Rose Tea Lounge franchise
2024 filing · August 30, 2024
Rose Tea Lounge at a glance
A quick-serve tea lounge making boba tea, coffee and smoothie drinks, with hot snacks in larger lounges. At the end of 2023 there were 3 Rose Tea Lounge locations in the US, all company-owned.
The business
- Franchisor
- RTL Franchising, Inc
- The company that sells the franchises
- Franchisor based in
- Elk Grove, California
- Typical size
- 1,400–2,400 sq ft
What you pay
- Cost to open
- $276K–$362K
- A Basic Model lounge
- Franchise fee
- $45,000
- For a Basic Model; $49,000 for a Standard Model
- Royalty
- 6%
- 6% of gross revenues, paid monthly, plus a 1% system brand fee and local advertising of at least $1,000 a month
- Brand fund
- 1%
- 1% of gross revenue a month, paid monthly
Where it is
- US locations, 2023
- 3
- Franchised and company-owned
- Franchised
- 0
- Company-owned
- 3
- Change in 3 years
- 0
- Franchised locations, 2021–2023
- States
- 1
- Most in California
From RTL Franchising, Inc’s 2024 filing; SBA status from the SBA Franchise Directory, October 28, 2026.
Where it ranks
Rose Tea Lounge among all franchises with the same figure.
| Figure | Rose Tea Lounge | Among all franchises |
|---|---|---|
| Cost to open, midpointHalfway between the low and high estimate | $319,302 | Costs less than 54% of franchises |
| Franchise feePaid once, when you sign | $45,000 | Higher than 55% of franchises |
| RoyaltyShare of sales paid to the franchisor | 6% | Higher than 35% of brands with a set rate |
| US locationsFranchised and company-owned | 3 | Fewer than 78% of franchises |
How much a Rose Tea Lounge franchise costs
Opening a Basic Model lounge costs an estimated $276,384 to $362,220. That covers the franchise fee and everything else needed to open, through the first months of working capital.
The biggest costs are equipment, furniture and fixtures ($80,800 to $97,500) and leasehold improvements ($70,000 to $85,000). Here is every line of the estimate as filed:
| What it pays for | Range | Low | High |
|---|---|---|---|
| Initial Franchise Fee | $45,000 | ||
| Technology | $10,500 | $12,000 | |
| Equipment, Furniture and Fixtures | $80,800 | $97,500 | |
| Real Estate | $4,984 | $24,720 | |
| Leasehold Improvements | $70,000 | $85,000 | |
| Utilities | $0 | $800 | |
| Signage | $2,000 | $3,500 | |
| Start Up Inventory | $28,500 | $30,000 | |
| Grand Opening Marketing | $4,000 | $6,000 | |
| Staffing | $6,500 | $9,500 | |
| Uniforms | $200 | $500 | |
| Insurance | $3,000 | $4,500 | |
| Travel, Lodging and Meals for Initial Training Program | $3,600 | $5,200 | |
| Licenses, Permits, Certifications and other Professional Fees | $2,300 | $3,000 | |
| Additional Funds (3 Months) | $15,000 | $35,000 | |
| Total | $276,384 | $362,220 | |
Source: RTL Franchising, Inc, 2024 filing, page 17
Rose Tea Lounge franchise fee
The franchise fee is $45,000, for a Basic Model; $49,000 for a Standard Model. You pay it when you sign the franchise agreement.
Source: RTL Franchising, Inc, 2024 filing, page 11
Royalty and ongoing fees
| Royalty | 6% of gross revenues, paid monthly, plus a 1% system brand fee and local advertising of at least $1,000 a month. |
|---|---|
| Brand or marketing fund | 1% of gross revenue a month, paid monthly. |
| Technology | $10,500 |
The typical franchise royalty is 6% of sales, plus 2% for marketing. See franchise fees and royalties to compare.
Source: RTL Franchising, Inc, 2024 filing, page 12
Other fees as filed, from page 17. The filing lists every fee, including late fees and audit costs.
Sales and earnings
No figures Rose Tea Lounge 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: RTL Franchising, Inc, 2024 filing, page 61
- Estimate Estimated yearly sales per location
- $410K–$710K
Estimated from the sales that 292 comparable franchises file, matched on industry, format, cost to open, fees and size.
How Rose Tea Lounge compares
Of the 56 bubble tea franchises on this site, Rose Tea Lounge is the 32nd cheapest to open and the 41st largest by number of locations.
| Figure | Rose Tea Lounge | Typical bubble tea brand | Typical franchise |
|---|---|---|---|
| Cost to open, low end | $276K | $264K | $222K |
| Cost to open, high end | $362K | $502K | $477K |
| Franchise fee | $45K | $40K | $40K |
| Royalty | 6% | 5% | 6% |
| Brand fund | 1% | 1% | 2% |
| US locations | 3 | 8 | 21 |
| 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 | 0 (0) | 1 | 0 | 0 |
| 2022 | 0 (0) | 1 | 0 | 0 |
| 2023 | 0 (0) | 3 | 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: coffee franchise costs and franchise failure rates.
Source: RTL Franchising, Inc, 2024 filing, page 62
Where Rose Tea Lounge locations are
At the end of 2023, Rose Tea Lounge had locations in 1 state. The most are in California.
- California3
| State | Franchised | Company-owned | Total |
|---|---|---|---|
| California | 0 | 3 | 3 |
Source: RTL Franchising, Inc, 2024 filing, page 63
Who owns Rose Tea Lounge?
Rose Tea Lounge franchises are sold by RTL Franchising, Inc. Its filing names no parent company.
From RTL Franchising, Inc’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: RTL Franchising, Inc, 2024 filing, litigation on page 10, bankruptcy on page 11
Rose Tea Lounge filings
The figures on this page come from RTL Franchising, Inc’s 2024 filing, issued August 30, 2024, on record with the NASAA Electronic Filing Depository.
| Filing | Issued | Registry | On this page |
|---|---|---|---|
| 2024 filing | August 30, 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
Rose Tea Lounge is also on these lists: coffee franchises, food franchises.