The Spice & Tea Exchange Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$298,560 - $532,150
Franchise Fee
$29,062.5
Min Cash Required
$10,000
Total US Locations
94
Business Summary
THE SPICE & TEA EXCHANGE® stores are retail locations that sell a wide variety of spices, herbs, teas, spice blends, rubs, olive oil, and other related products and accessories. These stores operate in a distinctive and innovative environment, following the brand's specific designs, layouts, and operational procedures. THE SPICE & TEA EXCHANGE® offers franchises for individual stores and for area development, allowing franchisees to develop and operate multiple stores.
Corporate History
The Spice & Tea Exchange Franchising, LLC was formed in Florida on August 14, 2008. It began offering franchises for THE SPICE & TEA EXCHANGE® Stores on August 25, 2008. The company also owns and operates one company-owned store in Florida, which has been active since November 9, 2010. The franchisor is a subsidiary of The Spice & Tea Exchange Holdings, LLC, which was also formed on August 14, 2008. A predecessor company, Old Spice Traders, Inc. (OSTI), was incorporated on July 7, 2007, and was involved in franchising similar stores before being dissolved in December 2008, assigning its franchise agreements to THE SPICE & TEA EXCHANGE FRANCHISING, LLC.
Financial Overview
Investment Range
$298,560 - $532,150
Franchise Fee (Low)
$29,062.5
Franchise Fee (High)
$38,750
Minimum Cash Required
$10,000
Royalty %
7%
Marketing %
1%
Equipment Costs (Low)
$104,000
Equipment Costs (High)
$238,000
Working Capital
$30,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
THE SPICE & TEA EXCHANGE FRANCHISING, LLC's financial statements show a significant decrease in Member's Equity, which became negative in 2024 at $(468,730) compared to $892,059 in 2023 and $4,675,063 in 2022. The company also experienced a net decrease in cash and cash equivalents in both 2024 and 2023. These changes appear largely influenced by substantial member distributions, which were $3,000,000 in 2024 and over $5,700,000 in 2023, far exceeding the net income for those years.
Financing Details
THE SPICE & TEA EXCHANGE FRANCHISING, LLC does not offer any direct or indirect financing. The franchisor also does not guarantee any franchisee's notes, leases, or other financial obligations.
Performance Metrics
Total US Locations
94
Franchised Units
93
Corporate Units
1
Avg Square Footage
1,500
Franchising Since
2008
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
THE SPICE & TEA EXCHANGE FRANCHISING, LLC has no litigation to report. Item 3 of the Franchise Disclosure Document states that no litigation is required to be disclosed.
Bankruptcy History
THE SPICE & TEA EXCHANGE FRANCHISING, LLC has no bankruptcy history. Item 4 of the Franchise Disclosure Document states that no bankruptcy information is required to be disclosed.
Agreement Terms
Initial Term
10 years
Renewal Term
5 years
Renewal Conditions
To renew, The Spice & Tea Exchange franchisees must: (a) notify the franchisor in writing at least 180 days before the current agreement expires; (b) demonstrate the right to operate the store at the approved location (or a suitable alternative) for the renewal term; (c) complete all required renovations to meet current System Standards at least 90 days prior to expiration; (d) be in compliance with all agreements with the franchisor, its affiliates, and major suppliers; (e) satisfy all monetary obligations to these parties; (f) sign the franchisor's then-current franchise agreement, which may have materially different terms; (g) meet current training requirements for renewing franchisees at their own expense; (h) sign a general release; and (i) pay a successor fee of $10,000 for each renewal term.
Training & Support Program
Franchisor Assistance
THE SPICE & TEA EXCHANGE FRANCHISING, LLC provides pre-opening assistance with site selection, lease approval, and the sale and delivery of the Establishment Package, which includes initial inventory, operational tools, POS system, manuals, marketing materials, reference materials, and initial training. The initial training, called "Spice UniversiTea," consists of approximately 32 to 42 hours of classroom training for the franchisee and up to two approved designees, covering business systems, inventory, marketing, and product knowledge. Additionally, the franchisor provides an "Opening Team" for 71 to 110 hours of on-site assistance during the store opening. Post-opening, the franchisor offers ongoing guidance on operations, purchasing, inventory, supplier use, employee training, and administrative procedures through manuals, bulletins, and consultations. It also manages the System Development Fund for advertising and marketing, hosts the official website where stores are listed (providing a 20% sales commission for referred customers), and may offer additional training or annual conferences for a fee.
Initial Training Hours
152
Training Location
St. Augustine, FL or other location designated by us
Ongoing Support
After opening, THE SPICE & TEA EXCHANGE FRANCHISING, LLC provides ongoing support by advising franchisees on store operations based on submitted reports and inspections. This guidance covers System Standards, purchasing, inventory management, supplier usage, employee training, and administrative procedures, delivered through manuals, bulletins, or consultations. The franchisor also establishes and manages the System Development Fund for system-wide advertising and marketing. Ongoing training is provided as deemed necessary, and franchisees may be required to attend annual conferences (with franchisees responsible for associated costs and a fee).
Franchise Requirements
Ideal Candidate Profile
THE SPICE & TEA EXCHANGE FRANCHISING, LLC seeks franchisees who meet their educational, managerial, and business standards. Ideal candidates should possess a good moral character, business reputation, and credit rating, along with the aptitude and ability to operate the business. They must have adequate financial resources to meet the performance obligations of the franchise agreement. If the franchisee is a business entity, a principal owner with at least a 20% ownership interest must have day-to-day management responsibility for the store, be actively involved in operations, and sign a Confidentiality Agreement. Transferees specifically must not be in the same business as THE SPICE & TEA EXCHANGE FRANCHISING, LLC.
Industry Experience Required
No
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
Yes
Operational Details
Location Type
retail
Owner Participation
hands-on
Territory Type
protected
Territory Size Requirements
THE SPICE & TEA EXCHANGE FRANCHISING, LLC grants a minimum protected area of a one-mile radius from the center of the store's site. However, in urban areas, the franchisor reserves the right to designate a smaller radius or a different method of measuring the protected area. While the franchisor will not operate or grant another franchise for a fixed location within this protected area, franchisees will not receive an exclusive territory and may still face competition from other channels of distribution or competitive brands controlled by the franchisor outside of the fixed-location restriction.
Staffing Notes
THE SPICE & TEA EXCHANGE FRANCHISING, LLC requires that a store always be managed by an owner who has completed the initial training, and staffed by employees who are properly trained on the brand's operational standards. Franchisees (or their Principal Owners) maintain sole authority and control over the day-to-day management and operation of the store, including all employment decisions such as hiring, firing, training, compensation, and compliance with labor laws. Managerial employees must sign a Confidentiality and Restrictive Covenant Agreement.