Risk Score
Pending analysis
Investment Range
$157,300 - $459,500
Franchise Fee
$38,000
Total US Locations
4
Business Summary
TeaCupFuls operates a business that offers artisan bubble teas, coffees, and various other caffeinated beverages. Franchisees will operate their location under the brand name 'TeaCupFuls', providing these drinks to customers.
Corporate History
TeaCupFuls Franchise, LLC was officially formed in Oregon on February 18, 2022, and began offering franchises in May 2022. The brand itself, TeaCupFuls, has been operating through an affiliate company, TeaCupFuls, LLC, in Bend, Oregon, since February 2017.
Financial Overview
Investment Range
$157,300 - $459,500
Franchise Fee (Low)
$38,000
Franchise Fee (High)
$48,000
Royalty %
6%
Marketing %
1%
Equipment Costs (Low)
$25,000
Equipment Costs (High)
$40,000
Working Capital
$40,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
TeaCupFuls' financial statements as of December 31, 2023, show a very limited cash balance of $519 and a negative owner's equity of $(50,294). While the company reported a net income of $32,157 for 2023, its total liabilities significantly outweigh its total assets. This indicates a weak financial position. The auditor's opinion did not include a specific going concern qualification, but the financial figures suggest the company operates with very low capital.
Financing Details
TeaCupFuls does not offer any direct or indirect financing to its franchisees. Additionally, TeaCupFuls does not guarantee any notes, leases, or other obligations for franchisees.
Performance Metrics
Total US Locations
4
Franchised Units
0
Corporate Units
4
Franchising Since
2022
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
TeaCupFuls has no litigation cases or legal disputes to report, as stated in their disclosure document.
Bankruptcy History
TeaCupFuls has no bankruptcy history to report for itself or its key executives, as stated in their disclosure document.
Agreement Terms
Initial Term
10 years
Renewal Conditions
To renew their franchise agreement, TeaCupFuls franchisees must provide advance notice between 90 and 180 days before their current term ends. They must be in full compliance with all contractual obligations to TeaCupFuls and third parties, and agree to renovate their business to meet the then-current brand standards. Franchisees will also need to sign TeaCupFuls' standard form of franchise agreement and related documents, which will include a personal guaranty, and execute a general release of any claims against TeaCupFuls and its affiliates.
Training & Support Program
Franchisor Assistance
Before a TeaCupFuls franchisee opens their business, TeaCupFuls assists with reviewing potential locations and providing advice. They also offer standard building plans, specifications, and a list of approved suppliers for equipment and inventory. Franchisees and up to two managers receive initial training at TeaCupFuls' headquarters or a designated business. TeaCupFuls also advises on the market introduction plan and provides one week of on-site support during the business opening. After opening, TeaCupFuls offers advice via phone or electronic communication for business development and problem-solving, with in-person support available for a fee. They may provide recommended pricing and administrative procedures, and they manage the Marketing Fund and maintain a brand website that includes the franchisee's business information.
Initial Training Hours
56
Training Location
Our Location, BEND, OR or Franchisee's Location.
Ongoing Support
After opening, TeaCupFuls offers advice to franchisees via telephone or electronic communication regarding improving and developing their business and resolving operational problems. In-person support for these matters is available for an additional fee. TeaCupFuls also provides recommended administrative, bookkeeping, accounting, and inventory control procedures, which may become mandatory System Standards. Additionally, TeaCupFuls manages the Marketing Fund and maintains a brand website that includes the franchisee's business information. While additional training programs are not currently required, TeaCupFuls reserves the right to implement them in the future for a fee.
Franchise Requirements
Ideal Candidate Profile
TeaCupFuls recommends that franchisees participate in the direct operation of their business, though it is not strictly required. Franchisees must designate a 'Principal Executive' who will be primarily responsible for the business and own at least 10% of it. This Principal Executive must successfully complete TeaCupFuls' initial training program and is expected to devote substantial time and attention to the business. They must also make reasonable efforts to attend all required in-person and remote meetings, including regional or national brand conferences.
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
Each TeaCupFuls territory will be defined by TeaCupFuls and will typically encompass an area with a population of approximately 50,000 people. While it is usually specified as a radius around the location, TeaCupFuls may use other boundaries like county lines, political boundaries, streets, geographical features, or trade areas.
Staffing Notes
TeaCupFuls provides franchisees with suggested staffing levels and hiring guidelines. The business must always be supervised on-site by either the Principal Executive or a general manager who has completed TeaCupFuls' training program. TeaCupFuls may also establish minimum qualifications for different categories of franchisee employees. Franchisees are solely responsible for all employment terms and conditions, including hiring, training, and termination, and must use their legal name on all employee documents, not the TeaCupFuls brand name.