How to compare bubble tea franchises in Australia
Most brands do not publish what a franchise actually costs, so a website comparison only ever gets you to a shortlist. This page sets out the twelve things worth comparing, where to get figures you can rely on, and a grid you can fill in yourself. Chatime's column is already filled in.
Why comparing on websites does not work
Franchisors are not required to publish their fees, and most do not. What you find instead are ranges from third-party directories that are often years out of date, or figures lifted from a brand's overseas operation and quoted in Australian dollars.
What a website tells you
Whether a brand is recruiting, roughly what it costs, and how it wants to be seen. Useful for building a shortlist. Not a basis for a decision.
What a disclosure document tells you
The full fee structure, what can be required of you during the term, the franchisor's financial position, and contact details for current and former franchisees. This is the only source that makes two brands genuinely comparable.
Compare like for like, or do not compare
One brand's headline figure may include fit-out and opening stock; another's may not. A number without a stated inclusion list tells you nothing. Ask every brand what its figure covers before you put two of them side by side.
Twelve things worth comparing
Take these twelve to every brand on your shortlist. The third column is what a straight answer sounds like; the fourth is what should slow you down. Where a brand will not answer at all, that is itself a comparison.
| What to compare | What Chatime publishes | What a complete answer includes | What should make you pause |
|---|---|---|---|
| Total investment to open | $300,000 – $375,000 + GST | A range, an itemised list of what it covers, and a clear statement of what sits outside it | A single figure with no inclusion list, or a “from” price with no upper bound |
| Application deposit | None, at any stage | Whether one exists, the amount, and the exact conditions under which it is refunded | Any payment requested before you have received the disclosure document |
| Initial franchise fee | Included in the total above; itemised in the disclosure document | The amount, and whether it sits inside or on top of the headline investment figure | A fee that surfaces only after you have committed to a site |
| Ongoing royalty | In the disclosure document | The percentage, and the base it is calculated on — gross sales, net sales, or something else | A percentage quoted without saying what it is a percentage of |
| Marketing levy | In the disclosure document | The percentage, the base, and what the fund is spent on | A levy with no reporting back on how the fund is used |
| Working capital you will still need | Sits outside the investment figure; plan for it separately | A stated amount or method, and confirmation that it is not part of the headline figure | A brand that treats working capital as optional, or does not raise it at all |
| Agreement term | 5 years, with renewal options | The initial term in years, and whether it is tied to the lease | A term described only as “in line with the lease”, with no minimum |
| Renewal rights and cost | In the disclosure document | Whether renewal is a right or at the franchisor’s discretion, what it costs, and what conditions attach | Renewal described as automatic, or with no cost stated |
| Territory protection | Site-specific; ask what prevents a store opening nearby | Exactly what the franchisor may and may not do near your site, in writing | Verbal assurances about territory that do not appear in the agreement |
| Capital expenditure mid-term | In the disclosure document | What a refurbishment cycle looks like, who decides when it happens, and the likely cost | No answer at all — significant capital expenditure must be disclosed under the Code |
| Training: how long, and where | 5 days online, then 6 days in-store at a Sydney franchise | Duration, location, who delivers it, and what support continues after opening | Training described only in weeks, with no detail on what it covers |
| Franchisees who exited, last 3 years | Disclosed in the disclosure document | Transfers, terminations and non-renewals shown separately, with the reasons | Being handed a curated list of franchisees to call, rather than the full contact list |
Where the real numbers come from
Three sources give you figures you can actually rely on. All three are available to you before you commit to anything.
The Franchise Disclosure Register
The Australian Government maintains a free public register of franchisors at franchisedisclosure.gov.au. Anyone can search it and view franchise profiles before making contact with a brand. Note that franchisors upload their own material and the Commonwealth does not review or endorse it, so treat it as disclosure rather than verification.
The disclosure document
Under the Franchising Code of Conduct, a franchisor must give you a disclosure document at least 14 days before you sign a franchise agreement. It sets out fees, obligations, territory arrangements, contact details for current and former franchisees, and the franchisor's financial position. It is the only document that gives you comparable numbers across brands.
Current and former franchisees
The disclosure document lists them. Call several, and choose who you call rather than accepting a curated list. Ask about the gap between the projected build cost and the actual one, how long it took to reach steady trade, and what they would do differently.
Questions that make brands comparable
Ask every brand the same questions in the same words. Differences in the answers are the comparison.
What is the total cost to open, including working capital?
Fit-out alone is not the investment. Ask what sits outside the headline figure and who pays for it.
What are the ongoing fees, and a percentage of what?
Royalties and marketing levies differ between systems, and so does the base they are calculated on. A percentage of gross sales is not the same as a percentage of net.
How many franchisees have exited in the past three years, and why?
Transfers, terminations and non-renewals are all disclosable. Ask for the numbers and the reasons behind them.
What territory protection applies?
Ask specifically what prevents another store in the same system opening nearby, and get the answer in writing.
What capital expenditure can I be asked for mid-term?
Significant capital expenditure must be disclosed. Ask what a refurbishment cycle looks like and who decides when it happens.
What happens at the end of the term?
Renewal rights, transfer conditions, and what you are actually able to sell.
On earnings, whoever you are talking to
No franchisor in Australia may lawfully promise you what you will earn. Any figure presented to you as expected profit should be treated as a projection, tested with an accountant, and checked against what current franchisees actually report.
What Chatime publishes, in full
Everything Chatime states about its own franchise, in one place, so you can fill in one column of the grid without having to ask.
Investment
$300,000 to $375,000 AUD + GST, depending on format and site. There is no application deposit at any stage.
Network
155+ stores in Australia, trading here since 2009, part of a group operating in 63 countries.
Formats
Kiosk, suited to shopping centre food courts, and inline stores for street-front and larger retail tenancies.
Training
Five days online, followed by six days in-store at a Sydney franchise, alongside a current franchise partner.
Term
Five years, with renewal options.
Support
National marketing, the Loyal-tea app, managed supply chain, POS and reporting systems, HR and compliance tools, and a dedicated franchise business consultant.
Where opportunities are open
Sydney, Melbourne, Brisbane, Perth, Adelaide, Canberra, the Gold Coast and the Sunshine Coast, including both new sites and resales. The available locations page carries the current list.
Comparing bubble tea franchises: your questions
How do I compare bubble tea franchises in Australia?
Compare twelve things: total investment to open, any application deposit, the initial franchise fee, the ongoing royalty and what it is a percentage of, the marketing levy, the working capital you will still need, the agreement term, renewal rights and cost, territory protection, what capital expenditure can be required mid-term, training length and location, and how many franchisees have exited in the past three years. Ask every brand the same questions in the same words, and take the answers from disclosure documents rather than websites.
Why do so many franchise brands not publish their fees?
Franchisors are not required to publish fees on their websites. The Franchising Code requires them to be set out in a disclosure document given to you at least 14 days before you sign. That document is a formal instrument a franchisor can be held to; a figure on a web page is not, and it can go out of date without anyone noticing.
Where can I find official information about a franchise before I contact the brand?
The Australian Government's Franchise Disclosure Register at franchisedisclosure.gov.au is a free public register of franchisors. Anyone can search it and view franchise profiles without contacting the brand. Franchisors upload their own material and the Commonwealth does not review or endorse it, so treat it as disclosure rather than verification.
How do I compare franchise costs between brands?
Only by comparing what each figure includes. One brand's headline number may cover fit-out and opening stock while another's covers neither, and working capital usually sits outside both. Ask each brand for its inclusion list, then compare the totals on the same basis.
Can a franchisor tell me how much I will earn?
No franchisor in Australia may lawfully promise you what you will earn. A franchisor may choose to give earnings information, and if it does, it must state that the information is accurate to the best of its knowledge and provide it at least 14 days before you sign. Treat any figure presented as expected profit as a projection to test with your own accountant.
What should I ask current franchisees?
Ask about the gap between the projected build cost and the actual one, how long it took to reach steady trade, what support looked like in practice after opening, and what they would do differently. Choose who you call from the contact list in the disclosure document rather than accepting a curated list.
How much does a Chatime franchise cost in Australia?
Total investment is $300,000 to $375,000 AUD + GST, depending on store format and site. That covers the franchise fee, fit-out, equipment, training and opening stock, and there is no application deposit at any stage. Royalty and marketing levy rates are set out in the disclosure document.
Filling in the Chatime column?
Enquire and a franchise consultant will walk you through the numbers for the sites actually available. No deposit, no obligation.
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