Tapioca Express is a boba tea franchise system showing concerning trends with significant unit contraction. The system has declined from 25 total units in 2023 to 15 units in 2025, representing a 40% decrease. The franchise fee is $30,000 for traditional cafes and $25,000 for kiosks, with total investment ranging from $250,000 to $509,100. The royalty rate is 4% of gross sales, which is relatively low for the industry. Financial performance data shows wide variation in sales, with top performers generating over $3M while some units report only $240,000 in gross sales. The system requires personal and spousal guarantees, has a 2-year non-compete with 25-mile radius, and mandates various operational controls. Territory protection is limited with significant reserved rights for the franchisor.
Generated from 2025 Franchise Disclosure Document
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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