Not sure if Wushiland Boba 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 MatchedWushiland Boba
How much does Wushiland Boba cost?
Initial Investment Range
$392,200 to $728,200
Franchise Fee
$71,200 to $81,200
The franchise offered is to operate a Wushiland Boba Tea Shop, which offers gourmet tea-based beverages, yogurt and milk-based beverages and other complementary food products, and tea-related supplies, accessories and gift products.
Enjoy our complimentary free risk analysis below
Unlock the full risk analysis to access 9 more categories covering 100+ risks.
Wushiland Boba March 17, 2025 FDD Risk Analysis
Free FDD Library AI Analysis Date: August 22, 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's audited financial statements in Item 21 reveal a history of net losses and a negative net worth (members' deficit) of ($21,857) as of year-end 2024, meaning liabilities exceed assets. The FDD explicitly flags this financial condition as a special risk, which could call into question the company's ability to provide ongoing support and services to you, despite recently achieving profitability.
Potential Mitigations
- Engaging an accountant to thoroughly review the franchisor's financial statements, including footnotes and cash flow, is essential to assess its viability.
- A discussion with your business advisor should focus on the franchisor's reliance on franchise fees versus ongoing royalties for its income.
- Your attorney should investigate if any states have required financial assurances like a bond or escrow account due to these financial conditions.
High Franchisee Turnover
Low Risk
Explanation
This risk was not identified in the FDD Package. Item 20 data shows the franchisor only began franchising in 2024, and as of year-end, there were no terminations, non-renewals, or other cessations. High franchisee turnover is a critical red flag in established systems, as it can indicate widespread franchisee dissatisfaction or lack of profitability.
Potential Mitigations
- It is always wise to have an accountant help you analyze Item 20 data in any FDD to calculate the real turnover rate.
- Contacting former franchisees listed in Item 20 is a critical due diligence step your business advisor should recommend.
- Your attorney can help you frame questions for former franchisees to understand why they left the system.
Rapid System Growth
Medium Risk
Explanation
Item 20 data shows the system is new but projects rapid growth, with plans to add 15 new outlets in the next fiscal year after opening its first 6 in 2024. When combined with the franchisor's limited financial resources and history of losses, this rapid expansion could potentially strain its ability to provide adequate training and support to all new franchisees, including you.
Potential Mitigations
- In discussions with the franchisor, inquire specifically about their plans to scale support staff and infrastructure to match this projected growth.
- A business advisor can help you assess whether the franchisor's current support structure seems adequate for the planned expansion.
- Your accountant should review the franchisor's financials to determine if they have the capital to fund the necessary support for this growth.
New/Unproven Franchise System
High Risk
Explanation
The franchisor, Wushiland Franchising LLC (Wushiland LLC), was formed in 2021 and only began franchising in 2024, as disclosed in Items 1 and 20. As a new and unproven system, you face higher risks related to the viability of the business model, the adequacy of its operational systems, and the franchisor's ability to provide effective long-term support. The company's weak financial history further elevates this risk.
Potential Mitigations
- Conducting extensive due diligence on the management team's prior industry and franchising experience is critical; a business advisor can help.
- Speaking with the very first franchisees, including those who have signed but not yet opened, is essential to gauge their early experiences.
- Your attorney may be able to negotiate more favorable terms, such as lower fees or enhanced protections, to offset the higher risk.
Possible Fad Business
Low Risk
Explanation
This specific risk was not identified. While the boba tea market is trend-driven, the FDD describes it as 'mature and very competitive,' suggesting it has moved beyond a short-term fad. However, long-term success in any food service business depends on the brand's ability to adapt to changing consumer tastes and maintain its appeal over many years.
Potential Mitigations
- A business advisor can help you independently research the long-term market trends for boba tea and assess this specific brand's competitive position.
- Evaluating the franchisor's commitment to ongoing product research and development is a key discussion to have with them.
- Consider the business's resilience to economic shifts and its potential for sustained demand with your financial advisor.
Inexperienced Management
Medium Risk
Explanation
The management team, particularly CEO Leo Liu, has extensive experience operating boba tea shops, as detailed in Item 2. However, their specific experience in managing a franchise system and providing support to independent owners is very recent, as Wushiland LLC only began franchising in 2024. This lack of a long track record in franchising could present challenges in delivering consistent and effective franchisee support.
Potential Mitigations
- Questioning the franchisor directly about the experience of their support team specifically in franchising is an important step.
- Speaking with the earliest franchisees about the quality and responsiveness of the support they have received is crucial for due diligence.
- A business advisor can help you assess if the franchisor has hired other personnel with deep franchising experience to complement the operational team.
Private Equity Ownership
Low Risk
Explanation
This risk was not identified. Item 1 of the FDD outlines the franchisor's ownership structure, which appears to be a network of affiliated corporate entities rather than a private equity firm. Private equity ownership can sometimes introduce risks related to short-term profit motives that may not align with the long-term health of franchisees.
Potential Mitigations
- It is valuable for a business advisor to help research the ownership structure of any franchisor to understand their background and motivations.
- Discussing any recent or anticipated changes in ownership with existing franchisees can provide valuable insight.
- Your attorney should always analyze the 'Assignment' clause in the Franchise Agreement to understand your rights if the system is sold.
Non-Disclosure of Parent Company
Medium Risk
Explanation
Item 1 discloses the existence of a parent company, Flying Fish USA Inc. However, the FDD does not include the parent's financial statements or a guarantee of the franchisor's obligations. Given that the franchisor entity itself has a history of losses and negative net worth, the absence of financial information about its parent creates uncertainty about the overall financial backing and stability of the system.
Potential Mitigations
- A franchise attorney can help you formally request the parent company's financial statements to better assess the system's overall financial strength.
- Your accountant should analyze the franchisor's financials in the context of it being a subsidiary without a stated parent guarantee.
- Inquire with the franchisor about the specific relationship and financial support provided by the parent company.
Predecessor History Issues
Low Risk
Explanation
This risk was not identified, as the franchisor states in Item 1 that it has no predecessors. In cases where a franchisor has acquired the system from a previous entity, it is important to scrutinize the predecessor's history for issues like litigation, bankruptcy, or high franchisee failure rates, as these could indicate underlying problems with the system.
Potential Mitigations
- Your attorney should always review Item 1 carefully to identify any disclosed predecessors.
- If a predecessor exists, a business advisor can help you research its historical performance and reputation.
- Asking long-tenured franchisees about their experience under any previous ownership is a valuable due diligence step.
Pattern of Litigation
Low Risk
Explanation
This risk was not identified in the FDD. Item 3 discloses no litigation against the franchisor involving claims of fraud, misrepresentation, or violations of franchise law. A pattern of such litigation in an FDD is a significant red flag, as it can suggest systemic problems with the franchisor's practices or the franchise relationship itself.
Potential Mitigations
- It is crucial for your attorney to carefully review Item 3 for any disclosed litigation and analyze the nature of the claims.
- Even with no disclosed litigation, conducting independent online searches for news or discussions about the franchisor can sometimes reveal disputes.
- A business advisor can help you understand that a clean litigation history is positive but not a guarantee of future harmony.
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