Sharetea Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$224,600 - $1,460,200
Franchise Fee
$12,000
Total US Locations
153
Business Summary
Sharetea operates food service establishments specializing in gourmet coffees and teas, coffee or tea-based beverages, bubble tea, and compatible food products. The business also offers coffee and tea makers, related supplies, accessories, and gifts.
Corporate History
Lilian USA LLC, which operates as Sharetea, was formed in Delaware on March 20, 2015. The company's parent, Lian Fa International Dining Business Corporation, was established in Taiwan in 1992 and has been offering Sharetea franchises internationally. Since May 2015, Lilian USA LLC and its parent company have opened approximately 400 tea shops worldwide. Lilian USA LLC's primary business activity is franchising tea shops, and it currently does not operate any company-owned Sharetea locations in the U.S.
Financial Overview
Investment Range
$224,600 - $1,460,200
Franchise Fee (Low)
$12,000
Franchise Fee (High)
$12,000
Royalty %
6%
Equipment Costs (Low)
$104,600
Equipment Costs (High)
$937,200
Working Capital
$50,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Lilian USA LLC appears to be in a strong financial position, evidenced by its unqualified audit opinions for the fiscal years ending December 31, 2024, 2023, and 2022. The company reported positive net income, with $899,373 in 2024 and $1,401,702 in 2023. It maintains a healthy cash and cash equivalents balance, which increased significantly from $1,667,397 in 2023 to $3,907,960 in 2024. The company also has substantial deferred revenue, totaling over $1.1 million in 2024, indicating future recognized income from franchise fees. While the company holds significant uninsured cash balances in both U.S. and Taiwan financial institutions, this represents a risk management consideration rather than a fundamental weakness in its financial health. There are no 'going concern' qualifications or other material financial difficulties noted by the auditors.
Financing Details
Sharetea does not offer any direct or indirect financing to its franchisees. This includes not guaranteeing any notes, leases, or other financial obligations for franchisees. Franchisees are responsible for securing their own financing, and their ability to do so will depend on their individual financial strength.
Performance Metrics
Total US Locations
153
Franchised Units
153
Corporate Units
0
Franchising Since
2015
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
6
Litigation Summary
Sharetea has been involved in several legal matters, some recently concluded and others ongoing. One case, Diana Huynh v. Selin Degirmenci, et al., was filed in Texas in December 2021, related to a civil claim for damages, and was dismissed in October 2022 after a settlement. Another case involved a Sharetea franchisee, Tenmei Group, LLC, which filed a lawsuit in Washington in August 2019, alleging territory violation; Sharetea counterclaimed trademark infringement, and the parties eventually reached a settlement. Sharetea's parent company, Lian Fa International Dining Business Corporation, filed a civil claim of trademark infringement and misleading conduct in Australia in October 2021, which was ongoing but settled in June 2024. Sharetea was also subject to a government investigation starting in August 2019 by the Attorney General regarding its hiring practices, specifically a no-poaching provision, which Sharetea resolved by entering an Assurance of Discontinuance. Additionally, Sharetea is cooperating with an investigation initiated by the State of Hawaii in March 2021 concerning its prior franchise activity. Lastly, Sharetea filed a civil lawsuit in California in October 2021 against Yucheng Liu and Coolblue International, Inc., alleging trademark infringement and trade dress violations, with settlement discussions currently ongoing.
Bankruptcy History
Sharetea has no bankruptcy history to disclose.
Agreement Terms
Initial Term
5 years
Renewal Term
5 years
Renewal Conditions
To renew the franchise agreement for an additional five-year term, Sharetea franchisees must submit a written renewal request at least twelve months before their initial term expires. They must be in full compliance with the existing agreement, meaning no uncured defaults, and have consistently met all Sharetea System Standards. Renewal also requires the franchisee to sign Sharetea's most current form of franchise agreement and related documents, complete any additional training or upgrades deemed necessary by Sharetea, and pay a renewal fee.
Training & Support Program
Franchisor Assistance
Before opening, Sharetea provides support by approving the franchisee's chosen location, offering standard plans and specifications for the tea shop, and conducting an initial training program at the franchisee's U.S. location. They also provide on-site pre-opening assistance, advertising and promotional materials templates, an operations manual, and advice regarding authorized suppliers for equipment and materials. After the tea shop opens, Sharetea endeavors to maintain an ongoing advisory relationship, offering general guidance on operations, marketing, and inventory management. They also provide and update system standards, conduct quality control inspections, review local advertising, and issue manual updates. Additionally, Sharetea may, at the franchisee's request, provide additional on-site consultation for a fee.
Initial Training Hours
92
Training Location
Franchisee's location in the United States
Ongoing Support
After a Sharetea tea shop opens, Sharetea provides ongoing support and guidance, though the nature and frequency are at its discretion, including recommendations on operations, marketing, and inventory management. Sharetea also maintains and updates system standards through its operating manual and other communications, and may conduct quality control inspections. It reviews and approves local advertising materials and periodically updates the operating manual. On-site post-opening assistance may be provided at the franchisee's request, for which a daily fee plus travel expenses are charged.
Franchise Requirements
Ideal Candidate Profile
Sharetea seeks qualified individuals who are committed to personally managing and operating their tea shop with best efforts. Ideal candidates must be willing to devote sufficient time and resources to ensure full compliance with the Sharetea System standards for service, quality, and cleanliness. They must be personally involved in all facets of the business, especially initially, as it can require many long hours. Candidates or their designated Principal Operators must complete Sharetea's training program, supervise, train, and evaluate their employees, and be fluent in English to communicate effectively with staff, customers, and suppliers. The business requires a firm, personal commitment.
Industry Experience Required
No
Management Experience Required
Yes
Sales Experience Required
Yes
Technical Skills Required
No
Operational Details
Location Type
Retail
Owner Participation
Hands-On
Territory Type
Protected
Territory Size Requirements
Sharetea offers a 'Protected Territory' which is defined as the smaller of either a 7-mile radius around the tea shop location or the same zip code, village, city, or county as the tea shop.
Staffing Notes
Sharetea requires its franchisees or their designated Principal Operators to actively supervise, train, and evaluate employees to ensure competent and efficient customer service. During initial training, a minimum of three personnel from the franchisee's team are required to be trained together. All franchisees and their tea shop managers must be fluent in English to effectively complete the training program and communicate with employees, customers, and suppliers. The business demands significant personal involvement and a firm commitment, potentially requiring many long hours from the owner, especially at the outset.