Prince Tea House franchise
2024 filing · April 26, 2024Growing
Prince Tea House at a glance
A sit-down Asian-style tea house and bakery serving afternoon tea sets, pastries, desserts, sandwiches and teas. At the end of 2023 there were 13 Prince Tea House locations in the US, 5 franchised and 8 company-owned, so most are run by the company itself.
The business
- Franchisor
- Prince Tea House Franchising LLC
- The company that sells the franchises
- Franchisor based in
- Flushing, New York
- Typical size
- 1,300–2,000 sq ft
What you pay
- Cost to open
- $570K–$1.01M
- Fee, build-out and opening working capital
- Franchise fee
- $60,000
- Paid once, when you sign
- Royalty
- 4%
- 4% of gross sales, paid monthly
- Brand fund
- None now
- Up to 3% of gross sales; not charged at present
- Renewal fee
- $10,000
- When the agreement ends and you sign again
- Agreement length
- 10 years
- Territory
- Limited
- Limited protection
- Franchisor financing
- None offered
Where it is
- US locations, 2023
- 13
- Franchised and company-owned
- Franchised
- 5
- Company-owned
- 8
- Change in 3 years
- +3
- Franchised locations, 2021–2023
- States
- 4
- Most in New York, New Jersey and Pennsylvania
Support and records
From Prince Tea House Franchising LLC’s 2024 filing; revenue and net income from its audited financial statements, page 53; 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
Prince Tea House among all franchises with the same figure.
| Figure | Prince Tea House | Among all franchises |
|---|---|---|
| Cost to open, midpointHalfway between the low and high estimate | $790,000 | Costs more than 79% of franchises |
| Franchise feePaid once, when you sign | $60,000 | Higher than 88% of franchises |
| RoyaltyShare of sales paid to the franchisor | 4% | Lower than 93% of brands with a set rate |
| US locationsFranchised and company-owned | 13 | Fewer than 57% of franchises |
How much a Prince Tea House franchise costs
Opening one Prince Tea House costs an estimated $570,000 to $1,010,000. That covers the franchise fee and everything else needed to open, through the first months of working capital.
The biggest costs are leasehold improvements ($300,000 to $500,000) and furniture, fixtures and equipment ($100,000 to $200,000). Here is every line of the estimate as filed:
| What it pays for | Range | Low | High |
|---|---|---|---|
| Initial franchise fee | $60,000 | ||
| Leasehold expense, utility and security de-posits | $7,000 | $35,000 | |
| Architect | $25,000 | $40,000 | |
| Leasehold improvements | $300,000 | $500,000 | |
| POS system | $5,000 | $6,000 | |
| Furniture, fixtures and equipment | $100,000 | $200,000 | |
| Initial supplies (one month) | $15,000 | $40,000 | |
| Office equipment and supplies | $10,000 | $15,000 | |
| Insurance premiums (3 months) | $1,000 | $1,500 | |
| Grand opening adver-tising | $0 | $5,000 | |
| Travel, living expenses and salaries during ini-tial training | $8,500 | $20,000 | |
| Signage | $10,000 | $20,000 | |
| Security, surveillance | $4,500 | $7,500 | |
| Legal and accounting fees | $4,000 | $20,000 | |
| Additional funds – first three months | $20,000 | $40,000 | |
| Total | $570,000 | $1,010,000 | |
Source: Prince Tea House Franchising LLC, 2024 filing, page 13
Prince Tea House franchise fee
The franchise fee is $60,000. You pay it when you sign the franchise agreement.
Source: Prince Tea House Franchising LLC, 2024 filing, page 9
Royalty and ongoing fees
| Royalty | 4% of gross sales, paid monthly. |
|---|---|
| Brand or marketing fund | Up to 3% of gross sales; not charged at present. |
| Transfer fee | $5,000 |
| Renewal fee | $10,000 |
The typical franchise royalty is 6% of sales, plus 2% for marketing. See franchise fees and royalties to compare.
Source: Prince Tea House Franchising LLC, 2024 filing, page 10
Other fees as filed, from page 11. The filing lists every fee, including late fees and audit costs.
Sales and earnings
No figures Prince Tea House 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: Prince Tea House Franchising LLC, 2024 filing, page 37
- Estimate Estimated yearly sales per location
- $820K–$1.5M
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 | Prince Tea House | Typical bakery brand | Typical franchise |
|---|---|---|---|
| GrowthNet change in franchised locations | 0% / +150% | +3.3% / +5.9% | +1.2% / +10% |
| ClosuresTerminated, not renewed or stopped operating | 0% / 0% | 3.2% / 11% | 3.9% / 16% |
| Bought backLocations the franchisor took back | 0% / 0% | 0% / 0% | 0% / 0% |
Typical bakery brand is the median of the 33 brands in bakery franchises with three years of counts.
How Prince Tea House compares
Of the 112 bakery franchises on this site, Prince Tea House is the 81st cheapest to open and the 59th largest by number of locations.
| Figure | Prince Tea House | Typical bakery brand | Typical franchise |
|---|---|---|---|
| Cost to open, low end | $570K | $341K | $222K |
| Cost to open, high end | $1.01M | $720K | $477K |
| Franchise fee | $60K | $40K | $40K |
| Royalty | 4% | 6% | 6% |
| US locations | 13 | 16 | 21 |
| Shares earnings figures | No | 74 of 112 | 2,147 of 3,352 |
Typical is the median across the 112 brands in bakery franchises; typical franchise, across every brand here.
Locations opened and closed
| Year | Franchised | Company-owned | Opened | Closed |
|---|---|---|---|---|
| 2021 | 4 (+2) | 7 | +2 | 0 |
| 2022 | 5 (+1) | 8 | +1 | 0 |
| 2023 | 5 (0) | 8 | 0 | 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: Prince Tea House Franchising LLC, 2024 filing, page 37
Where Prince Tea House locations are
At the end of 2023, Prince Tea House had locations in 4 states. The most are in New York, New Jersey and Pennsylvania.
- New York8
- New Jersey3
- Pennsylvania1
- Virginia1
| State | Franchised | Company-owned | Total |
|---|---|---|---|
| New York | 2 | 6 | 8 |
| New Jersey | 1 | 2 | 3 |
| Pennsylvania | 1 | 0 | 1 |
| Virginia | 1 | 0 | 1 |
Source: Prince Tea House Franchising LLC, 2024 filing, page 38
Who owns Prince Tea House?
Prince Tea House franchises are sold by Prince Tea House Franchising LLC. Its filing names no parent company.
From Prince Tea House Franchising LLC’s 2024 filing, page 7.
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: Prince Tea House Franchising LLC, 2024 filing, litigation on page 9, bankruptcy on page 9
Prince Tea House filings
The figures on this page come from Prince Tea House Franchising LLC’s 2024 filing, issued April 26, 2024, on record with the NASAA Electronic Filing Depository.
| Filing | Issued | Registry | On this page |
|---|---|---|---|
| 2024 filing | April 26, 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 bakery franchises
All bakery franchises
Prince Tea House is also on these lists: restaurant franchises, food franchises.