2024 KFT Prospectus

TRADITIONAL

TRADITIONAL

cost estimate

faq

1. What is the cost of opening a Kung Fu Tea store? • The initial investment for a new Kung Fu Tea will range depending primarily on the size, configuration, and rent of the desired location. We can provide more accurate estimates once we confirm those details. 2. How long does it take for an application to be approved? • Once the application is received, it may take up to 10 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.) 3. 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. 4. 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 8-12 weeks. 5. 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. 6. 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. 7. 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. 8. 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. 9. I have a perfect location in mind and there are no Kung Fu Tea shops nearby. Yet, the state and/or market do not seem to be available for development. Why not? • There are a number of 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 near 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. 10. Does Kung Fu Tea offer financing? • We do not offer financial assistance, however, we are SBA loan approved.

TOTAL INITIAL CAPITAL

Traditional Store

$140,00 to $422,000

RECOMMENDED STORE SPACE

Size:

500 to 1,500 square feet

UP-FRONT FEES

Franchise Fee (Traditional store):

$37,000

Training Fee:

$12,500

CONTINUOUS FEES

Marketing Fee:

2% of gross per month

Royalty Fee:

4% of gross per month

ADDITIONAL FEES

Equipment Costs:

$25,000 to $35,000 depending on the size of your space. Varies depending on the size and Configuration of the space.

Renovation Costs:

12

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