How to Finance an It’s Boba Time Franchise: Drinks and Snacks
By Marc Cornella
An It’s Boba Time franchise loan typically funds a counter-service drink shop with a long menu: milk teas, fruit teas, smoothies, slushies, coffee drinks and shaved ice, plus quick snacks. That menu breadth means more equipment, more ingredients on hand and a busier prep line than a small tea bar, and lenders account for all of it. Because the brand is listed on the SBA Franchise Directory, SBA 7(a) financing is one of the main options to explore.
This article explains what It’s Boba Time is, how its SBA directory note affects buyers who own their real estate, which loan programs fit a boba shop and how lenders evaluate a new or existing location.
US Professional Funding is not affiliated with, sponsored by or endorsed by It’s Boba Time; the name is used only to describe the business. Figures in the franchisor’s disclosure document can change, loan programs vary, and every loan is subject to approval. Nothing here is legal, tax or investment advice; review the current Franchise Disclosure Document (FDD) and franchise agreement with a franchise attorney and an accountant.
It’s Boba Time Franchise Loan at a Glance
- Concept: a California-born boba and drink shop with a wide menu of teas, blended drinks, coffee, shaved ice and snacks.
- Initial fee, royalty and marketing fund: not verified for this article; confirm them in Items 5 and 6 of the current FDD.
- Estimated initial investment: not verified for this article; build your loan request from Item 7 of the current FDD.
- Owner financial requirements: confirm net worth and liquidity minimums with the franchisor.
- SBA Franchise Directory: listed under code S8968, with a note that the Lease Addendum may not be executed when the real estate where the business operates will secure the SBA-guaranteed loan.
What Is It’s Boba Time?
It’s Boba Time began in Los Angeles and grew into a chain of drink shops across Southern California before expanding to other states. Its identity rests on variety: guests can choose from milk teas, iced teas, fruit drinks, smoothies, slushies, frappes, coffee, juices and shaved ice, with toppings such as tapioca pearls and jellies. Many locations also sell quick snack items.
Shops are typically compact storefronts in neighborhood shopping centers, near schools and in busy retail corridors, with most sales handled at the counter, through drive-by pickup and through delivery apps.
How lenders view a boba shop. A small footprint and limited cooking can keep build-out costs below those of a full restaurant. Lenders still look closely at afternoon and evening traffic, competition from nearby tea shops, ingredient costs and the owner’s ability to manage a young, part-time staff.
It’s Boba Time Franchise Costs
We could not verify the current fee and investment figures from the FDD or the franchisor’s own pages, so this section explains each cost category and where to find its number. Request the latest FDD early, because lenders size the loan around Item 7.
Initial franchise fee. Item 5 states the fee, when it is due, any refund terms and any multi-unit pricing. An SBA 7(a) loan can generally include the fee in the project budget.
Real estate and build-out. Most shops lease inline or end-cap space. Build-out covers plumbing for sinks and water filtration, electrical for blenders and refrigeration, a drink-prep counter, menu boards, seating and finishes. A buyer who purchases a small building instead will finance real estate as well, which brings the SBA directory note into play.
Equipment. A wide menu needs a wide equipment list: tea brewers, tapioca cookers, sealing machines, commercial blenders, shaved ice machines, ice makers, under-counter and reach-in refrigeration, freezers, espresso or coffee equipment, a fryer or oven for snacks where offered, point-of-sale terminals and signage.
Opening costs and working capital. Opening inventory of teas, syrups, powders, toppings, cups and lids, plus training, deposits, licenses, insurance and grand opening marketing, all arrive before the first sale, along with the additional funds Item 7 lists for an initial operating period.
Total investment. Item 7 combines these costs into a low and high range. Review these lines:
- Initial franchise fee
- Leasehold improvements or construction
- Drink-prep, blending, sealing and refrigeration equipment
- Furniture, decor, signage and menu boards
- Point-of-sale system and technology
- Opening inventory and packaging
- Training, licenses, permits and insurance
- Rent, deposits and additional funds for the initial period
Ongoing Fees and How They Affect Your It’s Boba Time Franchise Loan
Item 6 lists the royalty, any marketing or brand fund contribution, technology fees, transfer and renewal fees and other recurring charges. Fees based on gross sales come off the top before payroll, ingredients and rent.
How lenders factor them in. A lender subtracts franchise fees from projected sales, then tests whether what remains covers rent, labor, cost of goods and the loan payment with room to spare. Cups, lids, straws and sealing film add up on a high-volume drink menu, and delivery app commissions reduce margin on off-premises orders, so show both in your model.
Franchisor Requirements for New Owners
We did not verify It’s Boba Time’s net worth or liquidity minimums, so ask the franchise team for current requirements. Drink and dessert franchisors generally look for:
- Liquid capital to cover the equity injection and reserves
- A net worth that supports the total project
- Food service, retail or team-management experience
- A commitment to complete training and follow the brand’s recipes
Keep the franchisor’s approval timeline aligned with your loan process, since lenders usually want franchise approval before closing.
Ways to Own an It’s Boba Time
A new shop. Opening from scratch means a lease or property purchase, construction and a sales ramp with no history. See our page on franchise start-up financing for how these loans are structured.
Buying an existing shop. A resale offers sales history, trained staff and an operating store. The franchisor must approve the transfer, and a leased shop needs landlord consent. Read our guide to buying a franchise resale and our page on financing a franchise restaurant acquisition.
Owning the real estate. Some operators buy a small building or condo unit for their shop. That changes the collateral, the loan programs available and, for this brand, which franchise documents get signed.
Financing Options for an It’s Boba Time Franchise
SBA 7(a) loans. Because the brand is on the SBA Franchise Directory, an SBA 7(a) loan can combine the franchise fee, build-out, equipment, opening inventory and working capital, or finance the purchase of an existing shop. A 7(a) loan can also include owner-occupied real estate.
SBA 504 loans. For buyers purchasing the building they will occupy, an SBA 504 loan is designed for owner-occupied real estate and long-lived equipment. Our article on financing franchise real estate explains when owning makes sense.
Conventional term loans. Buyers with strong liquidity or existing business cash flow may use a conventional business loan.
Equipment financing. Blenders, sealing machines, shaved ice machines, ice makers, refrigeration and point-of-sale systems can be financed on their own. See our restaurant equipment financing and leasing options.
Working capital and lines of credit. Cold drinks and shaved ice often sell more in warm months, while rent and payroll stay level. A line of credit can help with inventory, packaging orders and pre-opening costs. Explore restaurant working capital.
Seller financing on resales. A seller may carry part of the price. Any seller note is typically subordinate to the senior loan, and SBA program rules may limit its structure or how it counts toward your injection.
SBA Loans for It’s Boba Time Franchisees
SBA lenders check the SBA Franchise Directory before lending to a franchisee. A listing means the brand’s franchise documents have been reviewed for SBA eligibility; it is not a loan approval.
The listing and its note. It’s Boba Time appears under code S8968. The directory adds a note: when the real estate where the franchise business is located will secure the SBA-guaranteed loan, the Lease Addendum may not be executed. In plain English, the brand’s Lease Addendum is meant for franchisees who rent their space. If you own the property and pledge it as collateral for the SBA loan, that addendum should not be signed. Your lender and franchise attorney will confirm which documents apply to your deal.
Loan size. The SBA 7(a) program maximum is currently $5 million, though program rules can change. A single shop will normally sit well below that level, even with real estate included.
Application tips. Prepare a personal financial statement, tax returns, a resume, the FDD, the franchise agreement, a lease or purchase contract, contractor and equipment quotes and monthly projections. Our SBA loan calculator offers early payment estimates for planning only.
How Lenders Evaluate an It’s Boba Time Deal
Personal credit and financial history. Lenders review credit, tax returns and past business debts, and typically require personal guarantees from significant owners.
Net worth and liquidity. A lender reviewing an It’s Boba Time franchise loan wants a documented equity injection and reserves after closing.
Industry and management experience. Food service or retail management experience helps, especially scheduling and training part-time staff.
Business plan and projections. Model daily drink counts, average ticket, seasonal patterns, ingredient and packaging costs, labor and delivery commissions. Note nearby schools, offices and competing tea shops.
The FDD and franchise agreement. Lenders review Items 5, 6, 7 and 21, Item 17 for term, renewal and transfer, and Item 10 for any franchisor financing. Item 19 shows whether the FDD includes financial performance representations.
Site, lease or real estate. For leased shops, lenders compare lease length with the loan term and check renewal options and assignment terms. For owned property, expect an appraisal and environmental review.
Historical financials for resales. Expect to provide two to three years of profit and loss statements, sales reports and tax returns.
Equipment and Menu Breadth
A long menu is a selling point, but it also means more machines that must work at the same time during the after-school and evening rush. Blenders and sealers wear out, ice makers need regular cleaning and refrigeration must hold dairy and fruit safely. Build maintenance and replacement into your budget, and when buying a resale, have the equipment inspected before closing.
Multi-Unit Growth and Development Agreements
A second shop is easier to finance once the first has a track record. Lenders combine existing cash flow with projections for the new location and review total debt and management depth.
If you sign a development agreement, set a financing plan for each opening and allow time for permits and construction.
Real-World Scenarios
A first-time owner leasing a storefront. A buyer with retail management experience leases space near a high school and uses an SBA 7(a) loan for the build-out, equipment, fee and working capital, signing the Lease Addendum as part of the leased-site package.
An owner buying the building. An investor-operator buys a small commercial condo for a new shop and uses SBA financing secured by the property. Because the real estate secures the loan, the Lease Addendum is not executed.
A buyer purchasing a resale. A buyer acquires an operating shop from a franchisee who is retiring. The lender underwrites actual sales, and the franchisor approves the transfer.
Common Mistakes to Avoid
- Ignoring the SBA directory note when buying the real estate
- Underestimating packaging and delivery commission costs
- Signing a lease before your lender reviews term and assignment clauses
- Skipping equipment inspections on a resale
- Leaving no reserve for slower cool-weather months
Read more in the restaurant loan mistakes that cost owners the most.
Next Steps to Finance Your It’s Boba Time Franchise
Step 1: Request the current FDD. Focus on Items 5, 6, 7, 10, 17, 19 and 21.
Step 2: Confirm owner requirements. Ask about net worth, liquidity, experience and territory availability.
Step 3: Decide whether to lease or buy. Your choice affects collateral, loan programs and which franchise documents you sign.
Step 4: Price your site. Gather construction and equipment quotes and compare them with Item 7.
Step 5: Build projections. Include seasonality, packaging, labor, rent, royalties and debt service.
Step 6: Speak with a financing specialist. Compare It’s Boba Time franchise loan options, including SBA 7(a), SBA 504 and equipment financing.
Step 7: Close and open. Coordinate closing with franchise approval, lease or purchase and construction.
It’s Boba Time Franchise Loan FAQs
How much does it cost to open an It’s Boba Time?
Item 7 of the current FDD discloses the total investment range. Your actual cost depends on your site and whether you lease or buy.
What is the It’s Boba Time franchise fee?
Item 5 of the current FDD states the fee. We could not verify the current amount for this article.
What royalty does It’s Boba Time charge?
Royalty and marketing contributions are listed in Item 6. Include them in your cash-flow model.
Can I get an SBA loan for an It’s Boba Time?
Yes, if you qualify. The brand is listed on the SBA Franchise Directory under code S8968, so SBA lenders can consider an It’s Boba Time franchise loan.
What does the SBA directory note mean?
If the property where your shop operates will secure the SBA loan, the brand’s Lease Addendum should not be signed. Leased shops follow the standard process.
Can I buy the building for my shop?
Yes. SBA 7(a) and SBA 504 loans can finance owner-occupied real estate, subject to approval.
Can I finance equipment separately?
Yes. Blenders, sealers, ice machines and refrigeration can be financed through equipment loans or leases.
Can I buy an existing It’s Boba Time?
Yes, if a franchisee is selling and the franchisor approves the transfer.
Does It’s Boba Time offer financing?
Check Item 10 of the current FDD for any financing the franchisor offers or arranges.
How long is the franchise term?
Item 17 and the franchise agreement state the term and renewal conditions.
Final Thoughts
It’s Boba Time shops depend on menu variety, reliable equipment and steady traffic. Buyers who study the FDD, understand how the SBA directory note applies to owned real estate, budget for packaging and seasonality and keep reserves present lenders with a strong, well-prepared request.
US Professional Funding helps franchise buyers and owners finance start-ups, acquisitions, real estate, equipment and working capital. Learn more about our franchise financing programs and restaurant financing options.
