2024 TKK Prospectus

2024 Prospectus

KFT Meets TKK�� Page 4 Why Boba & Fried Chicken?�� Page 5 Our Menu�� Page 6 Become Part of Our Tea’m�� Page 7 The KFT + TKK Difference�� Page 8 Marketing Initiatives�� Page 9 Our Awards�� Page 10 Explore the Kung Fu Tea App��Page 11 TKK Express�� Page 12 TKK Full Concept�� Page 14 FAQ�� Page 16 Become a Franchisee in Five Steps�� Page 18 TABLE OF CONTENTS

KFT MEETS TKK Kung Fu Tea, a true New Yorker (born and raised in Queens, NY), set out on a mission to find the best international comfort food for a joint venture. During one of their trips back to Taiwan – the hometown boba – Kung Fu Tea discovered TKK, a chain that’s been frying chicken since 1974, and whose core mission to provide the best quality aligns with Kung Fu Tea’s Fresh, Fearless, & Innovative Approach to Boba. The first collaborative location opened in New York City’s Flatiron District on November 30, 2018, and we’ve been sharing our favorite tastes of Taiwan with America ever since!

WHY BOBA & FRIED CHICKEN? With Kung Fu Tea x TKK Fried Chicken, we’re introducing an international sweet-and-savory duo: authentic, made-to-order boba and Taiwanese- style crispy fried chicken for a one-two knockout. We’re committed to delivering the best of both worlds by uniting our specialties and giving customers the opportunity to fall in love with this unique flavor- packed combo.

OUR MENU Our menu offers a delicious play of flavor and texture. The crispy, crunchy fried chicken pairs perfectly with the sweetness of the boba, creating a satisfying contrast between salty and sweet. Move over Burger and Milkshake - there is a new combo on the block ready to be crowned.

become part of OUR TEA’M

Kung Fu Tea, based in New York, has over 400 locations across the United States, Taiwan, Australia, Canada, and Cambodia, with TKK boasting over 80 in the United States, Taiwan, and China. The key to our growth, beyond superior flavors and ingredients, has been our entrepreneurial spirit. We believe that our best days are ahead of us and are always looking for creative and driven partners to join our dynamic and energetic team. We place great value in our franchisee partners, listening to and learning from their new and fresh perspectives. Our franchisees know that they have the full support of our team’s years of experience and expertise in all aspects of the business. Their success is our priority.

THE KFT + TKK DIFFERENCE

FEARLESS BRAND Our company has led the industry for over a decade and has partnered with iconic brands across the Food, Entertainment, Gaming, and more to cement its position in all things Boba, Chicken & Pop Culture. FRESH INGREDIENTS We carefully seek out and use top-quality ingredients for all of our products. Imported directly from Taiwan, every KFT handcrafted drink & piece of TKK Fried Chicken is full of the authentic taste. INNOVATIVE FLAVORS We’re constantly experimenting with fresh new flavors that resonate with the American palate. From traditional milk teas and Taiwanese-style Fried Chicken you’ll find in Taiwan to flavors that are more “American-forward” – we’re constantly providing fresh flavors for our customers of all demographics to discover and love. EXTENSIVE TRAINING Every store-owner and employee undergoes rigorous training to gain the skills and knowledge to manage the business and provide top-notch customer service and drinks to our customers. FRANCHISEE SUPPORT We provide complete 360 support for our Operators, with centralized Performance, Operations, Marketing, Accounting, and R&D departments to provide support so you can focus on your business.

MARKETING INITIATIVES

We’ve partnered with iconics brands such as Nintendo, Universal Studios, Dreamworks Animation, PokémonGo, Spirit Halloween and more to bring limited time offerings and programs to life for our customers. Our partnerships offer a unique way to celebrate with our fans across both brands, and introduce entirely new groups of people into the world of boba and fried chicken. Our programs offer unique flavors, packaging, and more as we continue to bring these amazing partnerships to life.

OUR AWARDS

#3 MOST LOVED BRAND OF 2023

NEWSWEEK 1000 EXCELLENCE INDEX, 2024

TOP 500 CHAINS 2021, 2022 & 2023

FASTEST GROWING FOOD & BEVERAGE COMPANIES IN AMERICA 2018-2023

FASTEST GROWING FRANCHISES 2023 & 2024

FRANCHISE 500 2023 2024

explore the KUNG FU TEA APP

REWARDS More boba = more rewards! Earn App Bubbles on every purchase, and use them to redeem for a variety of prizes in our Rewards Store.

Our Kung Fu Tea App has had over 2 million downloads since its inception, and is one of the cornerstones to our Kung Fu Tea Family. Through it, we offer a robust loyalty program, exclusive promotions, and foster our tight knit community of boba-fanatics. ORDER AHEAD Need a quick boba fix? Skip the lines. Skip the wait. Order ahead for in-store pick up or delivery.

EXCLUSIVE DEALS Be the first to know about upcoming programs and enjoy exclusive app promos monthly!

KFT x TKK EXPRESS

TRADITIONAL

INITIAL CAPITAL INVESTMENT $300,000 to $400,000

ON-GOING FEES Marketing Fee 2% of Gross Sales per month Royalty Fee 5% of Gross Sales per month

RECOMMENDED STORE SIZE 1500 sq. ft. to 2500 sq. ft.

UP-FRONT FEES Initial Franchise Fee $45,000 Training Fee $15,000 (non-refundable)

ADDITIONAL FEES Equipment $45,000 to $55,000 Renovation Costs

Varies depending on the size and configuration of the space

Add-On Option Existing Franchisees with a Kung Fu Tea store have the option to add the TKK Express concept to their current store as long as the following requirements are met: 1000 sq. ft. to 1500 sq. ft. Store Size, a $25,000 Franchise Fee, and a $5,000 to $7,500 Training Fee.

KFT x TKK EXPRESS

NON-TRADITIONAL

INITIAL CAPITAL INVESTMENT $250,000 to $400,000

ON-GOING FEES Marketing Fee 2% of Gross Sales per month Royalty Fee 5% of Gross Sales per month

RECOMMENDED STORE SIZE 1000 sq. ft. to 2000 sq. ft.

UP-FRONT FEES Initial Franchise Fee $45,000 Training Fee $15,000 (non-refundable)

ADDITIONAL FEES Equipment $45,000 to $55,000 Renovation Costs

Varies depending on the size and configuration of the space

A Franchise Non-Traditional concept refers to a franchise business model that operates in unconventional or non-standard locations such as the mall kiosks, airport, subway, train station, university, hospital or military base.

KFT x TKK FULL CONCEPT

TRADITIONAL

INITIAL CAPITAL INVESTMENT $375,000 to $698,000

ON-GOING FEES Marketing Fee 2% of Gross Sales per month Royalty Fee 5% of Gross Sales per month

RECOMMENDED STORE SIZE 1500 sq. ft. to 2500 sq. ft.

UP-FRONT FEES Initial Franchise Fee $37,500 Training Fee $12,500 (non-refundable)

ADDITIONAL FEES Equipment $100,000 to $120,000 Renovation Costs

Varies depending on the size and configuration of the space

KFT x TKK FULL CONCEPT

NON-TRADITIONAL

INITIAL CAPITAL INVESTMENT $272,500 to $356,500

ON-GOING FEES Marketing Fee 2% of Gross Sales per month Royalty Fee 5% of Gross Sales per month

RECOMMENDED STORE SIZE 1500 sq. ft. to 2500 sq. ft.

UP-FRONT FEES Initial Franchise Fee $25,000 Training Fee $12,500 (non-refundable)

ADDITIONAL FEES Equipment $80,000 to $100,000 Renovation Costs

Varies depending on the size and configuration of the space

FAQ

1. What is the cost of opening a TKK Express store? • The cost of opening a TKK Express Store (Traditional) is estimated to be $192,000 to $238,000. Meanwhile, the TKK Fried Chicken Express (Non-Traditional) is estimated to be $272,500 to $356,500. 2. What is the cost of opening a TKK Full Conept store? • The cost of opening a TKK Full Concept Store (Traditional) is estimated to be $375,000 to $698,000. Meanwhile, the TKK Fried Chicken Express (Non-Traditional) is estimated to be $272,500 to $356,500. 3. How long does it take for an application to be approved? • Once the application is received, it may take up to 3 to 5 business days for our Sales Department to review the application. Application accompanied by a location and business plan may be expedited (the location must be approved for tea beverages or cafe business by the landlord or property management company.) 4. If we do not have a location, will you get one for us? • Although a location is not guaranteed, we may connect you with our R/E Development service. 5. How long will it take to open a store? • After a store location is secured and a building permit is issued, the construction normally takes 3 to 6 months. 6. Can I purchase or build multiple locations? • Yes. We encourage potential franchisees to own and operate multiple locations. In addition, we offer an Area Development Franchise Opportunity.

FAQ

7. Do we have to buy all supplies from you? • Supplies are purchased from approved vendors. This ensures that all Kung Fu Tea stores have the best quality while allowing maximum savings and ensuring consistency across all locations. 8. How much income will the store generate? How long is the ROI? • In accordance with the franchise law, we are unable to provide this information or any kind of assumption on this matter. 9. After my location is up and running, what kind of support will I receive? • Our Training Team is in place to provide you with ongoing support; to include regular visits from Regional Operations Corporate Managers, as well ongoing training opportunities form continued development. 10. I have a perfect location in mind and there are no TKK Express shops nearby. Yet, the state and/or market do not seem to be available for development. Why not? • There are several reasons why an apparent “perfect site” remains undeveloped or is not available. It is not unusual for a given area to be reserved by an existing franchisee that is expanding to the area in the future. Some areas may appear suitable for expansion and/or development, but our strategies or business conditions may limit our desire to expand into the area. 11. Does Kung Fu Tea offer financing? • We do not offer financial assistance; however, we are SBA loan approved.

become a franchisee in FIVE STEPS Fill out the inquiry form. 1

Schedule an interview & receive Franchise Disclosure Document.

2 3 4 5

Sign franchise & lease agreements.

Store buildout & KFT Academy Training Program begins.

Grand Opening! But this is just the beginning of your TKK journey.

WELCOME TO THE KFT FAMILY!

TKK FRIED CHICKEN USA

@TKKFRIEDCHICKEN

KUNG FU TEA USA

@KUNGFUTEAUSA

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