Risk Score
Pending analysis
Investment Range
$186,000 - $565,000
Franchise Fee
$30,000
Total US Locations
9
Business Summary
Te'Amo Boba Bar operates a restaurant that specializes in offering bubble tea and a variety of desserts. This includes items such as cakes, small treats, donuts, and self-serve soft serve ice cream.
Corporate History
Te'Amo Franchising LLC was formed as an Illinois limited liability company on June 15, 2022. While the franchisor itself has not operated a Te'Amo restaurant, companies related by common ownership have been operating Te'Amo restaurants since February 2018. Te'Amo Franchising LLC began offering franchises for sale in August 2023.
Financial Overview
Investment Range
$186,000 - $565,000
Franchise Fee (Low)
$30,000
Franchise Fee (High)
$40,000
Royalty %
5%
Marketing %
1%
Equipment Costs (Low)
$71,000
Equipment Costs (High)
$320,000
Working Capital
$30,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Te'Amo Franchising LLC's financial statements have received an unqualified opinion from their independent auditor, indicating that the financials are presented fairly in all material respects. As of December 31, 2023, Te'Amo Franchising LLC reported strong working capital with current assets significantly exceeding current liabilities. The management's evaluation did not identify any conditions or events that raise substantial doubt about the company's ability to continue as a going concern for the upcoming year.
Financing Details
Te'Amo Franchising LLC does not offer any direct or indirect financing to its franchisees. Additionally, Te'Amo Franchising LLC will not guarantee any loans, leases, or other financial obligations incurred by the franchisee.
Performance Metrics
Total US Locations
9
Franchised Units
0
Corporate Units
9
Avg Square Footage
1,450
Franchising Since
2023
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Te'Amo Franchising LLC has no litigation that is required to be disclosed in Item 3 of its Franchise Disclosure Document. This indicates that Te'Amo Franchising LLC has a clean legal record with no lawsuits or legal disputes to report.
Bankruptcy History
Te'Amo Franchising LLC has no bankruptcy history to report. No bankruptcy information is required to be disclosed for the company or its key personnel.
Agreement Terms
Initial Term
7 years
Renewal Term
7 years
Renewal Conditions
To renew their Te'Amo Boba Bar franchise agreement, franchisees must provide written notice of their intent to renew between six and twelve months before the current term expires. They must have substantially complied with all terms of their franchise agreement and other agreements with Te'Amo Franchising LLC or its affiliates. Franchisees are also required to sign a new franchise agreement and a general release of claims. Additionally, they must refurbish, remodel, and replace furnishings and equipment at their location to meet Te'Amo Boba Bar's then-current brand standards. The renewal fee is 25% of the initial franchise fee for a non-discounted first franchise.
Training & Support Program
Franchisor Assistance
Te'Amo Franchising LLC provides extensive support to its franchisees. Before opening, Te'Amo Boba Bar assists with site selection and lease approval and offers an initial training program for up to five people. They also provide pre-opening and opening supervision and assistance at the franchisee's location. Franchisees receive names of approved suppliers and written specifications for equipment, signs, fixtures, and initial inventory. Ongoing support includes continuing advisory services by phone or virtual means, additional assistance upon request or if the business operates below standards, and access to advertising and marketing materials through the Brand Fund. Te'Amo Boba Bar also loans franchisees a copy of its Operations Manual, which is periodically updated.
Initial Training Hours
155
Training Location
Chicago, Illinois
Ongoing Support
After opening, Te'Amo Boba Bar franchisees receive continuing advisory service via telephone or virtual means from the franchisor's home office. Additional assistance can be provided upon the franchisee's request or if Te'Amo Boba Bar determines the business is operating below required standards, though additional fees and expenses may apply. Franchisees also gain access to advertising and marketing materials developed using Brand Fund contributions. They are loaned an Operations Manual, which is updated periodically, and must participate in up to five days of annual refresher training and an annual national business meeting or convention, for which travel and living expenses are the franchisee's responsibility.
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
Hands-On
Territory Type
Non-Exclusive
Staffing Notes
Te'Amo Boba Bar requires franchisees to personally participate in the direct operation of their franchised business, recommending on-premises supervision. If a franchisee does not personally supervise, they must employ a manager to assist them or their managing shareholder, member, or partner in operating the business. All managers must successfully complete the initial training program and sign a confidentiality and non-competition agreement prescribed by Te'Amo Boba Bar. Te'Amo Boba Bar does not require the on-premises supervisor to have an equity interest in the franchised business.