Jazen Tea Franchise Costs, Fees & Owner Salary (2023)

Jazen Tea, founded in San Jose, California in 2012, stands out in the fruit and boba tea industry for its commitment to real fruits and fresh ingredients, shunning powder mixes for authentic flavors. The brand began franchising in 2014. As a Quick Service Restaurant (QSR) positioned for healthier eating, Jazen Tea has tapped into the growing demand for healthy food options, offering a refreshing alternative to fast food.

Headquartered in the vibrant and diverse city of San Jose, California, Jazen Tea reflects the region's innovative spirit and cultural richness in its offerings. San Jose, a technological hub in the heart of Silicon Valley, provides an ideal backdrop for Jazen Tea's commitment to fresh, high-quality ingredients and health-oriented products.

This location not only influences the brand's forward-thinking approach to traditional tea but also connects it to a community that values sustainability and wellness.The franchise model emphasizes strong franchisee support, operational excellence, and a community-focused approach, making it an appealing choice for entrepreneurs looking to enter the booming healthy food market.

Initial Franchise Fee

For the Jazen Tea franchise, the Initial Franchise Fee is $10,000. This fee is due upon signing the JT Franchise Agreement. An application processing fee of $300 is paid with the franchise application, which is credited toward the Initial Franchise Fee. The balance of the fee is payable when the franchise agreement is signed.

Royalty Fee

Franchisees must pay a Royalty Fee equal to 4% of the aggregate Gross Sales of the Franchised Restaurant, payable monthly.

Transfer Fee

The Transfer Fee varies but can be 25% of the then-current Initial Franchise Fee, with conditions for existing franchisees and multi-unit franchise owners.

Advertising Fee

The Local Advertisements requirement starts with the first full calendar month after the Opening Date, where the franchisee must spend a minimum of $250 each calendar month on local advertisements. The company may increase this minimum obligation by up to $25 per calendar month effective on January 1 of each calendar year during the term

Training Fee

For additional training after the Opening Date, the fee is based on the then-current rate, which is $1,500 for the Management Training course and $400 per day for in-shop training.

Marketing Fee

The marketing fee is 2% of Gross Sales, due on the same date as the Royalty Fee.

Jazen Tea provides a comprehensive training program for franchisees, encompassing various aspects of running a tea shop, from management to day-to-day operations. The training includes:

Basic Training

The initial training program consists of two main modules: Management Training and Opening Training. These modules cover the essential aspects of managing and operating a Jazen Tea shop. The training is adaptable, allowing the franchisor to modify its content, duration, and delivery method as needed. This flexibility ensures that the training remains relevant and up-to-date with industry standards and the franchisor's operational requirements.

Management Training

Before the shop's opening, the franchisee, one of the franchisee's owners, or a management-level employee must successfully complete the entire Basic Training program to the franchisor's satisfaction. This requirement underscores the importance of having a well-trained management team capable of upholding Jazen Tea's service standards and operational efficiency.

Continuing Training

Jazen Tea may offer continuing training programs to address changes in the system, industry trends, and other relevant topics. These programs aim to keep franchisees informed and adept at managing their shops in alignment with the franchisor's expectations. Attendance at certain continuing training sessions may be mandatory for the franchisee's Certified Manager or other designated personnel, ensuring that key staff members remain knowledgeable about the latest operational practices and standards.

Jazen Tea offers territory protection for its franchisees. When a franchisee selects a location for their Stand-Alone Jazen Tea® Shop outside of a Metropolitan Urban Core Area, Jazen Tea assigns a territory for that shop as part of the franchise rights. The assigned territory typically encompasses an area approximately 3 miles in radius from the front door of the franchisee's Stand-Alone Jazen Tea® Shop.

The specific boundaries of this territory are determined by Jazen Tea based on the closest roads or other geographic or political boundaries. Jazen Tea commits not to open or award a franchise to any other party to open a Stand-Alone Jazen Tea® Shop within the territory assigned to a franchisee.

This means that within the designated 3-mile territory, the franchisee's Stand-Alone Jazen Tea® Shop will be the only one approved for operation by Jazen Tea. This territorial protection is designed to reduce direct competition between Jazen Tea franchisees and ensure that each has a distinct area to serve. It's important to note that while Jazen Tea provides territorial protection, this does not grant the franchisee exclusive rights to service all customers within their territory.

The Jazen Tea Franchise Disclosure Document indicates that franchisees are not required to personally devote full time and attention to managing and supervising all administrative and operational activities of their Stand-Alone Jazen Tea® Shop or Co-Branded Phở Hòa® Restaurant. 

If the franchisee or their owners choose not to assume these responsibilities, they must assign them to their senior management team member. This team member must complete the Basic Training program and be certified by ServSafe, a food safety training and certificate program administered by the National Restaurant Association Solutions. 

While the franchise owner may delegate day-to-day supervisory duties to a senior manager, as the owner, they remain responsible for compliance with the franchise agreement. This suggests that while direct daily involvement by the franchisee is not mandated, there is an expectation for oversight and responsibility for the franchise's operations, either by the franchisee directly or through a designated senior manager.