- 2023 Franchise 500 Rank
#442 Ranked #379 last year
- Initial investment
$195K - $395K
- Units as of 2023
89 21.9% over 3 years
The Spice & Tea Exchange is a spice and tea retail brand founded in 2008. The company strives to "create and share a more flavorful life" by selling high-quality, diverse products. Allowing customers to smell each product before they purchase it makes their shopping experience incredibly sensory and educational. This is partly why The Spice & Tea Exchange has become a nationwide name. With over 70 stores across several states, the brand is looking to expand its reach in all 50 states.
Why You May Want to Start a The Spice & Tea Exchange Franchise
The Spice & Tea Exchange might be a good option for franchisees enthusiastic about customer experience, tea, and a supportive corporate team.
As a franchisee, the company will likely provide you with ongoing support from the beginning of your discovery process. This includes POS and back-end support, a biennial franchise conference, advisors, a field operations team, marketing, and virtual training sessions. Furthermore, you typically won't have to establish new relationships with tea and spice vendors as a franchisee. The company already has hundreds of distributors who are constantly developing new products to stock your shelves.
The Spice & Tea Exchange holds a high standard for its products, sourcing from organic and fair trade vendors whenever possible. They are also organic and Kosher certified. The Spice & Tea Exchangechooses its Grade A spices and loose leaf teas based on aroma, volatility, freshness, and sustainability. They also focus on safety, using rigorous testing to increase allergen awareness.
What Might Make a The Spice & Tea Exchange Franchise a Good Choice?
The Spice & Tea Exchange is conveniently part of two industries—spices and tea. Not only that, but the store will likely appeal to many Millenials, with whom tea is increasingly popular. This means you may have a younger generation to carry your future sales.
Outside of its retail component, The Spice & Tea Exchange franchises are typically cafes, as well. The Tea Bar, a recent addition to the brand concept, sells over 45 different types of hot and cold teas to-go. The Spice & Tea Exchange also offers various incentives, including a quarterly bonus when customers set your store as their home store for eCommerce sales.
How to Start a The Spice & Tea Exchange Franchise
You should make sure you're financially ready for an initial investment that will include a franchise fee and other startup costs. Franchisees will also need to meet the company's set net worth and liquid capital requirements.
Researching your options with The Spice & Tea Exchange is equally as important. As you make your decision to open a franchise of the brand, make sure you take time to explore your local area to see if a franchise would do well in your community.
If you successfully make it through the franchising process, you'll likely attend Spice UniversiTEA at company headquarters in Palm Harbor, Florida. This may also be the time to network with the community. Once everything is set to go, you can open the doors to your new franchise and start spicing up people's lives!
About The Spice & Tea Exchange
|Related Categories||Miscellaneous Food/Beverage Businesses, Miscellaneous Retail Businesses|
|Parent Company||The Spice & Tea Exchange Holdings LLC|
|Leadership||Amy Freeman, CEO|
210 Marshall Cir.
St. Augustine, FL 32086-5204
|Social||Facebook, LinkedIn, Instagram, YouTube|
|Franchising Since||2008 (15 years)|
|# of employees at HQ||90|
This company is offering new franchisees throughout the US.
|# of Units||89 (as of 2023)|
Information for Franchisees
Here's what you need to know if you're interested in opening a The Spice & Tea Exchange 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.
|$194,650 - $395,250|
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.
|25% 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||The Spice & Tea Exchange has relationships with third-party sources which offer financing to cover the following: franchise fee, startup costs, equipment, inventory, 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||68-105 hours|
|Classroom Training||29-62 hours|
Meetings & Conventions
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.
|# of employees required to run||3-5|
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.
Interested in ownership opportunities like The Spice & Tea Exchange? Request a free consultation with a Franchise Advisor now.
Franchise 500 Ranking History
Compare where The Spice & Tea Exchange landed on this year's Franchise 500 Ranking versus previous years.
Curious to know where The Spice & Tea Exchange ranked on other franchise lists? Find out below.
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