How to Finance a Sharetea Franchise: Bubble Tea Store Costs
By Marc Cornella
A Sharetea franchise loan usually pays for a compact bubble tea shop: leasehold improvements in a retail space, tea brewing and sealing equipment, refrigeration, a service counter, signage, opening inventory and enough working capital to carry the store through its first months. Sharetea publishes only a few headline numbers, so the most important work in this kind of deal is getting the full cost picture from the current disclosure document before you size a loan.
US Professional Funding is not affiliated with, sponsored by or endorsed by Sharetea; the name is used only to describe the business. Figures from the franchisor’s website and disclosure document can change, loan programs and terms vary by lender and borrower, and every loan is subject to lender review and approval. Nothing here is legal, tax or investment advice, and buyers should review the current Franchise Disclosure Document (FDD) with a franchise attorney and accountant.
Sharetea Franchise Loan at a Glance
According to the franchisor’s current franchise page:
- Minimum liquid capital: $100,000
- Minimum total investment: $300,000, with the final cost depending on store size, location, equipment and supplies
- System size: 150+ stores across North America and 400+ stores in 12 countries
- Brand experience: 30+ years
- Qualification: applications are reviewed by Sharetea headquarters in Taiwan
- Territory: a pre-contract secures exclusive rights to an area before the store site is chosen
- SBA Franchise Directory: listed as Sharetea (code S2658), with no special directory note
Sharetea’s site does not publish its initial franchise fee, royalty rate, marketing contribution or the full line-item investment range. Those figures appear in Items 5, 6 and 7 of the current FDD, and any lender will want to see them before approving a loan.
What Is Sharetea?
Sharetea is a Taiwanese bubble tea brand. According to the company’s own story, founder Cheng Kai-Lung was working as a film and television director in 1992 when he left that career to start a tea street vendor business. After early struggles, the stand built a following, and the first Sharetea store grew from it.
Today the brand describes itself as having more than 30 years of experience, more than 150 stores across North America and more than 400 stores in 12 countries. Its menu centers on brewed tea, milk teas, fruit teas and toppings such as tapioca pearls, and stores also take catering orders.
Store formats. Bubble tea shops are typically small, counter-service stores in strip centers, near campuses, in shopping districts and in other high-foot-traffic spots. Sharetea says store size and location are among the main drivers of cost, so your final investment will depend heavily on the space you lease and how much work it needs.
Why lenders view Sharetea the way they do. Lenders generally see bubble tea as a beverage-focused, quick-service concept with a smaller footprint and lighter kitchen than a full restaurant. That keeps the project size moderate, but it also means much of the investment goes into leasehold improvements that cannot be moved, which affects how lenders think about collateral. Because few U.S. figures are published, the FDD carries extra weight in underwriting a Sharetea franchise loan.
Sharetea Franchise Costs
Sharetea’s franchise page sets a minimum total investment of $300,000 and a minimum of $100,000 in liquid capital, and says the actual cost depends on store size, location, equipment and supplies. The pieces below are the typical cost categories for a bubble tea store; confirm each one against Item 7 of the current FDD.
Initial franchise fee. The fee is not posted on the franchisor’s website. Read Item 5 for the amount, when it is due and whether any portion is refundable. The fee is usually paid from the buyer’s equity or included in the loan request, depending on the lender and program.
Real estate and build-out. Most Sharetea stores lease space rather than buy it. Sharetea’s own process has the franchisee find a location within the protected area and lease it from the landlord before signing the franchise contract. Build-out costs cover plumbing for brewing and sinks, electrical upgrades for refrigeration and sealing machines, flooring, counters, seating and finishes.
Equipment. A bubble tea shop runs on tea brewers, hot water dispensers, tapioca cookers, fructose dispensers, shakers, blenders, cup sealing machines, ice machines, under-counter and reach-in refrigeration, freezers, point-of-sale systems and menu boards.
Opening costs and working capital. Expect opening inventory of teas, syrups, toppings, cups and lids, plus training, grand-opening marketing, deposits, insurance and payroll during the ramp-up. Sharetea says it sends a supervisor to conduct training locally, and buyers should check in the FDD which training costs, travel and wages they cover.
Total investment. For planning purposes, start from the franchisor’s $300,000 minimum and build up from there using Item 7. Typical line items in a bubble tea Item 7 table include:
- Initial franchise fee
- Leasehold improvements and construction
- Furniture, fixtures and equipment
- Signage and menu boards
- Point-of-sale and technology
- Opening inventory and supplies
- Training expenses and travel
- Grand-opening advertising
- Security deposits, licenses and permits, insurance and professional fees
- Additional funds for the initial operating period
Make sure the loan request matches the Item 7 total and that the sources-and-uses statement accounts for every line, including additional funds.
Ongoing Fees and How They Affect Your Loan
Royalty and marketing. Sharetea does not publish its royalty or advertising rates online. Item 6 of the FDD lists every recurring fee, including royalties, marketing or advertising contributions, technology charges, training fees for new staff, transfer fees and renewal fees.
Supply purchases. Item 8 explains any required purchases of tea, syrups, toppings and packaging from approved sources, which drive a store’s cost of goods sold.
How lenders factor these costs in. Lenders deduct royalties, marketing contributions, rent, labor and supply costs before they calculate how much cash flow is left to cover loan payments. Your projections should list each Item 6 fee, and rent, as its own line.
Franchisor Requirements for New Owners
Sharetea’s published requirements are short:
- Liquid capital: at least $100,000
- Total investment: at least $300,000
- Headquarters approval: applications are qualified by Sharetea headquarters in Taiwan
- Training: a supervisor is sent to train the new store’s team locally, with ongoing operational assistance afterward
The approval process. Sharetea lays out eight steps: complete the application form, pass qualification by headquarters, discuss details with Sharetea representatives, sign a pre-contract that protects the area’s exclusive rights, find a store location in that area, lease it from the landlord, sign the franchise contract and complete training before the grand opening.
That sequence matters for financing. You will usually need a lender conversation before the pre-contract and lease, because the lease commits you to rent and build-out before the franchise contract and loan close.
Sharetea does not publish a net worth requirement, and lenders will set their own expectations regardless.
Ways to Own a Sharetea
Opening a new store. Most new owners build a store from scratch: protect an area with the pre-contract, find and lease a site, build it out and open. Lenders underwrite these deals on projections, the buyer’s equity and experience, and the lease terms. Our page on franchise start-up financing covers how we approach new units.
Buying an existing store. With 150+ stores in North America, existing Sharetea shops do change hands. A resale gives lenders actual sales history, tax returns and a working lease to underwrite, though the buyer still needs franchisor approval of the transfer and usually a lease assignment. Our guide to buying a franchise resale covers what to request from the seller.
Multiple stores. Owners who want several stores should raise it at the pre-contract stage; each store is underwritten on its own lease alongside existing results.
Sharetea Franchise Loan Options
SBA 7(a) loans. Because Sharetea is on the SBA Franchise Directory, an SBA 7(a) loan is often a natural fit. A single 7(a) loan can cover build-out, equipment, the franchise fee, opening inventory and working capital in one package.
SBA 504 loans. The 504 program is built for owner-occupied real estate and long-lived fixed assets. Most bubble tea stores lease their space, so 504 financing usually only fits when a buyer purchases a small building or a condo unit for the store.
Conventional term loans. Borrowers with strong credit, meaningful liquidity and existing business income may qualify for a conventional business loan. Terms, collateral and equity expectations vary by lender.
Equipment financing. Sealing machines, tea brewers, ice machines, refrigeration, blenders and point-of-sale hardware can be financed separately, which can preserve cash for the build-out. Learn more about restaurant equipment financing and leasing.
Working capital and lines of credit. Bubble tea sales can shift with the seasons, school calendars and weather, and stores carry recurring supply orders. A line of credit or working capital loan can smooth those swings and cover pre-opening payroll. See our restaurant working capital options.
Seller financing on resales. When buying an existing store, part of the price may be carried by the seller. A seller note must be acceptable to the senior lender, is typically subordinate to it, and SBA programs may limit how it is structured.
SBA Loans for Sharetea Franchisees
SBA lenders generally require a franchise brand to appear on the SBA Franchise Directory before they can make an SBA-guaranteed loan to one of its franchisees. The directory confirms the franchise relationship has been reviewed for SBA eligibility; it does not approve any individual borrower.
Sharetea’s listing. Sharetea appears on the SBA Franchise Directory under code S2658 with no additional note. In plain English, the brand’s franchise documents have been reviewed and no brand-specific conditions are flagged, so lenders can proceed with standard SBA underwriting for a Sharetea store. Directory status can change, so ask your lender to confirm the listing when you apply.
Program size. The SBA 7(a) program maximum is currently $5 million, though program rules can change. A single bubble tea store usually needs far less, which leaves room for build-out, equipment and working capital in one loan.
SBA application tips.
- Bring the current FDD, the pre-contract or franchise agreement and your lease or letter of intent
- Prepare a sources-and-uses statement that ties back to Item 7
- Document your equity injection and where it came from
- Include a business plan with monthly projections for the first year
- Have personal tax returns, a personal financial statement and a résumé ready
Our SBA loan calculator can help you estimate payments while planning, though results are for planning only and not an offer or approval.
How Lenders Evaluate a Sharetea Deal
Personal credit and financial history. Lenders review your credit report, tax returns and personal financial statement, and owners typically sign a personal guarantee.
Net worth and liquidity. Sharetea asks for at least $100,000 in liquid capital. Lenders will want to see enough cash for the equity injection plus reserves left after closing.
Industry and management experience. Food service, retail or management experience strengthens a request. If you are new to the industry, a plan to hire an experienced store manager helps.
Business plan and projections. Projections for a bubble tea store should account for drink count per hour, average ticket, seasonality, delivery-platform commissions, supply costs, labor scheduling around peak afternoon and evening hours, rent and all Item 6 fees. Our guide to writing a franchise business plan for an SBA loan walks through the structure.
The FDD and franchise agreement. Lenders look at the franchise term, renewal rights, transfer conditions, territory protections and required purchases. Our article on how lenders read a Franchise Disclosure Document explains which items matter most.
Site and lease. The lease should run at least as long as the loan or include renewal options, and many lenders want a lease assignment or landlord agreement.
Historical financials for resales. For an existing store, expect to provide several years of profit and loss statements, sales reports and tax returns.
Bubble Tea Equipment and Build-Out
The equipment package in a bubble tea store is smaller than a full kitchen but specialized. Cup sealing machines, commercial tea brewers, tapioca cookers and warmers, fructose dispensers, ice machines and high-capacity refrigeration all run throughout the day, and an outage can stop sales quickly.
Build-out is often the largest single cost. A landlord tenant improvement allowance or free rent during construction can reduce what you need to borrow, so negotiate those terms before you sign. Our article on restaurant build-out financing explains how lenders handle construction budgets and draws.
Multi-Unit Growth
Sharetea’s pre-contract model protects an exclusive area, which gives owners a natural path to add stores within that market.
Financing a second or third store. Once your first store has a track record, lenders can look at its cash flow alongside the new store’s projections. Some owners finance each store separately; others consolidate debt as the group grows. Our overview of multi-unit franchise financing explains common structures.
Real-World Scenarios
A first-time owner near a university. A buyer with retail management experience signs a pre-contract for an area near a large campus, leases a former café space and uses an SBA 7(a) loan to cover the build-out, equipment, fee and working capital. The lender focuses on the lease, the projections around the school calendar and the buyer’s cash reserves.
Buying an existing store. A buyer purchases a Sharetea store from an owner who is relocating. The lender underwrites the store’s actual sales and expenses, the remaining lease term and the transfer approval, and the seller carries a small subordinate note.
A second store in a protected area. An owner with one stable store opens a second within her area. The lender combines the first store’s results with the new store’s projections, and equipment for the second store is financed separately.
Common Mistakes to Avoid
- Signing a lease before understanding how much you can borrow
- Building projections without the royalty and marketing rates in Item 6
- Treating the $300,000 figure as a maximum rather than a minimum
- Underestimating build-out costs for plumbing, electrical and water filtration
- Leaving too little working capital for slow seasons and the ramp-up period
- Ignoring delivery-platform commissions when forecasting margins
For more pitfalls that apply across the industry, read the restaurant loan mistakes that cost owners the most.
Next Steps to Finance Your Sharetea Franchise
Step 1: Confirm you meet the requirements. Make sure you have at least $100,000 in liquid capital and a realistic budget starting from the $300,000 minimum investment.
Step 2: Request and review the FDD. Study Items 5, 6, 7, 8, 10, 17 and 19 with a franchise attorney and accountant.
Step 3: Talk to a financing specialist early. Learn what size Sharetea franchise loan you can support before you sign the pre-contract and lease.
Step 4: Secure your area and site. Sign the pre-contract, find a location and negotiate a lease with build-out allowances and renewal options.
Step 5: Build your business plan. Prepare a sources-and-uses statement tied to Item 7 and monthly projections with all fees.
Step 6: Apply for financing. Submit your loan request with the FDD, lease, projections, tax returns and personal financial statement.
Step 7: Close, build and train. Coordinate construction draws, equipment delivery and local training so you open on schedule.
Sharetea Franchise Loan FAQs
How much does it cost to open a Sharetea franchise?
Sharetea’s franchise page lists a minimum total investment of $300,000, with the final cost depending on store size, location, equipment and supplies. Item 7 of the current FDD gives the full estimated range.
How much liquid capital do I need for a Sharetea?
Sharetea says franchisees need at least $100,000 in liquid capital. Lenders may expect additional reserves after closing.
What is the Sharetea franchise fee?
The franchisor does not post the fee online. Item 5 of the current FDD lists the initial franchise fee and any related fees.
What royalty does Sharetea charge?
The royalty and marketing rates are not published on the franchisor’s website. Check Item 6 of the FDD and build each fee into your projections.
Is Sharetea eligible for SBA loans?
Yes. Sharetea is listed on the SBA Franchise Directory under code S2658 with no special note, so SBA lenders can consider Sharetea franchisees under standard program rules. Every loan is still subject to approval.
Can I get a Sharetea franchise loan as a first-time business owner?
Yes, if the franchisor approves you and you meet a lender’s credit, equity and experience expectations.
Can I buy an existing Sharetea store?
Yes, subject to franchisor approval of the transfer and the landlord’s approval of a lease assignment. Lenders underwrite the store’s historical financials.
Does Sharetea offer financing?
Sharetea’s website does not mention franchisor financing. Item 10 of the FDD discloses whether any financing is offered.
How many Sharetea stores are there?
The company reports more than 150 stores across North America and more than 400 stores in 12 countries.
How long is a Sharetea franchise agreement?
The term is not posted online. Item 17 of the FDD covers the term, renewal and transfer conditions.
Does the FDD include financial performance information?
Check Item 19 of the current FDD to see whether Sharetea includes financial performance representations. For a resale, rely on the store’s actual financial statements.
What documents do I need for a loan?
Expect to provide personal tax returns, a personal financial statement, a résumé, the FDD, your lease or letter of intent, a business plan with projections and proof of your equity injection.
Final Thoughts
A Sharetea franchise loan comes down to filling in the numbers the brand does not publish and building a plan around them. Buyers who get the FDD early, line up financing before signing a lease, budget beyond the minimum investment and keep healthy working capital give themselves the best chance at a smooth opening.
US Professional Funding helps franchise owners and buyers finance start-ups, acquisitions, equipment and working capital for established brands. Learn more about our franchise financing and restaurant financing solutions.
