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.
Disclaimer: This information was extracted using AI from public Franchise Disclosure Documents and should be independently verified. This is not financial or legal advice. Always review official FDD filings before making investment decisions.
Overview
Financial Requirements
6% royalty + 1% brand marketing fee (up to 2%) + $295/mo POS SaaS fee + $313 annual (approx. $26/mo) beverage maker SaaS fee
Franchise Stats
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 to Other Fast Casual Franchises
Key Insights
- Lower investment than 91% of Fast Casual franchises
| Franchise | Investment Range | Franchise 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
* Data sourced from SBA 7(a) FOIA loan records. Default rate calculated from charged-off loans.
Franchisee Contacts
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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)
No bankruptcy history reported in the FDD.
System Health (Item 20)
Franchise system changes reported in the most recent fiscal year
Frequently Asked Questions
How much does it cost to open a Gong cha (Unit) franchise?
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.
How much revenue does a Gong cha (Unit) franchise make?
According to the 2025 FDD, the average gross revenue for a Gong cha (Unit) franchise is $439,522. The median revenue is $401,211.
How many Gong cha (Unit) franchise locations are there?
As of the 2025 FDD, Gong cha (Unit) has 4 franchise locations. The company has been franchising since 2023.
Can you get an SBA loan for a Gong cha (Unit) franchise?
Yes, SBA loans are available for Gong cha (Unit) franchises. Historical data shows 15 SBA 7(a) loans have been approved for Gong cha (Unit) franchisees, with an average loan amount of $251,047. The historical default rate is 0.0%.
Is Gong cha (Unit) a good franchise to buy?
Gong cha (Unit) shows several positive indicators: transparent financial performance data (Item 19), low SBA loan default rate. However, franchise success depends on many factors including location, local market conditions, and owner involvement. We recommend speaking with existing franchisees and consulting with a franchise attorney before making a decision.
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