ITEMS 5–7 · 2026 FDD
How much is a The Spice & Tea Exchange franchise?
Per The Spice & Tea Exchange's 2026 FDD, the initial franchise fee is $38,750 (Item 5) and the total initial investment runs $313K–$558K (Item 7); once open, you pay an ongoing royalty of 7.0% of gross sales (Item 6).
$38,750
one-time, to buy in
7.0%
of gross sales, ongoing
$313K–$558K
franchisor's own estimate
| Cost line | The Spice & Tea Exchange | Sector median |
|---|---|---|
| Initial franchise fee ITEM 5 | $38,750 | $40,000 |
| Ongoing royalty ITEM 6 | 7.0% | 6.0% |
| Total initial investment ITEM 7 | $313K–$558K | $176K–$388K |
MEDIANS: LATEST FDD FILINGS (≤24 MONTHS OLD) OF 28 RETAIL & PRODUCTS SYSTEMS · FULL RETAIL & PRODUCTS BENCHMARK →
The buy-in is the smaller number. The larger one is the drag: 7.0% of every sale leaves before rent, labor, or your salary — so breakeven depends on volume you cannot know from the FDD; use the Item 19 figures as a starting point, not a promise.
To open (Item 7)
$313K–$558K
all-in investment range
Franchise fee (Item 5)
$38,750
upfront, one-time
Royalty (Item 6)
7%
of sales, ongoing
Starts at a placeholder of $500K — a round figure for the sector, not from The Spice & Tea Exchange’s filings. Set your own figure and check it against this brand's Item 19 and what owners tell you.
Royalty you'd pay / yr
$35K
7% of sales, before profit
Over a 10-yr term
$350K
royalties alone, excl. ad fund
This estimate is computed by software from the brand's public filings and any inputs you enter. No CPA prepared it for you and no assurance is provided on it. Actual results will differ, and the differences may be material.
This is not profit. It covers what the FDD fixes: what you put in, and the royalty you owe on sales. Your take-home depends on labor, rent, supplies, and the months to breakeven, none of which the FDD fixes for your unit (some Item 19s include cost data — read it).
Build a real pro-forma for The Spice & Tea Exchange with a buyer-paid CPAThe Spice & Tea Exchange cost questions, answered from the filing
How much is a The Spice & Tea Exchange franchise?
Per The Spice & Tea Exchange's 2026 FDD, opening a franchise requires an initial franchise fee of $38,750 (Item 5) and a total initial investment of $313K–$558K (Item 7). Item 7 is the franchisor's own estimate — treat the low end as a floor, not a budget.
What royalty does The Spice & Tea Exchange charge?
The Spice & Tea Exchange charges an ongoing royalty of 7.0% of gross sales, per Item 6 of its 2026 FDD. The median across 28 retail & products systems tracked here is 6.0%.
Does The Spice & Tea Exchange tell you what franchisees earn?
Partly — The Spice & Tea Exchange makes a financial performance representation in Item 19 of its 2026 FDD, reporting a median unit volume of $505K. Unit revenue is not owner profit: subtract royalties, ad fund, rent, labor, and debt service.
The The Spice & Tea Exchange validation checklist
questions built from this brand's own filings · read them all on the profile
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