Gong cha (Unit)

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.

4
Locations
$185K–$627K
Investment
Since 2023
Franchising
Food & BeverageBoston, MAGong cha Americas, Inc.gongchafranchising.comDisclaimer

Franchise Costs


Franchise Fee
$34,500
Item 5 of FDD
Initial Investment Range
$184,500 $627,060
Low: $184,500High: $627,060
Item 7 of FDD
Royalty Rate
6.00%
of gross sales
Brand Fund
1.00%
Item 6 of FDD
Fixed Monthly Fees
$295 – $321
Item 6 of FDD

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

Average Gross Revenue
$0
Median Gross Revenue
$0
Top Quartile Revenue
$0
Bottom Quartile Revenue
$0

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
FranchiseInvestmentFeeRoyaltyLocations
Gong cha (Unit)
Current
$185K – $627K$35K6.0%4
Tropical Smoothie Cafe$300K – $721K$35K6.0%1,371
TROPICAL SMOOTHIE CAFÉ$300K – $721K$35K6.0%1,371
FIREHOUSE SUBS RESTAURANTS (UNIT)$379K – $1.4M$20K6.0%1,248
Zaxby's$1.4M – $3.8M$35K6.0%826
Qdoba$548K – $1.3M$40K5.0%652
Fast Casual Average
107 franchises
$532K – $1.2M$39K5.6%

* 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

Top States
1TX
34
2NJ
30
3MA
23
4NY
8
5PA
8
6MD
7
7FL
5
8VA
5
9NC
4
10CT
3
11CO
3
12RI
3
13DC
3
14MI
2
15IL
2

+8 more states

SBA Loan History


Historical SBA 7(a) loan data for Gong cha (Unit) franchisees (20182025)

Total Loans
15
Average Loan
$251,047
Total Volume
$3.8M
Default Rate
0.0%

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.

NameSBA 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

Unlock all Gong cha (Unit) franchisee contacts with verified contact information

Due Diligence


Litigation (Item 3)

Franchisee Cases1

Renewal dispute with California master franchisee under the Master Franchising Agreement, involving lawsuit and arbitration, settled by agreement to renew.

Bankruptcy (Item 4)

Bankruptcy HistoryNo
No bankruptcy history reported

System Health (Item 20)

Franchise system changes reported in the most recent fiscal year

Terminations
0
Non-Renewals
0
Reacquired
0
Ceased Ops
0
Transfers
0
Sold to Franchisees
0
Projected New
7

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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