A: How much should I pay to Tapioca Express?
TEI: Our start-up cost is around $135,500~$366,500 in liquid assets, including an initial payment of $45,000 to us. Let me break down the fees for you now.
Out of $45,000, (1) there is a $15,000 initial franchise fee for two years. After the initial two years, you will have a renewal option of $3,000 for additional two years. Also, (2) there is a $10,000 product deposit fee to secure your future payment obligation to us. The product deposit is refundable at termination of our franchise agreement. (3) There is also a $3,000 training fee for an 8 to 10 days program. (4) Besides, there is a $11,000~$12,000 payment for three mandatory equipment purchase, which includes a POS cash register, Espresso Machine, and a water purifying system. (5) On top of that, there is a $5,000 fee for marketing materials including menu boards, to-go menu, loyalty card, and other marketing-related materials.

B: How much is the start-up cost to open a Tapioca Express store?
TEI: Our start-up cost is around $135,500~$366,500 in liquid assets, including an initial Tapioca Express payment of $45,000.

C. Why do I need $135,500 ~ $366,500 for start up?
TEI: Besides $45,000 as initial payment to Tapioca Express, there are some other expenses you may expect. For example, construction costs range from $30,000~$120,000. The cost for equipment ranges from $30,000~$65,000. The cost for furniture and fixture ranges from $6,000~15,000. Initial inventory costs range from $9,000~$20,000.

D: Do you charge Royalty and Marketing fees?
TEI: Yes, we do charge Royalty and Marketing fees like almost every other franchise.
As a part of on-going obligations, you will pay a monthly Royalty equal 2.5% of your Gross Revenues each month or $500 whichever is greater and Marketing fee equal to 0.5% of your gross income or $100. Therefore, the total percentage charged will be 3% or $600, whichever is greater.

E: Will you help us find a location or will we have to find our own?
TEI: Most franchisees will actively find the locations on their own unless they request our assistance. Once you locate an available space, you can provide us with the address and we will conduct a preliminary location assessment. Because of our “Protected Territory” policy, we need to make sure your proposed location does not overlap with existing franchisees’ territories. Currently, the protected territory is about 2 miles in Northern California and 1 mile in Southern California.

F: Are there any requirements on location?
TEI: The average Tapioca Express store size is about 1,200 square foot, including the kitchen area. A high visibility location with busy foot traffic is a must. Also, a location surrounded by high schools, colleges, supermarkets, or theater is great. You will be responsible for hiring an architect to draw a blueprint of the store. We will provide your architect with a sample blueprint for reference. Your finished blueprint will require our prior approval to meet our requirements. If you need help to find an architect and/or contractor, we will refer to you some vendors who have worked on some of our franchisee stores.

G: How long does it usually take to have a store opened?
TEI: Typically, it will take 5-6 months to open a store but the actual time depends on various factors, including lease negotiation, design and drawing, city hall plan checks and permit applications, construction, government inspections, etc. It usually takes us 1-2 weeks to review your plans and drawings. If your initial application is approved and location is provided, we may proceed to conduct a location assessment by visiting your site personally. Once we approve your location, you may sign a letter of intent with the landlord and a franchise agreement with us. After the completion of construction, we will conduct a review to insure that you are ready for your grand opening!

H: How much is average gross sales for a Tapioca Express store?
TEI: The financial performance or profitability of a Tapioca franchise will vary, depending on store location, management skill, operation experience, and numerous other factors. An estimate of a proposed store would be too speculative to be meaningful. Thus, as a matter of policy, we do not make any earning claims. None of our employees or agents is authorized to provide you with projections to your earnings, sales, or profitability. We urge you to retain the services of experienced professionals such as financial advisers, lawyers, accountants, etc.

J: How can you tell whether a brand is a legal franchise operation?
TEI: You should ask if the franchisor company has registered its franchise with the government, and to provide you with a copy of Uniform Franchise Offering Circular (UFOC). Tapioca Express, Inc. has received permits to offer and sell franchise in California and some other states as early as 2001.

L: Why the customers choose Tapioca Express among so many other little Tapioca or milk tea stores?
TEI: Trust is the key. They visited a Tapioca Express before, have heard about it from their friends, and look for the brand they trust. They know they can expect to have the same pleasant experience every time they come to Tapioca Express. Some customers tell us we offer the best value. Others say we have the most exquisite tasting tapioca pearls in the world. Some enjoy our extensive menu and savor every flavor which they have never been able to find anywhere else. Many recognize that we have been around the longest so we are the most authentic.

M: Your slogan is “suddenly I want more.” What is that supposed to mean?
TEI: Our young people want more in their lives. They want more friendship, more romance, more music, more love, more respect, more fun, more inspiration, more creativity, more education, more opportunities, more out of everything in life, and of course, they want more Tapioca Express drinks as they enjoy more of everything!
Something else is worth mentioning. Our research cited one phenomenon we could hardly explain. The craving for a Tapioca Express drink would strike our customers completely out of the blue. Right then and there you absolutely must have a tapioca drink from us! After hearing about this research, our copy writer suddenly hit on the slogan: “suddenly I want more.”

N: Could I just purchase your products or receive training without becoming a franchisee?
TEI: While we reserve the right to sell our product via different channels in the future in the franchise agreement, we have no current plans to do so. We have provided our products and trainings to our franchise stores only, not any outside parties or our own staff. Thus, our customers can enjoy our delicious specialty high-quality drinks through Tapioca Express stores exclusively.

 

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