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QSRNo Item 19Item 19: ✗ Not DisclosedQuality: 75/100

Tea Top

Based on 2020 FDD · 3 filings in corpus

FranchiseIQ Score
36
D
High Risk
Composite score based on SBA default rate, unit growth, disclosure quality & investment efficiency.
Full analysis unlocks:
✓ Cash-on-Cash return
✓ Payback period
✓ SBA default rate
✓ Red flags assessment
✓ Comparable franchises
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Total Investment Range$131K$278K
MinMid: $204KMax

Key Metrics

Franchise Fee
$40K
Royalty Rate
5%
Ad Fund Rate
Total Burden
5.0%
Royalty + ad fund
Units (2023)
8
-1 vs prior yr
Net Unit Growth
-11.1%
Year over year
Cash-on-Cash Return
~8–15%
Annual estimated return
Payback Period
~5–12 yrs
Break-even timeline
SBA Default Rate
~3–8%
Fewer than 50 loans on record
Median Revenue
~$800K–$2M
Item 19 disclosed
Red Flags Assessment
HIGH: Missing Item 19 disclosure · MEDIUM: Significant unit decline
HIGH ×1MED ×1
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SBA default rate, Risk Score, CoC%, investment benchmarks, and unit growth for Tea Top.

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Estimated using sector-average margins. Actual franchise economics vary by location, operator, and market conditions.

Tea Top vs. QSR Average

MetricTea TopQSR Avg
SBA Default Rate9.4%
Cash-on-Cash Return14.2%
Total Investment$204K$380K

Industry averages based on FranchiseIQ corpus benchmarks. ▲ = better than avg, ▼ = worse.

Compare

Tea Top vs Chick-fil-A, Inc.Tea Top vs Loving CupTea Top vs Donut King

Similar Franchises · QSR

Chick-fil-A, Inc.
Revenue Only
$427K$2.3M
Loving Cup
No Item 19
$166K$242K
Donut King
Limited Data
$211K$332K
Chick-fil-A, Inc.
$427K – $2.3M
Loving Cup
$166K – $242K
Donut King
$211K – $332K
Crust Gourmet Pizza Bar
$210K – $264K

Questions to Ask Before You Sign

5 data-driven questions every Tea Top franchise buyer should ask.

  1. 1.What is Tea Top's SBA default rate compared to its competitors?Learn more →
  2. 2.Does Tea Top disclose Item 19 financial performance representations?Learn more →
  3. 3.What is the net unit growth trend over the past 3 years?Learn more →
  4. 4.What is the franchisee termination and transfer rate per Item 20?Learn more →
  5. 5.What do the FDD litigation disclosures (Item 3) reveal about franchisor legal history?Learn more →
Generate attorney questions for Tea TopValidation call guide →

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Data sourced from publicly filed Franchise Disclosure Documents (FDDs) submitted to state franchise regulators. SBA loan data from public SBA 7(a) records. Information reflects the most recent FDD filing in our database and may not reflect current terms. Always verify with the franchisor's current FDD before making any investment decision. Not legal or financial advice.