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Sharetea Franchise ProfileRestaurant Franchises > Quick-Service Restaurants |
What is the Initial Investment for a Sharetea Franchise?
To open a Sharetea franchise, you can expect an initial investment ranging from $295,900 to $502,300. This includes a franchise fee of $12,000. Additionally, you will need to have a cash reserve of $48,000 to $54,000 and a net worth requirement of $300,000 to $500,000. These financial commitments are essential for ensuring you have the resources to establish and operate your franchise successfully.
What are the Ongoing Fees for Sharetea Franchisees?
Sharetea franchisees are required to pay a royalty fee of 6% on gross sales, along with a marketing fee of 3%. These ongoing fees contribute to the overall operational costs and support the brand's marketing efforts. It's crucial to factor these fees into your financial planning to maintain profitability and ensure the brand's continued growth in your location.
What is the Average Revenue Potential for Sharetea Units?
The average annual revenue per Sharetea unit is reported to be approximately $400,000, with a range from a low of $36,000 to a high of $542,553. This revenue potential indicates a promising return on investment, especially considering the breakeven time is around 12 months, and the investment payback period is approximately 15 months. Understanding these figures can help you gauge the financial viability of your franchise.
How Many Sharetea Franchises Are There?
As of 2023, Sharetea has seen consistent growth in its franchised units, increasing from 99 units in 2021 to 146 units in 2023. This upward trend reflects the brand's expanding market presence and popularity. With no corporate-owned units currently, the franchise model relies entirely on its franchisees, highlighting the importance of community engagement and local market adaptability for each franchise location.
Sharetea Franchise Financial Requirements
Below, you’ll find an overview of the initial investment needed to launch the business, along with the ongoing fees required by the franchisor to maintain operations over time.
The minimum total assets (minus liabilities) you must possess.
Net Worth Required:
The estimated period to recoup your total investment.
Investment Payback:
The initial fee paid to join the franchise system.
Franchise Fee:
Ongoing percentage of revenue paid to the franchisor.
Royalty Fee:
Regular contribution toward the franchise’s advertising fund.
Marketing Fee:
The estimated timeframe to recover your initial costs.
Breakeven Time:
The total amount required to launch the franchise.
Initial Investment:
The minimum liquid capital you must have on hand.
Cash Required:
The typical yearly revenue generated per franchise location.
Average Revenue:
The middle value of yearly revenue among franchise locations.
Median Revenue:
The largest reported annual revenue among franchisees.
Highest Revenue:
The smallest reported annual revenue among franchisees.
Lowest Revenue:
A broad sector defining similar types of franchise businesses.
Industry:
A more specific division within the broader industry.
Category:
The key individuals guiding the franchise’s strategy and growth.
Leadership:
The official business address of the franchisor’s headquarters.
Corporate Address:
Available financing options to help start the franchise.
Funding Year:
The main organization that owns the franchise brand.
Parent Company:
Sharetea Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
| Units | 2021 | 2022 | 2023 |
|---|---|---|---|
| Total Units | 99 | 124 | 146 |
| Net Change YoY | 25 | 22 | |
| Franchised Units | 99 | 124 | 146 |
| Net Change YoY | 25 | 22 | |
| Corporate Units | 0 | 0 | 0 |
| Net Change YoY | 0 | 0 |
Initial Investment
The Sharetea franchise requires an initial investment ranging from $295,900 to $502,300. This includes a franchise fee of $12,000, which grants you access to the brand and its operational support. A cash reserve of $48,000 to $54,000 is also necessary to ensure you can manage initial expenses and sustain operations during the startup phase.
Ongoing Fees
Franchisees are subject to a royalty fee of 6% of gross sales, along with a marketing fee of 3%. These fees support the brand's ongoing marketing efforts and operational assistance, helping to maintain brand visibility and drive customer engagement.
Financial Performance
On average, Sharetea units generate annual revenues of approximately $400,000, with a median revenue of $29,487 per unit. The revenue range varies significantly, from a low of $36,000 to a high of $542,553, indicating potential for substantial earnings depending on location and management.
Breakeven and Payback
Franchisees can expect to reach breakeven within 12 months of operation. The investment payback period is estimated at 15 months, making Sharetea a potentially attractive option for those seeking a quicker return on investment in the beverage franchise sector.
Growth Trajectory
The Sharetea franchise has shown consistent growth, increasing from 99 franchised units in 2021 to 146 in 2023. This upward trend reflects the brand's expanding market presence and increasing popularity, which can be advantageous for new franchisees looking to join a growing network.
Corporate Structure
Sharetea operates as a franchise system, with no corporate-owned units reported for the years 2021 through 2023. This structure allows franchisees to operate independently while benefiting from the brand's established reputation and support network, fostering a collaborative franchise community.
Frequently Asked Questions
The initial investment for a Sharetea franchise ranges from $295,900 to $502,300, which includes the franchise fee and other startup costs.