Happy Lemon is a Taiwan-based bubble tea franchise with 115 total units in the US. The franchise requires a moderate initial investment of $298K-$587K with a $30K franchise fee. Notable concerns include no exclusive territory protection, allowing unlimited franchisor competition near franchisee locations. The 7% royalty rate is higher than many QSR concepts. The system shows modest growth with 115 units currently versus 96 three years ago. No financial performance data is disclosed in Item 19, making it difficult to assess unit economics. Training is extensive with 128 hours of on-site training. The franchise agreement heavily favors the franchisor with broad termination rights, mandatory arbitration, and comprehensive non-compete restrictions post-termination.
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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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