- 2023 Franchise 500 Rank
N/R Not ranked last year
- Initial investment
$187K - $340K
- Units as of 2020
22 22.2% over 3 years
Jazen Tea began in 2012 in California. It was built upon an intriguing concept that mixes high-quality Taiwanese tea with fresh fruit. Jazen Tea found that the best-tasting fruity teas are natural, fresh, high-quality ingredients, not powder mixes.
The Jazen Tea menu consists of various fruit teas, milk teas, fruit smoothies, and fruit slushies. The menu variety has allowed the company to tap into the thriving tea and fruit market demands.
Jazen Tea is a quick-service restaurant. The quick-service setup is increasingly popular, given the widespread interest in healthy, quick food items in the place of fast foods. As more people take up healthier food alternatives, Jazen Tea responds to the demand with its revolutionary concept of mixing tea and fruits.
Since beginning to franchise in 2013, Jazen Tea has opened over one dozen locations, with many of them being franchises.
Why You May Want to Start a Jazen Tea Franchise
A Jazen Tea may be more likely to have a predictable outcome than starting a business from the ground up because there is already a working business concept and a ready market. If you are keen on eating healthier, running a Jazen Tea franchise may be a step further to leading yourself and others to more nutritious lives. Franchisees must also embody the values of leadership, quality, spirit, and entrepreneurship.
Jazen Tea has been ranked in Entrepreneur's Franchise 500 based on an evaluation of more than 150 data points in the areas of costs and fees, size and growth, franchisee support, brand strength, and financial strength and stability.
What Might Make a Jazen Tea Franchise a Good Choice?
The demand and sales of healthy food products may continue to grow, and healthy drinks are becoming a daily requirement for helping some consumers reach their nutritional needs. Jazen Tea may serve as an ideal franchise because it offers three possible business models: a stand-alone business, adding the franchise to your current business, or co-branding with Pho Hoa, another brand owned by parent company Aureflam.
As a franchisee, your responsibilities and duties would be to find or build a space, hire and train your employees, and run the business by the established Jazen Tea standards. Honorably discharged veterans can receive a discount from their initial franchise fee. Franchisees who co-brand Jazen Tea and Pho Hoa, a leading Vietnamese food franchise, may have the entire franchising fee waived.
How To Open a Jazen Tea Franchise
To be part of the Jazen Tea team, you should make sure you're financially ready for an initial investment made up of a franchise fee and other startup costs. In addition, you should prepare yourself for the existence of ongoing fees that will include advertising, royalty, and potential renewal fees. Franchisees will also need to meet the company's set net worth and liquid capital requirements.
Before making any financial commitment or signing an agreement, you must perform your due diligence and establish if this is the right opportunity for you. As part of your due diligence, you may want to speak to existing franchisees and ask the Jazen Tea franchising team questions.
To help you open your Jazen Tea franchise, the Jazen Tea team may help with site selection, lease negotiation, online customer support, proprietary software, online marketing, and initial training.
About Jazen Tea
|Franchising Since||2013 (10 years)|
|# of employees at HQ||8|
|# of Units||22 (as of 2020)|
Information for Franchisees
Here's what you need to know if you're interested in opening a Jazen Tea franchise.
Financial Requirements & Ongoing Fees
Here's what you can expect to spend to start the business and what ongoing fees the franchisor charges throughout the life of the business.
Initial Franchise Fee
Definition: The initial fee paid to a franchisor to join their system
What you need to know: Found in Item 5 of the FDD, this may be a flat fee, or may vary based on territory size, experience, or other factors.The franchise fee is an up-front (one-time) cost that a new franchisee pays to the franchisor. This fee is usually due at the signing of the franchise agreement and covers the right to use the franchisor's trademarks, name, and related business systems.
Definition: The total amount necessary to begin operation of the franchise
What you need to know: The initial investment includes the franchise fee, along with other startup expenses such as real estate, equipment, supplies, business licenses, and working capital. This is outlined in a chart in Item 7 of the FDD, showing a range of possible costs from low to high.
|$186,600 - $339,730|
Net Worth Requirement
Definition: The minimum net worth you must have in order to qualify to become a franchisee of this company
What you need to know: Net worth is the value of a person's assets minus liabilities. Assets include cash, stocks, retirement accounts, and real estate. Liabilities include items like mortgages, car payments, and credit card debt.
Definition: The minimum liquid capital you must have available in order to qualify to become a franchisee of this company.
Definition: A discount or other incentive offered to military veterans who buy a franchise with this company.
|10% off franchise fee|
Definition: A ongoing fee paid to the franchisor on a regular basis.
What you need to know: Most franchisors require franchisees to pay an ongoing royalty fee, which is detailed in Item 6 of the FDD. This fee is typically a percentage of weekly or monthly gross sales, but may also be a flat weekly, monthly, or annual fee.
Ad Royalty Fee
Definition: An going fee paid to the franchisor on a regular basis to support advertising or marketing efforts.
What you need to know: This may also be called advertising fee, marketing fee, brand fund fee, and more, but the basic purpose is the same-- to support promotion of the brand systemwide. As with the royalty fee, it is detailed in Item 6 of the FDD, and can be a percentage of weekly or monthly gross sales or a weekly, monthly, or annual fee.
Term of Agreement
Definition: The length of time your franchise agreement will last.
What you need to know: Franchise terms are typically anywhere from 5 to 20 years in length, but are sometimes instead dependent on factors such as the term of your lease. Once your term is up, you may have the option to renew your agreement, typically for a smaller fee than the original franchise fee.
|Is franchise term renewable?||Yes|
Some franchisors offer in-house financing, while others have relationships with third-party financing sources to which they refer qualified franchisees.
|Third Party Financing||Jazen Tea has relationships with third-party sources which offer financing to cover the following: startup costs, equipment, inventory, accounts receivable, payroll|
Training & Support Offered
Franchisors offer initial training programs and a variety of ongoing support options to help franchisees run their businesses.
|On-The-Job Training||56 hours|
Security & Safety Procedures
Franchisee Intranet Platform
Additional details about running this franchise.
|Is absentee ownership allowed?||No|
Can this franchise be run from home/mobile unit?
Definition: The business can be run from your home and/or a vehicle, and it is not necessary to have a retail facility, office space, or warehouse.
Can this franchise be run part time?
Definition: This business can be run by the owner on a part-time basis (less than 40 hours per week) and/or as a side business; it is not necessary for the business to be open/run full-time.
Are exclusive territories available?
Definition: An exclusive territory is a fixed area in which you are given the right to operate and in which no other units of the same franchise may be opened.
What you need to know: Territory size may be based on factors such as radius, population size, zip codes, and more. Details can be found in Item 12 of the FDD.
Franchise 500 Ranking History
Compare where Jazen Tea landed on this year's Franchise 500 Ranking versus previous years.
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