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RareTea - Trademark License Ag

RareTea - Trademark License Ag

Franchising since 2016 · 4 locations

The initial franchise fee is $12,000. Ongoing royalties are 6%. RareTea - Trademark License Ag currently operates 4 locations (4 franchised). The top SBA 7(a) lenders for RareTea - Trademark License Ag are Wallis Bank, Newtek Small Business Finance, Inc. and CDC Small Business Finance Corp.. PeerSense FPI health score: 56/100.

Franchise Fee

$12,000

Total Units

4

4 franchised

FPI Score
Low
56

Proprietary PeerSense metric

Moderate
Capital Partners
3lenders available

Active capital sources verified for RareTea - Trademark License Ag financing

SBA

7(a) Eligible

21d

Avg Funding

P+2.25%

Best Rate

No retainers · Referral fee at closing

FPI Score Breakdown

Emerging (3-9 loans)

Limited Data
56out of 100
Moderate

SBA Lending Performance

SBA Default Rate

0.0%

0 of 4 loans charged off

SBA Loans

4

Total Volume

$0.6M

Active Lenders

3

States

3

Top SBA Lenders for RareTea - Trademark License Ag

What is the RareTea - Trademark License Ag franchise?

The question facing every franchise investor who lands on this page is the same: is Raretea Trademark License Ag a serious investment opportunity in one of the fastest-growing beverage categories in the country, or an early-stage concept with too many unknowns to justify capital deployment? That question deserves a rigorous answer, built on real data rather than marketing copy, and this independent analysis is designed to deliver exactly that. Raretea Trademark License Ag operates within the boba and specialty beverage space, a segment that has captured an outsized share of consumer spending among the 18-to-34 demographic driving U.S. quick-service growth. The franchise system is connected to the RareTea Boba brand, a California-originating concept headquartered out of Berkeley, with franchise operations extending to locations including Reno, Nevada, where at least one franchisee — Ruth Broos — opened what is described as one of the largest RareTea Boba stores in the system, and the only location in Nevada as of December 2024. The legal entity operating the franchise system, Raretea Trademark License Ag, holds 4 total units as of the most current data available, all of which are franchised, meaning the corporate entity operates zero company-owned locations. That 100% franchised structure is an important signal about the brand's go-to-market approach. The broader snack and nonalcoholic beverage bars market — the category in which Raretea Trademark License Ag competes — reached $333.12 billion in 2025 and is projected to climb to $352.46 billion in 2026 at a compound annual growth rate of 5.8%, with further expansion to $456.47 billion forecast by 2030. This is the market context in which Raretea Trademark License Ag is attempting to build a scalable franchise network, and understanding that context is essential before evaluating the franchise opportunity on its merits.

The industry tailwinds behind a Raretea Trademark License Ag franchise investment are among the strongest across all foodservice franchise categories. The global non-alcoholic beverages market was valued at USD 1,401.0 billion in 2024 and is projected to reach USD 3,120.1 billion by 2035, growing at a CAGR of 5.7% from 2025 through 2035, with an alternative estimate placing the 2023 value at USD 1,349 billion expanding to USD 2,135 billion by 2033 at a CAGR of 6.1%. The Asia-Pacific region dominated non-alcoholic beverage revenue in 2024 with a 33.1% share, but critically for U.S.-based franchise investors, North America is projected to be the fastest-growing region in the snack and non-alcoholic beverage bars market during the current forecast period. That regional dynamic means domestic franchisees are entering a market with accelerating momentum rather than a mature, saturated one. Consumer trends fueling this growth include urban lifestyle changes, the expansion of quick-service formats, a rising youth population with strong discretionary spending on experiential food and beverage, and an intensifying snacking culture across all dayparts. Specialty beverage concepts — precisely the category RareTea Boba occupies — are identified as one of the key growth themes in current market analysis, sitting alongside premium and artisanal product demand and the adoption of digital ordering and payment systems. Bubble tea specifically has become a mainstream cultural product among Gen Z and millennial consumers, moving from an ethnic specialty item to a broadly demanded quick-service beverage format. The competitive landscape in boba franchising is expanding but remains meaningfully fragmented compared to coffee or fast food, creating windows for emerging concepts to establish regional dominance before national consolidation accelerates further.

Raretea Trademark License Ag franchise cost details are not disclosed publicly in available search data, so prospective investors must treat the financial commitment as a range informed by category benchmarks rather than brand-specific confirmed figures. Within the broader quick-service restaurant franchise universe, initial franchise fees typically range from $6,250 to $90,000, with the most common band falling between $20,000 and $50,000. Bubble tea and boba tea franchises specifically tend to cluster at the lower end of the QSR fee spectrum — for reference, Sharetea, one of the better-documented boba franchise systems, carries an initial franchise fee of $12,000, a total investment range of $225,000 to $555,000, a royalty fee of 6% of gross sales, and an advertising fund contribution of 2% of gross sales, with a minimum net worth requirement of $300,000 and a liquid capital threshold of $100,000. These figures are Sharetea's and not Raretea Trademark License Ag's — they are presented as category benchmarks to frame the investment tier, not as representations of what a Raretea Trademark License Ag franchise investment will actually require. Within QSR boba concepts, ongoing royalty fees across the category typically fall between 4% and 8% of gross sales, with marketing contributions between 1% and 5%. The Raretea Trademark License Ag franchise model as structured involves a 100% franchised unit base with 4 locations, no company-owned stores, and a franchise website at raetea.com/franchise-opportunity, signaling an active recruitment posture. Any investor conducting serious due diligence on the Raretea Trademark License Ag franchise fee and total investment must obtain and review the Franchise Disclosure Document directly from the franchisor, as this is the only legally mandated source of accurate cost information.

The operating model of a Raretea Trademark License Ag franchise unit is built around the experiential boba tea shop format, which distinguishes itself from pure grab-and-go beverage kiosks through an emphasis on dwell time, social environment, and customizable drink menus. The Reno, Nevada RareTea Boba location operated by Ruth Broos features an open floor plan with board games, televisions, and ample seating — a format that targets students and families and positions the store as a destination rather than a transactional stop. This design philosophy has meaningful implications for staffing, lease requirements, and build-out costs, as larger footprint stores with community-oriented layouts require more square footage, more seating infrastructure, and a barista staffing model that can support both beverage production and a hospitality-oriented customer experience. Employee reviews associated with Rare Tea boba-style operations on Indeed.com from February 2026 describe the work as accessible for entry-level staff — baristas note that drinks are straightforward to memorize and prepare, that the environment is enjoyable, and that the role is commonly recommended as a first job. Management consistency and hour stability were flagged as areas for improvement in at least one review, which is a relevant operational consideration for franchisees building a staffing model. General franchise best practices in the QSR beverage space involve initial training programs combining classroom instruction with hands-on beverage preparation, real estate selection support, and ongoing field consultant engagement — though the specific training duration, location, and curriculum details for the Raretea Trademark License Ag franchise system would need to be confirmed through direct franchisor engagement and FDD review. Territory structure and any exclusivity provisions are similarly items that prospective franchisees should prioritize in their FDD review, particularly given the early-stage scale of the system with only 4 franchised units currently operating.

Item 19 financial performance data is not disclosed in the current Franchise Disclosure Document for Raretea Trademark License Ag. Franchisors are not legally required to make financial performance representations in Item 19, and many emerging franchise systems with smaller unit counts opt not to disclose, either because the statistical sample is too limited to produce meaningful benchmarks or because the franchisor has not yet built the internal data infrastructure to support audited performance reporting. With 4 total franchised units and zero company-owned locations, the Raretea Trademark License Ag system falls into a category where any Item 19 figures would carry high variance and limited predictive power for prospective investors in new markets. In the absence of disclosed unit economics, investors should benchmark against the broader beverage franchise category and seek validation through direct franchisee interviews. The industry context is constructive: the snack and nonalcoholic beverage bars market is projected to grow from $333.12 billion in 2025 to $456.47 billion by 2030 at a CAGR of 6.7%, providing a rising-tide backdrop for well-positioned operators. For context on what bubble tea franchise unit economics can look like at more mature systems, Sharetea's FDD does not disclose average unit volume either, illustrating that financial performance non-disclosure is a common characteristic across the boba franchise segment rather than a brand-specific anomaly. Prospective investors should request any available franchisee financial data directly from the franchisor during the discovery process, speak with existing franchisees like the Reno operator Ruth Broos to gather ground-level revenue and expense intelligence, and model conservative and optimistic scenarios based on local market demographics, rent structures, and throughput capacity before making any capital commitment to the Raretea Trademark License Ag franchise opportunity.

The growth trajectory of Raretea Trademark License Ag reflects an early-stage franchise system at a pivotal inflection point. With 4 franchised units and no company-owned stores, the brand is operating in the phase where franchise systems either build operational infrastructure and accelerate unit growth or plateau due to underdeveloped support systems — a distinction that makes the next 24 to 36 months critically important for evaluating long-term brand health. The December 2024 opening of the Reno, Nevada location as one of the "biggest" stores in the system, combined with the franchisee's own framing of it as the "only location in Nevada," suggests deliberate geographic diversification beyond California, which is an encouraging signal for a brand that could otherwise risk being perceived as a regional concept. The competitive environment in boba franchising is accelerating at the macro level: in March 2026, Gong cha, a leading bubble tea brand with nearly 2,200 global locations, acquired the rights to 170 U.S. locations from a master franchisee as part of a strategy to reach 1,000 U.S. locations, simultaneously launching a Gong cha 2.0 overhaul of its digital systems, store design, and operational infrastructure to improve franchisee profitability and scalability. This macro consolidation dynamic creates both a threat and an opportunity for emerging boba concepts like Raretea Trademark License Ag — larger competitors bring brand awareness and marketing spend that grows the overall category, while smaller systems can differentiate through community-focused store environments, customization menus, and local market intimacy that national chains struggle to replicate. Key consumer trends aligned with the brand's positioning include rising demand for specialty and premium beverage experiences, the growth of beverage-focused quick-service outlets in high-footfall locations, and the integration of digital ordering platforms that improve throughput and customer data capture.

The ideal candidate for a Raretea Trademark License Ag franchise is an owner-operator with strong community ties in a target market — the Reno franchisee's success in identifying a location that customers describe as the "best spot in town, location-wise" illustrates how critical real estate instinct and local market knowledge are for this format. Given the experiential, dwell-time-oriented store model, franchisees who bring hospitality backgrounds or have managed retail food-and-beverage operations will be better positioned to manage staffing, customer experience, and community engagement than purely financial investors seeking an absentee income stream. The system's current scale of 4 units makes it inherently an owner-operator opportunity — early-stage franchise systems rarely have the operational infrastructure to support fully absentee multi-unit investors, and the Raretea Trademark License Ag franchise is best evaluated through that lens. Geographic markets with strong student populations, university proximity, and younger demographic profiles are natural targets, given the customer base observed at the Reno location, which draws heavily from students and families. Markets in the Mountain West, Pacific Southwest, and growing Sun Belt metros present logical expansion corridors for a California-founded boba concept seeking to replicate its West Coast cultural familiarity in adjacent high-growth markets. Prospective franchisees should budget for lease negotiation support, confirm the availability of preferred territories with the franchisor, and understand the franchise agreement term structure before signing, as term length and renewal rights have significant bearing on the long-term return on any franchise investment.

Raretea Trademark License Ag sits at an early but strategically interesting moment in its franchise development, operating in one of the fastest-growing segments of the $333-billion-plus snack and nonalcoholic beverage bars market with a 100% franchised model and active franchise recruitment underway. The absence of disclosed Item 19 financial performance data is a characteristic shared across many boba franchise systems and underscores the importance of thorough independent due diligence — speaking directly with existing franchisees, reviewing the full FDD, and modeling realistic unit economics using category benchmarks rather than franchisor projections. The brand's FPI Score of 56, categorized as Moderate by independent franchise performance assessment methodology, reflects both the opportunity embedded in an early-stage system and the elevated risk profile that comes with limited historical performance data and a small current unit count. For investors willing to engage in rigorous pre-investment analysis, that moderate risk profile may be appropriate given the strong secular tailwinds behind specialty beverage franchising, the projected growth of the category to $456.47 billion by 2030, and the demonstrated consumer demand visible in the community response to existing RareTea Boba locations. PeerSense provides exclusive due diligence data including SBA lending history, FPI score analysis, location maps with Google ratings, FDD financial data, and side-by-side comparison tools that allow investors to benchmark Raretea Trademark License Ag against other boba and nonalcoholic beverage franchise opportunities across the full investment spectrum. Explore the complete Raretea Trademark License Ag franchise profile on PeerSense to access the full suite of independent franchise intelligence data.

FPI Score

56/100

SBA Default Rate

0.0%

Active Lenders

3

Key Highlights

Low SBA default rate (0.0%)

Data Insights

Key performance metrics for RareTea - Trademark License Ag based on SBA lending data

SBA Default Rate

0.0%

0 of 4 loans charged off

SBA Loan Volume

4 loans

Across 3 lenders

Lender Diversity

3 lenders

Avg 1.3 loans per lender

RareTea - Trademark License Ag — Deep SBA Data

Brand-specific metrics derived directly from SBA 7(a) approval records — peak lending year, leading state, average loan size, and lender concentration. PeerSense computes these per brand so capital advisors and prospective franchisees can benchmark this opportunity against the rest of the franchise universe.

Peak SBA Year

2023

3 approvals — best year on record for RareTea - Trademark License Ag.

Top SBA State

Texas

2 SBA-financed RareTea - Trademark License Ag locations — the densest operator footprint.

Average Loan Size

$162K

Median $125K — use as a sizing anchor when modeling your own $RareTea - Trademark License Ag unit.

Lender Concentration

100%

Concentrated

Share of RareTea - Trademark License Ag approvals captured by the top 3 SBA lenders.

RareTea - Trademark License Ag's SBA lending pipeline peaked in 2023 (3 approvals). The last five fiscal years account for 75% of cumulative volume ($566K approved). Operator density is highest in Texas with 2 SBA-financed locations. Average funded ticket sits at $162K, with the median at $125K. Lender mix is concentrated: the top three SBA lenders account for 100% of approvals — credit decisions concentrate with a small group of incumbents.

Payment Estimator

Loan Amount$400K
Interest Rate9.5%
Term (Years)10 yr

Estimated Monthly Payment

$5,176

Principal & Interest only

Locations

RareTea - Trademark License Agunit breakdown

Total Units
N/A
Franchisee Owned
System Owned
Closed

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RareTea - Trademark License Ag