How Much Does the Spice & Tea Exchange Franchise Cost?

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2026 COST ANSWER

How much does a The Spice & Tea Exchange franchise cost?

The 2026 Franchise Disclosure Document estimates $312,900 to $557,514 to establish one Unit Franchise Store. The range includes the Initial Franchise Fee, Establishment Package, possible Supplemental Inventory Fee, build-out, opening expenses, and Additional Funds for the first six months. It expressly excludes buying real estate or constructing a building.

$312,900–$557,514
Official Unit Franchise Program range. This is the 2026 Item 7 total for a leased 1,200- to 1,800-square-foot Store. The low end uses a discounted Establishment Fee that the franchisor may offer only to qualifying existing franchisees, so a first-time buyer should not assume every low-end input applies. Source: 2026 FDD, Item 7, pages 18–21.
Legal franchisor
The Spice & Tea Exchange Franchising, LLC, a Florida limited liability company
Parent and cost-relevant affiliates
The Spice & Tea Exchange Holdings, LLC; The Spice & Tea Exchange Development, LLC; and The Spice & Tea Exchange Distribution, LLC
FDD issuance date
April 28, 2026
U.S. offer structures
Unit Franchise Program and Area Development Program; a Kiosk Location may be offered separately to an existing compliant franchisee
Primary cost evidence
2026 FDD Items 5, 6, and 7, pages 10–22; cost-relevant provisions in Items 8, 10, 11, 12, and 17
Public-link status
No matching 2026 FDD was located on a brand-controlled public domain, so FDD Item and page citations below are intentionally unlinked
Information checked
July 21, 2026

The brand’s current public materials include an official franchise investment page and an official franchise models page. The financial figures in this article follow the later, verified 2026 FDD.

Key cost figures

These six figures separate the principal signing payments, the six-month operating cushion, the multi-unit rights fee, and the continuing royalty obligation.

Initial Franchise Fee $38,750 Lump sum when the Franchise Agreement is signed.
Establishment Fee $139,410–$154,900 Low amount reflects a possible 10% existing-franchisee discount.
Supplemental Inventory $4,000–$24,000 Required depending on market and opening timing.
Additional Funds $10,000–$50,000 Included in Item 7 for the first six months.
Area Development Fee $90,000 Minimum commitment is three Stores.
Royalty Fee Greater of 7% or $1,750 Monthly; percentage is based on Gross Sales.
FDD CAVEAT The published $312,900 low end is not a universal first-time-buyer floor. Item 7 uses a $139,410 Establishment Fee at the low end, while Item 5 states the standard Establishment Fee is $154,900 and the 10% reduction may be given to existing franchisees in good standing. Holding every other official low-end assumption constant, using the standard fee produces $328,390. That $328,390 figure is a derived calculation, not a separate franchisor estimate.
ITEM 7 INVESTMENT

What is included in the initial investment?

The 2026 Item 7 range combines payments to The Spice & Tea Exchange Franchising, LLC or its affiliates with third-party premises, professional, insurance, training-travel, and working-capital costs. The Establishment Package is unusually important because The Spice & Tea Exchange Development, LLC uses it to bundle initial inventory, selected operational tools and equipment, marketing materials, real-estate support, reference materials, initial training, freight, Manuals, and the POS System. Item 8 currently requires core Store inventory and supplies to be purchased from The Spice & Tea Exchange Distribution, LLC or another approved source. The brand also publishes separate supply-chain and inventory information, but the FDD controls the amounts below.

Payments to the franchisor or affiliates

Three opening categories are paid to the franchisor or its affiliates, and two of them are normally due when the contract is signed.

Item 7 expenditure 2026 range When paid FDD reference
Franchise Fee — Single Unit $38,750 At signing of the Franchise Agreement Item 7, pages 18 and 20
Establishment Fee $139,410–$154,900 At signing of the Franchise Agreement Item 7, pages 18 and 20
Supplemental Inventory Fee $4,000–$24,000 As invoiced Item 7, page 18

Premises, build-out, and opening costs

The premises group creates most of the range movement because local construction scope and lease terms are outside the franchisor’s control.

Item 7 expenditure 2026 range Payment basis FDD reference
Construction/Build-Out, Tea Bar Equipment, and Other Dress-Out $111,840–$254,364 As agreed with third-party providers Item 7, page 18
Grand Opening Advertising $3,000–$5,000 As incurred Item 7, pages 18 and 20
Professional Fees $500–$3,500 As agreed with providers Item 7, pages 18 and 20
Utility Deposits $250–$500 Lump sum as incurred Item 7, page 18
Office Equipment $350–$4,000 Lump sum as incurred Item 7, pages 19 and 20
Rent and Security Deposits $1,800–$10,000 Lump sum as incurred Item 7, pages 19–21
Insurance — first-year premium $1,000–$3,500 Lump sum as incurred Item 7, pages 19 and 21

The Store is estimated at 1,200 to 1,800 square feet and is generally assumed to occupy leased space in a stand-alone building, retail complex, or similar setting. The Item 7 rent line covers rent and security deposits, not the full stream of future rent. The franchisor’s official real-estate and site-selection information provides public context, while the lease, local construction scope, and landlord terms determine the buyer’s actual premises cash requirement.

Compliance, training travel, and six-month operating funds

These amounts cover local approvals, the buyer’s own training-related expenses, and the operating cushion already included in the official total.

Item 7 expenditure 2026 range What it covers FDD reference
State and Local Business Licenses, Permits, and Filing Fees $500–$4,000 Required local and state approvals Item 7, page 19
Training Expenses $1,500–$5,000 Travel, living, and compensation expenses for the franchisee and approved designees Item 7, pages 19 and 21
Additional Funds — 6 months $10,000–$50,000 Start-up operating expenses, including payroll, during the Initial Investment Period Item 7, pages 19 and 21
Official Unit Franchise Program total $312,900–$557,514 Excludes real-estate or building-purchase costs Item 7, page 19

The Initial Investment Period begins on the Franchise Agreement date and lasts six months. The Additional Funds line already sits inside the official total; adding another $10,000 to $50,000 on top would double-count it. Item 7 says payroll is included but does not separately state whether owner compensation is included. The public franchise training information helps explain the training structure, but the franchisee remains responsible for travel, living, and compensation costs.

PAYMENT TIMING

When is the money paid?

The largest franchisor-controlled payments arrive at contract signing, before the Store opens. Third-party premises and opening costs then arise as agreements are signed, invoices are issued, and work is performed. The FDD estimates a two- to six-month interval from Franchise Agreement signing to opening, requires a site within 180 days, and requires the Store to open within one year. The brand’s official franchise process page provides public process context.

Optional territory-hold depositIf the parties sign a Deposit Agreement, the buyer pays a nonrefundable $15,000 Deposit. It is credited to the Franchise Fee if a franchise is granted, so it is not an additional fee in that outcome. If no franchise is granted, it remains nonrefundable. Source: Item 5, page 11.
Franchise Agreement signingThe $38,750 Initial Franchise Fee and the Establishment Fee are due in lump sums. Any Deposit credit reduces the remaining Franchise Fee payment. The standard Establishment Fee is $154,900. Source: Item 5, pages 11–12.
Inventory and premises commitmentsThe $4,000 to $24,000 Supplemental Inventory Fee is due as invoiced. Build-out, Tea Bar Equipment, dress-out, professional services, deposits, insurance, licenses, and office equipment are paid to third parties under their respective invoices or agreements. Source: Item 7, pages 18–21.
Training and pre-opening periodThe Establishment Fee covers the franchisor’s Initial Training for the franchisee and up to two approved designees, but the buyer pays travel, living, and compensation expenses. Extra on-site hours beyond the included amount may also be charged. Source: Items 6, 7, and 11, pages 14, 21, and 35–36.
Opening and first six monthsThe buyer spends $3,000 to $5,000 on Grand Opening Advertising and uses the included $10,000 to $50,000 Additional Funds line for start-up operating expenses, including payroll, during the six-month Initial Investment Period. Source: Item 7, pages 18–21.
PAYMENT TIMING The headline total is not the same as cash due to the franchisor on day one. A Unit Franchise buyer’s Item 5 initial fees total $197,650 to $217,650 before opening, while the balance of Item 7 is paid to third parties or spent during development and the first six months. Confirm the exact contract-signing invoice, the Establishment Package exhibit, and the build-out schedule before treating the official range as a cash calendar.
MULTI-UNIT COMMITMENT

How does the Area Development Program change the cost?

The 2026 FDD states a $364,150 to $608,764 Area Development Program total for a minimum three-Store commitment. That amount consists of the $90,000 Area Development Fee plus the estimated investment for the first Store. It is not the complete cost of constructing and opening all three Stores.

The three-Store commitment is a rights-and-first-Store total

The disclosed multi-unit total combines development rights with only the first location’s opening range.

Area Development Fee$90,000
First Store investment$274,150–$518,764
Item 7 total$364,150–$608,764

What the total means: the developer signs the Development Agreement and the first Franchise Agreement at the same time. The Development Fee and the first Store’s Establishment Fee and other initial fees are due then. The Development Fee is not credited against Establishment Fees. Later Stores require separate Franchise Agreements and then-current fees and development costs. Source: 2026 FDD, Items 5 and 7, pages 12 and 21–22.

FORMAT DIFFERENCE The Area Development Program does not charge a separate Franchise Fee for each Store developed under the Development Agreement, but the $90,000 Development Fee does not buy the Establishment Package for later Stores. A buyer should model each later Store as a separate future premises, inventory, equipment, training-travel, and working-capital event using the then-current FDD and agreement.

The FDD also permits a possible Kiosk Location for a current franchisee in compliance with its agreements. The disclosed yearly Kiosk Location Fee is $1,500, but the 2026 Item 7 tables do not provide a complete Kiosk initial-investment range. A Kiosk therefore should not be priced using the Unit Franchise Program total without a current addendum and written initial-fee schedule.

ONGOING FEES

Which fees continue after opening?

The principal recurring obligations are the Royalty Fee, System Development Fee, Local Advertising Requirement, technology-support fee, and Integrated Music System Fee. The Royalty Fee is not simply 7%: the monthly charge is the greater of 7% of Gross Sales or $1,750. “Gross Sales” excludes specified sales taxes paid to authorities and authorized customer refunds, adjustments, credits, and allowances. Source: 2026 FDD, Item 6, pages 12 and 17–18.

Recurring and format-dependent charges

The current recurring schedule mixes Gross Sales percentages with monthly fixed ranges and one optional format fee.

Fee or requirement Amount or basis Timing Important condition
Royalty Fee Greater of 7% of Gross Sales or $1,750 Monthly, currently due on the fifth day for the prior month The minimum applies regardless of sales level
System Development Fee Currently 1% of Gross Sales; up to 3% Monthly May increase on 30 days’ written notice
Local Advertising Requirement Currently 1% of Gross Sales Monthly spending; quarterly reporting Franchisee-controlled qualifying local spend
Local Advertising Cooperative Fee Up to 2% of Gross Sales If and when established Credited toward Local Advertising Requirement; no cooperative currently exists
Subscription, Support and Inventory Management Fee Currently $300–$800 per month Monthly High end assumes an optional second POS system
Integrated Music System Fee $90–$150 per month Third-party schedule Includes audio programming and necessary stereo equipment
Kiosk Location Fee $1,500 per year With Kiosk addendum Only if the franchisor offers and approves a Kiosk Location

The required Computer System also creates replacement and upgrade exposure. Item 11 estimates $1,500 to $2,500 if a buyer needs a compliant computer system, while the broader Item 7 Office Equipment range is $350 to $4,000 because the low end assumes some equipment is already owned. Item 11 estimates optional or required maintenance, updating, upgrading, or support contracts at $38 to $2,500 per year but states there is no contractual limit on the frequency or cost of upgrades.

CONDITIONAL COSTS

Which charges arise only after a specific event?

Item 6 contains several fixed, variable, and reimbursement-based charges that do not belong in the standard opening total because they arise only when a particular event occurs. Renewal, transfer, relocation, extra training, defaults, supplier violations, and closures can each create additional cash obligations.

Event-triggered fee 2026 amount Trigger FDD reference
Spice UniversiTea Attendance Fee $1,500 per person; then-current fee capped at $3,000 Existing franchisee or employee attends a scheduled session; reattendance may also be required after delay Item 6, pages 12–13
Additional On-Site Training or Assistance Up to $600 per day per trainer, plus travel and expenses Requested or required extra assistance Item 6, page 14
Renewal/Successor Franchise Fee $17,500 Signing successor Franchise Agreement Items 6 and 17, pages 14 and 46
Transfer Fee $15,000 Approved transfer Items 6 and 17, pages 16 and 49
Transferee Training Fee $7,500 Training an approved transferee Item 6, page 14
Site Relocation Fee $7,500 plus expenses Approved relocation Items 6 and 12, pages 16 and 40
Administrative Fee 15% of amounts paid on the franchisee’s behalf Franchisor advances required costs Item 6, page 15
Unauthorized Vendor/Product Fee $250 per item type, per occurrence Use of an unauthorized supplier, item, or vendor Item 6, page 16
Audit costInspection or audit cost plus travel and lodging if Gross Sales are understated by 2% or more.
InterestLesser of 18% per year or the highest lawful contract rate on overdue amounts.
Late-payment penalty15% of the late amount, in addition to interest.
Attorneys’ fees and indemnificationActual costs when a default or covered loss causes expense.
Product and service mark-upsVariable; the franchisor, affiliates, and approved suppliers may earn revenue without a disclosed cap.
Annual conferenceCurrently $500 per attendee plus travel, lodging, meals, and related costs if attendance is required.
Store Closure Fee$100 per day for an unapproved closure.
Development-schedule extensionFor an Area Developer, a nonrefundable Extension Fee may equal the Franchise Fees for the number of Stores behind schedule.
TRANSFER COST A resale buyer may face more than the $15,000 Transfer Fee and $7,500 Transferee Training Fee. Item 17 allows required maintenance, refurbishing, renovation, equipment updates, and inventory restoration to then-current standards, and Item 7 requires $3,000 to $5,000 of Grand Opening Advertising even when the transferred Store has already operated for years.
CAPITAL QUALIFICATIONS

Does the FDD require a specific liquid capital or net worth amount?

No specific Liquid Capital, Net Worth, or Non-Borrowed Funds threshold is stated in the 2026 FDD. That absence does not reduce the Item 7 investment or establish that a buyer will qualify with only the $10,000 to $50,000 Additional Funds line. The franchisor may evaluate financial resources during its approval process, and lenders or landlords may impose separate requirements.

Estimated Initial Investment
The $312,900 to $557,514 Item 7 range for establishing one Unit Franchise Store under the FDD assumptions.
Additional Funds
The included $10,000 to $50,000 estimate for the first six months; it is not a disclosed Liquid Capital requirement.
Liquid Capital
Cash or readily available funds. The 2026 FDD does not state a minimum amount.
Net Worth
Assets minus liabilities, which is not the same as cash available to invest. The 2026 FDD does not state a minimum amount.
Personal Guarantee
Owners must guarantee the franchisee entity’s obligations, and the FDD states that spouses may also be required to accept liability. This is a liability commitment, not a capital threshold.

Item 10 states that The Spice & Tea Exchange Franchising, LLC does not offer direct or indirect financing and will not guarantee a note, lease, or other obligation. Financing approval, interest rate, collateral, and down payment therefore remain outside the franchisor’s Item 7 estimate. The Federal Trade Commission’s Consumer’s Guide to Buying a Franchise explains why the FDD, franchise agreements, and buyer-specific financing plan must be evaluated separately.

Verified fee reductions

The 2026 FDD discloses two limited reductions. A qualifying U.S. military veteran who owns a majority interest may receive a 25% reduction on the first Store’s $38,750 Franchise Fee, producing a $29,062.50 fee. The veteran reduction does not apply to the Area Development Program. Separately, the franchisor may provide a 10% goodwill discount on the $154,900 Establishment Fee to an existing franchisee in good standing who meets then-current criteria. Neither reduction lowers construction, deposits, insurance, training travel, Additional Funds, or ongoing fees.

EXCLUSIONS AND VARIABLES

What does the official range not fully resolve?

The Item 7 total is an estimate under stated assumptions, not a cap. The largest unresolved amount is the site-specific build-out and premises obligation, followed by inventory timing and the operating cash needed after the initial six-month estimate. Required-source rules also matter: Item 8 says approximately 90% to 100% of purchases and leases used to establish and operate a Store must follow the franchisor’s approved or designated sources and System Standards, excluding labor and payroll.

Land and building purchase. Item 7 assumes leased space and excludes buying land, buying a building, or erecting a building.
Full future rent. The disclosed $1,800 to $10,000 line is for rent and security deposits, not the Store’s total lease obligation.
Costs beyond six months. Additional Funds cover the Initial Investment Period only; the FDD does not guarantee that the amount will be sufficient.
Owner compensation detail. Payroll is included in Additional Funds, but owner salary or draw is not separately identified.
Later Area Development Stores. The $364,150 to $608,764 figure covers development rights and the first Store, not all three Store openings.
Kiosk opening total. The FDD discloses a yearly Kiosk fee but no complete Kiosk Item 7 range.
Future technology changes. The franchisor may require upgrades, and Item 11 states no contractual limit on upgrade frequency or cost.
Required supplier pricing. Product and service mark-ups vary, with no disclosed cap in Item 6.
BUYER VERIFICATION

Which cost documents should be reconciled before signing?

The buyer’s final capital plan should reconcile the 2026 FDD with the actual Franchise Agreement exhibits, site documents, and supplier quotes. The FTC’s Franchise Rule materials explain the disclosure framework and the required review period. A state filing directory, such as the Wisconsin active franchise registration list, can provide a separate government check on filing status; it is not a substitute for the current FDD delivered to the buyer.

Confirm the Establishment Fee that applies. Determine whether the quote uses the standard $154,900 fee or the discretionary $139,410 existing-franchisee amount.
Obtain the Establishment Package exhibit. Match included inventory, POS hardware, equipment, freight, training, and support against every supplier or construction quote.
Separate contract-signing cash from later spending. List the Franchise Fee, Establishment Fee, Development Fee if applicable, deposits, build-out draws, and opening invoices by date.
Reconcile the lease and build-out scope. Verify tenant-improvement allowances, landlord work, deposits, rent commencement, code upgrades, signage, and Tea Bar Equipment.
Test the six-month operating cushion. Confirm payroll assumptions and whether owner compensation, local seasonality, and opening delays require more than the Item 7 Additional Funds range.
Price later Stores separately. For Area Development, obtain the Development Schedule and current assumptions for every later Store rather than multiplying the first-Store total mechanically.
Request current qualification criteria in writing. The FDD does not disclose a Liquid Capital or Net Worth minimum.
Review event-triggered obligations. Renewal, transfer, relocation, remodeling, technology upgrades, supplier violations, and defaults can create costs outside the opening range.
COST SYNTHESIS

What is the practical capital takeaway?

The verified 2026 starting point is $312,900 to $557,514 for one Unit Franchise Store, with a buyer-protective caveat that the official low end uses an Establishment Fee discount limited to qualifying existing franchisees. The largest disclosed variable is the $111,840 to $254,364 Construction/Build-Out, Tea Bar Equipment, and Other Dress-Out range. The official total also includes $10,000 to $50,000 of Additional Funds for six months, but excludes real-estate or building purchase costs and does not disclose a Liquid Capital or Net Worth requirement.

After opening, the cost contract continues through the monthly Royalty Fee of the greater of 7% of Gross Sales or $1,750, the current 1% System Development Fee, the current 1% Local Advertising Requirement, technology and music fees, required-source purchases, and conditional charges. For an Area Development buyer, the disclosed $364,150 to $608,764 figure buys three-Store development rights and funds the first Store—not all three Store openings.

Official documents and tools
Official franchise information Official investment page Official franchise models Official site-selection information Official training information FTC Franchise Rule FTC buyer guide






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