Sharetea is a tea enterprise that’s growing its presence in nations everywhere in the world. The enterprise focuses on providing premium bubble tea with over 30 years of trade expertise. Sharetea brings a demonstrated observe file of enterprise growth, in addition to a progressive funding return on capital, to the franchise trade. The corporate itself was based in Taiwan in 1992 and prides itself on providing clients a number of the highest high quality drinks accessible.
Sharetea provides an easy enterprise alternative for entrepreneurs which may be pursued in quite a lot of areas all through the globe. On this article, we are going to focus on Sharetea and the franchise alternatives they provide. By the tip of this submit, you should have the fundamental understanding it is advisable start exploring opening your individual Sharetea franchise on a extra in-depth stage. On this submit, we’ll cowl the next intimately:
What Precisely is a Sharetea Franchise?
When Cheng Kai-Lung first began the bubble tea enterprise that might later bear his identify in 1992, he labored within the movie and tv industries as a director. Sharetea was his brainchild! The Sharetea was a success with the viewers because of all of his labor, and this led to the institution of the very first Sharetea store.
The aim of Sharetea is to teach individuals throughout the globe in regards to the custom of consuming tea in Taiwan in its purest type. The corporate’s slogan is all about sharing fantastic drinks, love, happiness, and well being with all of its clients, which is the place the identify “Sharetea” comes from. At Sharetea, the mission is to please those that are keen about milk tea by offering drinks of the very best doable high quality. Lots of the elements and tea leaves utilized by Sharetea franchises are shipped instantly from Taiwan to keep up the consistency of Shareteas providing.
The bubble tea store prides itself on having easy and accessible operations that any small enterprise proprietor can get entangled with. The group is dedicated to offering its franchisees with high-quality upkeep, administration, and enlargement companies. Certainly, the vast majority of their franchisees personal multiple location, utilizing the backing of the corporate to start out constructing their very own chain of Sharetea franchises.
Franchise homeowners who be part of up with Sharetea get in depth coaching in addition to persevering with help for the operations of their companies. As a direct consequence of this, every one in every of Sharetea’s drinks is crafted utilizing solely the most recent, purest, and most pure elements that may be sourced.
The franchise has provided sufficient assist in an effort to assure the product’s high quality. Sharetea’s main goal is to fulfill the wants of its customers by providing milk teas of superior high quality at aggressive prices.
Be a part of such a quickly increasing bubble tea model globally if you wish to serve the group with high quality and boldness and in case you share the identical ardour and aim because the company that owns the model.
Opening a Sharetea Franchise
Sharetea is now the number one bubble tea retailer in California and continues to broaden in the USA. It’s at the moment some of the well-known and well-liked manufacturers of boba tea within the Bay Space and San Francisco.
Sharetea Franchise Necessities
- Confidence in oneself and dedication to 1’s career
- A powerful affection for the model, along with having excellent work ethics and accountability
- Relying on the dimensions and site of the store, the full price of opening a franchise would possibly fluctuate anyplace from $386,900 to $492,200.
- A need to keep up Taiwanese cultural traditions
How A lot Does It Price to Begin a Sharetea Franchise?
The startup prices wanted to launch a Sharetea franchise begins at a minimal of $386,900 and will go as excessive as $492,200. There’s a requirement of a minimal web value of $300,000.
The primary franchise payment charged by the Sharetea agency is perhaps as much as $48,000. The royalty payment is a 6% minimize of the full income, with a minimal cost of $1,200. Potential franchisees could must get in contact with the group in an effort to get an exhaustive monetary construction. That stated, everytime you start the method of reaching out to the franchisor to inquire about opening your individual location, they may offer you all of the advantageous particulars that you will want to know. The next is simply an thought of what you possibly can anticipate if you’re considering beginning a Sharetea franchise.
Price Kind |
Quantity |
Franchise Charge |
$48,000 |
Franchise Price |
$386,900 to $492,200 |
Royalty Charge |
6% |
Promoting Charge |
1-2.5% |
Time period of Settlement |
5 years |
Renewable |
Sure |
Renewal Franchise Charges |
50% of Preliminary Franchise Charges |
Coaching for the Sharetea Franchise
One of the best bubble tea model has an excellent assist construction in place, which is able to assure the success of the brand new franchise alternatives being provided by the corporate. They supply in depth coaching and handouts, together with each hands-on and classroom-style instruction, each earlier than and after the store formally opens its doorways for enterprise.
The coaching program lasts for a lot of hours and is offered in two completely different settings: in a classroom setting and in an on-the-job setting.
Sharetea can be capable of help with the acquisition of actual property in addition to buildings. They’re additionally answerable for all specialised assist provided all through the method of opening, in addition to steady counseling companies which can be designed to help you in starting your individual Sharetea bubble tea firm.
Operational Logistics of a Sharetea Franchise
You’ll be supplied with help from the agency in case you select to turn into a Share tea franchisee. As well as, there’s a part contained in the company that’s answerable for guaranteeing that purchasers from everywhere in the globe get protected meals.
A educated crew shall be chargeable for guaranteeing the tea’s prime quality and can present help to franchisees who need to innovate.
Supervisors make common journeys to the outlets they oversee in an effort to verify on features reminiscent of high quality, service, cleanliness, and administration, in addition to to supply help with issue-solving and to ensure that the shop is on observe to meet its gross sales quota.
What Is the Preliminary Time period Requirement of a Sharetea Franchise?
The Sharetea franchise settlement requires an preliminary time period length of 5 years. If franchisees meet the requirements set for them, they are going to be thought-about for renewal. Present franchisees have the choice of extending their settlement for an extra 5 years in the event that they need to maintain their enterprise.
Is There a Monetary Help Program Out there by way of the Sharetea Franchise?
The group doesn’t present direct financing for franchise purchases. The franchisor of the group can’t give any form of lease or be aware obligation as a assure for the franchisee.
To cowl start-up bills, stock, gear, payroll, and accounts receivable, the agency could provide funding from a 3rd social gathering as long as it maintains a reference to an investor. There’s a risk that funding from the SBA could also be obtained to assist with the acquisition of a franchise.
Execs of a Sharetea Franchise
Sharetea is a model that has so much to supply when it comes to tea, and it’s value wanting into. The followings are some benefits of partaking in a enterprise that focuses on tea:
Excessive Fee of Return on Preliminary Funding
One of many greatest benefits of investing in a Sharetea franchise is the potential for a excessive charge of return in your preliminary funding. Sharetea is a well-established model with a confirmed observe file of success, which signifies that franchisees can anticipate to see a robust return on their funding over time.
Demonstrated Historical past of Revenue and Growth
Sharetea has a demonstrated historical past of revenue enlargement, which signifies that franchisees can anticipate to see their companies develop and turn into extra worthwhile over time. This may be attributed to the model’s repute and recognition amongst customers, in addition to its efficient advertising methods and enterprise fashions.
Simple to Function, Preserve, and Develop
Sharetea’s enterprise mannequin is straightforward to make use of, keep, and broaden. This makes it simple for franchisees to run their companies, even when they’ve little expertise within the meals and beverage trade. There aren’t quite a lot of parts concerned in making tea and serving it to clients. In contrast to with some restaurant franchises – which will be very concerned and difficult to function (reminiscent of McDonald’s) – Sharetea franchises are comparatively easy and simple to grasp.
ShareTea additionally supplies all-encompassing instructional applications and steady logistical help to its franchisees all through their time as franchise homeowners. That approach, there’s at all times a assist construction you possibly can lean again on. Because of this franchisees could have entry to a wealth of assets and assist to assist them run their companies successfully.
Cons of a Sharetea Franchise
Other than the funding, there are definitely different challenges within the Tea franchise alternative. Listed below are a few of them:
One other drawback of a Sharetea franchise is that the menu choices could also be restricted, which might make it difficult for franchisees to distinguish their companies from opponents. This could make it harder to draw and retain clients, particularly in areas with quite a lot of competitors.
Additional, the restricted variety of choices can restrict the variety of potential clients. When you have got a wider array of merchandise, it may be simpler to draw quite a lot of clients since there’s usually one thing for everybody. When your menu is extra restricted, there’ll usually be people who aren’t considering any of the merchandise you might be providing.
Restricted Development Potential
A Sharetea franchise could have restricted development potential in comparison with different enterprise alternatives, which might make it tougher for franchisees to broaden their companies over time. This may be particularly problematic for franchisees who need to develop their companies rapidly or who need to tackle a number of areas.
Aggressive Competitors
Sharetea franchises – which supply bubble tea and boba as their signature merchandise – usually face stiff competitors. These aren’t notably onerous merchandise to make or provide, and the startup prices related to opening a retailer geared up to supply such merchandise are low. In consequence, some markets will be notably flooded, making it difficult for added entrants to make substantial income.
What’s the Revenue that the Sharetea Franchise Generates?
In the latest model of the franchise disclosure type, Merchandise 19, the Share tea franchise didn’t disclose both the Common Unit Volumes or the franchise earnings. Nevertheless, the annual earnings of Sharetea franchise homeowners seems to vary anyplace from $50,000 to $100,000, based mostly on the quantity of possession they’ve within the enterprise in addition to the quantity of effort they put into it.
To estimate the potential revenue of a Sharetea franchise, we are able to use the common per tea promoting value of $5.00, each day merchandise offered of 200, and anticipated each day gross sales of $1000. This might lead to anticipated weekly gross sales of $7000 and anticipated annual unit gross sales of $360,000. Utilizing these numbers, we are able to estimate that the annual revenue for a Sharetea franchise ranges from $45,000 to $64,800, relying on the revenue margin.
Nevertheless, it is very important be aware that recouping the preliminary funding in a Sharetea franchise can take a very long time. Based mostly on these estimates, it might take anyplace from 5.5 to eight years to recoup the preliminary funding of $376,400. That is longer than the trade commonplace, and potential franchisees ought to contemplate this when evaluating the chance.
Easy methods to Safe a Sharetea Franchise
The method for securing a Sharetea franchise is comparatively easy. First, it is advisable fill out an utility type which is offered on-line. This manner shall be used to evaluate your {qualifications} as a possible franchisee and shall be reviewed by Sharetea headquarters in Taiwan.
As soon as your utility is reviewed, Sharetea representatives will contact you by way of cellphone or e mail to go over all the small print of the franchise alternative. It will embrace details about the funding required, the coaching and assist that shall be supplied, and another related particulars.
The subsequent step is to signal a franchise pre-contract, which is able to shield your unique proper to franchise in a particular space. Because of this after getting secured a pre-contract, you can begin searching for a retailer location with out having to fret about competitors from different franchisees.
When you have got settled on a location on your franchise enterprise, it is advisable guarantee that the shop is from 1,000 to 1,200 sq. ft. This will provide you with sufficient area to run your online business successfully. After getting recognized an appropriate retailer location, you will have to barter a lease with the owner.
After getting secured the situation, signed the ultimate contract with Sharetea, and handed all the mandatory {qualifications}, you can be able to open your individual enterprise.
It’s necessary to notice that Sharetea supplies coaching and assist to all its franchisees, so you should have the mandatory data and assets to run your online business successfully. Moreover, Sharetea’s repute and established model might help appeal to a buyer base to your retailer.
Financing Choices
SBA Loans
SBA loans are a highly regarded useful resource for small companies trying to receive funding. SBA loans are backed by the USA federal authorities and provided via the Small Enterprise Administration (SBA). Since these loans are backed by the federal authorities, they’re thought-about as being much less dangerous for lenders. Because of this extra debtors are capable of entry these loans, and charges are typically decrease total.
That stated, the appliance course of for SBA loans is prolonged and requires debtors to be very diligent. Debtors are required to submit quite a lot of documentation in addition to their firm and private credit score histories.
One of many extra common SBA loans, and one which can be utilized for franchises, is their 7(a) mortgage. The SBA 7(a) mortgage is a time period mortgage through which debtors can obtain as much as $5 million. That stated, SBA loans can solely be used for sure pre-approved franchises, which will be discovered of their on-line franchise listing.
Time period Mortgage
Time period loans are one other go-to useful resource for people trying to open up a franchise. Time period loans are loans that present debtors with a lump sum of cash upfront, which then should be paid again over time throughout a particular time period. Time period loans can include each mounted and variable rates of interest.
Time period loans are provided by each conventional brick-and-mortar banks in addition to by various lenders (like Biz2Credit!). Time period loans provided by conventional banks are inclined to have decrease rates of interest, however their utility processes are very lengthy, and they’re notoriously troublesome to get on account of the excessive requirements they’ve for debtors.
Time period loans from various lenders are considerably simpler to acquire. In some circumstances, you possibly can have the funds in your account in as little as 24 hours. The appliance processes are fast and simple. Nevertheless, the rates of interest are typically greater than conventional banks since lenders can’t assess the chance of debtors as totally as conventional banks are with their drawn-out utility course of.
Line of Credit score
Strains of credit score are one other common supply of financing for small companies. Strains of credit score are a set sum of money which you could borrow at any time, usually with a variable rate of interest. Strains of credit score stay open in order that once you repay the cash you borrowed, you possibly can then borrow that quantity once more everytime you want it. This makes them ideally suited for short-term financing and shoring up money circulate in instances of want.
Nevertheless, traces of credit score aren’t actually designed for long-term borrowing. As a substitute, they’re higher used as hole funding or interim financing that you should utilize whilst you discover a longer-term, extra everlasting financing resolution.
Tools Financing
Tools financing is one other common supply of financing for franchise homeowners. One of many nice issues about gear financing is that it’s usually simpler to get than different types of financing and comes with decrease rates of interest on common. It is because gear financing makes use of that piece of apparatus that you’re shopping for as collateral. This lowers the chance for lenders since they know they may be capable to promote that gear to get well a few of their funds within the occasion that you just default. Tools financing can be utilized for any gear that it is advisable buy on your franchise.
Takeaways
Sharetea is rapidly rising within the tea market in the USA and all through the globe, making it an thrilling selection for these considering franchising alternatives. Because the franchise expands, its model and merchandise proceed to turn into more and more well-known by customers, additional rising the worth and desirability of franchises.
To study extra about whether or not or not beginning a Sharetea franchise is best for you, you would possibly contemplate having conversations with present enterprise homeowners. This can provide you some perception into what it takes to run a Sharetea franchise and the way buyer reception to new areas is. As at all times, analysis and diligence are key earlier than making any funding. So, use this text as a launching pad to start your exploration of Sharetea (or franchise choices on the whole) and whether or not or not a franchise is best for you!
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