If you are an entrepreneur looking to have a franchise in the food and drink industry, you have many options.
This industry has many subbranches, and bubble tea is one of those subbranches. One of Taiwan’s most popular international bubble tea brands is Tiger Sugar.
You have probably heard of Tiger Sugar if you know about the bubble tea industry. They are quite popular in many locations in several countries.
This article will go over Tiger Sugar’s franchise systems and explain all the details.
About Tiger Sugar And Its History
Tiger Sugar is an international dessert and bubble tea franchise chain with headquarters in Taiwan.
They are famous for their wide selection of teas, such as their iconic Brown Sugar Boba Milk, black tea latte, matcha latte, and so on.
They were founded in 2017 and have been franchising ever since, locally and internationally.
They operate in Taiwan, the United States, Canada, and many other countries and give franchising in each of these locations.
They use special methods to cook the syrups in their teas. They always widen their menu and offerings in their locations and currently have over 100 locations across several countries.
Franchise Model Table
| Cost or Fee | Amount or Percentage |
|---|---|
| Initial Investment | $320,000-$465,000 |
| Franchise | YES |
| Franchising Since | 2017 |
| Franchise-Fee | $50,000 |
| Royalty-Fee | 5% |
| Liquidity | $500,000 |
| Estimated Outlets | 100+ |
How Much Does It Cost To Open A Tiger Sugar Franchise?
According to the company’s franchise disclosure agreement, the expected initial investment to open a Tiger Sugar franchise is between $320,000 and $465,000.
This expected investment includes the $50,000 franchise fee and all other related startup costs. You must also pay a 5% royalty fee from your gross sales each month.
Tiger Sugar Franchise Requirements
There are several requirements Tiger Sugar dictates to its potential franchisees. The first and most important one is the financial requirement.
You need to have a net worth of $1 million and $500,000 in liquid funds. On the business side, you need to have experience as a manager of a business, additional experience in the food and beverage industry is a plus.
The third one but not a must, is the location of your store. Tiger Sugar constantly seeks franchisees with a good site for the store they will run. A good location will increase your chances of approval by a lot.
Tiger Sugar Profit & Revenue
There is no public information about Tiger Sugar’s profit and revenue as a company.
However, some reports indicate how much a Tiger Sugar branch makes on average and the maximum numbers.
According to Available Data, Tiger Sugar branches are quite profitable, with some stores bringing in over $1 million annually.
The exact profit and revenue numbers of each Tiger Sugar store depend on the location, size, competition, and many other factors.
Failure Rate Of Tiger Sugar Franchise
Franchised Outlets:
| Year | Outlets at the Start of the Year | Outlets at the End of the Year | Net Change |
|---|---|---|---|
| 2020 | 1 | 7 | +6 |
| 2021 | 7 | 19 | +12 |
For the Franchised outlets:
- In 2020, the growth rate was (6)/1×100≈600%
- In 2021, the growth rate was (12)/7×100≈171.42%
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 2 years.
Overall, we can see that the Tiger Sugar franchise has expanded in the years 2020-2021, showing a total growth rate between 600% and 171.42%.
Tiger Sugar Comparison
| Name | Franchise Fee | Royalty Fee | Initial Investment |
|---|---|---|---|
| Chatime | $78,000 | 3.5% | $181,100-$507,200 |
| Gong Cha | $41,500 | 5.5% | $177,430-$335,400 |
| Tiger Sugar | $50,000 | 5% | $320,000-$465,000 |
Conclusion
Tiger Sugar is one of the international bubble tea franchises popular in different countries. They have over 100 stores across several countries, and if you can comply with the requirements, you can easily open up a store.
The expected cost is between $320,000 and $465,000, including all the startup costs and the initial franchise fee of $50,000.
Depending on several factors, some stores have the potential to make over $1 million annually.
All this shows that Tiger Sugar is a profitable business and could be a great opportunity for entrepreneurs looking to be in the franchising business.
FAQs
How expensive is it to open a Tiger Sugar franchise?
The total expected initial investment for a Tiger Sugar franchise is between $320,000 and $465,000.
This cost includes all of the expected startup costs, including the franchise fee and the working capital for the first couple of months of the business.
Do I have to comply with all the requirements to be approved?
Some of the requirements Tiger Sugar has are very strict, like financial and business experience.
The others, like the location, are not so strict. By complying with the strict ones, you can have a chance of being approved, but if you don’t comply with them, you won’t get approved.
What is the initial franchise fee for a Tiger Sugar franchise?
The initial franchise fee for a Tiger Sugar franchise is $50,000 per store.
You have to pay this fee for each location you want to open, and it is a one-time fee that you pay upfront.
Sources
https://www.tigersugarma.com/#about
https://tigersugarec.com/about.html
Amit Gupta is an experienced expert in digital marketing and co-founder of DrFranchises. With more than 11 years of knowledge in franchise digital marketing, SEO, email marketing, and social media marketing, Amit has helped many brands achieve incredible success online. As a passionate entrepreneur and owner of 7 franchises, he continues to study franchise models, looking at costs, revenue, and profitability to guide brands toward profitable growth. When he’s not working on digital marketing, Amit enjoys spending time playing with his beloved dog.