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%.
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