Risk Score
Pending analysis
Investment Range
$199,850 - $498,200
Franchise Fee
$27,500
Min Cash Required
$25,000
Total US Locations
4
Business Summary
Boba Cutea US Group, LLC operates quick-serve tea houses under the brand "Boba Cucue." These locations offer handcrafted boba tea drinks and also feature a retail section with products, toys, and branded apparel.
Corporate History
Boba Cutea US Group, LLC was formed as an Arizona limited liability company on January 27, 2023, and began offering franchises in January 2023. The brand itself, originally known as Boba Cutea, has been operated by its affiliates since 2021, with locations in Gilbert, Mesa, and Phoenix, Arizona. In 2023, the brand transitioned to Boba Cucue. An affiliate, Boba Cutea Supply, LLC, has been providing specialty retail products to company-owned and franchised stores since August 2022.
Financial Overview
Investment Range
$199,850 - $498,200
Franchise Fee (Low)
$27,500
Franchise Fee (High)
$40,000
Minimum Cash Required
$25,000
Royalty %
5.5%
Marketing %
1%
Equipment Costs (Low)
$60,000
Equipment Costs (High)
$120,000
Working Capital
$37,500
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Going concern qualification
Financial Health Notes
Boba Cutea US Group, LLC's financial statements as of December 31, 2023, received an unqualified opinion from its auditors. However, the auditors noted a going concern qualification, meaning there is substantial doubt about the company's ability to continue operating. This is due to Boba Cutea US Group, LLC incurring a net loss of $257,694 for the period from its inception on January 27, 2023, to December 31, 2023.
Financing Details
Boba Cutea US Group, LLC does not offer any direct or indirect financing to its franchisees. The franchisor also does not guarantee any notes, leases, or other obligations that franchisees may incur.
Performance Metrics
Total US Locations
4
Franchised Units
0
Corporate Units
4
Franchising Since
2023
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Boba Cutea US Group, LLC has no litigation to disclose. The company or its management have not been involved in any material litigation or bankruptcy proceedings.
Bankruptcy History
Boba Cutea US Group, LLC states that no bankruptcy information is required to be disclosed, meaning the franchisor, its predecessors, or principals have not been involved in any reportable bankruptcy proceedings.
Agreement Terms
Initial Term
10 years
Renewal Term
5 years
Renewal Conditions
To renew their Boba Cucue franchise agreement, franchisees must notify Boba Cutea US Group, LLC between 90 and 180 days before their current term ends. They must be in full compliance with all contractual obligations to the franchisor and third parties, and agree to renovate their business to meet the then-current brand standards. Franchisees will also need to sign the franchisor's current standard franchise agreement and related documents, including a personal guaranty, and execute a general release of any claims against the franchisor.
Training & Support Program
Franchisor Assistance
Before opening, Boba Cutea US Group, LLC assists franchisees with reviewing potential site locations and provides standard building plans, specifications, and a list of approved suppliers for equipment, signs, fixtures, and initial inventory. The franchisor offers suggested staffing levels and hiring guidelines, along with access to its Brand Standards Manual. Initial training for the franchisee's Principal Executive and up to two other team members is provided without a fee. The franchisor also advises on business plans and market introduction plans, and provides one week of on-site opening support. After opening, Boba Cutea US Group, LLC offers advice by phone or electronic communication for improving the business and resolving operational issues, though in-person support may incur a daily fee plus expenses. The franchisor provides recommended product pricing and administrative, bookkeeping, accounting, and inventory control procedures. Boba Cutea US Group, LLC also administers the Brand Fund and maintains the brand website, which includes information about the franchisee's business.
Initial Training Hours
144
Training Location
Arizona (company-owned locations) or franchisee's location
Ongoing Support
After opening their Boba Cucue business, franchisees can request advice from Boba Cutea US Group, LLC via telephone or electronic communication for improving their operations and resolving problems; however, in-person support may come with an additional fee. The franchisor provides recommended prices for products and services upon request, and may mandate promotional pricing. They also offer recommended administrative, bookkeeping, accounting, and inventory control procedures, which could become mandatory. Boba Cutea US Group, LLC administers the Brand Fund, providing unaudited annual financial statements upon request, and maintains a brand website that features the franchisee's business information.
Franchise Requirements
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
retail
Owner Participation
supervisory
Territory Type
exclusive
Territory Size Requirements
Boba Cutea US Group, LLC defines a franchisee's territory to include approximately 50,000 people. This territory is typically specified as a radius around the business location, although other boundaries such as county lines, streets, geographical features, or trade areas may be used.
Staffing Notes
Boba Cutea US Group, LLC will provide franchisees with suggested staffing levels and hiring guidelines. The business must always be under the on-site supervision of either the Principal Executive or a general manager who has completed the franchisor's training program. The franchisor may also set minimum qualifications for employee categories, though franchisees are solely responsible for all employment terms, including recruiting, hiring, training, and compensation.