strong, trusted brand and proven track record. Look for:

• Years in operation and number of active locations

• Online reviews and customer satisfaction

• Media coverage and social media engagement

• A well-established brand like Gong Cha or Kung Fu Tea comes with built-in brand equity that drives customer traffic from day one.

Understand the Franchise Model and Support

The best franchises offer comprehensive support systems, especially for first-time entrepreneurs. Review what’s included in:

• Initial training (operations, marketing, management)

• Ongoing support (supply chain, POS, promotions)

• Local marketing resources

• Franchises like Chatime and Sharetea often have standardized operating procedures that simplify management.

Compare Startup & Operating Costs

Not all bubble tea franchises require the same level of investment. Evaluate:

• Franchise fees and total startup costs

• Royalty and advertising fees

• Projected operating expenses and break-even point

• Smaller regional brands or kiosk formats may offer lower capital entry points, while larger brands may deliver better long-term ROI.

Consider Product Innovation and Menu Flexibility

Trends in health, customization, and social media appeal are driving consumer choices. Choose a franchise that:

• Offers modern, Instagrammable products (e.g., cheese foam, brown sugar boba)

• Allows local menu adaptations for regional tastes

• Keeps up with dietary trends (non-dairy, low sugar, organic)

• Franchises that adapt quickly to trends are more resilient and competitive.

Check Location Flexibility and Territory Rights

Confirm if the franchisor provides:

• Exclusive territory protection

• Flexibility in store type (full store, kiosk, mobile unit)

• Support with site selection and lease negotiation

• A good franchise will help you find a location that matches foot traffic and demographic demand.

Read the Franchise Disclosure Document (FDD) Carefully

The FDD outlines key legal and financial obligations. Pay close attention to:

• Fee structure and term length

• Support guarantees and brand requirements

• Exit clauses and territory rights
  Consult with a franchise lawyer or consultant before signing.

Conclusion

The bubble tea franchise industry continues to show strong growth potential, driven by evolving consumer preferences, visual appeal, and innovative flavors. Choosing the right franchise can offer a faster, lower-risk path to owning a profitable business—especially with the operational support, brand recognition, and training that top franchisors provide.

But not all franchises are created equal. Take time to evaluate brand reputation, startup costs, territory rights, and support systems. With the right partner and a strategic location, a bubble tea franchise can become a rewarding, scalable investment in today’s dynamic F&B landscape.

Ready to Turn Your Bubble Tea Dream Into a Franchise Success?

You’ve taken the first step toward owning your own bubble tea shop—now imagine turning that single store into a thriving franchise empire.

This August, we’re releasing an exclusive guide for aspiring franchise owners, filled with expert insights on branding, operations, and scaling sustainably. Whether you're just getting started or ready to grow your bubble tea business across multiple locations—this is your roadmap to franchising success.

Stay tuned—it’s your time to build, brew, and expand.

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