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Chun Yang Tea®

Food & Beverage • Year: 2024
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What Is Chun Yang Tea?

Chun Yang Tea is a retail beverage franchise focused on a proprietary tea beverage and a menu of other teas, milk teas, juice drinks and tapioca-ball products. Franchisees independently own and operate single retail stores that prepare Chun Yang Tea Products for carry-out and for consumption at the store. Revenue is generated primarily from the sale of beverages and related retail products and accessories.

Chun Yang Tea Franchise: Pros and Cons

The franchise's biggest strength is its exceptionally strong training and support, with a score of 100 that should shorten ramp time and reduce early operational errors; its biggest risk is the manager equity rule requiring managers to hold 50% equity, an uncommon (about 11%) top‑5% requirement that imposes a heavy capital burden.

Pros

Training & support score of 100 - well above typical for all systems (top quarter) - indicates exceptionally strong initial and ongoing training that should shorten your ramp time and reduce early operational errors.
Zero disclosed lawsuits, zero franchisee judgments or settlements, zero government penalties, zero franchisor enforcement actions, and zero fraud cases - well below typical for Food & Beverage (bottom 5%) - signals a clean legal and regulatory record that lowers the likelihood of system-wide legal distractions and related costs.
Initial franchise fees are refundable on failure - an uncommon feature (only ~14% of F&B brands) - this reduces upfront financial risk if a deal falls through during the opening process.

Cons

Manager equity requirement of 50% and a rule that managers must hold equity - well above typical for Food & Beverage (top 5% and uncommon at ~11%) - creates a high capital burden for operator-managers and limits options for hiring a passive manager.
Zero company-owned units - well below typical for Food & Beverage (bottom 5%) - the franchisor has no corporate-run locations to field-test changes, which may slow operational iteration and leave system improvements dependent entirely on franchisee feedback.
One outlet non-renewal - well above typical for Food & Beverage (top quarter) - suggests at least one operator chose not to continue with the system, which could indicate localized issues with renewal economics or support.

Lawsuits & Legal Risk

100
Excellent

Chun Yang Tea reported no material legal proceedings,

Territory Protection

43/100
NORMAL

Chun Yang Tea grants an exclusive, site-specific Territory defined by market density (mapped area or radius) around each store, with ADA-based exclusivity for additional units under a development schedule. Territory rights are contingent on meeting performance quotas; the franchisor retains e-commerce/alternative-channel sales and may develop nearby units.

Training & Support

100
Excellent

The brand provides a robust 120-hour training curriculum focused on preparing franchise operators for launch; the initial fee does not include any trainees (zero persons are included). The program includes on-site launch support to aid operational readiness, and travel, lodging, and any additional on-site support costs are borne by the franchisee.

How Much Does It Cost to Open a Chun Yang Tea Franchise?

Opening a Chun Yang Tea franchise requires a total initial investment of $133,900 to $299,750, according to the 2024 Franchise Disclosure Document. This range covers the franchise fee, real estate, equipment, training, and initial working capital needed to launch and operate through the early months.

Minimum Investment

$133,900
Minimum Investment Breakdown
Franchise Fee
Real Estate
Equipment & Assets
Reserves
Training
Other

Maximum Investment

$299,750
Maximum Investment Breakdown

Minimum Investment Breakdown

Franchise Fee$30,000
Real Estate$31,500
Equipment & Assets$26,000
Reserves$30,000
Training$6,000
Other$10,400

Maximum Investment Breakdown

Franchise Fee$30,000
Real Estate$79,000
Equipment & Assets$38,750
Reserves$60,000
Training$15,000
Other$77,000

Investment Analysis

This investment analysis is coming soon. Have ideas for other analyses you'd like us to add? Get in touch.

The initial investment amounts shown are estimates only. Actual costs may vary based on location size, business model, and multi-unit ownership arrangements. We recommend reviewing the full Franchise Disclosure Document for complete details.

Chun Yang Tea Franchise Earnings: Not Disclosed

Chun Yang Tea did not disclose financial performance data (Item 19) in their 2024 Franchise Disclosure Document. Not all franchisors choose to publish this information, which can make it harder for prospective owners to evaluate expected revenue before investing.

This franchise company did not publish these results.

Frequently Asked Questions

Is Chun Yang Tea a good franchise to own?

Whether Chun Yang Tea is a good franchise depends on your goals, experience, and local market. Key factors from the 2024 FDD: Chun Yang Tea operates 8 locations, received a legal risk score of 100/100, a training and support score of 100/100. The franchisor does not disclose financial performance data. Prospective franchisees should review the full Franchise Disclosure Document and consult with a franchise attorney before making any investment decision.

Is a Chun Yang Tea franchise worth the investment?

The value of a Chun Yang Tea franchise investment depends on factors such as location, operator experience, and market demand. The initial investment ranges from $133,900 to $299,750. Franchise investments carry inherent risk, and prospective buyers should conduct thorough due diligence before committing capital.

What is the failure rate of Chun Yang Tea franchises?

In the 2024 FDD, Chun Yang Tea reported 0 terminated franchises and 1 non-renewals out of 8 total locations. Franchise closures can result from many factors including market conditions, operator decisions, lease expirations, and franchisor enforcement actions. The FDD's Item 20 provides the most detailed unit turnover data.

How long does it take to break even with a Chun Yang Tea franchise?

Break-even timelines for Chun Yang Tea franchises are not disclosed in the 2024 Franchise Disclosure Document. Break-even periods vary significantly based on initial investment level, local market conditions, operating costs, and revenue ramp-up speed. Prospective franchisees should build a pro forma financial model using Item 7 cost estimates and, where available, Item 19 financial performance data from the FDD.

Is Chun Yang Tea a franchise or a corporate-owned business?

As of the 2024 FDD, Chun Yang Tea operates 8 franchised locations and 0 company-owned locations. Franchise opportunities are available through the franchisor's disclosure process.

Does Chun Yang Tea disclose franchise revenue data?

Chun Yang Tea did not disclose financial performance data (Item 19) in their 2024 FDD. Not all franchisors choose to publish this information.

Report generated on May 05, 2026 at 02:20 PM

ZeeReport does not audit the information it receives and does not independently verify the information in every instance.

Prospective franchisees should consult the original Franchise Disclosure Document before making any investment decision.

Data is extracted via automated AI tools. Inaccuracies or omissions are possible due to the nature of the technology.

This report is for informational purposes only and does not constitute legal, tax, financial, investment, or other professional advice.

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