How to Finance a Boba Cucue Franchise: Bubble Tea Build-Outs
By Anthony Cornella
A Boba Cucue franchise loan usually pays for a leased bubble tea café: the franchise fee, the build-out of a small retail space, the tea bar and refrigeration equipment, opening supplies and the working capital to carry the shop until sales settle into a rhythm. Because the brand is listed on the SBA Franchise Directory, SBA financing is an available route for qualified buyers.
This article explains what to look for in the franchisor’s disclosure document, how a bubble tea shop’s costs break down, what the SBA directory note about the brand’s lease rider means and how lenders review a Boba Cucue deal.
US Professional Funding is not affiliated with, sponsored by or endorsed by Boba Cucue; the name is used only to describe the business. Figures from the franchisor’s disclosure document can change, loan programs and terms vary by lender and borrower, and every loan is subject to review and approval. Nothing here is legal, tax or investment advice; review the current Franchise Disclosure Document (FDD) and franchise agreement with a qualified franchise attorney and accountant.
Boba Cucue Franchise Loan at a Glance
- Concept: a bubble tea café brand offering tea drinks with boba and other toppings.
- SBA Franchise Directory: listed as “Boba Cucue” (code S8163), with a note about the brand’s Rider to Lease Agreement when real estate secures the loan.
- Fees and investment: request the current FDD from the franchisor and read Items 5, 6 and 7 for the franchise fee, royalty and estimated initial investment.
- Typical financing: SBA 7(a) for leased locations; SBA 504 or conventional loans where the owner buys the building.
- Key cost drivers: leasehold improvements, beverage and refrigeration equipment, signage, opening inventory and working capital.
What Is Boba Cucue?
Boba Cucue is a franchised bubble tea brand. Its shops serve made-to-order tea drinks with tapioca pearls and other toppings, along with related beverages and snacks, in a small café format. Because the brand is on the SBA Franchise Directory, its franchise agreement has been reviewed for SBA eligibility.
The franchisor does not appear to publish detailed franchise figures online, so the FDD is the source for the brand’s history, the number of open units, fees, the investment range and the obligations of an owner. Ask for the most recent version and read Items 1 through 3 for background on the franchisor and its leadership, and Item 20 for open, closed and transferred units.
Why lenders view a bubble tea franchise the way they do. Lenders see a relatively compact restaurant concept: a smaller footprint and simpler kitchen than a full-service restaurant, with drink-driven sales. The risks they focus on are the strength of the location, the lease terms, competition from other tea and coffee shops, and the owner’s ability to manage labor in a business with busy peaks. A younger or smaller brand puts more weight on the borrower’s experience and liquidity.
Boba Cucue Franchise Costs
Initial franchise fee. Item 5 of the FDD states the fee, when it is paid and whether any portion is refundable. Check whether a different fee applies to additional units or development agreements.
Leasehold improvements. Most bubble tea shops are in leased retail space, often strip centers or high-traffic urban storefronts. Build-out typically covers plumbing for multiple sinks and drink stations, electrical capacity for refrigeration and cooking equipment, flooring, a service counter, seating and the brand’s interior design. Landlord improvement allowances can reduce the amount you need to finance. Our article on restaurant build-out financing explains how lenders fund this work.
Equipment. A tea bar commonly needs commercial refrigerators and freezers, ice machines, tea brewers, tapioca cookers, sealing machines, blenders, water filtration, a point-of-sale system and menu boards. Item 7 and the franchisor’s equipment list will show what is required.
Opening inventory and supplies. Tea leaves, toppings, syrups, cups, lids, straws and sealing film make up the opening order, along with smallwares and cleaning supplies.
Working capital. Budget for payroll during training, utilities, rent, marketing for the grand opening and a reserve for the first months of operation.
Total investment. Item 7 of the FDD gives the franchisor’s estimated range and its line items. A lender will expect your budget to match those categories, which typically include:
- Initial franchise fee
- Leasehold improvements and construction
- Furniture, fixtures and equipment
- Signage and décor
- Opening inventory and supplies
- Training expenses
- Grand opening marketing
- Deposits, licenses and permits
- Additional funds for the initial operating period
Line up contractor bids and equipment quotes before sizing a Boba Cucue franchise loan, since local construction costs can push a project to the high end of any estimate.
Ongoing Fees and How They Affect Your Loan
Item 6 of the FDD lists ongoing fees, which for most food franchises include a royalty on sales, a brand or marketing fund contribution, technology or software fees, and transfer and renewal fees. Read how each is calculated and when it is due.
How lenders factor fees in. Lenders start from projected sales, then subtract cost of goods, labor, rent, royalties and marketing fees to estimate the cash available for debt service. Fees tied to gross sales reduce cash flow in every month, so they belong in your projections from day one.
Required purchases. Item 8 explains whether you must buy tea, toppings, cups or equipment from approved suppliers. Required purchases affect your food cost and should be reflected in your margins.
Franchisor Requirements for New Owners
The franchisor’s minimum net worth, liquid capital and experience requirements are not published online. Ask for them early, along with any development commitments, and confirm them in the FDD. Expect the franchisor to review your financial resources, food service or management background and the site you propose.
Lenders add their own expectations: an equity contribution from your own funds, good personal credit, liquidity left after closing and a plan for day-to-day management.
Ways to Own a Boba Cucue
Opening a new shop. Most new owners build a shop in leased space. Lenders underwrite these as start-ups, relying on projections, the lease and the owner’s background. Our overview of restaurant start-up financing covers the basics, and franchise start-up financing explains how franchise deals differ.
Buying an existing shop. A buyer purchases an operating shop from a current franchisee, subject to the franchisor’s transfer approval. Lenders can review the shop’s actual sales and expenses. See our guide to buying a franchise resale.
Multiple units. Owners who want several shops may sign a development agreement, if the franchisor offers one. Each shop usually needs its own financing as it opens.
Financing Options for a Boba Cucue Franchise
SBA 7(a) loans. For a leased shop, the SBA 7(a) loan is the most flexible option, covering the franchise fee, build-out, equipment, inventory and working capital in one loan for eligible borrowers.
SBA 504 loans. If you buy the building for your shop, an SBA 504 loan can finance the real estate and long-lived equipment. Note the directory’s lease rider rule described below.
Conventional term loans. A conventional business loan may suit experienced multi-unit operators with strong financials.
Equipment financing. Refrigeration, ice machines, sealing machines, brewers and point-of-sale systems can often be financed separately. Learn more about restaurant equipment financing and leasing.
Working capital and lines of credit. Cold drink sales can rise and fall with the weather and school calendars. A line of credit or restaurant working capital can cover payroll and supplies through slower months.
Seller financing on resales. When buying an existing shop, part of the price may be carried by the seller. Any seller note would need to be acceptable to the senior lender, is typically subordinate to it and may be limited by the rules of the loan program being used.
SBA Loans for Boba Cucue Franchisees
SBA lenders generally require a brand to appear on the SBA Franchise Directory before making an SBA-guaranteed loan to one of its franchisees. A listing means the franchise documents have been reviewed for SBA eligibility; it does not approve any borrower or location.
The Boba Cucue listing and its note. Boba Cucue is listed under code S8163 with this note: when the real estate where the franchise business is located secures the SBA-guaranteed loan, the brand’s Rider to Lease Agreement may not be executed. Many franchisors require a lease rider that gives them certain rights in the shop’s lease. In plain terms, if the property itself is pledged as collateral for the SBA loan, as when the borrower or an affiliate owns the building, that rider is not to be signed for the location. For a typical leased storefront owned by an unrelated landlord, the note generally does not come into play.
Application tips. Prepare a personal financial statement, tax returns, a resume showing food service or management experience, a signed or proposed lease, contractor bids and a business plan. The SBA 7(a) program maximum is currently $5 million, though program rules can change. Our SBA loan calculator can help with early payment estimates, which are for planning only and are not an offer or approval.
How Lenders Evaluate a Boba Cucue Franchise Loan
Personal credit and financial history. Lenders review credit, tax returns and a personal financial statement, and typically require a personal guarantee.
Net worth and liquidity. Expect to contribute equity from your own funds and to show reserves left after closing.
Industry and management experience. Restaurant, café or retail management experience strengthens a request. First-time owners can offset limited experience with a strong manager and the franchisor’s training.
Business plan and projections. Base projections on the trade area, foot traffic, nearby competitors and a realistic ramp-up, with seasonal adjustments for cold drink sales.
The FDD and franchise agreement. Lenders review the term, renewal and transfer conditions, required purchases and Item 10 for any franchisor financing. Review Item 19 to see whether the FDD includes financial performance representations. Our guide on how lenders read a Franchise Disclosure Document covers the key items.
The site and lease. The lease term should cover the loan’s repayment period, with renewal options. Lenders also look at rent as a share of projected sales.
Real-World Scenarios
A first-time owner opening near a campus. A buyer with retail management experience leases space near a college. An SBA 7(a) loan covers the franchise fee, build-out, equipment and working capital, with extra reserves for slower summer months.
An existing owner buying a second shop. A franchisee buys a nearby shop from another owner. The lender reviews both shops’ results and finances the purchase with a small seller note.
An owner buying the building. An owner buys a small retail building for a new shop and uses an SBA 504 loan. Because the real estate secures the loan, the franchisor’s lease rider is not signed for that location.
Common Mistakes to Avoid
- Signing a lease before the lender and franchisor review it
- Underestimating plumbing and electrical work in the build-out
- Ignoring seasonal swings in cold drink sales
- Leaving too little working capital for the ramp-up period
- Overlooking the SBA lease rider note when buying the building
For more pitfalls, read the restaurant loan mistakes that cost owners the most.
Next Steps to Finance Your Boba Cucue Franchise
Step 1: Request the FDD. Contact the franchisor for the current FDD and its owner requirements.
Step 2: Review it with advisors. Study Items 5, 6, 7, 8, 10, 17, 19 and 20 with a franchise attorney and accountant.
Step 3: Find a site. Identify locations and negotiate a lease that fits the loan term.
Step 4: Gather bids. Get contractor and equipment quotes to build your budget.
Step 5: Talk with a financing specialist. Compare SBA 7(a), SBA 504 and conventional options.
Step 6: Apply and close. Submit your financial documents, plan and franchise documents, then coordinate closing with construction.
Boba Cucue Franchise Loan FAQs
How much does a Boba Cucue franchise cost?
The franchisor’s estimated initial investment is in Item 7 of the current FDD. Your cost depends on the site, the size of the space and local construction prices.
What is the Boba Cucue franchise fee and royalty?
Both are disclosed in Items 5 and 6 of the current FDD. Ask the franchisor for the latest version.
Can I get an SBA loan for a Boba Cucue?
Yes, the brand is listed on the SBA Franchise Directory under code S8163, subject to lender approval.
What does the SBA lease rider note mean?
If the shop’s real estate secures the SBA loan, the brand’s Rider to Lease Agreement may not be signed. It mainly affects owners who buy their building.
Can I finance equipment separately?
Often, yes. Refrigeration, brewers, sealing machines and point-of-sale systems can be financed through equipment financing.
Can I buy an existing Boba Cucue shop?
Yes, subject to the franchisor’s transfer approval. Lenders can then review the shop’s actual results.
Can a first-time owner get a Boba Cucue franchise loan?
It is possible with good credit, equity, a strong plan and relevant management experience.
What documents will a lender need?
A personal financial statement, tax returns, resume, business plan, lease, contractor bids and the FDD and franchise agreement.
Does the franchisor offer financing?
Check Item 10 of the current FDD for any financing the franchisor offers.
How long is the franchise term?
The term and renewal rights are set out in Item 17 of the FDD and the franchise agreement. Lenders prefer a term that covers the loan’s repayment period.
Final Thoughts
A Boba Cucue shop is a compact restaurant project, and financing it well comes down to a strong location, a sound lease, a realistic build-out budget and enough working capital for the first months. With the brand on the SBA Franchise Directory, qualified buyers have a clear path to SBA financing.
US Professional Funding helps franchise owners and buyers finance start-ups, acquisitions, equipment and working capital. Learn more about our franchise financing and restaurant financing solutions.
