Moge Tee Franchise Cost, Failure Rate & Profit 2024

The bubble tea industry has been growing rapidly worldwide these last few years.

It’s a culture that started mostly in Asia, but now the entire world knows about it, and there are several brands promoting this industry.

Moge Tee is one of those brands that operate globally, offering fresh and quality bubble tea.

If you are thinking of getting into the bubble tea industry as an entrepreneur, Moge Tee offers to franchise worldwide to everyone who has the necessary funds and skills.

This article will cover everything about Moge Tee and its franchise system and whether it’s worth owning one or not.

Moge Tee Franchise
Moge Tee Franchise

About Moge Tee and Its History

Moge Tee is a popular bubble tea franchise chain operating globally in several countries. They were founded in 2016 in China and have grown to many different countries since.

Their franchising journey started in 2018, and they are right now present in mainland China, Australia, Southeast Asia, and North America.

Moge Tee offers a variety of bubble tea, and their goal is to bring “new-style tea” globally everywhere.

They take pride in creating their beverages with fresh ingredients with handcrafted leaf tea, and they also offer dairy and fresh fruits alongside their bubble tea.

They now have over 50 outlets across the world and keep on increasing.


Mogee Tee Franchise Business Model Table

Cost or FeesAmount or Percentage
Initial Investment       $158,700-$269,300
FranchiseYES
Franchising Since2018
Franchise-Fee$40,000
Royalty-Fee3%
LiquidityN/A
Estimated Outlets53

How Much Does It Cost To Open A Moge Tee Franchise?

The expected initial investment to open one Moge Tee franchise store is between $158,700 and $269,300.

This number calculates all the startup costs associated with opening a store, including the $40,000 franchise fee.

The exact number will depend on several factors, such as the location, size, and others.

The exact investment number might be higher than the expected number if your store is bigger and is in an expensive location than average.

Once you open the store, you must also pay a 3% royalty fee to the brand from your monthly gross sales.


Moge Tee Franchise Requirements

Moge Tee doesn’t specifically mention the business requirements for franchisees, and they don’t have strict financial requirements.

In most cases, companies look for experience in the industry and some net worth or liquidity, but Moge Tee doesn’t look for any of these.

If you have the adequate capital to set up the business, pay the franchise fee, and have some free funds to manage the first few months, you are generally okay.

If you have previous experience as a manager or in the industry, that’s a big plus for your approval, but overall, it’s not necessary.


Moge Tee Overall Revenue & Profit

Moge Tee Franchisor Revenue2021
Revenue$399,662
Royalty Fees$174,517
Net Income (Loss)-$222,946

In 2021, the franchisor’s revenue amounted to $399,662, showing a significant increase of 249% compared to the previous year.

The franchisor’s royalty fees also saw substantial growth, reaching $174,517 with a staggering year-over-year change of 4,232%.

However, the specific EBITDA amount and its year-over-year change are not available.

Regarding the net income (loss), the franchisor experienced a loss of -$222,946, but it showed a moderate improvement with a 31% decrease compared to the previous year.


Moge Tee Payback Period

With a total investment of $269,300 and an estimated yearly profit is $59,844.44.

So, to find out how long it will take to earn back the initial investment:

Payback Period = Total Investment / Yearly Profit = $269,300 / $59,844.44 =4.50 years

It would take around 4.5 years to pay back the initial investment for a Moge Tee franchise based on these figures. This time could be shorter or longer depending on many things like sales, costs, and how the business is run.


Moge Tee Failure Rate

Franchised Outlets:

YearOutlets at the Start of the YearOutlets at the End of the YearNet Change
201914+3
2020417+13
20211736+19

For the Franchised outlets:

  • In 2019, the growth rate was (3)/1×100≈300%
  • In 2020, the growth rate was (13)/4×100≈325%
  • In 2021, the growth rate was (19)/17×100≈111.76%

According to the above-mentioned data, there is no failure rate for franchised outlets as the outlets at the end of the year increased during the span of 3 years.

We can see that the franchised outlets for Moge Tee grew from 2019 to 2021, showing a growth rate between 300% and 111.76%.

Potential franchisees interested in beverages can investigate opportunities with MochinutMilkshake FactoryTiger SugarHTeaO, and Ding Tea Franchise.


Moge Tee Comparison

NameFranchise FeeRoyalty FeeInitial Investment
Sharetea$48,0006%$386,900-$492,200
Kung Fu Tea$37,0003%$123,000-$422,000
Moge Tee$40,0003%$158,700-$269,300

Conclusion

Moge Tee is a growing bubble tea franchise company offering franchises worldwide.

They are currently present in several continents, including North America and Australia, with over 50 stores.

The initial investment is generally between $158,700 and $269,300, with the $40,000 franchise fee included.

There are no strict requirements both on the financial and business side, so if you have adequate funds, you will probably get approved.

Overall, the brand is fairly new but has high brand recognition that is increasing every day, making it profitable and a good choice for entrepreneurs.


FAQs

How much is the franchise fee for a Moge Tee franchise?

The franchise fee for a Moge Tee is $40,000. You have to pay this fee for each Moge Tee store you want to open, and it’s a one-time fee that you pay upfront. You generally pay a lower fee when you renew your franchise agreement.

Can everyone open a Moge Tee franchise?

Anyone who complies with the requirements for a Moge Tee franchise can apply to become a Moge Tee franchisee.

If you are approved, you can open the store. That’s why it’s not possible for everyone who wants it to open a Moge Tee franchise.

Can you fail with a Moge Tee franchise?

Moge Tee might be a popular brand, but it’s still a business that requires good management.

You need to be on top of your business and manage it well, and if you can’t do that, you will fail. So, there is a chance you might fail.

How many locations does Moge Tee have?

Currently, there are more than 70 locations of Moge Tee.

Who owns Moge Tee?

The current CEO of Moge Tee is Li Zheng.

Who founded Moge Tee?

Moge Tee was established in 2012 in the mainland of China. It was founded by Lee Zheng.

Where is Moge Tee Headquartered?

The headquarter of Moge Tee is 2428 Wisconsin Ave NW, Washington, District of Columbia, 20007, United States.

Sources

https://www.mogeteeusa.com/about-us

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