Jazen Tea
Jazen Tea offers stand-alone tea shops and co-branded options within Phở Hòa restaurants, serving high-quality fruit and tea drinks. Known for its flavorful beverages and distinctive branding, Jazen Tea operates in the casual dining and beverage franchise industries.
About Jazen Tea
Jazen Tea franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment to begin operation of a Co-Branded Phở Hòa® Restaurant ranges from $73,000 to $112,000. For a Stand-Alone Jazen Tea® Shop, the range is between $182,600 and $389,930. This includes various fees but excludes certain additional costs like the Term Extension Fee for Co-Branded Phở Hòa® Restaurants. [p.1]
What is the initial franchise fee?
The initial franchise fee is $15,000 [p.121, p.195], less any deposit paid before the agreement date. This fee applies whether acquiring a standalone Phở Hòa® Restaurant or a Co-Branded Phở Hòa® Restaurant, as well as for a Stand-Alone Jazen Tea® Shop [p.317, p.15].
What are the ongoing royalty and advertising fees?
Ongoing royalty payments are based either on a flat monthly rate or a percentage of franchisee sales, depending on the franchise agreement. Additionally, franchisees pay marketing fees that are also based on a flat monthly rate or a percentage of sales, but these fees are not included in revenue and are remitted to the Company's parent for advertising, marketing, and brand awareness [p.276, p.288].
How long is the initial franchise agreement, and can I renew it?
The initial franchise agreement has an initial term of five years with two additional five-year renewal periods available at your option, subject to certain requirements established by the Company [p.288, p.107]. To exercise each Renewal Option, you must comply with specific conditions outlined in the agreement [p.107].
Can I sell or transfer my franchise, and what does that require?
According to the FDD, you can sell or transfer your Stand-Alone Jazen Tea® Shop Franchise. To do so, you must pay a transfer fee equal to 25% of the current Initial Franchise Fee for new single-unit Stand-Alone Jazen Tea® Shops in the state where the franchise is located [p.147]. However, if the proposed transferee is an existing Stand-Alone Jazen Tea® Shop Franchisee or Co-Branded Phở Hòa® Restaurant Franchisee, the transfer fee can be reduced to 15% of the current Initial Franchise Fee. If multiple franchises are being transferred in a single transaction, a separate transfer fee will be due for each [p.147].
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the agreement based on grounds stated in the Franchise Agreement, as long as these grounds constitute 'reasonable cause' under Virginia law [p.262]. Additionally, the termination of a Co-Branding Addendum or other Franchise Agreements would depend on whether the same grounds apply and if the franchisor has satisfied all requirements to terminate those agreements [p.140, p.198].
What financial requirements — net worth and liquid capital — do I need to qualify?
This isn't specified in the excerpts. The FDD mentions minimum financial requirements exist but does not detail specific amounts for net worth or liquid capital [p.202].
Do I get an exclusive or protected territory?
For your Stand-Alone Jazen Tea® Shop, you are granted a 3-mile territory where no other Stand-Alone Jazen Tea® Shop will be opened. However, if your location is in a Metropolitan Urban Core Area, you do not receive an exclusive territory and may face competition from other franchisees or outlets controlled by the company [p.66]. This isn't specified in the excerpts for Co-Branded Phở Hòa® Restaurant.
What training and ongoing support does the franchisor provide?
The franchisor provides initial training as part of developing and opening the Jazen Tea® Shop or Co-Branded Phở Hòa® Restaurant [p.12]. Additionally, they offer continuing training programs to address changes in the system and other relevant topics [p.134, p.65]. These programs are typically conducted in San Jose, California, but another location in California may be designated [p.65]. The franchisor will not charge for these training sessions or require more than 2 persons to complete more than 3 days of continuing training within any 24-month period [p.134, p.65].
How many franchised outlets are there, and how many have closed or been terminated?
This isn't specified in the excerpts. The provided FDD does not give a total number of franchised outlets or specify how many have closed or been terminated.
Does the franchisor share any financial performance or earnings information?
The franchisor can provide financial performance information if there is a reasonable basis for it and if it includes actual records of an existing outlet being considered for purchase. However, the franchisor does not make any representations about future financial performance or past financial performance of company-owned or franchised outlets, nor do they authorize their employees to make such representations [p.80].
What am I restricted to selling, and where must I buy supplies?
You are required to sell only the Proprietary Products as specified by the franchisor, which include items like tea brewing machines, fructose dispensers, and plastic cup sealer machines. You must purchase these proprietary products from the franchisor [p.42]. There are no restrictions on where the franchisor may engage in selling Jazen Tea® brand goods or logo merchandise, including through their website or other retail channels [p.72]. This isn't specified in the excerpts regarding what you cannot sell.