FDD-based startup cost, franchise fee, revenue, profit, SBA default rate, and investment risk signals for Kung Fu Tea.
Based on 2025 FDD · 6 filings in corpus
Cost and profit at a glance
Based on FDDIQ's FDD corpus, a Kung Fu Tea franchise shows an estimated initial investment of $169K – $378K. The franchisor does not provide enough Item 19 data for a clean profit estimate. Use the links below to compare the cost, revenue, SBA loan history, and ROI against other franchises before you request the full FDD.
Quick fee read: $37K franchise fee · 6% royalty/ad burden. These figures are directional screening data, not a substitute for reading the current FDD and speaking with existing operators.
Kung Fu Tea requires a total initial investment of $169K to $378K (midpoint approximately $274K), with an initial franchise fee of $37K. The ongoing fee burden is 6% (4% royalty plus 2% advertising fund). This is below the industry average of approximately 14.2%, leaving more margin for the operator.
Kung Fu Tea does not publicly disclose Item 19 financial performance data in their FDD. This is a significant transparency gap — franchisees must rely on validation calls and personal research rather than audited financial representations. Prospective buyers should demand current unit-level financials from existing operators during due diligence.
Kung Fu Tea operates approximately 377 franchised units. Unit count is relatively stable with a 2.4% year-over-year change. The SBA 7(a) loan default rate of 0.0% is well below the industry average of approximately 9.4%, indicating strong franchisee financial outcomes.
Prospective franchisees should verify all figures against the most recent FDD, conduct validation calls with multiple existing franchisees, and consult with a franchise attorney before signing any agreement.
Analysis based on 2025 FDD filing. FDDIQ Editorial Team · Methodology
Estimated using sector-average margins. Actual franchise economics vary by location, operator, and market conditions.
Industry averages based on FranchiseIQ corpus benchmarks. ▲ = better than avg, ▼ = worse.
Real lending data from SBA 7(a) loans (2016-2025). 24 loans across 14 states.
Source: SBA 7(a) loan data via FOIA. Default rate = charged-off loans / total originated. Industry avg default rate ~7.2%.
Common questions buyers ask about Kung Fu Tea, answered from FDD and SBA data.
The total initial investment for a Kung Fu Tea franchise ranges from $169K to $378K, according to their Franchise Disclosure Document.
Kung Fu Tea charges a 4% royalty fee on gross sales.
The initial franchise fee for Kung Fu Tea is $37,000.
There are approximately 377 Kung Fu Tea franchise locations as of 2023.
Profit data for Kung Fu Tea is disclosed in FDD Item 19 (Financial Performance Representation). Check their most recent Franchise Disclosure Document for current figures.
Kung Fu Tea has an SBA loan default rate of 0.0% based on SBA 7(a) loan data.
Whether a Kung Fu Tea franchise is worth it depends on total startup cost, royalty burden, FDD Item 19 economics, SBA loan performance, and local operator execution. FDDIQ compares these signals against similar franchises so buyers can screen the opportunity before paying for diligence.
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