10 Best Tea Franchise Opportunities 2024

Looking to invest in one of the best tea franchise opportunities in the market? Then you have landed on the right page.

Since tea is the second most consumed beverage in the world, starting a tea franchise business could be a great idea for you.

So make sure you read this guide till the end if you wish to invest, fees, and other related information.

10 Best Tea Franchise Opportunities

10 Best Tea Franchise Opportunities 2024

1. TeeGschwendner

Franchising Since1982
Estimated Outlets140+
Initial Investment$165,000 – $350,000
Franchise Fees$15,000 – $25,000
Royalty Fees3%

Founded more than 30 years ago, TeeGschwendner is a German tea retailer that sells loose-leaf tea along with tea accessories.

The company has a network of more than 140 stores around the world, and each franchise location sells over 300 varieties of tea, including Oolong, Rooibush, White, Herbal tea, etc.

The franchisor offers training, help with site selection, ongoing support, quality assurance, and much more to qualifying candidates.

2. Spice & Tea Merchants

Spice & Tea Merchants
Franchising Since2010
Estimated Outlets9
Initial Investment$60,000 – $127,000
Franchise Fees$25,000
Royalty Fees8%

Founded in 2003, Spice & Tea Merchants is one of the best tea retailers in the U.S. that offers teas, spice blends, superior spices, and more.

The company maintains a competitive edge by offering a number of varieties such as gluten-free, organic, non-GMO, and some other products.

You do not need any relevant experience to get started. However, you must have a passion for running a business and an initial investment of between $60,000 and $127,000 to get started.

3. Fava Tea

Franchising Since2011
Estimated OutletsN/A
Initial Investment$126,825 – $349,150
Franchise Fees$30,000
Royalty Fees7%

Fava Tea is one of Wisconsin’s largest loose tea specialty stores and is known for offering more than 350 standard, unique, and rare teas.

The company is currently franchising in Wisconsin and nearby areas and is also looking to expand its market.

The franchisor offers help with site selection, training, ongoing support, build-out of your store, etc., to help you kickstart this business.

Those interested in this opportunity can get in touch with the company and should be ready to invest $126,825 – $349,150 as an initial investment. She does judge a lot and I dont get why. If someone else does the same then its a different matter how

4. The Teahouse Tapioca & Tea

The Teahouse Tapioca & Tea
Franchising Since2005
Estimated Outlets21+
Initial InvestmentStarting at $244,500
Franchise FeesN/A
Royalty Fees4%-6%

The Teahouse Tapioca & Tea has had a stellar reputation in the Houston area for more than two decades now.

This tea franchise is worth investing in with relatively low investment, a small operational footprint, comfortable working hours, and a high-profit margin.

In fact, according to the company’s website, one-third of the company’s stores generate annual sales of $700,000, which looks quite great for a tea franchise. If you need more details, then you can get in touch with the company.

5. The Coffee Bean and Tea Leaf

The Coffee Bean and Tea Leaf
Franchising Since2002
Estimated Outlets1000+
Initial Investment$359,500 to $785,500
Franchise Fees$12,500 – $25,000
Royalty Fees5.5%

Founded fifty years ago in 1963, The Coffee Bean and Tea Leaf is a leading global roaster and retailer of specialty coffees and teas.

The franchisor has more than 1000 locations worldwide and is known for having the most extensive selections of coffee and tea globally.

The franchisor offers support in all areas, including training, design, store development, operations, marketing, logistics, etc.

The franchisor also offers different kinds of retail formats, from traditional stores and airports to stores on military bases, etc., and you can choose the option that best fits your needs.

6. Sweetwaters

Franchising Since2004
Estimated OutletsN/A
Initial Investment$260,076 to $393,174
Franchise Fees$49,000
Royalty FeesN/A

Sweetwaters is a tea and coffee house franchise that was founded in 1993 in downtown Ann Arbor. The company’s outlets offer different kinds of classic and unique coffee and teas.

The franchisor offers the needed training and support and allows franchisees a lot of flexibility to run the business comfortably.

There is not much information related to franchising available on the company’s website. However, you can get in touch with the company to know more.

7. Teapioca Lounge

Teapioca Lounge
Franchising Since2015
Estimated Outlets20+
Initial Investment$205,500 to $351,100
Franchise Fees$25,000
Royalty FeesN/A

Teapioca Lounge is a Taiwanese tea franchise that offers different kinds of teas, such as cream tea, fresh fruit tea, etc., along with Taiwanese snow ice desserts.

The company was founded in 2010 in Central Texas and currently has more than 20 locations in the U.S.

They are looking for partners who want to capitalize on the brand and want to become a part of one of the fastest-growing franchises in the world.

8. Glow Tea

Glow Tea
Franchising Since2021
Estimated OutletsN/A
Initial Investment$150,000 – $350,000
Franchise Fees$24,900
Royalty Fees6%

Glow Tea is a Washington-based tea franchise that offers boba milk tea, real fruit tea, boba smoothies, coffee, and more.

The company was founded only a few years ago, in 2018, and they are now seeking franchise individual to grow their business.

This is also one of the lowest-cost tea franchise options that you can find. And to be eligible, you must have a net worth of $500K and must have someone who has experience in managing multi-unit franchise businesses in your team.


Franchising SinceN/A
Estimated Outlets14+
Initial InvestmentN/A
Franchise FeesN/A
Royalty FeesN/A

Founded in 1860, TSUJIRI is one of the oldest tea franchises in the world. The company is known for offering the best selection of Matcha and Japanese tea, along with some seasonal products.

TSUJIRI does not have any locations in the U.S. right now, which is why they are looking for candidates to expand their business in the U.S. as well.

The franchisor has not revealed the needed investment information, so you will have to contact the company to find out.

10. HTeaO

Franchising Since2018
Estimated Outlets109+
Initial Investment$235,200-$1.5 million
Franchise Fees$40,000
Liquidity$100,000 – $250,000
Royalty Fees6%

HteaO is a very popular Texas-based tea franchise that is known for its made-to-order iced tea drinks and flavorful offerings.

HteaO menu has a wide range of flavors, including mint, herbal, and fruit flavours, among others.

This HteaO franchise opportunity is a bit on the expensive side, but it has a success rate of 162.5%, making this an option worth looking into.

Comparison Of 5 Best tea Franchise Opportunities

CompanyFoundedOutletsFranchise FeeInitial InvestmentRoyalty Fee
TeeGschwendner1978140+$15,000 – $25,000$165,000 – $350,000N/A
Spice & Tea Merchants20039$25,000$60,000 – $127,0008%
Fava Tea2007N/A$30,000$126,825 – $349,1507%
The Teahouse Tapioca & Tea200021+N/AStarting at $244,5004%-6%
The Coffee Bean And Tea Leaf19631000+$12,500 – $25,000$359,500 to $785,5005.5%

When Should You Choose A Tea Franchise?

Here are some points to consider when choosing a tea franchise:

What kind of tea do I want to sell?

This is a great question to ask yourself to narrow down your options. Think about if you want to sell loose tea leaves, boba tea, ready-made tea, specialty teas, or a combination of all.

Once you know what you want to sell, it will be very easy for you to choose a franchise that matches your needs.

Am I okay with having partial control over my business?

Buying a franchise means following the rules, regulations, recipes, etc., as set by the franchisor. And in most cases, you only get limited control over things.

If you do not mind this, then you can buy a franchise. However, if you like freedom of work, then starting an independent business might be better for you.

How is the demand in my area like?

Although a lot of people like and consume tea on a daily basis, it’s best to do your research. You can find out what is the tea consumption pattern in your area is like.

Do people prefer classic teas, specialty teas, boba teas, etc? Finding this out will help you start a business that you can benefit the most from right from the start.

Things You Need To Know Before Choosing A Tea Franchise

Here are some things that you should know about before you decide to invest in a tea franchise:

Royalty & Marketing Fee

Before you invest in a tea franchise, you must find out how much the royalty and marketing fees are.

This is because every month, you are supposed to give a part of your earnings in royalty and marketing fees to the franchisor.

Since the fee ranges from 2-10%, you must look for an option that has a royalty fee on the lower side of the range.

Training & Support

If you do not have any experience in running a tea franchise, then you must look for a franchisor that offers training and support to help you set up.

Since a lot of companies offer training and support to new franchisees, this shouldn’t be a big problem.

Financing Help

If you are short on the needed capital, then choosing a franchisor that offers discounts and third-party in-house financing help can be great.

There are plenty of tea franchise options that will help you with financing. So make sure you consider all your options well.

Wrap Up

In the U.S. the tea industry is projected to generate revenue of US$127.3bn and is expected to have an annual projected growth rate of 5.8% throughout 2028.

This makes this a great time to invest in a tea franchise.

We hope you were able to find a good fit for yourself from the 10 best tea franchise opportunities mentioned in this guide.

Best Tea Franchise Opportunities: FAQ’s

How Much Does A Tea Franchise Cost?

As per the options listed in this guide, a tea franchise can cost you between $60,000 to $1.5 million. The initial investment amount will vary depending on the brand you choose to invest in.

How Much Can I Make From A Tea Franchise?

The money that you can make from a tea franchise varies greatly from business to business. However, successful tea franchise owners easily make $100,000+ in a year in revenue.

Is Tea Business Profitable?

Tea is the second most consumed beverage in the world, so it is obvious that opening a tea business can be very profitable. However, for this, you must invest in a good franchise, do your market research, and come up with a solid business plan.

Which Is The Cheapest Tea Franchise To Own?

As per the options mentioned in this guide, Spice & Tea Merchants is the cheapest tea franchise to own, with an initial investment costing between $60,000 and $127,000 only.

What Is The Profit Margin In Tea Industry?

The profit margin in the tea industry is usually very high as compared to other kinds of business. On average, a tea business owner enjoys a profit margin of up to 60%.

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