Prince Tea House is a small Asian-style tea house and bakery franchise system with only 13 total units (5 franchised, 8 company-owned). The franchise requires a significant investment of $570K-$1.01M but offers a relatively low 4% royalty rate. The system shows no growth over the past 3 years, which may indicate limited market demand or expansion challenges. The franchisor does not provide any financial performance representations (Item 19), making it difficult for prospective franchisees to evaluate potential returns. Territory protection is provided within 5 blocks to 1 mile radius. Training includes 19 hours classroom and 95 hours on-site instruction. The franchise agreement contains fairly standard terms with a 10-year initial term, renewal options, and 2-year non-compete restrictions within 5 miles.
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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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