Monday, December 5, 2022

How to Start Low Cost Tea Franchise

Franchising has gained popularity these days. A lot of new entrepreneurs prefer to go for a franchise business, rather than opening up their own business from scratch all by themselves.

There are countless benefits of franchising, and the most enticing of which is that most are low cost, with established names so you would not have to worry too much about the first steps in penetrating the market anymore.

Of the numerous businesses that offer franchising, one of the most sought after by buyers in the food and beverages industry is that of tea. There seems to be a desire for tea, in the same way, that buyers were crazy about coffee and fruit shakes. There has certainly been a demand of whatever type of tea, whether hot tea or iced tea, milk teas or fruit teas. If you are still searching for investment ideas can give you options.

Here are ways on how you can start a low-cost tea franchise:

  1. Undergo a feasibility study first

A feasibility study is a business study that is conducted to determine the profitability and marketability of your potential franchise business. This study will involve looking at figures and numbers over the next five to ten year prediction. If your figures show little to no income growth or return on investment over the first five years, then this should be a red flag for you not to push through.

As a part of your feasibility study, choose the best type of tea that suits your local area’s demand and needs first. Study your demographics, which include:

  • The average age of residents
  • Ratio of men and women
  • Spending capacity

For example, in your town, there might be more elderly than there are teenagers and young adults. Hence, you should go for the classic, healthier hot tea; sugary and creamy milk teas definitely might not work in your area.

  1. Study the inclusions of the franchise fee

One of the most crucial things that you should double check is to also make sure that the registration is part of the initial fees. This seems like an obvious thing to do, but local government reports will tell you that there are many individuals who get away with the first few months without even registering their business.

You went looking for a business with a cheap franchise fee, and you are happy that you finally found one. However, do not get over-excited with making the deal final without first asking and reviewing the inclusions of the initial franchise fee, and all the other costs that you might incur later on.

Be sure that you get what you are expecting with the fee that you will be paying. Some advertisements can be quite deceiving as oftentimes it may not include employee training, initial stocks, or stall construction.

How to Start Low Cost Tea Franchise

  1. Be clear with the franchise company’s contact details

When you have finally made a choice as to the low-cost tea franchise that you wish to open, make sure that you are clear with the company’s contact details. Do ask for a company representative that you can contact over the phone anytime that you may have a concern or a query.

The contact details that the franchise company should give you should not just be limited to the post office mail, email address, and company hotline; it is best if you ask for a mobile phone number of an authorized representative as well.

  1. Build friendships with your potential staff and crew

It is never too early for you to try and build a good relationship with your staff and crew. Even if you may be holding on to a popular business name already, as the business is new in your locality, you are still in the process of building a market and a network. Remember that your crew’s family, relatives, and friends, along with your own friends and family, can be your business’ first line of customers. It is from their favorable feedback that they can spread the word themselves to attract more customers.

Aside from the above-mentioned, the most important reason for you to build a good relationship with your crew is that your day-to-day operations are in their hands. Hence, you have to treat them favorably so that they will be happy being of service to the business, and you can operate in a smooth and harmonious manner.


These little tips and tricks will help you with your start-up process if you are looking to franchise a tea business. With all these in mind, it is noteworthy for you to remember that your best asset is the popularity of tea. Times have changed and more people are drawn to the healthier options that tea businesses give. Now all you have left to do is search for the tea company that you would like best to franchise.

› Subscribe


Please enter your comment!
Please enter your name here

More Articles