State issues preliminary cease and desist order against Teapresso Bar

Hawaiʻi Department of Commerce and Consumer Affairs Commissioner of Securities Ty Nohara issued a preliminary cease and desist order and notice of right to request a hearing against Teapresso Bar LLC — better known simply as Teapresso.

The order alleges that between December 2016 and July 2021 Teapresso — a limited liability company whose sole managing member was Thanh “Steve” Nguyen — granted 26 Teapresso Bar franchises in Hawaiʻi in violation of state franchise laws.

Teapresso specifically failed to provide an offering circular to prospective franchisees prior to the sale of the franchises.

It also failed to file required documents with the Department of Commerce and Consumer Affairs commissioner as required by state law.

Teapresso is ordered to cease and desist from selling or making an offer to sell, purchase or transfer a Teapresso Bar franchise or any other franchise within Hawaiʻi and pay a civil penalty of $100,000.

“Hawaiʻi’s franchise laws help ensure that prospective franchisees receive certain key information before taking on the significant risks of investing in a franchise,” said Nohara in a release about the state’s actions.

Teapresso Bars are food and beverage establishments specializing in coffee and boba tea.

The Teapresso Bar Hilo was the 19th Teapresso Bar opened in the state and the first on the Big Island. Doors opened Dec. 17, 2018, under independent and fourth-generation Hilo kamaʻāina owners.

There are now more than 25 Teapresso locations throughout the Hawaiian Islands. ABC Stores also serve Teapresso drinks in eight locations on O‘ahu, Maui, Big Island and Kaua‘i.

Teapresso has stores on the mainland in Texas, California, Washington state and Arizona.

Anyone who purchased a Teapresso Bar franchise or might have information about this matter is urged to contact the Hawaiʻi Department of Commerce and Consumer Affairs Securities Enforcement Branch at 808-586-2740 or via email at seb@dcca.hawaii.gov.