Happy Lemon franchise
2022 filing · March 31, 2022Growing
Happy Lemon at a glance
A tea shop serving tea drinks made with fresh fruit, milk, salted cheese and boba. At the end of 2021 there were 69 Happy Lemon locations in the US, 66 franchised and 3 company-owned.
The business
- Franchisor
- Yummy-town USA LLC
- The company that sells the franchises
- Franchisor based in
- Houston, Texas
- Typical size
- 600–1,500 sq ft
What you pay
- Cost to open
- $289K–$607K
- A single Happy Lemon store
- Franchise fee
- $80,000
- Paid once, when you sign
- Royalty
- 7%
- 7% of gross revenues, paid monthly
- Brand fund
- None now
- No brand fund
- Renewal fee
- $20,000
- When the agreement ends and you sign again
- Agreement length
- 5 years
- Territory
- None
- No exclusive territory
- Franchisor financing
- None offered
Where it is
- US locations, 2021
- 69
- Franchised and company-owned
- Franchised
- 66
- Company-owned
- 3
- Change in 3 years
- +66
- Franchised locations, 2019–2021
- States
- 10
- Most in California, Washington and Texas
Support and records
From Yummy-town USA LLC’s 2022 filing; revenue and net income from its audited financial statements, page 51; SBA status from the SBA Franchise Directory, October 28, 2026.
Franchisor revenue is the company that sells the franchises (royalties, fees and anything else it earns), not what a location makes.
Where it ranks
Happy Lemon among all franchises with the same figure.
| Figure | Happy Lemon | Among all franchises |
|---|---|---|
| Cost to open, midpointHalfway between the low and high estimate | $448,000 | Costs more than 59% of franchises |
| Franchise feePaid once, when you sign | $80,000 | Higher than 97% of franchises |
| RoyaltyShare of sales paid to the franchisor | 7% | Higher than 70% of brands with a set rate |
| US locationsFranchised and company-owned | 69 | More than 70% of franchises |
How much a Happy Lemon franchise costs
Opening a single Happy Lemon store costs an estimated $289,000 to $607,000. That covers the franchise fee and everything else needed to open, through the first months of working capital.
The biggest costs are architects fees, engineering plans, construction, remodeling, decorating, signage, leasehold improvements, fixtures and furniture ($100,000 to $250,000) and initial franchise fee ($80,000). Here is every line of the estimate as filed:
| What it pays for | Range | Low | High |
|---|---|---|---|
| Initial Franchise Fee | $80,000 | ||
| Your Initial Training Expenses | $12,000 | $16,000 | |
| Rent & Deposit | $4,000 | $10,000 | |
| Architects Fees, Engineering Plans, Construction, Remodeling, Decorating, Signage, Leasehold Improvements, Fixtures and Furniture | $100,000 | $250,000 | |
| Equipment | $30,000 | $80,000 | |
| Opening Inventory and Supplies | $15,000 | $45,000 | |
| Insurance | $8,000 | $12,000 | |
| Security and Utility Deposits, Licenses, Permits, Certificates and other Prepaid Expenses | $10,000 | $15,000 | |
| Legal, Accounting Costs | $5,000 | $7,500 | |
| Computers, Point of Sale System and Related Software | $5,000 | $11,500 | |
| Additional Funds for 3 months | $20,000 | $80,000 | |
| Total | $289,000 | $607,000 | |
Source: Yummy-town USA LLC, 2022 filing, page 16
Happy Lemon franchise fee
The franchise fee is $80,000. You pay it when you sign the franchise agreement.
Source: Yummy-town USA LLC, 2022 filing, page 11
Royalty and ongoing fees
| Royalty | 7% of gross revenues, paid monthly. |
|---|---|
| Brand or marketing fund | No brand fund |
| Transfer Fee | $5,000 |
| Renewal Fee | $20,000 |
| Additional On-Site Training/Consultation Fees and Possible Expenses | $400 per day per trainer |
The typical franchise royalty is 6% of sales, plus 2% for marketing. See franchise fees and royalties to compare.
Source: Yummy-town USA LLC, 2022 filing, pages 12 and 27
Other fees as filed, from pages 12–14. The filing lists every fee, including late fees and audit costs.
Sales and earnings
No figures Happy Lemon 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: Yummy-town USA LLC, 2022 filing, page 39
- Estimate Estimated yearly sales per location
- $480K–$840K
Estimated from the sales that 292 comparable franchises file, matched on industry, format, cost to open, fees and size.
SBA loans to Happy Lemon franchisees
Lenders approved 5 SBA 7(a) loans for Happy Lemon franchisees from 2021 to 2026, $1.65M in all. All 3 that have ended were paid in full; none was charged off. The other 2 haven’t ended yet.
A charged-off loan is one written off as uncollectible. See SBA franchise loans for how 7(a) and 504 loans work.
Source: SBA 7(a) and 504 loan data, as of September 30, 2026
How Happy Lemon compares
Of the 56 bubble tea franchises on this site, Happy Lemon is the 35th cheapest to open and the 5th largest by number of locations.
| Figure | Happy Lemon | Typical bubble tea brand | Typical franchise |
|---|---|---|---|
| Cost to open, low end | $289K | $264K | $222K |
| Cost to open, high end | $607K | $502K | $477K |
| Franchise fee | $80K | $40K | $40K |
| Royalty | 7% | 5% | 6% |
| US locations | 69 | 8 | 21 |
| Closed or left per year | 4% | 0% | – |
| 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 |
|---|---|---|---|---|
| 2019 | 48 (+48) | 3 | +48 | 0 |
| 2020 | 58 (+10) | 4 | +13 | −3 |
| 2021 | 66 (+8) | 3 | +9 | −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: Yummy-town USA LLC, 2022 filing, page 40
Where Happy Lemon locations are
At the end of 2021, Happy Lemon had locations in 10 states. The most are in California, Washington and Texas.
- California49
- Washington7
- Texas4
- Colorado2
- Oregon2
- Illinois1
| State | Franchised | Company-owned | Total |
|---|---|---|---|
| California | 46 | 3 | 49 |
| Washington | 7 | 0 | 7 |
| Texas | 4 | 0 | 4 |
| Colorado | 2 | 0 | 2 |
| Oregon | 2 | 0 | 2 |
| Illinois | 1 | 0 | 1 |
| Massachusetts | 1 | 0 | 1 |
| Nevada | 1 | 0 | 1 |
| New Jersey | 1 | 0 | 1 |
| New York | 1 | 0 | 1 |
Source: Yummy-town USA LLC, 2022 filing, page 40
Who owns Happy Lemon?
Happy Lemon franchises are sold by Yummy-town USA LLC. It is a subsidiary of Yummy-town UK Limited.
From Yummy-town USA LLC’s 2022 filing, page 8.
Lawsuits and bankruptcy
| Lawsuits and regulatory actions | Yes. The filing describes past or pending cases involving the franchisor, its affiliates or its executives on pages 10–11. |
|---|---|
| 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: Yummy-town USA LLC, 2022 filing, litigation on pages 10–11, bankruptcy on page 11
Happy Lemon filings
The figures on this page come from Yummy-town USA LLC’s 2022 filing, issued March 31, 2022, on record with the NASAA Electronic Filing Depository.
| Filing | Issued | Registry | On this page |
|---|---|---|---|
| 2022 filing | March 31, 2022 | NASAA depository | Costs, fees and locations, 2019–2021 |
Each link opens the filing as a PDF. See the newest filings across all brands.
Other bubble tea franchises
All bubble tea franchises
Happy Lemon is also on these lists: food franchises.