Tiger Sugar Franchise Cost, & Failure Rate 2024

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.

Tiger Sugar Franchise
Tiger Sugar Franchise

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 FeeAmount or Percentage
Initial Investment       $320,000-$465,000
FranchiseYES
Franchising Since2017
Franchise-Fee$50,000
Royalty-Fee5%
Liquidity$500,000
Estimated Outlets100+

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

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 revenue.

The exact profit and revenue numbers of each Tiger Sugar store depend on the location, size, competition, and many other factors.


Payback Period Of Tiger Sugar

On the basis of the available data, a Tiger Sugar store brings over $1 million in profit annually. And on estimated 10% profit on the average net revenue, the yearly profit would be $100,000, and the total investment is $465,000.

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

Payback Period = Investment / Yearly Profit = $465,000/ $100,000 = 4.65 years

Based on these figures, it will take approximately 5 years to pay back the initial investment for Tiger Sugar. This time period could be longer or shorter depending on your sales, revenue, and profit figures.


Failure Rate Of Tiger Sugar Franchise

Franchised Outlets:

YearOutlets at the Start of the YearOutlets at the End of the YearNet Change
202017+6
2021719+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%.

Aspiring entrepreneurs in the beverage franchise realm have choices like MochinutMoge TeeHappy LemonHTeaO, and Milkshake Factory Franchise to consider.


Tiger Sugar Comparison

NameFranchise FeeRoyalty FeeInitial Investment
Chatime$78,0003.5%$181,100-$507,200
Gong Cha$41,5005.5%$177,430-$335,400
Tiger Sugar$50,0005%$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.

Who owns Tiger Sugar?

The current CEO of the fast-growing chain is Calvin Sun.

Who founded Tiger Sugar?

Tiger Suger is an International dessert chain brand which is founded by Ming Tsung Tang.

How many locations does Tiger Sugar has?

There are more than 55 locations of Tuger Sugar across the USA, Canada, China, Singapore, Korea, Malaysia, and the Philippines.

Where is Tiger Sugar headquartered?

The headquarters of Tiger Sugar is located in Taichung, Taiwan.

Sources

https://www.tigersugarma.com/#about

https://tigersugarec.com/about.html

Leave a Comment