Teapioca Lounge franchise
2025 filing · July 11, 2025GrowingShares sales figures
Teapioca Lounge at a glance
A lounge serving teas, boba, smoothies and dessert drinks. At the end of 2024 there were 36 Teapioca Lounge locations in the US, all franchised.
The business
- Franchisor
- Teapioca International, LLC
- The company that sells the franchises
- Current franchisor selling since
- 2015
- 10 years of selling franchises
- Franchisor based in
- Round Rock, Texas
What you pay
- Cost to open
- $312K–$670K
- Fee, build-out and opening working capital
- Franchise fee
- $0
- No franchise fee, but you pay $44,000 for the two required training courses
- Royalty
- 5%
- 5% of gross sales, paid weekly, plus 1% to 2% to the branding fund
- Renewal fee
- $8,750
- When the agreement ends and you sign again
- Agreement length
- 10 years
- Territory
- Protected
- Protected territory
Where it is
- US locations, 2024
- 36
- Franchised and company-owned
- Franchised
- 36
- Company-owned
- 0
- Change in 2 years
- +9
- Franchised locations, 2022–2024
From Teapioca International, LLC’s 2025 filing; SBA status from the SBA Franchise Directory, October 28, 2026.
Where it ranks
Teapioca Lounge among all franchises with the same figure.
| Figure | Teapioca Lounge | Among all franchises |
|---|---|---|
| Cost to open, midpointHalfway between the low and high estimate | $490,925 | Costs more than 63% of franchises |
| Franchise feePaid once, when you sign | $0 | Lower than 99% of franchises |
| RoyaltyShare of sales paid to the franchisor | 5% | Lower than 69% of brands with a set rate |
| US locationsFranchised and company-owned | 36 | More than 59% of franchises |
How much a Teapioca Lounge franchise costs
Opening one Teapioca Lounge costs an estimated $311,650 to $670,200. That covers the franchise fee and everything else needed to open, through the first months of working capital.
The biggest costs are LEASEHOLD IMPROVEMENTS ($143,000 to $350,000) and FURNITURE, FIXTURES, AND EQUIPMENT ($45,000 to $106,000). Here is every line of the estimate as filed:
| What it pays for | Range | Low | High |
|---|---|---|---|
| INITIAL FEES | $44,000 | ||
| TRAVEL AND LIVING EXPENSES WHILE TRAINING | $3,200 | $10,500 | |
| RENT/REAL ESTATE DEPOSIT | $7,400 | $25,000 | |
| REAL ESTATE SITE SELECTION | $0 | ||
| UTILITY AND MISCELLANEOUS SECURITY DEPOSITS | $300 | $1,800 | |
| LEASEHOLD IMPROVEMENTS | $143,000 | $350,000 | |
| FURNITURE, FIXTURES, AND EQUIPMENT | $45,000 | $106,000 | |
| OPENING INVENTORY | $30,000 | $51,000 | |
| OFFICE SUPPLIES AND OTHER OPENING ITEMS | $500 | $1,000 | |
| GRAND OPENING | $10,000 | $15,000 | |
| INSURANCE | $750 | $900 | |
| SIGNAGE | $5,000 | $10,000 | |
| LICENSING AND PERMITS | $500 | $1,000 | |
| UNIFORMS | $500 | $1,000 | |
| LEGAL/ACCOUNTING | $1,500 | $3,000 | |
| ADDITIONAL FUNDS (Three Months) | $20,000 | $50,000 | |
| Total | $311,650 | $670,200 | |
Source: Teapioca International, LLC, 2025 filing, page 20
Teapioca Lounge franchise fee
The franchise fee is $0, no franchise fee, but you pay $44,000 for the two required training courses. You pay it when you sign the franchise agreement.
Source: Teapioca International, LLC, 2025 filing, page 11
Royalty and ongoing fees
| Royalty | 5% of gross sales, paid weekly, plus 1% to 2% to the branding fund. |
|---|---|
| Technology and Intranet Fee | $150 per week |
| Transfer Fee | $10,000 |
| Renewal Fees | $8,750 |
| Transfer Training Fee | $15,000 |
| Local Advertising Fee | $1,051 per month |
The typical franchise royalty is 6% of sales, plus 2% for marketing. See franchise fees and royalties to compare.
Source: Teapioca International, LLC, 2025 filing, page 14
Other fees as filed, from pages 14–18. The filing lists every fee, including late fees and audit costs.
Sales and earnings
Shares figures Teapioca Lounge publishes sales or earnings figures for its locations. The full tables, with notes on which locations are counted, are in its filing.
Source: Teapioca International, LLC, 2025 filing, page 72
- Estimate Estimated yearly sales per location
- $410K–$720K
Estimated from the sales that 292 comparable franchises file, matched on industry, format, cost to open, fees and size.
SBA loans to Teapioca Lounge franchisees
Lenders approved 2 SBA 7(a) loans for Teapioca Lounge franchisees from 2019 to 2023, $626K in all. One has been paid in full; none was charged off. The other one hasn’t ended yet.
A charged-off loan is one written off as uncollectible. See SBA franchise loans for how 7(a) and 504 loans work.
Source: SBA 7(a) and 504 loan data, as of September 30, 2026
How Teapioca Lounge compares
Of the 56 bubble tea franchises on this site, Teapioca Lounge is the 42nd cheapest to open and the 10th largest by number of locations.
| Figure | Teapioca Lounge | Typical bubble tea brand | Typical franchise |
|---|---|---|---|
| Cost to open, low end | $312K | $264K | $222K |
| Cost to open, high end | $670K | $502K | $477K |
| Franchise fee | $0 | $40K | $40K |
| Royalty | 5% | 5% | 6% |
| US locations | 36 | 8 | 21 |
| Closed or left per year | 0% | 0% | – |
| Change in franchised locations, 2 yrs | +33.3% | +100% | – |
| Shares earnings figures | Yes | 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 |
|---|---|---|---|---|
| 2022 | 32 (+5) | 0 | +5 | 0 |
| 2023 | 32 (0) | 0 | 0 | 0 |
| 2024 | 36 (+4) | 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: smoothie and juice franchise costs and franchise failure rates.
Source: Teapioca International, LLC, 2025 filing, page 89
Who owns Teapioca Lounge?
Teapioca Lounge franchises are sold by Teapioca International, LLC. Its filing names no parent company.
From Teapioca International, LLC’s 2025 filing, page 9.
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: Teapioca International, LLC, 2025 filing, litigation on page 11, bankruptcy on page 11
Teapioca Lounge filings
The figures on this page come from Teapioca International, LLC’s 2025 filing, issued July 11, 2025, on record with the NASAA Electronic Filing Depository.
| Filing | Issued | Registry | On this page |
|---|---|---|---|
| 2025 filing | July 11, 2025 | NASAA depository | Costs, fees and locations, 2022–2024 |
Each link opens the filing as a PDF. See the newest filings across all brands.
Other bubble tea franchises
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Teapioca Lounge is also on these lists: smoothie franchises, food franchises.