Kava Culture franchise
2024 filing · May 6, 2024GrowingShares sales figures
Kava Culture at a glance
A kava bar serving non-alcoholic kava, elixirs and botanical teas. At the end of 2023 there were 14 Kava Culture locations in the US, 6 franchised and 8 company-owned, so most are run by the company itself.
The business
- Franchisor
- Kava Culture Franchise Group Corp
- The company that sells the franchises
- Typical size
- 900–3,600 sq ft
What you pay
- Cost to open
- $151K–$409K
- Fee, build-out and opening working capital
- Franchise fee
- $40,000
- Paid once, when you sign
- Royalty
- 8%
- 8% of weekly gross sales, plus 1% to the brand fund and at least 0.5% on local marketing
- Brand fund
- 1%
- 1% of gross sales, paid weekly; it can rise to 3%
- Agreement length
- 10 years
Where it is
- US locations, 2023
- 14
- Franchised and company-owned
- Franchised
- 6
- Company-owned
- 8
- Change in 3 years
- +6
- Franchised locations, 2021–2023
- States
- 2
- Most in Florida and Texas
From Kava Culture Franchise Group Corp’s 2024 filing; revenue and net loss from its audited financial statements, page 152; 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
Kava Culture among all franchises with the same figure.
| Figure | Kava Culture | Among all franchises |
|---|---|---|
| Cost to open, midpointHalfway between the low and high estimate | $279,750 | Costs less than 59% of franchises |
| Franchise feePaid once, when you sign | $40,000 | Lower than 46% of franchises |
| RoyaltyShare of sales paid to the franchisor | 8% | Higher than 85% of brands with a set rate |
| US locationsFranchised and company-owned | 14 | Fewer than 56% of franchises |
How much a Kava Culture franchise costs
Opening one Kava Culture costs an estimated $150,500 to $409,000. That covers the franchise fee and everything else needed to open, through the first months of working capital.
The biggest costs are leasehold improvements ($15,000 to $150,000) and initial franchise fee ($40,000). Here is every line of the estimate as filed:
| What it pays for | Range | Low | High |
|---|---|---|---|
| Initial Franchise Fee | $40,000 | ||
| Your Training Expenses | $5,000 | $15,000 | |
| Premises Deposits | $5,000 | $15,000 | |
| Professional Design | $5,000 | $10,000 | |
| Plan Design Services | $0 | $3,000 | |
| Construction Management Services | $0 | $37,500 | |
| Ordering Agent Services | $0 | $1,500 | |
| Décor and Design Services | $0 | $5,000 | |
| Leasehold Improvements | $15,000 | $150,000 | |
| Signage | $4,000 | $10,000 | |
| Furniture, Fixtures, Equipment | $30,000 | $40,000 | |
| Computer Systems | $2,000 | $3,000 | |
| Initial Inventory – proprietary products | $15,000 | $20,000 | |
| Other Initial Inventory | $5,000 | $10,000 | |
| Grand Opening Marketing | $5,000 | ||
| Professional Fees | $2,000 | $5,000 | |
| Licenses and Permits | $500 | $2,000 | |
| Insurance | $2,000 | $7,000 | |
| Operating Expenses/Additional Funds – 3 months | $15,000 | $30,000 | |
| Total | $150,500 | $409,000 | |
Source: Kava Culture Franchise Group Corp, 2024 filing, page 20
Kava Culture franchise fee
The franchise fee is $40,000. You pay it when you sign the franchise agreement.
Source: Kava Culture Franchise Group Corp, 2024 filing, page 12
Royalty and ongoing fees
| Royalty | 8% of weekly gross sales, plus 1% to the brand fund and at least 0.5% on local marketing. |
|---|---|
| Brand or marketing fund | 1% of gross sales, paid weekly; it can rise to 3%. |
| Required Minimum Expenditure for Local Marketing and Advertising | .5% of your Gross Sales |
The typical franchise royalty is 6% of sales, plus 2% for marketing. See franchise fees and royalties to compare.
Source: Kava Culture Franchise Group Corp, 2024 filing, page 14
Other fees as filed, from page 14. The filing lists every fee, including late fees and audit costs.
Sales and earnings
Shares figures Kava Culture publishes sales or earnings figures for its locations. The full tables, with notes on which locations are counted, are in its filing.
Source: Kava Culture Franchise Group Corp, 2024 filing, page 50
- 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.
How Kava Culture compares
Of the 813 restaurant franchises on this site, Kava Culture is the 49th cheapest to open and the 382nd largest by number of locations.
| Figure | Kava Culture | Typical restaurant brand | Typical franchise |
|---|---|---|---|
| Cost to open, low end | $151K | $408K | $222K |
| Cost to open, high end | $409K | $866K | $477K |
| Franchise fee | $40K | $35K | $40K |
| Royalty | 8% | 5% | 6% |
| Brand fund | 1% | 2% | 2% |
| US locations | 14 | 14 | 21 |
| Closed or left per year | 25% | 4.9% | – |
| Shares earnings figures | Yes | 474 of 813 | 2,147 of 3,352 |
Typical is the median across the 813 brands in restaurant franchises; typical franchise, across every brand here.
Locations opened and closed
| Year | Franchised | Company-owned | Opened | Closed |
|---|---|---|---|---|
| 2021 | 2 (+2) | 7 | +2 | 0 |
| 2022 | 4 (+2) | 8 | +2 | 0 |
| 2023 | 6 (+2) | 8 | +4 | −2 |
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: Kava Culture Franchise Group Corp, 2024 filing, page 53
Where Kava Culture locations are
At the end of 2023, Kava Culture had locations in 2 states. The most are in Florida and Texas.
- Florida11
- Texas2
Source: Kava Culture Franchise Group Corp, 2024 filing, page 53
Who owns Kava Culture?
Kava Culture franchises are sold by Kava Culture Franchise Group Corp.
From Kava Culture Franchise Group Corp’s 2024 filing.
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 11–12. |
|---|---|
| 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: Kava Culture Franchise Group Corp, 2024 filing, litigation on pages 11–12, bankruptcy on page 12
Kava Culture filings
The figures on this page come from Kava Culture Franchise Group Corp’s 2024 filing, issued May 6, 2024, on record with the NASAA Electronic Filing Depository.
| Filing | Issued | Registry | On this page |
|---|---|---|---|
| 2024 filing | May 6, 2024 | NASAA depository | Costs, fees and locations, 2021–2023 |
Each link opens the filing as a PDF. See the newest filings across all brands.
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