Ding Tea is a beverage franchise specializing in gourmet teas, bubble tea, and compatible food products. The franchise shows concerning trends with unit count declining from 137 to 120 over the past year and a high closure rate of 17.5%. The system has faced significant regulatory challenges including consent orders in multiple states and franchise law violations. Investment range is $195K-$324K with a $30K franchise fee and flat $500 monthly service fee rather than percentage royalties. The franchise provides no financial performance representations in Item 19. Territory protection includes right of first refusal within 3 miles. Training is relatively brief at 7-10 days in Taiwan plus on-site support. The short 3-year initial term is unusual in franchising and may indicate higher risk.
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AI-generated from FDD analysis — use as a checklist with your attorney
Total startup costs, working capital, and financial requirements
Training, marketing support, technology, and operational assistance
Royalty, marketing, technology, and other ongoing fees
Revenue data, P&L estimates, and financial projections
Lawsuits, disputes, and legal risk assessment
Territory rights, term length, non-compete, and transfer rules
82 legal provisions scored on a franchisee-friendliness scale
Unit growth trends, exit rates, and system trajectory
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