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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.
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Franchise Costs
6% royalty + 1% brand marketing fee (up to 2%) + $328/mo POS SaaS + $40/mo operations platform + $35/mo online training + up to $50/mo guest survey platform
Financial Performance
Item 19 Financial Performance
Data Based On: Net Sales information for the 222 '2025 Established Gong Cha Stores' from January 1, 2025, to December 31, 2025. These stores are comprised of direct Gong cha® unit franchisees, Existing Master Franchisees or their affiliate subfranchisees/sublicensees, and subfranchisees/sublicensees that are independent third parties.
* All values (average gross revenue, median gross revenue, revenue top quartile, and revenue bottom quartile) were directly extracted from 'Table 1 Net Sales of 222 2025 Established Gong Cha Stores'. The overall average and median for 'All 222 Stores' were used. The average for the 'Top Quartile (56 Stores)' was used for revenue_top_quartile, and the average for the 'Bottom Quartile (56 Stores)' was used for revenue_bottom_quartile. No expense, profit, or EBITDA data was provided, so related fields are null.
Extracted Item 19 Section
Avg. Revenue: $396,887
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Unlock financial performance dataGong cha (Unit) Franchise Analysis
Bubble tea's popularity is exploding, but Gong cha's rapid US entry since 2023 hits a snag with unexpected system contraction. Item 19 finally reveals revenue snapshots for these fast-casual stores, while SBA loan records and franchisee turnover paint a mixed picture. Is this trendy brand's model sustainable amid rising competition, or is the bubble about to burst?
Item 7 details the hefty $207,450-$648,460 initial investment, including a $37,000 franchise fee, driven by build-out and equipment for prime retail spots. Ongoing fees stack up: 6% royalty plus 1% brand fund (potentially 2%), plus monthly hits like $328 POS SaaS, $40 operations platform, $35 training, and $50 surveys—higher tech burden than many beverage peers. Item 19 shines with average gross sales of $396,887 and median $363,373 across units, suggesting solid top-line potential if costs are controlled, though no profit figures leave margins opaque.
System health raises flags: total locations shrank from 202 in 2024 to 185 in 2025 (-8%), with 10 terminations, 11 transfers, and just 13 projected new units despite 175 franchise and 2 corporate stores. SBA data shows 15 loans averaging $251,047, indicating financing access but possible stress. A renewal dispute litigation with master franchisee Gong Cha CA adds friction. For investors, high revenues tempt, but contraction and extras signal caution—evaluate local demand and ops intensity closely.
Analysis based on the 2026 Franchise Disclosure Document. All figures should be independently verified before making investment decisions.
How Gong cha (Unit) Compares
Key Insights
- Lower investment than 89% of Fast Casual franchises
- Higher than average SBA loan default rate in Fast Casual
| Franchise | Investment | Fee | Royalty | Locations |
|---|---|---|---|---|
Gong cha (Unit) Current | $207K – $648K | $37K | 6.0% | 175 |
| Tropical Smoothie Cafe | $276K – $771K | $35K | 6.0% | 1,650 |
| TROPICAL SMOOTHIE CAFÉ | $300K – $721K | $35K | 6.0% | 1,371 |
| FIREHOUSE SUBS RESTAURANTS (UNIT) | $405K – $1.6M | $20K | 6.0% | 1,249 |
| Zaxby's | $1.4M – $3.8M | $35K | 6.0% | 826 |
| Qdoba | $548K – $1.3M | $40K | 5.0% | 652 |
Fast Casual Average 107 franchises | $529K – $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 (2025)
Outlets by state across the United States
+8 more states
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Unlock location growth dataSBA 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.
15 SBA loans on record
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Unlock SBA loan historyFranchisee Contacts
188 franchisee contacts on file from official FDD filings.
188 Contacts Available
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Unlock contactsDue Diligence
Litigation (Item 3)
Renewal dispute with master franchisee Gong Cha CA Franchise LLC.
Bankruptcy (Item 4)
System Health (Item 20)
Franchise system changes reported in the most recent fiscal year
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Unlock due diligence reportsFrequently Asked Questions
The total initial investment to open a Gong cha (Unit) franchise ranges from $207,450 to $648,460. This includes a franchise fee of $37,000. Ongoing royalty fees are 6.0% of gross sales.
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