Sharetea is a tea enterprise that’s creating its presence in nations all around the world. The enterprise focuses on providing premium bubble tea with over 30 years of business expertise. Sharetea brings a demonstrated observe report of enterprise improvement, in addition to a progressive funding return on capital, to the franchise business. The firm itself was based in Taiwan in 1992 and prides itself on providing clients a number of the highest high quality drinks out there.
Sharetea presents a simple enterprise alternative for entrepreneurs that could be pursued in a number of areas all through the globe. In this text, we are going to talk about Sharetea and the franchise opportunities they offer. By the tip of this publish, you should have the fundamental understanding you want to start exploring opening your personal Sharetea franchise on a extra in-depth degree. In this publish, we’ll cowl the next intimately:
What Exactly is a Sharetea Franchise?
When Cheng Kai-Lung first began the bubble tea enterprise that might later bear his title in 1992, he labored within the movie and tv industries as a director. Sharetea was his brainchild! The Sharetea was a hit with the viewers as a results of all of his labor, and this led to the institution of the very first Sharetea store.
The aim of Sharetea is to educate folks throughout the globe concerning the custom of ingesting tea in Taiwan in its purest kind. The firm’s slogan is all about sharing great drinks, love, happiness, and well being with all of its clients, which is the place the title “Sharetea” comes from. At Sharetea, the mission is to delight those that are obsessed with milk tea by offering drinks of the very best potential high quality. Many of the components and tea leaves utilized by Sharetea franchises are shipped directly from Taiwan to preserve the consistency of Shareteas providing.
The bubble tea store prides itself on having easy and accessible operations that any small enterprise proprietor can get entangled with. The group is dedicated to offering its franchisees with high-quality upkeep, administration, and growth companies. Indeed, nearly all of their franchisees personal a couple of location, utilizing the backing of the corporate to begin constructing their very own chain of Sharetea franchises.
Franchise house owners who be part of up with Sharetea get in depth coaching in addition to persevering with help for the operations of their companies. As a direct consequence of this, each considered one of Sharetea’s drinks is crafted utilizing solely the latest, purest, and most pure components that may be sourced.
The franchise has supplied sufficient assist so as to assure the product’s high quality. Sharetea’s major goal is to fulfill the wants of its shoppers by providing milk teas of superior high quality at aggressive prices.
Join such a quickly increasing bubble tea model globally if you’d like to serve the group with high quality and boldness and in case you share the identical ardour and aim because the company that owns the model.
Opening a Sharetea Franchise
Sharetea is now the number one bubble tea retailer in California and continues to increase within the United States. It is presently probably the most well-known and well-liked manufacturers of boba tea within the Bay Area and San Francisco.
Sharetea Franchise Requirements
- Confidence in oneself and dedication to one’s career
- A powerful affection for the model, as well as to having excellent work ethics and accountability
- Depending on the dimensions and placement of the store, the full price of opening a franchise would possibly differ wherever from $386,900 to $492,200.
- A need to preserve Taiwanese cultural traditions
How Much Does It Cost to Start a Sharetea Franchise?
The startup prices wanted to launch a Sharetea franchise begins at a minimal of $386,900 and will go as excessive as $492,200. There is a requirement of a minimal internet price of $300,000.
The first franchise price charged by the Sharetea agency could be up to $48,000. The royalty price is a 6% lower of the full income, with a minimal fee of $1,200. Prospective franchisees may have to get in contact with the group so as to get an exhaustive monetary construction. That mentioned, everytime you start the method of reaching out to the franchisor to inquire about opening your personal location, they’ll offer you all of the high-quality particulars that you will want to know. The following is simply an thought of what you may count on in case you are inquisitive about beginning a Sharetea franchise.
Cost Type |
Amount |
Franchise Fee |
$48,000 |
Franchise Cost |
$386,900 to $492,200 |
Royalty Fee |
6% |
Advertising Fee |
1-2.5% |
Term of Agreement |
5 years |
Renewable |
Yes |
Renewal Franchise Fees |
50% of Initial Franchise Fees |
Training for the Sharetea Franchise
The finest bubble tea model has an impressive assist construction in place, which is able to assure the success of the brand new franchise alternatives being supplied by the corporate. They present in depth coaching and handouts, together with each hands-on and classroom-style instruction, each earlier than and after the store formally opens its doorways for enterprise.
The coaching program lasts for a lot of hours and is introduced in two totally different settings: in a classroom setting and in an on-the-job setting.
Sharetea can also be in a position to help with the acquisition of actual property in addition to buildings. They are additionally accountable for all specialised assist supplied all through the method of opening, in addition to steady counseling companies which can be designed to help you in starting your personal Sharetea bubble tea firm.
Operational Logistics of a Sharetea Franchise
You shall be supplied with help from the agency in case you select to turn out to be a Share tea franchisee. In addition, there may be a part contained in the company that’s accountable for guaranteeing that shoppers from all around the globe get secure meals.
A educated crew shall be chargeable for guaranteeing the tea’s top quality and can present help to franchisees who’re trying to innovate.
Supervisors make common journeys to the retailers they oversee so as to verify on facets reminiscent of high quality, service, cleanliness, and administration, in addition to to present help with issue-solving and to assure that the shop is on observe to fulfill its gross sales quota.
What Is the Initial Term Requirement of a Sharetea Franchise?
The Sharetea franchise settlement requires an preliminary time period period of 5 years. If franchisees meet the requirements set for them, they are going to be thought-about for renewal. Current franchisees have the choice of extending their settlement for a additional 5 years if they need to preserve their enterprise.
Is There a Financial Aid Program Available through the Sharetea Franchise?
The group doesn’t present direct financing for franchise purchases. The franchisor of the group can’t give any form of lease or observe obligation as a assure for the franchisee.
To cowl start-up bills, stock, gear, payroll, and accounts receivable, the agency could supply funding from a third celebration as long as it maintains a reference to an investor. There is a risk that funding from the SBA could also be obtained to assist with the acquisition of a franchise.
Pros of a Sharetea Franchise
Sharetea is a model that has a lot to supply by way of tea, and it’s price trying into. The followings are some benefits of participating in a enterprise that focuses on tea:
High Rate of Return on Initial Investment
One of the largest benefits of investing in a Sharetea franchise is the potential for a excessive fee of return in your preliminary funding. Sharetea is a well-established model with a confirmed observe report of success, which signifies that franchisees can count on to see a sturdy return on their funding over time.
Demonstrated History of Profit and Expansion
Sharetea has a demonstrated historical past of revenue growth, which signifies that franchisees can count on to see their companies develop and turn out to be extra worthwhile over time. This might be attributed to the model’s popularity and recognition amongst shoppers, in addition to its efficient advertising and marketing methods and enterprise fashions.
Easy to Operate, Maintain, and Expand
Sharetea’s enterprise mannequin is simple to use, preserve, and increase. This makes it simple for franchisees to run their companies, even when they’ve little expertise within the meals and beverage business. There will not be a lot of parts concerned in making tea and serving it to clients. Unlike with some restaurant franchises – which might be very concerned and difficult to function (reminiscent of McDonald’s) – Sharetea franchises are comparatively simple and straightforward to perceive.
ShareTea additionally supplies all-encompassing academic packages and steady logistical help to its franchisees all through their time as franchise house owners. That approach, there may be all the time a assist construction you may lean again on. This signifies that franchisees may have entry to a wealth of sources and assist to assist them run their companies successfully.
Cons of a Sharetea Franchise
Apart from the funding, there are definitely different challenges within the Tea franchise alternative. Here are a few of them:
Another drawback of a Sharetea franchise is that the menu choices could also be restricted, which may make it difficult for franchisees to differentiate their companies from opponents. This could make it harder to entice and retain clients, particularly in areas with a lot of competitors.
Further, the restricted variety of choices can restrict the variety of potential clients. When you might have a wider array of merchandise, it may be simpler to entice a lot of shoppers since there may be usually one thing for everybody. When your menu is extra restricted, there’ll usually be people who will not be inquisitive about any of the merchandise you’re providing.
Limited Growth Potential
A Sharetea franchise could have restricted development potential in contrast to different enterprise alternatives, which may make it tougher for franchisees to increase their companies over time. This might be particularly problematic for franchisees who’re trying to develop their companies shortly or who’re trying to tackle a number of areas.
Aggressive Competition
Sharetea franchises – which supply bubble tea and boba as their signature merchandise – usually face stiff competitors. These will not be significantly arduous merchandise to make or supply, and the startup prices related to opening a retailer outfitted to supply such merchandise are low. As a outcome, some markets might be significantly flooded, making it difficult for added entrants to make substantial earnings.
What is the Profit that the Sharetea Franchise Generates?
In the latest model of the franchise disclosure kind, Item 19, the Share tea franchise didn’t disclose both the Average Unit Volumes or the franchise earnings. However, the annual earnings of Sharetea franchise house owners seems to vary wherever from $50,000 to $100,000, based mostly on the quantity of possession they’ve within the enterprise in addition to the quantity of effort they put into it.
To estimate the potential revenue of a Sharetea franchise, we will use the common per tea promoting value of $5.00, every day merchandise bought of 200, and anticipated every day gross sales of $1000. This would end in anticipated weekly gross sales of $7000 and anticipated annual unit gross sales of $360,000. Using these numbers, we will estimate that the annual revenue for a Sharetea franchise ranges from $45,000 to $64,800, relying on the revenue margin.
However, it is crucial to observe that recouping the preliminary funding in a Sharetea franchise can take a very long time. Based on these estimates, it may take wherever from 5.5 to 8 years to recoup the preliminary funding of $376,400. This is longer than the business commonplace, and potential franchisees ought to take into account this when evaluating the chance.
How to Secure a Sharetea Franchise
The course of for securing a Sharetea franchise is comparatively simple. First, you want to fill out an application form which is available online. This kind shall be used to assess your {qualifications} as a potential franchisee and shall be reviewed by Sharetea headquarters in Taiwan.
Once your software is reviewed, Sharetea representatives will contact you through telephone or electronic mail to go over all the main points of the franchise alternative. This will embody details about the funding required, the coaching and assist that shall be supplied, and another related particulars.
The subsequent step is to signal a franchise pre-contract, which is able to defend your unique proper to franchise in a particular space. This signifies that upon getting secured a pre-contract, you can begin searching for a retailer location with out having to fear about competitors from different franchisees.
When you might have settled on a location in your franchise enterprise, you want to make it possible for the shop is from 1,000 to 1,200 sq. ft. This gives you sufficient area to run your corporation successfully. Once you might have recognized a appropriate retailer location, you’ll need to negotiate a lease with the owner.
Once you might have secured the situation, signed the ultimate contract with Sharetea, and handed all the required {qualifications}, you’ll be prepared to open your personal enterprise.
It’s essential to observe that Sharetea supplies coaching and assist to all its franchisees, so you should have the required information and sources to run your corporation successfully. Additionally, Sharetea’s popularity and established model will help entice a buyer base to your retailer.
Financing Options
SBA Loans
SBA loans are a very talked-about useful resource for small companies trying to get hold of funding. SBA loans are backed by the United States federal authorities and supplied by way of the Small Business Administration (SBA). Since these loans are backed by the federal authorities, they’re thought-about as being much less dangerous for lenders. This signifies that extra debtors are in a position to entry these loans, and charges have a tendency to be decrease general.
That mentioned, the applying course of for SBA loans is prolonged and requires debtors to be very diligent. Borrowers are required to submit a nice deal of documentation in addition to their firm and private credit score histories.
One of the extra well-liked SBA loans, and one which can be utilized for franchises, is their 7(a) mortgage. The SBA 7(a) mortgage is a time period mortgage through which debtors can obtain up to $5 million. That mentioned, SBA loans can solely be used for sure pre-approved franchises, which might be discovered of their online franchise directory.
Term Loan
Term loans are one other go-to useful resource for people trying to open up a franchise. Term loans are loans that present debtors with a lump sum of cash upfront, which then should be paid again over time throughout a particular time frame. Term loans can include each mounted and variable rates of interest.
Term loans are supplied by each conventional brick-and-mortar banks in addition to by different lenders (like Biz2Credit!). Term loans supplied by conventional banks have a tendency to have decrease rates of interest, however their software processes are very lengthy, and they’re notoriously tough to get on account of the excessive requirements they’ve for debtors.
Term loans from different lenders are considerably simpler to get hold of. In some instances, you may have the funds in your account in as little as 24 hours. The software processes are fast and straightforward. However, the rates of interest have a tendency to be greater than conventional banks since lenders can’t assess the danger of debtors as totally as conventional banks are with their drawn-out software course of.
Line of Credit
Lines of credit score are one other well-liked supply of financing for small companies. Lines of credit score are a set sum of money which you can borrow at any time, usually with a variable rate of interest. Lines of credit score stay open in order that if you repay the cash you borrowed, you may then borrow that quantity once more everytime you want it. This makes them superb for short-term financing and shoring up money circulate in occasions of want.
However, strains of credit score will not be actually designed for long-term borrowing. Instead, they’re higher used as hole funding or interim financing that you should utilize when you discover a longer-term, extra everlasting financing answer.
Equipment Financing
Equipment financing is one other well-liked supply of financing for franchise house owners. One of the good issues about gear financing is that it’s usually simpler to get than different types of financing and comes with decrease rates of interest on common. This is as a result of gear financing makes use of that piece of apparatus that you’re shopping for as collateral. This lowers the danger for lenders since they know they are going to be in a position to promote that gear to get better a few of their funds within the occasion that you just default. Equipment financing can be utilized for any gear that you just want to buy in your franchise.
Takeaways
Sharetea is shortly growing within the tea market within the United States and all through the globe, making it an thrilling alternative for these inquisitive about franchising alternatives. As the franchise expands, its model and merchandise proceed to turn out to be more and more well-known by shoppers, additional growing the worth and desirability of franchises.
To study extra about whether or not or not beginning a Sharetea franchise is best for you, you would possibly take into account having conversations with current enterprise house owners. This may give you some perception into what it takes to run a Sharetea franchise and the way buyer reception to new areas is. As all the time, analysis and diligence are key earlier than making any funding. So, use this text as a launching pad to start your exploration of Sharetea (or franchise choices typically) and whether or not or not a franchise is best for you!
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