How do I find a bubble tea shop for sale?

Bubble tea shops are small, local and often owner-run, so they do not always reach a public listing. Some sell through a listing site, some through a broker, and some by word of mouth between owners and suppliers. A buyer who works more than one channel usually sees more of the market. Once you find a shop, the checks are covered in what to check before buying a bubble tea shop.

Listing sites and brokers

Business-for-sale sites let you search by type and city, and they are a sensible first stop. Set up alerts for the terms owners actually use, such as bubble tea, boba, tea shop and drink shop. Brokers who work with food and beverage businesses may know of shops before they are advertised. Tell them what you want, your location and how you plan to pay, so they can tell whether a lead fits.

Franchise resales

Many bubble tea shops belong to a brand. A franchisee who wants out may list through the franchisor, a broker, or a general site, and the franchisor often has to approve the buyer. If you like a brand, ask its head office whether any locations are changing hands. Ask early what the approval process involves, and ask your lawyer which franchise rules apply to the purchase.

Direct outreach and your network

Walk into shops you would be glad to own and talk to the people running them. Not every owner is selling, but some will say so, or will point you to someone who is. Suppliers who deliver tea, syrups and cups, equipment dealers and landlords also hear about owners who want to leave. Be clear that your enquiry is confidential, and be ready to sign a confidentiality agreement.

Screening a lead quickly

• Ask why the owner is selling and how long the shop has operated.
• Ask what the sale includes: equipment, recipes, the lease, the brand and the supplier relationships.
• Ask for recent financial statements before a site visit.
• Check who holds the lease and whether the landlord has to agree to a transfer.