Best Tea Franchise Opportunities for 2025

The tea franchise industry has experienced significant growth in recent years, fueled by the rising consumer demand for healthier beverage options and diverse flavor profiles. With a focus on premium, specialty teas, this sector offers potential for entrepreneurs seeking to tap into a rapidly expanding market. The industry’s scalability and low overhead costs make it an attractive investment opportunity, particularly for those looking to enter the food and beverage space.

In this article, we will explore the key factors that influence the success of tea franchises, including market trends, initial investment requirements, and franchise support. Whether you’re an experienced entrepreneur or a first-time investor, this guide will provide insights to help you make a well-informed decision about pursuing a tea franchise opportunity.

What is a tea franchise?

The tea category within the Food & Beverage industry refers to businesses that primarily focus on the production, preparation, and serving of tea-based beverages. This category encompasses a wide range of establishments, including tea houses, specialty tea shops, bubble tea cafes, and global tea chains. The tea category is characterized by an emphasis on premium tea leaves, skilled preparation methods, and a diverse selection of tea beverages and accompanying products, often catering to health-conscious consumers.

The tea industry has a rich history of evolving franchise models, from traditional tea houses to modern bubble tea shops and specialty tea boutiques. Many franchises combine the timeless appeal of tea with innovative flavors and presentation styles, catering to diverse consumer preferences. Brands like Gong Cha and Teavana have set benchmarks by blending heritage with contemporary trends, making tea franchises an accessible and profitable venture.

How to open a tea franchise?

Opening a tea franchise provides an opportunity to leverage a proven business model, established branding, and operational support. The process typically involves researching franchises, securing financing, signing a franchise agreement, and completing training programs. Entrepreneurs should also familiarize themselves with local regulations and market demands. For guidance, resources like the International Franchise Association and franchise directories can help streamline the journey into franchising success. Tools like the Vetted Biz franchise opportunities tool can simplify the process by helping identify top tea franchises.

Tea franchise market industry statistics

The global tea market is estimated to be valued at over $50 billion, with steady annual growth driven by increasing consumer interest in health and wellness. Specialty teas, such as green and herbal teas, represent a significant portion of this market, alongside the rising popularity of bubble tea, which has become a billion-dollar industry in itself.

Tea consumption is growing, with an estimated 4 billion cups consumed daily worldwide. In the U.S. alone, the tea market has been steadily expanding, with specialty tea shops and franchises accounting for a growing percentage of the market. Millennials and Gen Z are key drivers of this growth, favoring unique flavors and eco-friendly practices.

The tea franchise sector is seeing increasing investment due to its relatively low start-up costs and high-profit margins. Many tea franchises boast estimated payback periods of 2-3 years, making them an attractive option for entrepreneurs. The sales-to-investment ratio for many tea franchises is estimated at 1.5 to 2.0, reflecting strong returns.

Bubble tea franchises, in particular, are experiencing rapid growth, with an estimated annual market growth rate of over 7%. Franchises that cater to niche markets, such as organic tea or tea bars, are also gaining traction as consumer demand for unique and high-quality offerings continues to rise.

On average, tea franchise investments range from $150,000 to $400,000, depending on factors like location and brand. These costs include franchise fees, equipment, and initial stock. While profitability varies, many tea franchises report annual revenue estimates of $500,000 to $1 million once established.

Metric – Average Estimate

• Payback Period: 2-5 years
• Sales-to-Investment Ratio: 1.5–2.0
• Franchise Cost: $150,000–$400,000

Tea franchise segments

Traditional Tea Houses Focused on offering classic tea varieties in a serene, cultural setting, emphasizing heritage and quality in tea preparation and presentation.

Bubble Tea Cafes Specialize in flavored teas with tapioca pearls or other toppings, catering to younger demographics and trend-focused consumers.

Specialty Tea Shops Offer premium, loose-leaf teas and tea accessories, targeting connoisseurs and health-conscious customers with unique blends and organic options.

Tea and Dessert Parlors Combine tea offerings with desserts like pastries and cakes, providing a cozy, social environment for customers.

Fast-Casual Tea Bars Focused on quick-service tea beverages, often with customizable options, appealing to busy customers seeking convenience and personalization.

17 best tea franchises

Vetted Biz has curated a list of the top 17 tea franchises, ranked by their 3-year growth. This list features a variety of franchise models, from specialty tea shops to innovative bubble tea concepts, offering diverse investment opportunities tailored to different markets and business goals.

1. Moge Tee

Moge Tee is a rapidly growing bubble tea brand specializing in authentic Chinese-inspired tea beverages, including fruit teas, cheese teas, and milk teas. With 48 U.S. locations, 36 of which are franchised, Moge Tee has gained popularity for its fresh ingredients, customizable drinks, and Instagram-worthy presentation, appealing to a wide demographic of tea lovers.

Boasting an impressive 3-year unit growth rate of 3500%, Moge Tee is a standout opportunity in the bubble tea segment. Franchisees benefit from a low royalty fee of 3% and a streamlined operational model. Financial requirements include an initial franchise fee of $40,000, with an estimated total investment ranging from $159,000 to $269,000, making it accessible for entrepreneurs in the tea industry.

2. Tiger Sugar

Tiger Sugar is a globally recognized bubble tea brand known for its signature brown sugar boba milk and unique “tiger stripe” aesthetic. With 46 U.S. locations, 26 of which are franchised, the brand has captivated audiences with its rich, creamy drinks and emphasis on quality and authenticity, making it a favorite among tea enthusiasts.

Tiger Sugar is a globally recognized bubble tea brand known for its signature brown sugar boba milk and unique “tiger stripe” aesthetic. With 46 U.S. locations, 26 of which are franchised, the brand has captivated audiences with its rich, creamy drinks and emphasis on quality and authenticity, making it a favorite among tea enthusiasts. For more detailed analysis on Tiger Sugar’s costs, fee, & FDD click here.

3. Feng Cha

Feng Cha is a modern tea franchise offering a wide range of handcrafted tea beverages, including fruit teas, milk teas, and unique seasonal offerings. Known for its inviting store designs and focus on innovation, Feng Cha operates 25 U.S. locations, all of which are franchised, showcasing its commitment to an owner-operated business model.

With a 3-year unit growth rate of 1150%, Feng Cha has established itself as a rising star in the tea franchise industry. Franchisees benefit from a strong support system and the brand’s focus on quality and creativity. Financial requirements include an initial franchise fee of $35,000, an estimated total investment of $179,000 to $538,000, and a 4% royalty fee.

4. 7 Leaves Cafe

7 Leaves Cafe is a tea and coffee franchise renowned for its commitment to crafting high-quality beverages, including milk teas, herbal teas, and Vietnamese coffee. The brand emphasizes simplicity and community, creating a welcoming atmosphere for customers. With 37 U.S. locations, 12 of which are franchised, 7 Leaves Cafe is steadily expanding its footprint.

Achieving a 3-year unit growth rate of 1100%, 7 Leaves Cafe offers franchisees a blend of tradition and innovation in the tea industry. Its robust operational support and strong brand presence make it an appealing choice. Financial requirements include an initial franchise fee of $35,000, an estimated total investment of $244,000 to $490,000, and a royalty fee of 6%.

5. Coco Fresh Tea & Juice

CoCo Fresh Tea & Juice is a globally recognized tea and beverage brand known for its diverse menu of bubble teas, fruit teas, and fresh juices. With a focus on high-quality ingredients and exceptional customer service, CoCo has grown to 35 U.S. locations, 10 of which are franchised, cementing its position as a leader in the industry.

With a 3-year unit growth rate of 900%, CoCo Fresh Tea & Juice presents an attractive opportunity for aspiring franchisees. The brand’s established reputation and comprehensive training support provide a strong foundation for success. Financial requirements include an initial franchise fee of $40,000, an estimated total investment of $221,000 to $454,000, and a royalty fee of 6%.

6. HTeaO

HTeaO is a rapidly expanding tea franchise specializing in fresh, premium iced teas brewed daily, alongside a selection of healthy snacks and water. With 68 U.S. locations, 63 of which are franchised, HTeaO combines a drive-thru model with a retail component, offering a unique and convenient experience for tea lovers.

With an impressive 3-year unit growth rate of 688%, HTeaO has become a standout brand in the iced tea market. Franchisees benefit from the brand’s robust support and innovative store model. Financial requirements include an initial franchise fee of $40,000, an estimated total investment ranging from $238,000 to $1.93 million, and a 6% royalty fee. Check out this article to learn more about HTeaO ‘s costs, fee, & FDD.

7. Yi Fang Taiwan Fruit Tea

Yi Fang Taiwan Fruit Tea is a premium tea franchise specializing in authentic Taiwanese fruit teas made with fresh, natural ingredients. Known for its heritage-inspired recipes and high-quality standards, Yi Fang has established 12 U.S. locations, all of which are franchised, reflecting its strong franchise-oriented growth strategy.

With a 3-year unit growth rate of 500%, Yi Fang Taiwan Fruit Tea offers franchisees the chance to capitalize on the booming demand for authentic and health-conscious tea beverages. Financial requirements include an initial franchise fee of $60,000, an estimated total investment between $172,000 and $269,000, and a 6% royalty fee.

8. Teaspoon

Teaspoon is a modern tea franchise known for its handcrafted bubble teas, fresh ingredients, and customizable drink options. Catering to tea enthusiasts with trendy flavors and premium presentation, Teaspoon has expanded to 31 U.S. locations, 26 of which are franchised, showcasing its strong appeal to franchisees and consumers alike.

With a 3-year unit growth rate of 334%, Teaspoon offers a solid investment opportunity in the growing bubble tea market. Franchisees gain access to comprehensive training and operational support. Financial requirements include an initial franchise fee of $45,000, an estimated total investment ranging from $245,000 to $548,000, and a 5% royalty fee.

9. Lollicup

Lollicup is a bubble tea and beverage franchise that offers a diverse menu of milk teas, fruit teas, smoothies, and snacks. With a focus on affordability and simplicity, Lollicup appeals to a wide range of customers. Currently, it operates 11 U.S. locations, 9 of which are franchised, showcasing steady expansion in the tea market.

With a 3-year unit growth rate of 200%, Lollicup provides an accessible entry point for aspiring franchisees. Its low initial franchise fee and operational flexibility make it an attractive option. Financial requirements include an initial franchise fee of $15,000, an estimated total investment of $122,000 to $383,000, and a 4% royalty fee.

10. Ding Tea

Ding Tea is a popular bubble tea franchise originating from Taiwan, known for its wide variety of milk teas, fruit teas, and specialty beverages. With a commitment to fresh ingredients and authentic flavors, Ding Tea has grown to 112 U.S. locations, all of which are franchised, demonstrating its strong focus on franchise-driven expansion.

With a 3-year unit growth rate of 188%, Ding Tea offers franchisees an opportunity to tap into the thriving bubble tea market with a globally recognized brand. Financial requirements include an initial franchise fee of $30,000 and an estimated total investment ranging from $195,000 to $324,000. Check out this article to learn more about Ding Tea’s costs, fee, & FDD.

11. Gong Cha

Gong Cha is one of the most recognized bubble tea franchises worldwide, offering a wide range of customizable teas, including milk teas, fruit teas, and specialty drinks. Renowned for its premium ingredients and consistent quality, Gong Cha has expanded to 227 U.S. locations, with 187 being franchised, cementing its position as a leader in the tea industry.

With a 3-year unit growth rate of 129%, Gong Cha provides franchisees with a robust and scalable business model backed by strong brand recognition. Financial requirements include an initial franchise fee of $34,500, an estimated total investment ranging from $175,000 to $620,000, and a 6% royalty fee.

12. Teapioca Lounge

Teapioca Lounge is a bubble tea franchise that combines traditional boba beverages with a modern café experience, offering a menu that includes teas, smoothies, coffee, and desserts. With 27 U.S. locations, all franchised, Teapioca Lounge has established itself as a versatile brand catering to diverse customer preferences.

With a 3-year unit growth rate of 108%, Teapioca Lounge provides franchisees with a proven business model and comprehensive operational support. Financial requirements include an initial franchise fee of $34,000, an estimated total investment ranging from $273,000 to $435,000, and a 5% royalty fee.

13. Drnk Coffee + Tea

Drnk Coffee + Tea is a unique franchise that blends specialty coffee and tea offerings, catering to a broad audience of beverage enthusiasts. With a focus on high-quality ingredients and a modern café experience, Drnk Coffee + Tea operates 16 U.S. locations, all of which are franchised, showcasing its franchise-driven growth model.

With a 3-year unit growth rate of 78%, Drnk Coffee + Tea is an attractive opportunity for entrepreneurs looking to invest in a hybrid coffee and tea concept. Financial requirements include an initial franchise fee of $40,000, an estimated total investment ranging from $253,000 to $638,000, and a 6% royalty fee.

14. Sharetea

Sharetea is a globally renowned bubble tea franchise originating from Taiwan, known for its authentic and flavorful tea beverages. With a menu featuring milk teas, fruit teas, and specialty drinks, Sharetea has established a strong presence in the U.S. market, operating 161 franchised locations across the country.

With a 3-year unit growth rate of 63%, Sharetea offers franchisees an established brand and robust operational support. Its affordable franchise fee and proven success make it an appealing choice. Financial requirements include an initial franchise fee of $12,750, an estimated total investment ranging from $296,000 to $502,000, and a 6% royalty fee. Learn more about their costs, fees, and FDD here.

15. Kung Fu Tea

Kung Fu Tea is a leading bubble tea franchise in the U.S., celebrated for its freshly brewed teas and diverse menu, including milk teas, fruit teas, and slushes. With a massive footprint of 380 U.S. locations, 378 of which are franchised, Kung Fu Tea has become a household name in the bubble tea industry, offering a modern and inviting customer experience.

With a 3-year unit growth rate of 57%, Kung Fu Tea provides franchisees with a well-established brand and comprehensive support. Financial requirements include an initial franchise fee of $31,000, an estimated total investment ranging from $169,000 to $378,000, and a 4% royalty fee. To learn more about the franchise check out this article.

16. Tastea

Tastea is a dynamic tea franchise offering a wide variety of handcrafted beverages, including milk teas, smoothies, and specialty drinks, with a focus on bold flavors and fresh ingredients. With 26 U.S. locations, 20 of which are franchised, Tastea has grown steadily, attracting customers with its creative menu and vibrant store atmosphere.

With a 3-year unit growth rate of 54%, Tastea presents a strong investment opportunity for entrepreneurs in the premium tea segment. Financial requirements include an initial franchise fee of $40,000, an estimated total investment ranging from $368,000 to $655,000, and a 6% royalty fee.

17. It’s Boba Time

It’s Boba Time is a popular bubble tea franchise offering an extensive menu of milk teas, smoothies, coffee drinks, and desserts. Known for its customizable options and fresh ingredients, the brand has become a favorite for tea enthusiasts. With 67 U.S. locations, 61 of which are franchised, It’s Boba Time continues to grow as a leader in the bubble tea market.

With a 3-year unit growth rate of 53%, It’s Boba Time offers franchisees a proven model in the expanding bubble tea industry. Financial requirements include an initial franchise fee of $45,000, an estimated total investment ranging from $469,000 to $594,000, and a 5% royalty fee. To learn more about the franchise check out this article.

Conclusion

The tea franchise industry is set to thrive in 2025, offering entrepreneurs an opportunity to invest in a growing market driven by health-conscious and trend-focused consumers. With options ranging from traditional tea houses to innovative bubble tea concepts, tea franchises combine proven business models with the chance to capitalize on increasing demand for specialty beverages. This article highlighted key trends, financial metrics, and top-performing brands like Moge Tee and Yi Fang Taiwan Fruit Tea, providing insights to help aspiring franchisees make informed decisions. Whether your focus is on affordability, rapid growth, or premium offerings, the tea franchise sector offers diverse opportunities to align with your business goals and tap into this dynamic and expanding industry.