Chun Yang Tea franchise
2024 filing · May 10, 2024Growing
Chun Yang Tea at a glance
A tea shop serving fresh-made tea drinks for carry-out or in-store. At the end of 2023 there were 8 Chun Yang Tea locations in the US, all franchised.
The business
- Franchisor
- ChunYang Tea USA, LLC
- The company that sells the franchises
- Current franchisor selling since
- 2019
- 5 years of selling franchises
- Franchisor based in
- Cupertino, California
- Typical size
- 350–750 sq ft
What you pay
- Cost to open
- $134K–$300K
- Fee, build-out and opening working capital
- Franchise fee
- $30,000
- Plus a territory surcharge set by the area's population density and demographics
- Royalty
- 3%
- $150 plus 3% of gross revenues, paid monthly
- Brand fund
- Yes
- $150 a month
- Renewal fee
- $10,000
- When the agreement ends and you sign again
- Agreement length
- 3 years
- Territory
- Protected
- Protected territory
- Franchisor financing
- None offered
Where it is
- US locations, 2023
- 8
- Franchised and company-owned
- Franchised
- 8
- Company-owned
- 0
- Change in 3 years
- +6
- Franchised locations, 2021–2023
- States
- 2
- Most in New York and California
From ChunYang Tea USA, LLC’s 2024 filing; SBA status from the SBA Franchise Directory, October 28, 2026.
Where it ranks
Chun Yang Tea among all franchises with the same figure.
| Figure | Chun Yang Tea | Among all franchises |
|---|---|---|
| Cost to open, midpointHalfway between the low and high estimate | $216,825 | Costs less than 67% of franchises |
| Franchise feePaid once, when you sign | $30,000 | Lower than 72% of franchises |
| RoyaltyShare of sales paid to the franchisor | 3% | Lower than 98% of brands with a set rate |
| US locationsFranchised and company-owned | 8 | Fewer than 65% of franchises |
How much a Chun Yang Tea franchise costs
Opening one Chun Yang Tea costs an estimated $133,900 to $299,750. That covers the franchise fee and everything else needed to open, through the first months of working capital.
Source: ChunYang Tea USA, LLC, 2024 filing, page 14
Chun Yang Tea franchise fee
The franchise fee is $30,000, plus a territory surcharge set by the area's population density and demographics. You pay it when you sign the franchise agreement.
Source: ChunYang Tea USA, LLC, 2024 filing, page 8
Royalty and ongoing fees
| Royalty | $150 plus 3% of gross revenues, paid monthly. |
|---|---|
| Brand or marketing fund | $150 a month. |
| Point of sale system | $2,500 to $3,000 |
| Transfer Fee | $15,000 |
| Renewal Fee | $10,000 |
| Initial Training Fee for Additional Attendees | Up to $1,500 (for each attendee) |
The typical franchise royalty is 6% of sales, plus 2% for marketing. See franchise fees and royalties to compare.
Source: ChunYang Tea USA, LLC, 2024 filing, page 10
Other fees as filed, from pages 10–13. The filing lists every fee, including late fees and audit costs.
Sales and earnings
No figures Chun Yang Tea does not share sales or profit figures for its locations. Talking to current and former franchise owners is the usual way to learn what a location earns.
Source: ChunYang Tea USA, LLC, 2024 filing, page 36
- Estimate Estimated yearly sales per location
- $400K–$690K
Estimated from the sales that 292 comparable franchises file, matched on industry, format, cost to open, fees and size.
Growth and closures
Share of franchised locations, 2023 / 2021–2023. Typical means the median: half of brands are above it, half below.
| Measure | Chun Yang Tea | Typical bubble tea brand | Typical franchise |
|---|---|---|---|
| GrowthNet change in franchised locations | +14% / +300% | +12% / +100% | +1.2% / +10% |
| ClosuresTerminated, not renewed or stopped operating | 14% / 50% | 3.8% / 28% | 3.9% / 16% |
| Bought backLocations the franchisor took back | 0% / 0% | 0% / 0% | 0% / 0% |
Typical bubble tea brand is the median of the 11 brands in bubble tea franchises with three years of counts.
How Chun Yang Tea compares
Of the 56 bubble tea franchises on this site, Chun Yang Tea is the 3rd cheapest to open and the 24th largest by number of locations.
| Figure | Chun Yang Tea | Typical bubble tea brand | Typical franchise |
|---|---|---|---|
| Cost to open, low end | $134K | $264K | $222K |
| Cost to open, high end | $300K | $502K | $477K |
| Franchise fee | $30K | $40K | $40K |
| Royalty | 3% | 5% | 6% |
| US locations | 8 | 8 | 21 |
| Shares earnings figures | No | 19 of 56 | 2,147 of 3,352 |
Typical is the median across the 56 brands in bubble tea franchises; typical franchise, across every brand here.
Locations opened and closed
| Year | Franchised | Company-owned | Opened | Closed |
|---|---|---|---|---|
| 2021 | 5 (+3) | 0 | +3 | 0 |
| 2022 | 7 (+2) | 0 | +2 | 0 |
| 2023 | 8 (+1) | 0 | +2 | −1 |
Closed or left counts terminations, non-renewals, locations bought back by the franchisor and locations that stopped operating.
See which brands grew most in the fastest-growing franchises rankings.
More in the guides: franchise failure rates.
Source: ChunYang Tea USA, LLC, 2024 filing, page 36
Where Chun Yang Tea locations are
At the end of 2023, Chun Yang Tea had franchised locations in 2 states. The most are in New York and California.
- New York5
- California3
| State | Franchised |
|---|---|
| New York | 5 |
| California | 3 |
Source: ChunYang Tea USA, LLC, 2024 filing, page 37
Who owns Chun Yang Tea?
Chun Yang Tea franchises are sold by ChunYang Tea USA, LLC. Its filing names no parent company.
From ChunYang Tea USA, LLC’s 2024 filing, page 6.
Lawsuits and bankruptcy
| Lawsuits and regulatory actions | None. The filing says no litigation has to be disclosed. |
|---|---|
| Bankruptcy | None. The filing says no bankruptcy has to be disclosed. |
Franchisors must disclose lawsuits and bankruptcies involving the company, its parents and affiliates, and its executives. Many cases are routine disputes with franchisees over fees or contracts; read the descriptions in the filing and ask current owners about anything that worries you.
Source: ChunYang Tea USA, LLC, 2024 filing, litigation on page 8, bankruptcy on page 8
Chun Yang Tea filings
The figures on this page come from ChunYang Tea USA, LLC’s 2024 filing, issued May 10, 2024, on record with the NASAA Electronic Filing Depository.
| Filing | Issued | Registry | On this page |
|---|---|---|---|
| 2024 filing | May 10, 2024 | NASAA depository | Costs, fees and locations, 2021–2023 |
Each link opens the filing as a PDF. See the newest filings across all brands.
Other bubble tea franchises
All bubble tea franchises
Chun Yang Tea is also on these lists: food franchises.