Before Opening Your Bubble Tea Spot: Understanding Boba Franchise Cost

Understanding Boba Franchise Cost

Starting a boba franchise means getting to know all the costs involved. Boba franchise cost can be broken down into a few main categories:

Initial Boba Franchise Cost

This is your first big payment when you join a boba franchise. It gives you the right to use the brand and can vary a lot, usually between $20,000 and $100,000, depending on the franchise’s popularity.

Ongoing Royalties

These are monthly payments you make for ongoing support, usually 4% to 8% of your sales. It’s a rather sizable part of the boba franchise cost, covering the benefits of using the brand.

Boba Store Marketing Fees

To keep the brand popular, you’ll also pay 1% to 2% of your sales towards marketing. This helps attract more customers to your boba shop.

Location’s Effect on Boba Franchise Costs

Where your boba tea store is located highly affects your startup costs. Prime locations cost more but can bring in more customers. Undoubtedly, the place you choose to put your boba store in is a big factor in the overall boba franchise cost. 

Other Boba Franchise Costs to Consider

• Equipment Setting up your boba tea spot with the right tools can cost $10,000 to $50,000.
• Ingredients You’ll need to regularly buy tea, milk, tapioca pearls, and flavors.
• Staff salaries Paying your team is a big part of your expenses.
• Rent The cost of leasing space varies, but it’’ a crucial part of your boba franchise cost.

Knowing the full boba franchise cost helps you plan better and increases your chances of success in the bubble tea world.

Potential Earnings & ROI

When thinking about the boba franchise cost, it’s important to also consider how much you could earn, right? The income from a boba franchise can be promising if you manage it well.

Despite the considerable boba franchise cost, a good boba shop can make between $250,000 and $750,000 a year. How much profit you make, which can range from 15% to 25%, depends on how you run the business.

Some owners have turned their boba franchise costs into big earnings. For example, one owner made back their investment in just a year because of a great location and smart marketing. Another expanded their store into multiple ones by focusing on running their business efficiently and connecting with the community.