Not sure if CoCo is right for you?
Take our 1-minute franchise matching quiz to get in touch with a Franchise Advisor that can match you with your perfect franchise based on your goals, experience, and investment range.
Take the Quiz & Get MatchedCoCo
How much does CoCo cost?
Initial Investment Range
$221,300 to $1,349,000
Franchise Fee
$49,400 to $146,000
We offer a franchise to own, operate and promote a distinctive retail store and café concept offering bubble tea, brewed tea, coffee, juices, smoothies, other hot and cold beverages, packaged snacks and related products under the “CoCo” or “Doka” name and marks.
Enjoy our complimentary free risk analysis below
Unlock the full risk analysis to access 9 more categories covering 100+ risks.
CoCo March 31, 2025 FDD Risk Analysis
Free FDD Library AI Analysis Date: August 19, 2025
DISCLAIMER: Not Legal Advice - For Informational Purposes Only. Consult With Qualified Franchise Professionals.
Franchisor Stability Risks
Start HereDisclosure of Franchisor's Financial Instability
High Risk
Explanation
The franchisor, Infinilush Company Limited (Infinilush), has significant signs of financial distress. The audited financial statements in Exhibit E show accelerating net losses, a negative stockholder's equity of over $1.8 million, and current liabilities that far exceed current assets. The auditor has issued an opinion expressing "substantial doubt about the Company's ability to continue as a going concern." This financial weakness may impact their ability to support you.
Potential Mitigations
- A franchise accountant must carefully analyze the financial statements, including the 'going concern' note and the adequacy of the parent company's support commitment.
- Discuss the practical implications of the franchisor's weak financial state and reliance on parent company funding with your business advisor.
- Your attorney should review any state-mandated financial assurances like fee deferrals to understand the level of protection they provide.
High Franchisee Turnover
High Risk
Explanation
The system exhibits a high rate of turnover for its size. In 2024, there were 2 terminations and 2 cessations of operations from a small base of approximately 13 franchised stores. This represents an annual turnover rate of over 30%, which is a significant indicator of potential systemic issues. This could suggest franchisee dissatisfaction, lack of profitability, or other challenges within the system that you may also face.
Potential Mitigations
- It is critical to contact current and former franchisees, especially those listed as terminated or ceased operations, to understand why they left the system.
- Your accountant should analyze the turnover data in Item 20 over all three years to assess the trend and its potential impact on system stability.
- Your attorney can help you formulate specific questions for the franchisor and former franchisees regarding the high turnover rate.
Rapid System Growth
Medium Risk
Explanation
The data in Item 20 shows a combination of rapid franchise growth alongside a decrease in the number of company-owned stores. While franchise units are expanding, Infinilush's support infrastructure may not be able to keep pace, potentially diluting the quality of training and ongoing assistance. This, combined with the franchisor's disclosed financial weakness, increases the risk that support resources could be strained as the system grows.
Potential Mitigations
- In discussions with your business advisor, carefully question the franchisor about their specific plans to scale support systems to match franchise growth.
- Interview a diverse group of franchisees, from new to established, to gauge the current quality and responsiveness of franchisor support.
- Your accountant should review the financial statements to assess whether the franchisor has the capital to invest in the necessary support infrastructure.
New/Unproven Franchise System
High Risk
Explanation
Infinilush is explicitly described as being at an "early stage of development" with a "limited operating history." The franchisor only began offering franchises for the "CoCo" brand in March 2022 and the "Doka" brand in March 2025. Investing in a newer system carries higher risk due to unproven business models, a lack of established brand recognition, and potentially underdeveloped support systems, which could impact your long-term success.
Potential Mitigations
- A business advisor can help you conduct extensive due diligence on the management team's direct experience in both the bubble tea industry and in managing franchise systems.
- Speaking with the earliest franchisees is crucial to understand their experience with the system's development and the franchisor's learning curve.
- Your accountant should assess the franchisor's capitalization to determine if it has sufficient funds to support its early-stage growth.
Possible Fad Business
Medium Risk
Explanation
The bubble tea market can be subject to rapidly changing consumer tastes and trends. While currently popular, there is a risk that the concept could be a fad with limited long-term demand. The FDD provides little information on how Infinilush plans to innovate or adapt its product offerings to maintain market relevance over the 5-year franchise term and beyond, which could impact your business's sustainability if consumer preferences shift.
Potential Mitigations
- Engage a business advisor to independently research the long-term market projections for bubble tea and similar beverage concepts in your specific area.
- Question the franchisor on their long-term strategy for product development, innovation, and adapting to changing consumer tastes.
- Evaluate the business model's resilience to economic shifts and its potential for profitability beyond current trends with your financial advisor.
Inexperienced Management
Medium Risk
Explanation
The management team's experience listed in Item 2 appears to be primarily based in Taipei, Taiwan. While they have industry experience, their direct experience managing a franchise system specifically within the U.S. regulatory and market environment may be limited. This could present challenges in providing support and guidance tailored to the unique operational, legal, and competitive landscape you will face in the United States.
Potential Mitigations
- With your business advisor, inquire about the franchisor's U.S.-based support staff and their specific experience with American franchise operations.
- It is important to speak with other U.S.-based franchisees to assess the quality and relevance of the training and support provided by the management team.
- Ask the franchisor how they plan to address U.S.-specific market trends, supply chain issues, and regulations.
Private Equity Ownership
Medium Risk
Explanation
The FDD discloses that Infinilush is owned by a parent company, Auster-Celeucus Holding Pte Ltd, based in Singapore. This ownership structure could mean that major strategic decisions are influenced by the objectives of the foreign parent, which may not always align with the best interests of U.S. franchisees. There is a risk of changes in strategy, support levels, or even a sale of the U.S. operation based on the parent's priorities.
Potential Mitigations
- Your attorney should review the relationship between the franchisor and its parent, including any guarantees or support agreements.
- Inquire about the parent company's long-term commitment to the U.S. market and its track record with other businesses, if possible.
- A business advisor can help you assess how this ownership structure might affect operational decisions and franchisee support.
Non-Disclosure of Parent Company
High Risk
Explanation
The FDD discloses that Infinilush is a 100% owned subsidiary of Auster-Celeucus Holding Pte Ltd. While financial support from the parent is mentioned, the parent company's own financial statements are not provided. Given Infinilush's weak financial position and going concern notice, the inability to independently assess the financial health and stability of the parent company, which provides the critical financial backstop, presents a significant risk.
Potential Mitigations
- Your accountant should carefully evaluate the letter of commitment from the parent company to determine its strength and enforceability.
- Your attorney should advise on the risks of relying on a financial support promise from a parent whose own financial condition is not disclosed.
- Inquire if the franchisor can provide any further information or assurance regarding the parent company's ability to meet its financial commitment.
Predecessor History Issues
Low Risk
Explanation
Infinilush became the franchisor for "CoCo" stores in March 2022, taking over from a predecessor, Beyond International Co., Ltd. While the FDD provides basic information, a change in ownership or franchising entity can sometimes lead to shifts in operational strategy, support quality, or contractual enforcement. You are inheriting a system that was previously managed by a different entity, and any legacy issues may not be fully apparent.
Potential Mitigations
- It is beneficial to speak with franchisees who have operated under both the predecessor and the current franchisor to understand any changes in the system.
- Your attorney should review the details of the transition from the predecessor to understand what assets and obligations were acquired by Infinilush.
- A business advisor can help you ask the franchisor about how they have integrated or changed the system since taking over from the predecessor.
Pattern of Litigation
Low Risk
Explanation
This risk was not identified in the FDD Package. Item 3 states that no litigation is required to be disclosed. Generally, a pattern of lawsuits filed by franchisees against a franchisor alleging issues like fraud or breach of contract can be a major red flag. Similarly, a high number of lawsuits filed by the franchisor against franchisees might indicate an overly aggressive or litigious system.
Potential Mitigations
- Despite the disclosure, having your attorney conduct an independent public records search for litigation involving the franchisor or its principals is a prudent step.
- It is always a good practice to ask current and former franchisees about their experiences with disputes and how the franchisor handles disagreements.
- Your business advisor can help you assess the overall health of the franchisor-franchisee relationship within the system.
Disclosure & Representation Risks
Example Risk: Franchisee Financial Obligations
Blue Risk
Explanation
This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.
Potential Mitigations
- Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
- Conduct regular risk assessments
- Implement monitoring and reporting systems
Unlock Full Risk Analysis
Financial & Fee Risks
Example Risk: Franchisee Financial Obligations
Blue Risk
Explanation
This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.
Potential Mitigations
- Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
- Conduct regular risk assessments
- Implement monitoring and reporting systems
Unlock Full Risk Analysis
Legal & Contract Risks
Example Risk: Franchisee Financial Obligations
Blue Risk
Explanation
This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.
Potential Mitigations
- Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
- Conduct regular risk assessments
- Implement monitoring and reporting systems
Unlock Full Risk Analysis
Territory & Competition Risks
Example Risk: Franchisee Financial Obligations
Blue Risk
Explanation
This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.
Potential Mitigations
- Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
- Conduct regular risk assessments
- Implement monitoring and reporting systems
Unlock Full Risk Analysis
Regulatory & Compliance Risks
Example Risk: Franchisee Financial Obligations
Blue Risk
Explanation
This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.
Potential Mitigations
- Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
- Conduct regular risk assessments
- Implement monitoring and reporting systems
Unlock Full Risk Analysis
Franchisor Support Risks
Example Risk: Franchisee Financial Obligations
Blue Risk
Explanation
This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.
Potential Mitigations
- Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
- Conduct regular risk assessments
- Implement monitoring and reporting systems
Unlock Full Risk Analysis
Operational Control Risks
Example Risk: Franchisee Financial Obligations
Blue Risk
Explanation
This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.
Potential Mitigations
- Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
- Conduct regular risk assessments
- Implement monitoring and reporting systems
Unlock Full Risk Analysis
Term & Exit Risks
Example Risk: Franchisee Financial Obligations
Blue Risk
Explanation
This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.
Potential Mitigations
- Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
- Conduct regular risk assessments
- Implement monitoring and reporting systems
Unlock Full Risk Analysis
Miscellaneous Risks
Example Risk: Franchisee Financial Obligations
Blue Risk
Explanation
This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.
Potential Mitigations
- Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
- Conduct regular risk assessments
- Implement monitoring and reporting systems