There are many contributing factors for a good franchise opportunity. However, not all businesses are made equally. And a lot of research has to be done before you ever even consider making your final decision. Because let’s face it, entrepreneurship is a huge deal. And you can’t just take every opportunity that is placed in front of you.
So, let’s start out with a specific industry and break it down even further by choosing a company that’s well-known for its franchise opportunity. It’s an industry that sells a product that is becoming increasingly popular. Because of its health benefits and tasty variations.
It’s called Bubble Tea. And it’s making its way across the nation as being known as one of the tastiest and healthiest drinks of its kind. Specifically, today we are going into detail on the franchise opportunity that Boba Loca is offering to the public.
A franchise experience that many entrepreneurs have been enjoying since the beginning of the opportunity. I think it’s because of the increase in popularity for this industry and specific product. And when you add in the fact that this company offers a variety of flavors for their drinks, you get an incredible business.
But there are going to be a few downsides to the business along the way. In fact, there are quite a few things that you need to consider before making the decision to sign into a contract with this company.
Especially because it’s not extremely well established and hasn’t been in business for too long. However, if you are looking for more of a ground-level opportunity, then this may be right up your alley.
Let’s check out what this company is all about and look into some of the franchise details for this opportunity. So that you can feel confident in whatever decision you make in the end.
The Boba Loca Way
Boba Loca Tea is an original Bubble Tea that is created using tapioca balls at the bottom of your tea. This drink has become extremely popular and loved as a refreshing and healthy beverage snack. They are filling for your tummy and low in calories. So there is no need to worry about filling up on an unhealthy snack beverage.
So, why is it considered a snack beverage? Because you can drink the deliciously flavored tea and enjoy the tiny chewy balls of tapioca that you can suck right up your straw. These drinks were first enjoyed by the Asian community and have recently become widely popular across the United States.
These refreshing drinks from Boba Loca are the new drink craze, and it’s no wonder as to why. Who wouldn’t enjoy a filling drink that’s both tasty and healthy for you?
But Bubble Tea isn’t the only delicious drinks that are served at Boba Loca. You can enjoy genuine slushies, shakes, juice, and even shaved ice for a special treat. It’s definitely an establishment that is sure to be getting more and more attention as the years pass by. However, is the franchise opportunity predicted to be just as successful?
While no claims on your personal chance of success can be made, there are ways of figuring out if this business is going to work out in your favor. The first question to ask is if this industry and company even sound remotely attractive to you. If it does, then continue reading. Because we are going to go over all of the details on how you can become a franchise owner for Boba Loca.
What makes up to components of a fantastic franchise opportunity? Is it a company that is increasingly popular and well-known? Is it a company that has had entrepreneurs banging down their door to become a franchise owner? Or is it a mix of both and then some?
The truth is, there are quite a few things that contribute to whether or not a franchise opportunity is, in fact, a great one. And the background and growth of the company is definitely one of the bigger factors.
When it comes to the Boba Loca opportunity, this company hasn’t seen a tremendous amount of growth since the first offering of the opportunity back in 2007. In only three years time, they experienced the most amount of growth that the company would see. In 2010, they had a total of 21 franchise locations running.
However, when the data was collected again at the end of 2017, the numbers never changed. So, over seven years, this company did not experience any type of growth for its franchise locations. That could be both a good and a bad sign.
And when taking a look at the turnover rate, it’s also neither good nor bad. At 6.38, this turnover rate could go either way, really. Depending on the exact reasoning of the rate, it could indicate that the company is experiencing decent health.
However, it is best to find out how many terminations, transfers, ceased operations, and non-renewals there has been in the past. This can give you a good idea of how many past franchise owners have had an unsuccessful business. Although, there really is no way of determining why exactly they closed down their business.
And when it comes to purchasing a business, you want to be absolutely sure that you are capable of handling all of the requirements that are expected of you. And also that the company meets your expectations as well. Let’s take a look at some of the fees and requirements that you will be responsible for as a franchise owner for Boba Loca.
Requirements and Fees
The requirements and fees for a specific franchise opportunity can make or break the deal for most entrepreneurs. Luckily with this opportunity, all of the fees are pretty basic and quite low for this industry.
Once you are accepted and sign your franchise agreement, your initial franchise fee will be between $10,000 and $14,000. And after you purchase your inventory and depending on your specific location, your total investment can be anywhere from $88,945 to $327,955.
This is actually quite low for this industry and you will only be tied into a short initial contract term of only 2 years. This term length is extremely low compared to what the competitors are requiring.
After you pay your initial fee, you will then have to consider the ongoing fees that you will pay to the company. There is a 5% royalty fee and a 2.5% advertising fee that are based on your gross sales. And although you will not receive any refunds or finance options as a franchise owner with Boba Loca, the company does provide discount incentives on purchases of multiple locations.
So, overall, it’s not entirely a bad deal. Thought it would be a lot better of an opportunity if they offered more benefits. However, it still has the potential for being a decent business opportunity.
Here’s What I Think
I honestly believe that this product is widely enjoyed and loved by many. Making it a great business opportunity. However, there is more to it than just opening a business because the product is in high demand. You have to consider the price and other requirements. As well as the background of the opportunity.
As for the Boba Loca opportunity, I think there is potential for this business to grow if there were more interest in the company. There hasn’t been much growth over the last decade and that is quite concerning to me. However, there seems to be potential for this company to grow.
Especially since the cost of investment is decently low and the ongoing fees are pretty average as well. Granted, you don’t receive many benefits such as extensive training and support. But if you are willing to ride it out and grow with the company, then you may be onto something good here.
Overall, it looks like the Boba Loca is a decent opportunity. Definitely not the best one that I have seen. However, there is a possibility for growth since it is basically a ground-level opportunity. And I like the fact that they offer discount incentives if you were to purchase more than one franchise location. That could open many doors for new locations.
Concluding the Review
A franchise business is a great way to take on the opportunity of becoming an entrepreneur without building your own business from the ground up. Of course, there are some ways that franchising a business can become more difficult.
But the important thing is that you choose a business to invest in that you believe in 100% and you are entirely passionate about. Also, you want to make sure that the company is in good health and experiencing a decent level of growth.
There may be certain things that you are looking for in a franchise opportunity. And if that’s the case, remember not to settle for anything less than the best. After all, this is going to be your new business. And it could be the next big thing in your life.
If the Boba Loca franchise opportunity has caught your eye, then you may have a good experience with this company. It seems that there has been a decent growth in the past. And you have the potential to grow with them even further.
Contact the company to receive the full details on this franchise opportunity and find out how you can get started on your application.