RevelRevel Systems
Mandatoryaccess this information. We will manage the license with the point-of-sale provider we select for the system of Kung Fu Tea shops nationally. Our current point-of-sale provider is Revel (revelsystems.
From the filings
+2.122% units YoYHQ-led decisions
Kung Fu Tea
Quick service restaurantKung Fu Tea selects the point-of-sale provider for the whole system and manages the license nationally — currently Revel — and requires the KFT Group App for customer loyalty rewards, built on a platform provided by Paytronix. CFO Hung-Jen (Allen) Wang leads a 385-store franchised system, up 2.1% year over year, out of its New York headquarters.
For software vendors selling into US franchise brands.
Live signals
Total units
387
385 franchised
Unit growth YoY
+2.122%
vs prior filing
AUV
—
Item 19, 2025
Royalty
4%
of gross sales
Ad fund
2%
national + local
Initial fee
$37K
per unit
Investment range
$169K–$378K
all-in, Item 7
Procurement
Franchisor controlled
from the filing
Item 19
No claims
from the filing
Ongoing fee load
What the operator pays every month
The recurring percentage of gross sales named in this filing, before rent, labour or any technology fee.
6%of gross sales (FY2025)
15% reference
Mandated & recommended tech
The systems vendors compete with
1 of these are mandated in the franchise agreement. Each is named in Item 11 of the filing, the incumbents a challenger must displace or integrate with.
GrubhubGrubhub
you select. However, we specify your suppliers of milk and fruit (to maintain our uniform quality and taste). We do not require you to use delivery platforms and services (such as Grubhub, Uber Eats,
PaytronixPaytronix
g their cell phones and the KFT Group App, which allows customers to accumulate reward points each time they make a purchase. The KFT Group App uses an online platform provided by Paytronix. See www.p
PostmatesUber
ur suppliers of milk and fruit (to maintain our uniform quality and taste). We do not require you to use delivery platforms and services (such as Grubhub, Uber Eats, Door- Dash or Postmates). However,
Uber EatsUber
t changes and a fee to cover our costs and expenses. You may operate delivery service within your territory or arrange for such service with a third-party service provider such as Uber Eats, Grubhub,
Franchisor behaviours
What the franchisor requires
23 requirements the franchisor states in this filing, each in its own words; 6 explicit no's; 5 questions the text does not settle, which is not a no.
Accounting
Does the franchisor have direct or independent electronic access to the franchisee's financial, sales or customer records?
YesItem 11
In other words, we will have independent access to the information generated and stored in your cash register or computer systems.
Must the franchisee submit periodic financial statements (monthly, quarterly or annual) to the franchisor?
YesFranchise agreement
We have the right, upon notice to you, to require you to submit to us, in digital format, (i) monthly and annual balance sheets and income statements for the Franchised Business, prepared in accordance with generally accepted accounting principles consistently applied, in the format we prescribe, and verified as…
How the franchisor buys
Is the franchisor or an affiliate itself a supplier of required products, services or systems?
YesItem 8
Except for the KFT Group App, we are not a supplier of any goods or services to franchisees
Does the franchisor reserve the right to change designated suppliers or systems at any time?
YesFranchise agreement
We may modify or change the System Standards from time to time, and upon notice to you, we may make additions to, deletions from or revisions in the Manual to reflect such modifications or changes.
How much revenue did the franchisor and its affiliates earn from franchisee purchases in the last fiscal year?
29761735Item 8
In 2024, Arms Global Inc. received $29,761,735 based on sales to our franchisees, which repre- sented more than 99% of the total 2024 revenues of Arms Global Inc. of $30,026,331 based on the com- pany’s internal books and records.
Does the franchisor or an affiliate receive rebates, commissions or other revenue from designated or approved suppliers?
YesFranchise agreement
We reserve the right to receive rebates, credits and other compensation from suppliers we designate or approve to provide goods or services to you based upon the purchases by you and other franchisees of goods and services from such suppliers.
Can a franchisee propose a new supplier for the franchisor's approval?
YesItem 8
If you wish to use any item or supplier we have not previously designated or approved, you must submit to us a written request for such approval, or request the supplier to do so.
Communications
Does the franchisor own or control the business telephone numbers, or take them over when the agreement ends?
YesFranchise agreement
you will assign to us or our designee all of your right, title and interest in and to your telephone numbers, websites, domain names and meta tags associated with the Mark (the “List- ings”) and you will notify the telephone company and all listing agencies of the termination or expi- ration of your right to use any…
Data and IT
Must the franchisee comply with PCI, data-security or cybersecurity standards set by the franchisor?
YesFranchise agreement
You will also comply with the then current Payment Card Industry Data Security Standards (PCI/DSS) as those standards may be revised by the PCI Security Standards Council, LLC (see www.pcisecuritystandards.org) or successor organization, including (i) implementing (at your expense) all security requirements that the…
Franchise management
Must the franchisee participate in a customer-satisfaction or net-promoter survey program?
YesFranchise agreement
You agree to present to your customers such evaluation forms as we periodically prescribe and to participate and request your customers to participate in any surveys performed by us or on our behalf.
Does the franchisor conduct periodic inspections, audits or evaluations of the franchised business?
YesItem 11
We conduct operational reviews and other quality control measures to ensure compliance with our standards and to recommend improvements.
Can the franchisor change the operations manual and brand standards unilaterally?
YesFranchise agreement
We may modify or change the System Standards from time to time, and upon notice to you, we may make additions to, deletions from or revisions in the Manual to reflect such modifications or changes.
Must the franchisor approve the franchisee's site or location before opening?
YesItem 11
(Franchise Agreement, Section 1.2.1 and 1.2.2.) We must ap- prove the site before you enter into lease negotiations.
Marketing
Must the franchisee participate in a customer loyalty or rewards program?
YesItem 11
You must participate in all promotion campaigns, advertising, loyalty programs, and other programs we periodically establish or approve, whether on a national, regional or local basis.
Operations
Must the franchisee buy products from a designated distributor?
YesItem 8
You must purchase most of your equipment and supplies from our affiliate, Arms Global Inc., as described in Item 5.
Must equipment be purchased from designated or approved suppliers?
YesItem 8
You must purchase most of your equipment and supplies from our affiliate, Arms Global Inc., as described in Item 5.
Payments
Are royalties and other fees collected by automatic bank debit (ACH or electronic funds transfer) from the franchisee's account?
YesFranchise agreement
You will pay all sums you owe to us or to any of our affiliates electronically through one or more depository transfer accounts or using such methods as we may designate in the Manual or otherwise in writing.
Must the franchisee participate in a gift card program?
YesItem 11
You must participate in all promotion campaigns, advertising, loyalty programs, and other programs we periodically establish or approve, whether on a national, regional or local basis.
People
Does the franchisor require minimum staffing levels or specific roles?
YesFranchise agreement
You will appoint at least one “Operating Manager”.
Point of sale
Must the franchisee use a specific point-of-sale system designated or approved by the franchisor?
YesItem 11
You must purchase your point-of-sale system from Arms Global Inc.
Does the franchisor have independent access to the data in the franchisee's POS or computer system?
YesItem 11
In other words, we will have independent access to the information generated and stored in your cash register or computer systems.
Training
Can the franchisor charge the franchisee for additional, refresher or remedial training?
YesFranchise agreement
We may charge our then-current fees and expenses for additional or remedial training that is not mandatory or that we require because your personnel are not meeting our standards.
Is attendance at an annual convention or conference mandatory for the franchisee?
YesFranchise agreement
The Managing Owner of your company must attend these conferences.
The filing answers no to 6 questions
- Is there a franchisee advisory council, association or committee?Franchise agreement
- Does the franchisor charge a fee to evaluate a proposed supplier?Item 8
- Is the franchisee prohibited from operating its own website or social media accounts, or required to use pages the franchisor provides?Franchise agreement
- Is a minimum grand opening advertising spend required?Franchise agreement
- Is the franchisee required to spend a minimum amount on local advertising or marketing, as a percentage of sales or a fixed amount?Item 11
- Must the franchisee participate in a regional advertising cooperative when one exists?Item 11
Who buys here
The buyer at this brand
The decision-maker a vendor sells to at this scale, and the gaps they’re paid to close, derived from our data by segment and unit count, not a guess.
HQ leadership: CEO/President + VP Ops/Franchise + a first dedicated IT/systems owner.
VP SalesHead of SalesCROSales Director
- 41.9% of quick service brands mandate no POS system, leaving a massive blind spot in your target list.By instantly identifying the 452 brands with no POS mandate, you replace weeks of manual FDD research and focus your pipeline on high-fit displacement targets, cutting customer acquisition cost by over 60%.
- 82.3% of brands mandate no accounting system, signaling a wide-open market for tech vendors.FranCloud surfaces the 888 brands without an accounting mandate so your team can prioritize outreach before competitors even know they exist, turning a manual research cost center into a predictable revenue engine.
- Only 17 out of 1,079 quick service brands mandate a CRM, yet unit counts and AUVs prove these are high-value accounts.Instead of spending 40+ hours manually combing FDDs to find CRM-needy brands, FranCloud delivers the 17 mandate-holders and their financials in one query, letting your team close deals 10x faster.
The vendor opportunity at Kung Fu Tea Kung Fu Tea runs 387 US shops out of New York, 385 of them franchised. Franchised-outlet count grew 2.1% year over year, a steady retail system for a vendor evaluating timing.
Who controls software purchasing Kung Fu Tea's franchise agreement centralizes the tech stack. Kung Fu Tea manages the license with the point-of-sale provider it selects for the whole system, and franchisees pay that provider its standard fee. The required computer, point-of-sale system and printer cost approximately $3,000. The point-of-sale system must be purchased from Kung Fu Tea's affiliate Arms Global Inc., and aside from it, computer equipment may be obtained from any vendor that meets Kung Fu Tea's requirements. CFO Hung-Jen (Allen) Wang and Chief Marketing Officer Jui (Ray) Chiu lead the brand from headquarters.
Tech named in the FDD, and what is actually required Kung Fu Tea's current point-of-sale provider is Revel, licensed nationally by the franchisor at approximately $50 per month, which covers all required updates and upgrades. Franchisees must use the KFT Group App, which lets customers accumulate reward points and runs on an online platform provided by Paytronix; the $108 monthly technology fee covers that service and may rise to as much as $350 over the term. Systems must be broadband-connected at all times and interfaced with Kung Fu Tea's system so headquarters can access daily receipts. Franchisees must purchase the specified Faema espresso machine from designated supplier Omnipak Import or another supplier Kung Fu Tea specifies, and blenders and juicers from suppliers it specifies.
Procurement, renewals, and timing Kung Fu Tea's FDD makes no financial performance representation. Royalty runs at 4% of Gross Sales. Item 8 requires most equipment and supplies from franchisor affiliate Arms Global Inc., which supplies all of the tea, coffee, concentrates and flavouring ingredients as well as packaging materials, cups, menu boards and signs, and those items may not be bought from any other supplier. Kung Fu Tea estimates 15% to 20% of establishment expenditures and 25% to 35% of ongoing operating expenditures fall under sourcing restrictions. Franchisees may propose a supplier for approval. The term is ten years, renewable for a term equal to the renewal lease but not more than ten years.
How to read the Kung Fu Tea FDD The 2025 Franchise Disclosure Document below spells out the exact Revel POS, KFT Group App and Arms Global Inc. sourcing language. Talk to FranCloud for a ranked list of retail beverage franchise systems worth pitching next.
Questions vendors ask
Kung Fu Tea, answered from the filing
Kung Fu Tea's franchise agreement centralizes technology at headquarters: CFO Hung-Jen (Allen) Wang and Chief Marketing Officer Jui (Ray) Chiu oversee a system where the franchisor selects the point-of-sale provider nationally and requires the proprietary KFT Group App for loyalty.
Kung Fu Tea's current point-of-sale provider is Revel, and the franchisor manages that license nationally at roughly $50 per month per shop. Franchisees must use the KFT Group App, which runs on a platform provided by Paytronix and is covered by the monthly technology fee. Systems must stay broadband-connected and interfaced with headquarters.
Kung Fu Tea runs 385 franchised shops within a 387-shop retail system, with franchised-outlet count up 2.1% year over year.
Most equipment and supplies must come from franchisor affiliate Arms Global Inc., which supplies all tea, coffee, concentrates, flavouring ingredients and packaging materials, and the specified Faema espresso machine comes from designated supplier Omnipak Import. Franchisees may propose a supplier for approval.
Franchised-outlet count grew 2.1% year over year, a modest but steady pace of new-shop tech setups. The term is ten years, and a franchisee must notify Kung Fu Tea of a desire to renew 12 to 18 months before the term ends and update equipment and premises.
The embedded PDF viewer below holds Kung Fu Tea's 2025 Franchise Disclosure Document — use it to check the exact Revel POS and KFT Group App mandate language.
Source
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FDD alert
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We’ll email you the moment Kung Fu Tea files a new annual FDD, usually the freshest signal of a vendor change.
Operator footprint
Kung Fu Tea’s FDD on file does not disclose a franchisee directory.
Related Quick service restaurant brands
Primary franchise filings · updated September 2026. Every figure is source-traceable and QA-checked.