CoCo Crepes Waffles Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$221,300 - $454,000
Franchise Fee
$40,000
Min Cash Required
$20,000
Total US Locations
35
Business Summary
CoCo Fresh Tea and Juice operates a distinctive retail store and cafe concept that offers a variety of beverages, including bubble tea, brewed tea, coffee, juices, and smoothies, along with packaged snacks and other related products. The franchise focuses on promoting its brand names "CoCo" and "CoCo Fresh Tea and Juice".
Corporate History
Infinilush Company Limited, the franchisor for CoCo Fresh Tea and Juice, was incorporated in California in 2018. The company operates and grants franchises for retail stores and cafes specializing in bubble tea, brewed tea, coffee, juices, smoothies, and snacks. CoCo Fresh Tea and Juice began offering franchises in March 2022. Prior to this, franchises were offered by its predecessor, Beyond International Co., Ltd. Infinilush Company Limited has had direct or indirect ownership in U.S. CoCo Fresh Tea and Juice stores since December 2018.
Financial Overview
Investment Range
$221,300 - $454,000
Franchise Fee (Low)
$40,000
Franchise Fee (High)
$120,000
Minimum Cash Required
$20,000
Royalty %
6%
Equipment Costs (Low)
$77,500
Equipment Costs (High)
$224,000
Working Capital
$30,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Going concern qualification
Financial Health Notes
The auditors of Infinilush Company Limited, the franchisor for CoCo Fresh Tea and Juice, have raised substantial doubt about the company's ability to continue as a going concern. CoCo Fresh Tea and Juice has experienced continuous losses and negative cash flows from operations since 2018. As of December 31, 2023, the company had a net loss of $929,668 for the year, a stockholder's deficit of $849,141, and its current liabilities exceeded current assets by $234,530. To address these financial challenges, CoCo Fresh Tea and Juice plans to open more stores and grant additional franchises, expecting to achieve net income from operations starting in 2024. The company has also secured a commitment from its parent company for financial support, including loans and/or capital infusion up to $1,544,000 until December 31, 2025, with $400,000 already provided in January 2024.
Financing Details
CoCo Fresh Tea and Juice does not offer any direct or indirect financing to its franchisees. This means that franchisees will need to secure their own funding for promissory notes, mortgages, leases, or other obligations. The company also does not guarantee any of these financial obligations. Franchisees are required to obtain approval from CoCo Fresh Tea and Juice for any debt where the assets of their franchise business are used as collateral.
Performance Metrics
Total US Locations
35
Franchised Units
10
Corporate Units
25
Franchising Since
2022
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
CoCo Fresh Tea and Juice has no litigation to report. Neither the franchisor nor its executives have been involved in any legal cases that require disclosure.
Bankruptcy History
CoCo Fresh Tea and Juice has no bankruptcy history to report. Neither the franchisor nor its executives have been involved in any bankruptcy proceedings that require disclosure.
Agreement Terms
Initial Term
5 years
Renewal Term
3 years
Renewal Conditions
To renew their franchise agreement, CoCo Fresh Tea and Juice franchisees must notify the franchisor between 180 days and one year before their current agreement expires. They must have fully complied with the franchise agreement and all system standards throughout the initial term and be in complete compliance at the time of renewal. Franchisees are also required to maintain possession of their store, remodel it, or update it to meet CoCo Fresh Tea and Juice's then-current standards for new stores. They must sign the franchisor's current form of franchise agreement, which may have different terms. The Operating Partner and any Designated Managers must attend any required refresher training. Finally, the franchisee and its owners must sign guarantees and a general release of all claims against CoCo Fresh Tea and Juice and its related parties.
Training & Support Program
Franchisor Assistance
CoCo Fresh Tea and Juice provides its franchisees with a range of assistance. Before opening, the franchisor helps with site selection by accepting or rejecting proposed locations and provides specifications for store design, layout, and equipment. They review construction plans and inspect the store prior to grand opening. CoCo Fresh Tea and Juice also offers an Initial Training Program for the Operating Partner and Designated Manager (if applicable), which may take place in Taipei, Taiwan. Additionally, the franchisor provides Initial On-Site Assistance at the first store for 1 to 2 months, with one staff member offering advice and operational support. During operations, CoCo Fresh Tea and Juice advises franchisees based on reports and inspections, guiding them on operational standards, quality control, equipment maintenance, inventory management, supplier relations, and marketing strategies. Franchisees also receive access to the Operations Manual and rights to use the CoCo Fresh Tea and Juice trademarks.
Initial Training Hours
226
Training Location
A training facility in Taiwan or another location specified by CoCo Fresh Tea and Juice, which may include an operating franchise store.
Ongoing Support
CoCo Fresh Tea and Juice provides ongoing support to its franchisees by advising them on store operations based on reports and inspections. This guidance covers facility appearance, guest service, quality control, equipment maintenance, inventory management, supplier relations, and marketing strategies. Franchisees continue to have access to the Operations Manual and the right to use the CoCo Fresh Tea and Juice trademarks. The franchisor may also require the Operating Partner and Designated Managers to attend additional or refresher training courses, trade shows, educational programs, webinars, and periodic meetings with other franchise owners.
Franchise Requirements
Industry Experience Required
No
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
retail
Owner Participation
Full-Time
Territory Type
Protected
Territory Size Requirements
CoCo Fresh Tea and Juice typically defines a Protected Territory for each store, which usually covers a diameter of 0.5 miles around the location. However, this territory may be smaller in metropolitan or densely populated areas. If franchisees opt for an Exclusive Development Territory, its size is determined by factors like the area's population, demographics, and market conditions.
Staffing Notes
CoCo Fresh Tea and Juice requires that the franchisee's Operating Partner is solely responsible for managing and overseeing the franchise business. If the Operating Partner chooses not to supervise a store daily, a "Designated Manager" must be appointed and approved by CoCo Fresh Tea and Juice. Designated Managers are responsible for the day-to-day operations and must complete approved training, avoid competitive business activities, and sign non-disclosure agreements. The franchise business must always have at least one person who has completed the Initial Training Program on-site for direct supervision. Franchisees are solely responsible for all employment decisions, including hiring, firing, compensation, and training of their staff, and must ensure compliance with all applicable employment laws.