Xing Fu Tang

Xing Fu Tang is a Taiwanese multinational chain of bubble tea restaurants. Founded by Edison Chen in Taipei in 2018, the franchise has expanded to over 150 locations in over 18 countries as of 2023. It has been dubbed "the Hermès of bubble tea" due to its luxury menu items, including flame-torched brown sugar boba milk and boba milk topped with gold foil.

History

Xing Fu Tang was founded in January 2018 in Taipei, Taiwan, by entrepreneur Edison Chen.[1] The brand name, which translates to "realm of happiness", as well as the restaurant's flagship brown sugar boba milk recipe, was inspired by Chen's grandmother.[1][2]

The franchise rapidly expanded, opening over 60 locations in Taiwan by May 2019, and over 100 locations worldwide by 2020. Early expansions outside of Taiwan included Hong Kong, Shenzhen, and

Franchise disputes

During its rapid expansion, Xing Fu Tang faced several franchise disputes. In January 2019, Xing Fu Tang founding distributor CEO International sued the chain's Hong Kong franchise distributor Tenpence, accusing them of breach of contract for asserting sole ownership of the Xing Fu Tang brand in Hong Kong.[3] As a result, all three existing Hong Kong locations of Xing Fu Tang were forced to shut down.[9]

In October 2019, the franchisees of 34 Xing Fu Tang locations in Malaysia issued a series of complaints against the company on Facebook, asserting exclusive ownership of the Xing Fu Tang brand in Malaysia and citing exorbitant franchise fees and raw material costs, after the franchisees refused the company's demands to order RM4.5 million worth of heart-shaped boba molding machines.[10] Xing Fu Tang Taiwan subsequently sued the franchisees for breach of contract, while also committing to provide financial assistance in order to cover their franchise fees.[11]

The Malaysian franchisees struck back on Facebook, asserting they had not breached the franchising contract, accusing the parent company of defamation, and stating they had been "bullied" by the parent company, who threatened to terminate the franchising contract if the franchisees did not purchase the molding machines.[12][13] In response, Xing Fu Tang Taiwan alleged that the machines were merely a "test" to see if the Malaysian franchisees were truly committed to the company and maintained that the franchisees were breaching their contract, to which the franchisees replied, "We hope that the Taiwan HQ will stop with the ridiculous accusations and ruining Xing Fu Tang’s reputation further."[14]

In 2021, Xing Fu Tang Taiwan issued a statement on Instagram accusing franchisees in Texas and California of breaching their franchise contract by opening stores without proper authorization, purchasing ingredients from unauthorized sources, and failing to pay franchise fees.[13] Xing Fu Tang U.S. CEO Andrew Chuang called these allegations "baseless" and "unprofessional", asserting Xing Fu Tang U.S. was operating within their rights as Xing Fu Tang's "sole master franchisor" in the United States.[13]

type	Private
industry	Bubble tea
founded	January 2018 in Taipei, Taiwan
founder	Edison Chen
hq location city	Taipei
hq location country	Taiwan
num locations	150+
num locations year	2023
area served	Worldwide (18+ countries)
products	Bubble tea milk tea

History

Franchise disputes

Menu

See also

External links

References