Is the Sharetea Franchise a Good Investment? (Costs + Fees)

Is the Sharetea Franchise a Good Investment? (Costs + Fees)

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The bubble tea market is estimated to achieve $4.3 billion in worth by 2027. One rising bubble tea model with greater than 400 places all over the world is Sharetea they usually’re open for franchising.

How a lot does it price to open Sharetea? This milk tea chain requires a minimal liquid capital of $100,000. You possibly can anticipate the preliminary funding to be a minimal of $300,000 together with a franchise charge of $48,000.

Able to be taught extra the best way to franchise Sharetea and whether or not or not the chance is well worth the funding? This franchise evaluate breaks down the profitability of this boba tea franchise and the important thing challenges this enterprise faces. Click here to take our 7-minute franchise quiz to get matched with a possibility that matches your funding stage and pursuits.

Monetary Necessities and Charges

Charges / Bills Monetary Quantity
Liquid Capital $100,000
Whole Funding $300,000
Franchise Payment $48,000

The small print above are the monetary necessities and charges you possibly can anticipate if you wish to franchise Sharetea. Nonetheless, keep in mind that these necessities are solely the minimal price and that components akin to the situation, gear, provides, and measurement of the shop could have an effect on these numbers. As well as, Sharetea expenses a royalty charge of 6% with minimal $1,200.

Common Gross sales / Income per 12 months

Based on Restaurant Business Online, Sharetea generated gross sales of $47 million in 2021.

Sharetea Franchise Information

Whole Items 400+ (135 U.S.A)
Included Title Sharetea Franchise Worldwide, Inc.
Franchising Since 2006
Business Bubble Tea
Subsector Beverage

Sharetea was based by Mr. Cheng Kai-Lung in 1992 in Taiwan. Kai-Lung was working as a movie and TV director when he stop his job to promote pearl milk tea and black tea drinks as a road vendor. He discovered success on this enterprise and continued to develop. At present, Sharetea has greater than 400 shops worldwide.

Sharetea is a model of bubble tea that could be a freshly brewed tea-based drink that’s paired with milk, sugar, and pearl balls produced from tapioca that’s additionally referred to as boba. Mixing all these components creates bubbles. That’s why it’s referred to as bubble tea and has quite a lot of names akin to milk tea, pearl milk tea, boba tea, and tapioca milk tea.

sharetea

Sharetea.

At Sharetea, they use tea leaves shipped from Taiwan of their drinks. They’ve additionally expanded their menu to incorporate different objects than simply common milk and tea akin to flavored drinks with fruits. Milk tea may be served both sizzling or chilly.

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The menu at Sharetea contains the Basic Pearl Milk Tea, Thai Pearl Milk Tea, Matcha Pink Bean Milk Tea, and Mango Inexperienced Milk Tea. There are additionally fruit teas akin to Peach Kiwi Tea with Aiyu Jelly and Wintermelon Lemonade. You may also customise your orders akin to including pearls, aloe vera, pudding, lychee jelly, crimson bean, and herb jelly. Sugar ranges may also be custom-made.

To franchise Sharetea, full the applying kind here. You’ll then be contacted by the corporate and undergo their qualification course of at their headquarters in Taiwan. You’ll have the ability to discover one of the best location to your Sharetea and if all goes properly, signal the contract, obtain the mandatory coaching after which open your individual Sharetea.

Sharetea is open for franchising in america in addition to in different nations akin to Australia, Philippines, and the Center East. In america, Sharetea has over 135 places. Presently, Sharetea is owned by Lian Fa Worldwide Eating Enterprise Company.

How A lot Does Sharetea Make in Revenue?

Sharetea noticed web profits of $3.1 million in 2021 in keeping with publicly out there knowledge. As for franchise homeowners, it’s not recognized formally how a lot every retailer sees in revenue however it’s estimated that franchise homeowners could make $50,000 to $100,000 yearly. This relies on a number of components akin to how a lot work these franchisees put in and whether or not or not they’ve an excellent location. It is usually estimated that it’d take 5 to eight years for a franchise proprietor to get well from the funding.

Benefits of a Sharetea Franchise

sharetea franchise

Sharetea is open for franchising.

The bubble tea market, particularly Sharetea, have a variety of benefits if you franchise with them. Listed below are a number of:

World Presence

Sharetea is a model that’s recognized in 13 nations worldwide. They’ve a powerful international presence that continues to develop. In October 2022, Sharetea opened a location in Cairo, Egypt and plans to open 20 extra.

Menu Selection

The boba tea alternatives at Sharetea are plentiful. They’ve milk teas, fruit teas, flavored teas, and ice blended ones. In addition they have totally different sinkers or add-ons from pearls to aloe vera and lychee jelly. On a weight loss plan and nonetheless wish to get milk tea? Go for a brewed tea at Sharetea. They’ll additionally customise the sugar stage for you.

It’s Right here To Keep

Many suppose that bubble tea is only a fad similar to how frozen yogurt as soon as took over the world by storm however is now seeing unstable market progress. Bubble tea is right here to remain. It began as a preferred drink in Asia within the 80s and it continues in the present day and sooner or later. The components are low cost and the startup prices are inexpensive. What issues is the situation and competitors in your space to your Sharetea to have the ability to develop.

Quick Rising Business

The bubble tea market is rising quickly. Based on Grand View Analysis, the worldwide bubble tea market is predicted to achieve $5.42 billion by 2030, rising at a CAGR of 8.9% from 2023 to 2030. There are a variety of causes contributing to progress together with the rising reputation of bubble tea amongst younger folks, rising variety of bubble tea outlets in america and the recognition on social media.

Challenges of a Sharetea Franchise

Companies pose some challenges and franchising one isn’t any exception. Listed below are a number of challenges to anticipate as a franchisee.

Competitors

The milk tea craze is rising yearly that the competitors is hard. You’ve Gong Cha with over 1,100 shops all around the world. There’s additionally Completely satisfied Lemon with 1,000 shops globally. Kung Fu Tea can also be massive and in keeping with Yelp they’re the largest bubble tea chain in America.

A few of the main gamers out there embrace Sharetea, Gong Cha, Rapidly, Ten Ren, and The Alley. These corporations are increasing their franchise community and launching new merchandise as a way to keep their market share. So in the event you resolve to franchise Sharetea, you need to have the ability to decide a very good location so that you just gained’t compete intently with different manufacturers.

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Lawsuits

Sharetea has been embroiled in a lawsuit in Sharetea Australia concerning underpayment of staff in a few of their places. Although this problem was solely introduced up in Australia, the lawsuit can injury the model’s title as a complete.

Fragmented Market Segmentation

One problem with international growth of any bubble tea chain is that the market is segmented by area, product kind, taste, and distribution channel. The Asia-Pacific area is the biggest marketplace for bubble tea, adopted by North America and Europe. The product kind phase is dominated by milk tea, adopted by fruit tea and smoothies. The flavour phase is dominated by unique, adopted by taro and matcha. The distribution channel phase is dominated by specialty shops, adopted by supermarkets and comfort shops.

Is the Sharetea Franchise Proper For You?

Sharetea looks as if an excellent funding however contemplating that the milk tea market is full of opponents, it’s finest to investigate the situation of your potential Sharetea and ensure that it’s positioned in an excellent location with excessive foot site visitors and a demographic of younger individuals who take pleasure in this scrumptious beverage.

What’s an alternate Sharetea franchise?

One other milk tea model that’s value testing is Gong Cha. This milk tea firm was based in 2006 in Taiwan. The title interprets to “tribute tea for the emperor” which implies their components are of the best high quality that’s match for royalty. They’ve over 1,800 places globally.

To franchise Gong Cha, anticipate the preliminary funding to be $177,430 to $335,400 with a franchise charge of $41,500.

The milk tea business seems prefer it’s positioned to proceed rising in america for the remainder of the last decade. Early regional entrants into the house may benefit from a primary mover benefits.

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