Bubble Tea Franchise Brand For Sale Acquisition: Buy Franchisor Rights to an Established Brand in Atlanta
- Jimmy Carey
- Jan 16
- 12 min read
If you're an experienced restaurant operator, multi-unit franchisee, or strategic investor looking for your next move in the food and beverage space, acquiring franchisor rights to an established bubble tea franchise offers a rare path to recurring revenue without the typical restaurant headaches. Unlike opening individual locations or buying single-unit restaurants, purchasing the franchisor rights to an operating bubble tea franchise brand means you're buying the system itself—complete with brand equity, multiple operating locations, documented procedures, and contractual franchise income.
Jimmy Carey, Atlanta's Premier Restaurant Broker, recently listed an exceptional opportunity: the franchisor rights to an established bubble tea franchise founded in 2018, currently generating $70,000 in normalized annual franchisor cash flow with multiple franchised locations in operation. The asking price of $241,500 represents a compelling entry point into franchise ownership for qualified buyers who understand both the beverage categories' growth trajectory and the mechanics of franchise systems. This isn't a startup concept—it's a proven bubble tea franchise brand with loyal customers, operating franchises, and the infrastructure already in place.
Understanding What You're Actually Buying: Bubble Tea Franchise Rights vs. Restaurant Ownership
When you acquire franchisor rights, you're not buying real estate, kitchen equipment, or taking on personal guarantees for lease obligations. You're purchasing the intellectual property, systems, contracts, and ongoing revenue streams that come from franchisees operating under your bubble tea franchise brand. The franchisor rights to this bubble tea franchise brand include everything necessary to continue and expand the franchise system.
What's Included in This Franchise Acquisition
Brand Assets: All trademarks, intellectual property, logos, and brand identity materials transfer with the sale. The brand has established recognition and customer loyalty across its existing locations.
Legal Framework: The Franchise Disclosure Document (FDD) and executed franchise agreements are already in place and transferable. This eliminates months of legal work and tens of thousands in attorney fees that new franchisors face.
Training Systems: Documented franchisee onboarding and support protocols exist, ensuring new franchise owners can be brought into the system efficiently. This is crucial for maintaining brand consistency and franchisee satisfaction.
Operations Manuals: Complete standard operating procedures for beverage preparation, customer service, inventory management, and daily operations are part of the package. These manuals represent years of refinement and operational knowledge.
Vendor Relationships: Pre-negotiated supplier agreements with beverage distributors, equipment providers, and packaging suppliers give franchisees immediate access to favorable pricing and reliable supply chains.
Digital Presence: The brand's website, social media accounts, and online presence transfer with the acquisition, maintaining customer connections and brand continuity.
Marketing Materials: Brand guidelines, promotional assets, and marketing templates support both existing franchisees and future expansion efforts.
The foundation and Goodwill is already built. Your role as the new franchisor would be supporting existing franchisees, collecting ongoing royalty payments, and strategically growing the franchise footprint through additional location sales.
Why Bubble Tea Franchise Opportunities Are Thriving in 2026
The beverage-focused quick-service restaurant category has proven remarkably resilient across Metro Atlanta and Georgia markets. Bubble tea has evolved from niche to mainstream, with customizable beverages, visual appeal, and accessible price points driving strong repeat customer behavior. Coffee shops serving specialty drinks alongside bubble tea capture multiple dayparts and broader demographics.
The beverage category generates higher profit margins than full-service restaurants—lower food costs, simplified operations, faster service. Franchisees benefit from smaller footprints requiring less capital investment, making franchise sales easier to close. Equipment needs are straightforward (espresso machines, blenders, refrigeration) some have food menus' that need hood systems. Labor models require less culinary expertise and shorter training than full-service F&B concepts, making franchisee recruitment easier and operations more consistent which reduce startup costs and accelerates opening timelines for franchisees.
The Financial Structure: Understanding Franchisor Cash Flow
The $70,000 in normalized annual franchisor cash flow represents recurring income from two primary sources: ongoing franchise royalty fee collection and product sales to existing franchisees. This isn't one-time franchise fee income from new locations—it's predictable, contractual revenue that continues month after month as long as franchisees remain operational. Understanding franchise economics requires the same analytical rigor we apply in our Restaurant Valuation Atlanta blog when evaluating traditional restaurant acquisitions, though the income structure and scalability differ significantly.
Recurring Revenue Streams
Royalty Payments: This bubble tea franchise system operates on a 7-year franchise agreement term with franchisees paying 3% of gross sales as ongoing royalties plus an additional 1% marketing fee, totaling 4% of gross sales. With multiple locations operating, these payments create predictable monthly income for the franchisor.
Initial Franchise Fees: When new franchises are sold, the initial franchise fee is $35,000 per location, plus a $10,000 training fee. These upfront fees provide significant revenue upon each franchise sale. The established brand, proven model, and existing locations make franchise sales significantly easier than launching a new concept from scratch.
Marketing Fund Contributions: The 1% marketing fee collected from franchisees contributes to brand-level marketing managed by the franchisor. Franchise agreements typically allow reasonable administrative fees for managing these funds.
Vendor Rebates: Franchisors with negotiated supplier relationships often receive rebates or volume discounts that create additional income streams beyond direct franchise payments.
The $241,500 asking price represents approximately 3.45 times the current annual franchisor cash flow—a reasonable multiple for an established franchise system with growth potential. Compare this to traditional restaurant valuations, which typically fall between 2-3 times Seller's Discretionary Earnings (SDE) but come with all the operational headaches, liabilities and real estate personal guarantees obligations.
Ideal Buyer Profile: Who Should Acquire This Bubble Tea Franchise Brand?
The ideal buyer brings specific experience, capital access, and growth ambitions aligned with franchise expansion.
Restaurant Groups and Multi-Unit Operators: Current operators understand the F&B business from the ground up. Transitioning to franchisor represents a logical next step for experienced multi-unit operators leveraging their operational knowledge. Understanding franchisee challenges makes you a better franchisor and increases satisfaction and retention.
Strategic and Private Equity Investors: Investors seeking high-growth F&B platforms with recurring revenue find franchise systems attractive for scalability and capital efficiency. Unlike traditional restaurants requiring significant capital per location, franchise growth relies on franchisee investment while the franchisor collects ongoing fees.
Franchise Development Professionals: If you've worked in franchise development, operations, or support, you understand the model intimately. This established brand with operating locations provides a ready-made platform without startup risk or years building brand recognition.
Existing Franchisors Diversifying: Franchisors in adjacent categories often diversify into high-growth beverage segments. Adding a bubble tea franchise brand to your portfolio creates cross-selling opportunities and expands your total addressable market.
E2 Visa Investors: International entrepreneurs seeking U.S. business ownership through the E2 Treaty Investor visa will find this franchise acquisition particularly attractive. The $241,500 investment meets E2 Visa capital requirements, and owning franchisor rights to an established brand with multiple operating locations demonstrates the substantial investment and active business management the visa requires. The franchise model's recurring revenue, documented systems, and expansion potential align well with E2 visa business plans, providing both immigration pathway and income generation for qualified foreign investors from treaty countries.
Key Investment Highlights: What Makes This Opportunity Compelling
Several factors distinguish this franchisor acquisition from typical restaurant purchases or startup franchise ventures.
Documented Systems: The franchise platform is fully built and operational. You're not creating operations manuals, developing training programs, or building vendor relationships from scratch. The infrastructure exists and has been proven across multiple locations.
Recurring Revenue: Contractual income from existing franchise network provides predictable cash flow through 7-year franchise agreements. Unlike selling individual restaurants where revenue ends at closing, franchise royalties (3% of sales) and marketing fees (1% of sales) continue as long as franchisees operate successfully.
Scalable Model: Clear path to growth through additional franchise sales at $35,000 per franchise fee plus $10,000 training fee. The brand's proven performance across multiple locations de-risks franchise sales conversations with prospective franchisees. Each new franchise sold generates immediate franchise fee income plus ongoing royalties.
Strong Category: The beverage and bubble tea segment continues experiencing high consumer demand with favorable demographic trends. Younger consumers particularly drive bubble tea consumption, while the coffee component appeals to broader age groups.
No Real Estate Liability: Perhaps the most significant advantage over traditional restaurant ownership—you're acquiring franchisor rights only, without leases, buildout costs, or personal guarantees. The capital requirements and risk profile differ dramatically from purchasing operating restaurants.
Growth Strategy After Acquisition: Scaling the Franchise System
Success depends on supporting existing franchisees while recruiting new ones. Start by ensuring current franchisees remain profitable and satisfied—schedule individual calls to understand challenges and demonstrate commitment to their success. Review marketing support, training, and vendor relationships for quick wins improving franchisees profitability.
Focus franchise development initially on Metro Atlanta markets where bubble tea concepts are underserved—Roswell, Alpharetta, Johns Creek, Duluth and Brookhaven have demographics supporting premium beverage concepts. Develop franchise marketing through franchise portals, industry events, and broker relationships. The IFA and regional franchise shows provide access to qualified buyers.
Provide franchisees with site selection criteria, demographic analysis, and lease negotiation support. As Atlanta's Premier Restaurant Broker, this represents a natural service extension supporting franchisee success. As the system matures, recruit multi-unit developers who commit to opening several locations within defined territories, accelerating growth while reducing administrative burden.
Atlanta Market Opportunity for Bubble Tea Franchise Growth
Metro Atlanta offers significant expansion potential for bubble tea franchise development across multiple submarkets. Northern suburbs like Alpharetta, Johns Creek, and Cumming have growing populations with young families and Asian-American communities driving bubble tea consumption. These areas support higher price points than value-focused markets.
Urban developments in Midtown, Ponce City Market, Old Fourth Ward, and West Midtown attract younger demographics with high foot traffic. Proximity to Georgia Tech, Emory, and Georgia State provides built-in customer bases. Beyond Metro Atlanta, cities like Savannah, Augusta, and Columbus offer franchise opportunities with less competition and lower costs.
Transition Planning: Taking Over an Established Franchise System
Announce ownership transition to franchisees transparently, introducing yourself and your vision.
Retain key franchisor staff managing franchisee relations, training, and operations. Franchisees have established relationships with these individuals, identify opportunities to enhance the system through technology upgrades, menu expansion, improved marketing, or enhanced training. Involve franchisees in improvements to ensure changes address their actual needs.
Comparing Franchise Acquisition to Traditional Restaurant Investment
For experienced restaurant operators, understanding how franchise ownership compares to buying additional locations clarifies the strategic choice.
Capital Efficiency: The $241,500 acquisition cost for a franchise system generating $70,000 annually compares favorably to purchasing a single restaurant location, which might cost $350,000-$1,000,000 for a profitable operation generating similar owner cash flow. The Pros and Cons of buying an existing restaurant helps clarify the strategic considerations between different investment approaches. The franchise model scales without proportional capital requirements.
Operational Involvement: Restaurant ownership requires hands-on management or trusted general managers running day-to-day operations. Franchise ownership involves supporting franchisees rather than managing employees and daily operations directly—a different skill set with different time demands. Our services provide specialized guidance for both traditional restaurant transactions and alternative F&B investments like franchise acquisitions.
Revenue Potential: Individual restaurants have finite revenue ceilings determined by physical space and hours. Franchise systems scale through additional locations without geographic limitations, adding incremental revenue with minimal cost to the franchisor.
Risk Profile: Restaurant ownership concentrates risk in single locations vulnerable to lease issues, competition, or operational problems. Franchise systems distribute risk across multiple franchisees in different locations, though franchisors face regulatory and legal risks that restaurant owners don't encounter.
Frequently Asked Questions About Franchise Acquisition
Q: What's the difference between buying franchise rights and buying a franchised restaurant location?
A: Buying franchise rights means you're purchasing the franchisor company—you become the brand owner collecting royalties from franchisees. Buying a franchised location means you're purchasing a single restaurant operating under someone else's brand and paying them royalties. Franchise rights ownership offers recurring income and scalability, while franchised location ownership provides operational control over that specific business.
Q: How much working capital do I need beyond the $241,500 purchase price?
A: Plan for at least $70,000-$100,000 in working capital to support initial operations, franchise marketing efforts, and franchisee support services during your first year. Franchise systems require ongoing investment in marketing materials, training programs, and development activities even with existing franchisees operating. The exact amount depends on your growth ambitions and the support infrastructure already in place.
Q: What are the current franchise fees and royalty structure?
A: The franchise system operates on 7-year terms with a $35,000 initial franchise fee plus $10,000 training fee per new franchise sold. Ongoing royalties are 3% of gross sales plus 1% marketing fee (4% total). This competitive fee structure makes franchise sales easier while generating predictable recurring revenue for the franchisor.
Q: Can I finance this acquisition through an SBA loan?
A: Potentially, yes. SBA loans can finance franchise acquisitions if the franchise system meets SBA guidelines and the lender structures the deal appropriately. However, the relatively small loan amount might fall below some lender minimums. Combining the acquisition with working capital or planned franchise development costs could increase the loan size to meet lender requirements. Consulting with SBA lenders experienced in franchise financing is essential during your due diligence period.
Q: What happens to existing franchise agreements when I purchase the franchisor rights?
A: Franchise agreements transfer with the sale of franchisor rights. Existing franchisees continue operating under their current agreements, now with you as their franchisor. The terms, royalty rates, and obligations remain unchanged unless franchisees and the new franchisor mutually agree to amendments. This continuity protects both franchisees and the buyer. Note: Buyers should have franchise agreements reviewed by a qualified franchise attorney during due diligence to understand all obligations and rights being transferred.
Q: How difficult is it to sell new franchises if I've never done franchise development before?
A: Franchise sales require specific expertise in qualifying buyers, presenting the opportunity, navigating franchise disclosure requirements, and supporting the site selection process. Many franchisors hire franchise development consultants or brokers who specialize in franchise sales. Given the established brand and existing locations, you're selling a proven concept rather than an untested startup, which significantly simplifies franchise sales conversations. Consider engaging franchise development professionals if you lack direct experience.
Q: What are the biggest mistakes new franchise owners make?
A: The most common mistakes include underfunding franchisor operations, neglecting existing franchisees while focusing on new development, failing to enforce brand standards consistently, and overpromising support services without adequate infrastructure. New franchise owners sometimes forget that franchisee success directly determines franchisor success—your income depends entirely on supporting franchisees effectively. Establishing clear expectations, maintaining open communication, and investing in franchisee support prevents most problems.
Q: Is the Atlanta market oversaturated with bubble tea and coffee shops?
A: While competition exists, Metro Atlanta's size and continued growth support multiple beverage concepts across different submarkets. The key is strategic site selection in underserved areas and maintaining brand differentiation through quality, service, and customer experience.
Northern suburbs like Alpharetta and Johns Creek, along with developing mixed-use projects throughout Metro Atlanta, still offer significant untapped market opportunities for well-positioned beverage concepts. The market can support additional locations if franchisees execute properly and sites are selected strategically.
Q: What's the growth potential and upside for this franchise system?
A: The upside potential is significant across multiple dimensions.
First, each new franchise sold generates $45,000 in immediate fees ($35K franchise + $10K training) plus 4% ongoing royalties on all future sales from that location. If you sell just three new franchises in year one at conservative $400,000 average annual sales per unit, you'd add $48,000 in annual recurring royalty income on top of the existing $70,000 base—a 69% increase.
Second, the current $70,000 franchisor cash flow likely represents conservative operations with room for optimization through improved franchisee support, enhanced marketing, and vendor rebate negotiations.
Third, established franchise systems with proven growth trajectories attract strategic buyers and private equity interest at premium multiples—often 5-8x EBITDA versus the 3.45x you're paying. The beverage category's favorable demographics, relatively recession-resistant consumer behavior, and lower overhead compared to full-service restaurants create a compelling growth platform for an experienced operator who can execute on franchise development and system improvements.
Important Disclosure
This blog post is for informational purposes only and does not constitute an offer to sell or solicitation of an offer to buy any franchise rights or securities.
All information regarding the bubble tea franchise opportunity described herein is subject to verification through due diligence and is provided without warranty or guarantee of accuracy.
Prospective buyers should:
Conduct independent due diligence with qualified franchise attorneys and accountants
Review the complete Franchise Disclosure Document (FDD) and all franchise agreements
Verify all financial performance representations independently
Consult with franchise consultants experienced in franchise acquisitions
Understand that past performance does not guarantee future results
Jimmy Carey Commercial Real Estate represents the seller in this transaction. All franchise investments involve risk, and buyers should carefully evaluate their own qualifications, capital resources, and risk tolerance before pursuing any franchise acquisition. This content does not constitute legal, tax, or financial advice. Readers should consult appropriate professionals before making any investment decisions.
About the Broker
With over 37 years of restaurant industry experience, Jimmy Carey has owned and operated five successful restaurants, including the acclaimed Jimmy'z Kitchen in Miami and Atlanta. This firsthand expertise makes him Atlanta's Premier Restaurant Broker, uniquely positioned to understand both traditional restaurant transactions and alternative food and beverage investment opportunities like franchise acquisitions.
Stay connected with Jimmy through Instagram, Facebook, and LinkedIn for daily market insights, new listings, and industry trends. Subscribe to his YouTube channel for in-depth market analysis and follow him on X/Twitter for real-time updates. Read reviews from satisfied clients on his Google Business Profile.
If you're ready to explore franchise acquisition opportunities or traditional restaurant transactions, visit Sell My Restaurant Atlanta for a confidential consultation and market analysis. Learn more about Jimmy's credentials through his IBBA and GABB professional profiles, or explore his full range of services at Jimmy Carey Commercial Real Estate.
Jimmy Carey Commercial Real Estate
Atlanta's Premier Restaurant Broker
Coldwell Banker Commercial Metro Brokers
☎ 305-788-8207
☎ 678-320-4800
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