Machi Machi franchise
2024 filing · August 21, 2024Growing
Machi Machi at a glance
A specialty beverage shop serving tea drinks and other beverages. At the end of 2023 there were 4 Machi Machi locations in the US, all franchised.
The business
- Franchisor
- Machi Machi US, Inc
- The company that sells the franchises
- Franchisor based in
- Minneapolis, Minnesota
- Typical size
- 750–1,250 sq ft
What you pay
- Cost to open
- $350K–$1.09M
- Fee, build-out and opening working capital
- Franchise fee
- $50K–$200K
- Set by the population of the store's county
- Royalty
- 5%
- 5% of net sales, plus a 2% advertising contribution
- Brand fund
- None now
- 2% of net sales, not charged at present
- Renewal fee
- See terms
- 10% of the then- current initial franchise fee
- Agreement length
- 7 years
- Territory
- Limited
- Limited protection
- Franchisor financing
- None offered
Where it is
- US locations, 2023
- 4
- Franchised and company-owned
- Franchised
- 4
- Company-owned
- 0
- Change in 1 years
- +3
- Franchised locations, 2021–2023
- States
- 2
- Most in Massachusetts and New Jersey
From Machi Machi US, Inc’s 2024 filing; SBA status from the SBA Franchise Directory, October 28, 2026.
Where it ranks
Machi Machi among all franchises with the same figure.
| Figure | Machi Machi | Among all franchises |
|---|---|---|
| Cost to open, midpointHalfway between the low and high estimate | $721,975 | Costs more than 76% of franchises |
| Franchise feePaid once, when you sign | $50,000 | Higher than 70% of franchises |
| RoyaltyShare of sales paid to the franchisor | 5% | Lower than 69% of brands with a set rate |
| US locationsFranchised and company-owned | 4 | Fewer than 74% of franchises |
How much a Machi Machi franchise costs
Opening one Machi Machi costs an estimated $350,150 to $1,093,800. That covers the franchise fee and everything else needed to open, through the first months of working capital.
The biggest costs are real estate and leasehold improvements ($150,000 to $400,000) and initial franchise fee ($50,000 to $200,000). Here is every line of the estimate as filed:
| What it pays for | Range | Low | High |
|---|---|---|---|
| Initial Franchise Fee | $50,000 | $200,000 | |
| Background/Credit Check | $150 | $300 | |
| Real Estate and Leasehold Improvements | $150,000 | $400,000 | |
| Location Selection Services | $5,000 | $35,000 | |
| Furniture and Fixtures | $20,000 | $40,000 | |
| Equipment | $53,000 | $100,000 | |
| Architectural and Engineering Fees | $7,000 | $15,000 | |
| Signage | $5,000 | $20,000 | |
| Computer/Tablet System (includes POS hardware, software, and implementation costs) | $7,000 | $12,500 | |
| On-Site NSO Support | $5,000 | ||
| Insurance | $5,000 | $20,000 | |
| Smallwares | $5,000 | $10,000 | |
| Opening Inventory | $5,000 | $100,000 | |
| Grand Opening Advertising | $2,000 | $10,000 | |
| Training | $6,000 | $35,000 | |
| Miscellaneous Costs to Begin Operations | $9,000 | $16,000 | |
| Rent for the first 3 months | $6,000 | $45,000 | |
| Additional Funds (3 Months) | $10,000 | $30,000 | |
| Total | $350,150 | $1,093,800 | |
Source: Machi Machi US, Inc, 2024 filing, page 19
Machi Machi franchise fee
The franchise fee is $50,000 to $200,000, set by the population of the store's county. You pay it when you sign the franchise agreement.
Source: Machi Machi US, Inc, 2024 filing, page 10
Royalty and ongoing fees
| Royalty | 5% of net sales, plus a 2% advertising contribution. |
|---|---|
| Brand or marketing fund | 2% of net sales, not charged at present. |
| Online Ordering (Dispatch Delivery Order) | $0.50 per order. |
| Renewal Fee | 10% of the then- current initial franchise fee |
| Subsequent/Additional Trainee Initial Training Fee/Webinar | Currently, up to $500 per day per trainee. |
The typical franchise royalty is 6% of sales, plus 2% for marketing. See franchise fees and royalties to compare.
Source: Machi Machi US, Inc, 2024 filing, page 11
Other fees as filed, from pages 13–16. The filing lists every fee, including late fees and audit costs.
Sales and earnings
No figures Machi Machi 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: Machi Machi US, Inc, 2024 filing, page 52
- Estimate Estimated yearly sales per location
- $860K–$1.5M
Estimated from the sales that 292 comparable franchises file, matched on industry, format, cost to open, fees and size.
How Machi Machi compares
Of the 56 bubble tea franchises on this site, Machi Machi is the 47th cheapest to open and the 35th largest by number of locations.
| Figure | Machi Machi | Typical bubble tea brand | Typical franchise |
|---|---|---|---|
| Cost to open, low end | $350K | $264K | $222K |
| Cost to open, high end | $1.09M | $502K | $477K |
| Franchise fee | $50K | $40K | $40K |
| Royalty | 5% | 5% | 6% |
| US locations | 4 | 8 | 21 |
| Closed or left per year | 0% | 0% | – |
| Change in franchised locations, 1 yrs | +300% | +100% | – |
| 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 | 1 (0) | 1 | 0 | 0 |
| 2022 | 2 (+1) | 0 | – | – |
| 2023 | 4 (+2) | 0 | – | – |
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: Machi Machi US, Inc, 2024 filing, page 53
Where Machi Machi locations are
At the end of 2023, Machi Machi had franchised locations in 2 states. The most are in Massachusetts and New Jersey.
- Massachusetts1
- New Jersey1
| State | Franchised |
|---|---|
| Massachusetts | 1 |
| New Jersey | 1 |
Source: Machi Machi US, Inc, 2024 filing, page 54
Who owns Machi Machi?
Machi Machi franchises are sold by Machi Machi US, Inc.
From Machi Machi US, Inc’s 2024 filing.
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: Machi Machi US, Inc, 2024 filing, litigation on page 10, bankruptcy on page 10
Machi Machi filings
The figures on this page come from Machi Machi US, Inc’s 2024 filing, issued August 21, 2024, on record with the NASAA Electronic Filing Depository.
| Filing | Issued | Registry | On this page |
|---|---|---|---|
| 2024 filing | August 21, 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
Machi Machi is also on these lists: food franchises.