Xing Fu Tang franchise
2022 filing · May 9, 2022GrowingShares sales figures
Xing Fu Tang at a glance
A Taiwanese bubble tea shop known for brown sugar boba pearls stir-fried fresh in front of customers. At the end of 2021 there were 5 Xing Fu Tang locations in the US, 1 franchised and 4 company-owned, so most are run by the company itself.
The business
- Franchisor
- Xing Fu Tang, LLC
- The company that sells the franchises
- Franchisor based in
- Cliffside Park, New Jersey
- Typical size
- 300–1,500 sq ft
What you pay
- Cost to open
- $299K–$674K
- Fee, build-out and opening working capital
- Franchise fee
- $60,000
- Paid once, when you sign
- Royalty
- 5%
- 5% of gross sales, paid weekly, plus up to 1% to the brand development fund
- Brand fund
- Yes
- Up to 1% of gross sales, paid weekly
- Renewal fee
- $15,000
- When the agreement ends and you sign again
- Agreement length
- 5 years
- Territory
- Limited
- Limited protection
- Franchisor financing
- None offered
Where it is
- US locations, 2021
- 5
- Franchised and company-owned
- Franchised
- 1
- Company-owned
- 4
- Change in 3 years
- +1
- Franchised locations, 2019–2021
- States
- 2
- Most in California and New York
From Xing Fu Tang, LLC’s 2022 filing; revenue and net loss from its audited financial statements, page 74; 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
Xing Fu Tang among all franchises with the same figure.
| Figure | Xing Fu Tang | Among all franchises |
|---|---|---|
| Cost to open, midpointHalfway between the low and high estimate | $486,250 | Costs more than 63% of franchises |
| Franchise feePaid once, when you sign | $60,000 | Higher than 88% of franchises |
| RoyaltyShare of sales paid to the franchisor | 5% | Lower than 69% of brands with a set rate |
| US locationsFranchised and company-owned | 5 | Fewer than 71% of franchises |
How much a Xing Fu Tang franchise costs
Opening one Xing Fu Tang costs an estimated $299,000 to $673,500. That covers the franchise fee and everything else needed to open, through the first months of working capital.
The biggest costs are additional funds – initial period of three months ($50,000 to $200,000) and construction and leasehold improvements ($60,000 to $150,000). Here is every line of the estimate as filed:
| What it pays for | Range | Low | High |
|---|---|---|---|
| Initial Franchise Fee | $60,000 | ||
| Construction and Leasehold Improvements | $60,000 | $150,000 | |
| Furniture, Fixtures and Equipment | $20,000 | $80,000 | |
| Signs | $2,000 | $4,000 | |
| Computer, Software and Point of Sales System | $6,250 | $7,500 | |
| Initial General Inventory | $75,000 | $100,000 | |
| Initial Product Inventory | $5,000 | $10,000 | |
| Prepaid Rent and Lease Deposits Utility | $4,000 | $30,000 | |
| Deposits | $500 | $3,000 | |
| Insurance Deposit | $500 | $2,000 | |
| Travel for Initial Training | $2,500 | $5,500 | |
| Grand Opening Marketing Expense | $5,000 | ||
| Professional Fees | $7,500 | $15,000 | |
| Business Licenses and Permits | $500 | $750 | |
| Printing, Stationary and Office Supplies | $250 | $750 | |
| Additional Funds – Initial period of three months | $50,000 | $200,000 | |
| Total | $299,000 | $673,500 | |
Source: Xing Fu Tang, LLC, 2022 filing, page 20
Xing Fu Tang franchise fee
The franchise fee is $60,000. You pay it when you sign the franchise agreement.
Source: Xing Fu Tang, LLC, 2022 filing, page 13
Royalty and ongoing fees
| Royalty | 5% of gross sales, paid weekly, plus up to 1% to the brand development fund. |
|---|---|
| Brand or marketing fund | Up to 1% of gross sales, paid weekly. |
| Technology | $100 to $200 per month. Currently we do not charge a Technology Fee. |
| Transfer | $30,000 |
| Renewal | $15,000 |
| Local Marketing | Minimum of 1% of monthly Gross Sale. |
The typical franchise royalty is 6% of sales, plus 2% for marketing. See franchise fees and royalties to compare.
Source: Xing Fu Tang, LLC, 2022 filing, page 14
Other fees as filed, from pages 14–16. The filing lists every fee, including late fees and audit costs.
Sales and earnings
Shares figures Xing Fu Tang publishes sales or earnings figures for its locations. The full tables, with notes on which locations are counted, are in its filing.
Source: Xing Fu Tang, LLC, 2022 filing, page 52
- Estimate Estimated yearly sales per location
- $680K–$1.2M
Estimated from the sales that 292 comparable franchises file, matched on industry, format, cost to open, fees and size.
How Xing Fu Tang compares
Of the 56 bubble tea franchises on this site, Xing Fu Tang is the 39th cheapest to open and the 34th largest by number of locations.
| Figure | Xing Fu Tang | Typical bubble tea brand | Typical franchise |
|---|---|---|---|
| Cost to open, low end | $299K | $264K | $222K |
| Cost to open, high end | $674K | $502K | $477K |
| Franchise fee | $60K | $40K | $40K |
| Royalty | 5% | 5% | 6% |
| US locations | 5 | 8 | 21 |
| 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 |
|---|---|---|---|---|
| 2019 | 0 (0) | 1 | 0 | 0 |
| 2020 | 0 (0) | 1 | 0 | 0 |
| 2021 | 1 (+1) | 4 | +1 | 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: Xing Fu Tang, LLC, 2022 filing, page 56
Where Xing Fu Tang locations are
At the end of 2021, Xing Fu Tang had locations in 2 states. The most are in California and New York.
- California2
- New York2
| State | Franchised | Company-owned | Total |
|---|---|---|---|
| California | 0 | 2 | 2 |
| New York | 0 | 2 | 2 |
Source: Xing Fu Tang, LLC, 2022 filing, page 56
Who owns Xing Fu Tang?
Xing Fu Tang franchises are sold by Xing Fu Tang, LLC. Its filing names no parent company.
From Xing Fu Tang, LLC’s 2022 filing, page 8.
Lawsuits and bankruptcy
| Lawsuits and regulatory actions | Yes. The filing describes past or pending cases involving the franchisor, its affiliates or its executives on page 12. |
|---|---|
| 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: Xing Fu Tang, LLC, 2022 filing, litigation on page 12, bankruptcy on page 12
Xing Fu Tang filings
The figures on this page come from Xing Fu Tang, LLC’s 2022 filing, issued May 9, 2022, on record with the NASAA Electronic Filing Depository.
| Filing | Issued | Registry | On this page |
|---|---|---|---|
| 2022 filing | May 9, 2022 | NASAA depository | Costs, fees and locations, 2019–2021 |
Each link opens the filing as a PDF. See the newest filings across all brands.
Other bubble tea franchises
All bubble tea franchises
Xing Fu Tang is also on these lists: food franchises.