Milk Tea Lab franchise
2023 filing · April 19, 2023
Milk Tea Lab at a glance
A shop selling milk tea and other tea drinks with snacks.
The business
- Franchisor
- Milk Tea Lab Holding Corp
- The company that sells the franchises
- Typical size
- 600–2,000 sq ft
What you pay
- Cost to open
- $163K–$461K
- Fee, build-out and opening working capital
- Franchise fee
- $48,000
- $33,000 for each outlet beyond the first 10
- Royalty
- 5%
- 5% of gross sales, paid weekly from eight weeks after opening, plus an advertising fee of 1% to 3% and a technology fee (currently $25 a week)
Where it is
- Franchised, 2022
- 0
- As printed in the filing
From Milk Tea Lab Holding Corp’s 2023 filing; SBA status from the SBA Franchise Directory, October 28, 2026.
Where it ranks
Milk Tea Lab among all franchises with the same figure.
| Figure | Milk Tea Lab | Among all franchises |
|---|---|---|
| Cost to open, midpointHalfway between the low and high estimate | $311,750 | Costs less than 55% of franchises |
| Franchise feePaid once, when you sign | $48,000 | Higher than 62% of franchises |
| RoyaltyShare of sales paid to the franchisor | 5% | Lower than 69% of brands with a set rate |
How much a Milk Tea Lab franchise costs
Opening one Milk Tea Lab costs an estimated $163,000 to $460,500. That covers the franchise fee and everything else needed to open, through the first months of working capital.
Source: Milk Tea Lab Holding Corp, 2023 filing, page 16
Milk Tea Lab franchise fee
The franchise fee is $48,000, $33,000 for each outlet beyond the first 10. You pay it when you sign the franchise agreement.
Source: Milk Tea Lab Holding Corp, 2023 filing, page 10
Royalty and ongoing fees
| Royalty | 5% of gross sales, paid weekly from eight weeks after opening, plus an advertising fee of 1% to 3% and a technology fee (currently $25 a week). |
|---|
The typical franchise royalty is 6% of sales, plus 2% for marketing. See franchise fees and royalties to compare.
Source: Milk Tea Lab Holding Corp, 2023 filing, page 11
Sales and earnings
No figures Milk Tea Lab 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: Milk Tea Lab Holding Corp, 2023 filing, page 38
How Milk Tea Lab compares
Of the 56 bubble tea franchises on this site, Milk Tea Lab is the 12th cheapest to open.
| Figure | Milk Tea Lab | Typical bubble tea brand | Typical franchise |
|---|---|---|---|
| Cost to open, low end | $163K | $264K | $222K |
| Cost to open, high end | $461K | $502K | $477K |
| Franchise fee | $48K | $40K | $40K |
| Royalty | 5% | 5% | 6% |
| 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 |
|---|---|---|
| 2020 | 0 (0) | 5 |
| 2021 | 0 (0) | 8 |
| 2022 | 0 (0) | 8 |
Closed or left counts terminations, non-renewals, locations bought back by the franchisor and locations that stopped operating. Company-owned shops are owned by the franchisor's affiliates.
These figures don't add up as printed: the 2022 counts come to 8, but the filing shows 0. Worth asking the franchisor.
See which brands grew most in the fastest-growing franchises rankings.
More in the guides: franchise failure rates.
Source: Milk Tea Lab Holding Corp, 2023 filing, page 39
Where Milk Tea Lab locations are
At the end of 2022, Milk Tea Lab had locations in 1 state. The most are in California.
- California8
| State | Franchised | Company-owned | Total |
|---|---|---|---|
| California | 0 | 8 | 8 |
Source: Milk Tea Lab Holding Corp, 2023 filing, page 39
Who owns Milk Tea Lab?
Milk Tea Lab franchises are sold by Milk Tea Lab Holding Corp.
From Milk Tea Lab Holding Corp’s 2023 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: Milk Tea Lab Holding Corp, 2023 filing, litigation on page 10, bankruptcy on page 10
Milk Tea Lab filings
The figures on this page come from Milk Tea Lab Holding Corp’s 2023 filing, issued April 19, 2023, on record with the NASAA Electronic Filing Depository.
| Filing | Issued | Registry | On this page |
|---|---|---|---|
| 2023 filing | April 19, 2023 | NASAA depository | Costs, fees and locations, 2020–2022 |
Each link opens the filing as a PDF. See the newest filings across all brands.
Other bubble tea franchises
All bubble tea franchises
Milk Tea Lab is also on these lists: food franchises.