Franchise Facts Report → brands → Kung Fu Tea
Kung Fu Tea franchise — is it worth it?
Risk level — in the report
Kung Fu Tea is a bubble tea franchise in the food & beverage category, with an initial investment ranging from $169,000 to $378,000.
Unlock what the free page above only hints at:
- Risk & red-flag breakdown — what the missing earnings, fees and churn imply.
- How it compares — every number ranked against food & beverage peers (median & quartile).
- Litigation detail — beyond the case count above: each case, franchisee vs. corporate, with summaries.
- Outlet churn & the questions to ask — behind the net change above: closures, terminations, transfers, and what to put to the franchisor.
Figures above are as disclosed in Kung Fu Tea's most recent FDD (registered 2025). Source: California Dept. of Financial Protection and Innovation — Franchise Registration · filing app-32342. The risk level, the Item 19 figures, how it compares to peers, and the litigation & churn detail are in the full report.
Kung Fu Tea franchise profit — what the FDD discloses
Plainly: Kung Fu Tea does not disclose franchise profit or revenue. Its most recent FDD makes no Item 19 financial performance representation, so there is no franchisor-backed earnings figure for Kung Fu Tea — any number quoted elsewhere is an estimate, not a disclosure. The absence is itself worth weighing (many food & beverage franchisors do disclose), and the full report reads the risk signals Kung Fu Tea's FDD does contain — fees, litigation, and outlet churn — against peers. For brands that put earnings on paper, see Food & beverage franchises with disclosed Item 19 earnings.
Kung Fu Tea lawsuits & legal history (FDD Item 3)
Kung Fu Tea's most recently filed Franchise Disclosure Document (2025) does disclose 1 legal proceeding in Item 3 . Item 3 is the item where a franchisor must put its material legal history on the record. Two things it is not: it covers the franchisor and its predecessors, parents and affiliates, so a disclosed case is not necessarily a suit against Kung Fu Tea itself; and a disclosure is a fact, not a finding of wrongdoing — most entries are contract disputes with former franchisees, which every large system accumulates. The full Kung Fu Tea report lists each case with what it was about and how it ended, separates franchisee disputes from corporate and securities matters, and flags the ones a franchisee started — the split that actually matters, because franchisees suing their franchisor is the signal a buyer is looking for.
Kung Fu Tea closures & failure rate
Before you sign, Kung Fu Tea will hand you a list of current owners to call as references — and they choose who's on that list. It won't include the owners who quit, got bought out, or were forced out last year. The FDD does report that number, even though the reference list leaves those people off. Below is what Kung Fu Tea's most recent filing shows, and whether it's normal for a food & beverage of this kind.
The closest thing an FDD has to a failure rate is Item 20 — outlet openings, closures, terminations and non-renewals, reported by the franchisor. Kung Fu Tea's latest tables show a growing franchised network. The actual closure and termination counts, and how Kung Fu Tea's churn ranks against food & beverage peers, are in the full report.
The risk & red-flag breakdown, every figure ranked against food & beverage peers, litigation and churn detail — emailed as a PDF.
Who owns Kung Fu Tea?
Kung Fu Tea's franchise is offered by KF Tea Franchising LLC — the franchisor named on the cover of its most recently filed Franchise Disclosure Document (2025), and the entity a franchisee actually signs with. That name comes straight off the filing at CA DFPI; it identifies the franchisor, not necessarily the ultimate parent company behind it.
Compare Kung Fu Tea head-to-head
Food & beverage franchises at a similar investment level
Anyone weighing Kung Fu Tea is really weighing it against the other brands their money could go into. These are the closest by total initial investment (FDD Item 7), each with its own FDD-based page.
Kung Fu Tea franchise — frequently asked
Who owns Kung Fu Tea — who is the franchisor?
Kung Fu Tea's most recently filed FDD (2025) names KF Tea Franchising LLC as the franchisor — the entity you would actually sign the franchise agreement with, as stated on the disclosure document itself. A registry filing names the franchisor, not necessarily its ultimate parent company.
How much does a Kung Fu Tea franchise cost?
Kung Fu Tea's most recently filed FDD (Item 7) puts the total estimated initial investment at $169,000 – $378,000, with an initial franchise fee of $37,000 and a 4% royalty. That price is the franchisor's own estimate of what it takes to open, not a quote. The full report breaks down every fee line and benchmarks it against food & beverage peers.
How much profit does a Kung Fu Tea franchise make?
Kung Fu Tea makes no Item 19 financial performance representation, so there is no franchisor-disclosed revenue or profit figure for Kung Fu Tea at all — and profit would never be disclosed even where earnings are, because it depends on your rent, labour and how you operate. Any profit figure quoted elsewhere is an estimate, not a disclosure.
Does Kung Fu Tea disclose financial performance (Item 19)?
No — Kung Fu Tea's most recent FDD makes no Item 19 financial performance representation. Its absence is worth weighing; the report focuses on the verifiable risk signals instead.
Are there lawsuits against Kung Fu Tea?
Kung Fu Tea's most recently filed FDD (2025) discloses 1 legal proceeding in Item 3. Item 3 covers the franchisor, its predecessors, parents and affiliates — so a disclosed case is not necessarily a suit against Kung Fu Tea itself, and a disclosure is not a finding of wrongdoing. The full report lists each case, separates franchisee disputes from corporate and securities matters, and flags the franchisee-initiated ones.
Is Kung Fu Tea a good franchise to buy?
That comes down to how Kung Fu Tea's investment, earnings, litigation and franchisee churn stack up against food & beverage peers — which is exactly what the full report answers. For $99 you get the risk level and what's driving it, the actual Item 19 earnings (absent from this FDD), where every figure ranks against peers, and the specific questions to ask the franchisor before you sign.
Everything the sections above point to, in one place: Kung Fu Tea's risk level and what's driving it, what the missing Item 19 earnings imply, every figure ranked against food & beverage peers, and the litigation & churn detail — with the questions to put to the franchisor before you sign.
Get a free email when something changes on Kung Fu Tea or food & beverage: a new FDD registration, a new lawsuit, an outlet count that shifts, or Item 19 earnings going from undisclosed to disclosed. Pulled straight from the same registries every report is built on.