Looking to ride the wave of America's bubble tea obsession? 

You're onto something smart. 

The boba business is absolutely booming right now, with the global market set to hit $4.5-5.5 billion by 2030 with roughly 8-9% annual growth.

I've put together this comprehensive guide to help you navigate the top bubble tea franchise opportunities. 

Whether you're a first-time business owner or a seasoned entrepreneur looking to diversify, I'll walk you through everything you need to know about getting into this sweet, profitable space.

Bubble Tea Boom: Why Franchising is a Sweet Opportunity

The U.S. bubble tea market has exploded in popularity, making now an ideal time to invest in a franchise. 

These colorful, customizable drinks have captured the hearts (and Instagram feeds) of younger generations – a whopping 94% of 20–29 year-olds purchased boba in the last 3 months.

What makes franchising particularly attractive in this space? 

Instead of starting from scratch, you can tap into established brands with proven menus, loyal followings, and turnkey operations. 

The infrastructure is already there – you just need to execute well.

What to Consider When Choosing a Bubble Tea Franchise

When evaluating bubble tea franchise opportunities, keep these key comparison points in mind:

Initial Investment & Franchise Fees

Start-up costs vary widely. 

Most bubble tea franchises require a total investment between ~$150,000 and $500,000 to launch. 

This covers equipment, build-out, inventory, and other essentials. 

Smaller brands like Boba Loca can start under $100K, while prime locations for larger brands can exceed $300K.

Franchise fees (the upfront fee to license the brand) typically run $20K–$40K – for example, Happy Lemon charges $40K, while Kung Fu Tea asks for $37K. 

Make sure your budget aligns with the franchise's required liquid capital and net worth requirements as well.

Royalty and Marketing Fees

Beyond the initial investment, you'll pay ongoing royalties (usually a percentage of sales) and often marketing fund fees. 

Bubble tea royalties generally fall around 4%–7% of gross sales. Kung Fu Tea charges 4%, while Happy Lemon takes 7%. Marketing fees average 1%–2%.

These fees fund corporate support and promotion, so factor them into your profit projections from day one.

Training & Support

A strong franchisor provides comprehensive training, operational manuals, and ongoing support. 

Look for franchises offering initial training programs, marketing assistance, supply chain help, and field operations coaching.

For example, Gong cha requires new U.S. owners to attend a 14-day training in New York, while Tapioca Express provides hands-on support through grand opening with corporate staff on-site. This support can dramatically smooth your launch and early growth.

Brand Recognition & Customer Base

One major advantage of franchising is leveraging an established brand. 

Well-known bubble tea brands come with built-in customer trust and marketing momentum.

Kung Fu Tea's strong brand presence (America's #1 boba franchise) draws fans nationwide, while global names like Chatime and Gong Cha benefit from international recognition. 

A recognizable name helps attract customers faster – crucial in competitive urban markets.

Menu Innovation & Quality

The bubble tea craze thrives on innovation – new flavors, toppings, and limited-edition drinks drive repeat traffic. 

The best franchises continuously update menus and maintain high quality standards.

Consider whether a franchisor's product lineup will appeal to your local audience and keep customers excited. 

Happy Lemon pioneered the salted cheese foam tea craze, while Gong cha offers 600+ drink combinations allowing extensive customization.

Growth Potential & Territory

Evaluate each franchise's growth trajectory and available territories. 

Some brands are rapidly expanding into new states, while others may be saturated in certain cities.

A younger franchise might offer more open territory (and potentially lower costs), whereas an established one might have limited availability in your area. 

Make sure the franchise has room to grow in your desired market.

Profitability Factors

Ultimately, you want a franchise that turns a good profit. 

Bubble tea shops benefit from relatively low ingredient costs and flexible store formats, which can yield healthy margins.

Many successful boba tea shops report net profit margins around 15%, higher than typical cafés. 

Profitability depends on strong sales, which ties back to location, brand popularity, and your management skills.

Top Bubble Tea Franchises in the U.S.

Now let's dive into the leading bubble tea franchise brands across the United States, including both homegrown American brands and famous international chains.

Kung Fu Tea

Overview: Founded in 2010 in New York City, Kung Fu Tea has grown to 375+ locations worldwide (over 250 in the U.S.), making it the largest domestic bubble tea franchise. 

It's known as an "OG" pioneer in the U.S. boba scene with a cult-like following.

Investment & Fees: Total initial investment ranges $124,000–$428,000, including build-out. 

The franchise fee is $37,000 with a 4% royalty. Kung Fu Tea expects franchisees to have $100K+ in liquid capital.

Why It Stands Out: This brand emphasizes a "fresh, innovative, fearless" ethos. 

Shops brew fresh tea every 3 hours and use quality ingredients, yielding strong customer loyalty. 

Kung Fu Tea provides a proven 10-step franchise training program and encourages multi-revenue streams. 

New franchisees join an active community with mentorship from veteran owners.

Growth & Outlook: Kung Fu Tea continues expanding across the U.S., targeting high-traffic locations in cities and suburbs. 

It has built brand partnerships (like with TKK Fried Chicken in co-branded stores) and engages customers with mobile apps and rewards.

Gong cha

Overview: Founded in 2006 in Taiwan, Gong cha is one of the world's largest bubble tea brands with 1,650+ stores in 20+ countries. 

It entered the U.S. around 2014 and has been steadily growing, with franchise locations now in New York, Texas, California and more.

Investment & Fees: U.S. franchisees invest about $177,000–$335,000 to open a store, with a $41,500 franchise fee. 

Required liquid capital is ~$150K. Ongoing royalties are 6% of sales, plus ~2% marketing fee.

What Makes Gong cha Unique: Renowned globally for its premium teas and innovative drinks, Gong cha maintains strict quality control – tea is brewed every four hours and tapioca pearls discarded after a few hours to ensure freshness. 

They offer 600+ drink combinations, driving repeat visits.

Franchisee Support: New U.S. franchisees attend an intensive training program in New York City covering operations and management. 

Gong cha assists with store design, supplier sourcing, and has regional support teams. 

With major markets still available, Gong cha offers solid growth potential.

Chatime

Overview: Chatime is a global powerhouse originating from Taiwan in 2005. 

It has 3,500+ locations in 58 countries – currently the world's largest bubble tea franchise by store count. 

In the U.S., Chatime has established a presence in states like California, New York, and Texas.

Investment & Fees: The U.S. investment range is roughly $180,000–$500,000. The franchise fee is around $30,000–$40,000, with royalties ~5% and marketing ~2%.

Highlights: Chatime is known for constant innovation. It launches creative products like the high-end "Atelier by Chatime" lounges featuring premium brews, and maintains an experimental R&D pipeline for new flavors. 

The brand boasts a huge social media following (over 1 million globally) and engages younger audiences with visually appealing drinks and campaigns.

Franchise Model: Chatime offers flexible store formats and assists heavily with real estate selection, build-out, and training. 

As an owner, you benefit from its global branding – many customers already recognize Chatime as a top boba brand.

Sharetea

Overview: Sharetea was founded in 1992 in Taiwan. 

With 30+ years in the industry, it's a well-established brand globally, now with over 600 stores in 18+ countries. 

It's loved for its authentic tea flavors and wide range of drinks from classic milk teas to fruit teas.

Investment & Fees: The minimum total investment is around $300,000. 

Notably, Sharetea's franchise fee is $22,500 – lower than many competitors. Royalty is 5% of gross sales. 

They require about $100K liquid capital available.

Franchisee-Friendly Approach: Sharetea prides itself on being very accessible and supportive to new owners. 

The application process is straightforward, and they even provide a downloadable franchise starter kit online. 

Unlike some franchisors, Sharetea is open to franchisees with no prior food experience – they focus more on passion and commitment.

Brand & Menu: Sharetea's menu focuses on authenticity – many recipes originate from Taiwan. They use fresh ingredients and allow some drink customization. 

For an investor, Sharetea offers a balance of moderate costs, strong brand reputation, and a supportive franchisor.

Happy Lemon

Overview: Happy Lemon is an international bubble tea chain founded in 2006 by the Yummy-Town Group. 

It operates 1,500+ stores worldwide across 21 countries and is especially big in Asia. 

In the U.S., Happy Lemon has been expanding since around 2015 and now has ~50 locations.

Investment & Fees: To open a Happy Lemon in the U.S., expect an initial investment between $309,000 and $509,000. 

The franchise fee is $40,000 and the royalty is on the higher side at 7% of gross sales. 

They also charge a 2% marketing fee.

Signature Products & Innovation: Happy Lemon sets itself apart with unique menu items like Rock Salt Cheese Tea and other flavor innovations. 

They continually roll out new concoctions and seasonal offerings, backed by 20+ years of tea R&D. 

The brand's fun, bright image is very catchy, attracting a younger crowd.

Franchise Support: Happy Lemon offers a robust support system to ensure consistency. 

They have what they call the Five-G framework – Good People, Good Products, Good Service, Good Brand, Good Logistics. 

New owners receive extensive training and ongoing quality audits.

7 Leaves Cafe

Overview: 7 Leaves Cafe is a fast-growing American brand that merges coffee and Asian tea culture. 

Founded in 2011 in California, 7 Leaves began franchising in 2017 and now has about 20 franchised units across California, Nevada, Texas and beyond.

Investment & Fees: Initial investment to open a 7 Leaves ranges roughly $200,000–$450,000, with a franchise fee of $35,000 and 5% royalty.

Culture & Values: 7 Leaves' motto is "taking care of one another" – they emphasize community, humility, and customer service in their culture. 

They focus on a simplified menu of high-quality brewed teas, signature mung bean and taro drinks, plus espresso beverages.

Why Consider 7 Leaves: If you're in a region where 7 Leaves is known, you'd be franchising a brand that has a modern café vibe and appeals to both bubble tea fans and coffee lovers. 

The mix of drink options broadens your customer base beyond just boba seekers.

Bambu Desserts & Drinks

Overview: Bambu started in 2008 in California, bringing Vietnamese Chè (dessert drinks) into the bubble tea shop format. 

It now has 50+ locations across the U.S. Bambu shops sell boba teas, authentic Vietnamese Che dessert drinks, smoothies, and Vietnamese coffees.

Investment & Fees: The initial investment is about $135,000–$318,000, making Bambu one of the lower-cost entries. 

The franchise fee is $81,500, but unique in Bambu's model: they do not charge a percentage royalty of sales. 

Instead, they have a fixed monthly royalty (about $800/month). 

This flat royalty structure can be advantageous – as your sales grow, you're not paying more in royalties.

Key Features: Bambu is known for its inclusive, customizable menu that caters to various dietary needs – many offerings are vegan-friendly, gluten-free, dairy-free. 

Customers can mix and match ingredients to build their own Che or boba drinks.

Is Bambu for You? If you're looking for a lower investment, no-percentage-royalty franchise and have a community with an appetite for Pan-Asian desserts and drinks, Bambu is very attractive. 

The absence of a 6–8% royalty could save you tens of thousands annually once your store is established.

Emerging & Niche Bubble Tea Franchises to Watch in 2025

While the giants dominate the market, a new wave of bubble tea franchises is rising – often with lower entry costs or unique concepts. 

These emerging brands could offer savvy investors a chance to get in early on the "next big thing." A few to keep on your radar:

• Junbi (Matcha Café) – Founded in 2017 in California, Junbi specializes in premium matcha-based drinks alongside classic boba teas. Backed by social media influencers and YouTubers, Junbi has grown a cult following for its vibrant matcha lattes.

• Wushiland Boba – A famous Taiwanese brand (est. 1994) known for traditional hand-shaken teas, Wushiland expanded to the U.S. in 2016 and operates several stores in Southern California. It carries strong nostalgia appeal for those who know the brand from Asia.

• Ume Tea – An innovative newcomer founded in 2019 in Silicon Valley, Ume Tea blends bubble tea with tech-driven efficiency. Their concept applies engineering principles to drink-making, promising consistency and fast service.

• Teaspoon – A rapidly growing boutique chain from California, Teaspoon offers an upscale, "craft bubble tea" experience. They use high-quality ingredients and have chic, Instagrammable stores.

• Yi Fang Taiwan Fruit Tea – Originating from Taiwan with a storied recipe background, Yi Fang has popped up in many U.S. cities through regional franchisees. It's known for authentic fruit teas and traditional flavors made without powders.

These up-and-coming franchises often require more groundwork from franchisees (since the brands are less established). 

However, they can offer advantages like lower fees, fresher territories, or a distinctive niche that help you stand out.

Frequently Asked Questions (FAQs) about Bubble Tea Franchises

How much does it cost to open a bubble tea franchise?

Startup costs vary by brand and location. 

In general, you'll need anywhere from around $100,000 on the low end up to $500,000+ for a full build-out in a prime area. 

Most established franchises fall in the ~$150K–$350K total investment range for a single unit. 

This includes the franchise fee, equipment, leasehold improvements, initial inventory, and opening marketing.

Are bubble tea franchises profitable?

They certainly can be. Many bubble tea shops enjoy healthy gross margins because ingredient costs are relatively low – a cup that sells for $5 might only have $1 or less in ingredients. 

Successful franchises often report net profit margins around 15% (after rent, labor, royalties, etc.), which is higher than the average coffee shop.

Which bubble tea franchise is the best in the U.S.?

"Best" depends on what you're looking for. In terms of size and brand power, Kung Fu Tea is the #1 U.S. franchise with the most locations and a strong track record. 

Gong cha and Chatime are top contenders if you value global brand recognition and robust corporate support. 

If you're looking for lowest cost, concepts like Tapioca Express (with low fees and royalties) might be "best" for your budget.

Do I need food or retail experience to open a bubble tea franchise?

Not necessarily. Most bubble tea franchisors do not require prior restaurant experience – they provide training on how to make the drinks, manage the store, and run the business. 

For instance, Kung Fu Tea is open to first-time owners as long as they are passionate and meet financial criteria. 

That said, having some background in food service or small business management is definitely an asset.

How long does it take to open a bubble tea franchise, from signing to serving?

On average, expect about 4 to 8 months from the time you sign a franchise agreement to your grand opening day. 

This timeline can vary. 

Construction and permits are the big variable – a simple kiosk build in a mall could be done in a couple months, whereas a full build in a new retail space might take 6+ months.

Expert Tips for Prospective Bubble Tea Franchisees

Embarking on a bubble tea franchise is exciting, but it's important to approach it strategically. Consider these expert tips to strengthen your business plan:

Do Your Local Market Research: Before committing, study your area's bubble tea scene. How many existing shops are there and what brands? Is demand growing? Visit local Asian supermarkets, college campuses, and popular hangouts to gauge interest – if you see lots of boba cups around, that's a good sign!

Choose the Right Location: Location can make or break a café. Ideal spots are high-foot-traffic areas like shopping centers, busy streets, near universities or schools, or inside malls. A slightly more expensive rent is often worth it if it brings significantly more customers.

Leverage Franchise Marketing: Use the marketing tools and campaigns your franchisor provides – they've likely refined strategies that work. Local store marketing is key too: consider offering grand opening specials, partnering with nearby businesses or schools, and participating in community events to build awareness.

Maintain Quality & Consistency: No matter which franchise you choose, consistency is critical. Follow the recipes and operational standards given by the franchisor closely – bubble tea fans can tell when something is "off" (too much sugar, pearls overcooked, etc.). Ensure you or your manager is routinely training the staff on drink preparation and customer service.

Watch the Numbers: As with any business, keep a close eye on your finances. Track daily sales, prime costs (COGS + labor), and adjust as needed. Bubble tea has good margins, but labor can creep up if employees aren't managed well. Use your POS data to identify peak times and schedule staff smartly.

Network with Fellow Franchisees: Make use of the franchise network. Other franchise owners can be invaluable sources of advice since they've been through the same process. Join any franchisee groups, attend annual franchise conventions, and don't hesitate to call a peer for tips.

By following these guidelines and fully utilizing the resources at your disposal, you'll increase your chances of turning your bubble tea franchise into a thriving, profitable venture. 

Remember, the franchises highlighted in this article each have their own strengths – but your execution of the business is what truly drives success.

Bubble Tea Franchise Comparison Table

This table gives you a quick overview of the financial requirements and scale of each franchise option. 

As you can see, there's quite a range in terms of investment levels and fees.

With the bubble tea industry booming and projected to keep growing, now is an excellent time to consider jumping into this sweet business opportunity. 

Whether you choose an established giant like Kung Fu Tea or an emerging brand with a unique angle, the potential for success is significant with the right location, management, and customer experience.