Gong cha (Unit)
Gong cha USA Franchising, LLC offers unit franchises for the operation of single Gong cha® stores that primarily sell bubble tea blends, coffees, teas, smoothies, juices, and other related products using proprietary recipes, methods, and the Gong cha® brand system. The business model grants franchises to qualified candidates who must adhere to uniform standards, specifications, and procedures for operations, purchasing, training, and marketing to develop and operate these stores. They target consumers in the competitive specialty beverage market, particularly those interested in Taiwanese-style bubble tea and similar drinks, amid growing demand in the US and globally.
Franchise Costs
6% royalty + 1% brand marketing fee (up to 2%) + $295/mo POS SaaS fee + $313 annual (approx. $26/mo) beverage maker SaaS fee
Financial Performance
Item 19 Financial Performance
Data Based On: 203 2024 Established Gong Cha Stores open from January 1, 2024 to December 31, 2024, operated by Existing Master Franchisees or their subfranchisees / sublicensees in the United States.
* The average_gross_revenue is taken directly from the 'All 203 Stores' row in Table 1. A weighted average of the quartile averages was calculated as a verification, resulting in $439,767.56, which is consistent with the reported overall average of $439,522 (likely due to rounding in the source data). No expense or profit data was provided to calculate net income, net profit, EBITDA, or a best-guess profit range.
Extracted Item 19 Section
How Gong cha (Unit) Compares
Key Insights
- Lower investment than 91% of Fast Casual franchises
| Franchise | Investment | Fee | Royalty | Locations |
|---|---|---|---|---|
Gong cha (Unit) Current | $185K – $627K | $35K | 6.0% | 4 |
| Tropical Smoothie Cafe | $300K – $721K | $35K | 6.0% | 1,371 |
| TROPICAL SMOOTHIE CAFÉ | $300K – $721K | $35K | 6.0% | 1,371 |
| FIREHOUSE SUBS RESTAURANTS (UNIT) | $379K – $1.4M | $20K | 6.0% | 1,248 |
| Zaxby's | $1.4M – $3.8M | $35K | 6.0% | 826 |
| Qdoba | $548K – $1.3M | $40K | 5.0% | 652 |
Fast Casual Average 107 franchises | $532K – $1.2M | $39K | 5.6% | – |
* Comparison based on latest FDD filings. Investment ranges from Item 7, fees from Item 5. Showing top 5 of 107 Fast Casual franchises by location count.
Locations & Growth
Outlet Growth Over Time
Total outlets at end of each year
Geographic Distribution (2024)
Outlets by state across the United States
+8 more states
SBA Loan History
Historical SBA 7(a) loan data for Gong cha (Unit) franchisees (2018 – 2025)
Loans by Year
SBA 7(a) loan activity over time
* Data sourced from SBA 7(a) FOIA loan records. Default rate calculated from charged-off loans.
Franchisee Contacts
224 franchisee contacts on file from official FDD filings.
| Name | SBA Loan |
|---|---|
John Smith ABC Franchise LLC | $350,000 2023 · Active |
John Smith ABC Franchise LLC | $350,000 2023 · Active |
John Smith ABC Franchise LLC | $350,000 2023 · Active |
John Smith ABC Franchise LLC | $350,000 2023 · Active |
John Smith ABC Franchise LLC | $350,000 2023 · Active |
224 Contacts Available
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Due Diligence
Litigation (Item 3)
Renewal dispute with California master franchisee under the Master Franchising Agreement, involving lawsuit and arbitration, settled by agreement to renew.
Bankruptcy (Item 4)
System Health (Item 20)
Franchise system changes reported in the most recent fiscal year
Frequently Asked Questions
The total initial investment to open a Gong cha (Unit) franchise ranges from $184,500 to $627,060. This includes a franchise fee of $34,500. Ongoing royalty fees are 6.0% of gross sales.
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