Gong Cha Franchise FDD, Costs & Fees (2025)

Gong Cha is a bubble tea franchise that specializes in premium teas and creative beverage options, offering a wide selection of flavors and customizable combinations to satisfy tea lovers' cravings.

Gong Cha, established in 2006 in Kaohsiung, Taiwan, and now headquartered in London, UK, has become a prominent global tea drink franchise. It swiftly expanded, reaching Hong Kong in 2009 and subsequently many other countries.

Renowned for its extensive range of tea-based beverages, including milk teas, fruit teas, and inventive blends, Gong Cha stands out with its dedication to high-quality ingredients and innovative drink creations.

The term "Gong Cha" is derived from an ancient Chinese tradition of offering the finest tea to the Emperor, embodying the brand's pledge to excellence and quality that is fit for royalty.

Gong Cha's expansion is characterized by its blend of innovation and tradition, offering a diverse array of drinks that appeal to varied tastes. From traditional milk teas with freshly prepared pearls to unique fruit-infused concoctions, Gong Cha's menu aims to deliver a distinct tea experience for every customer.

Initial investment

Here's what you would need to invest if you were to start this franchise. These costs are provided by the franchisor in the Franchise Disclosure Document.

Type of Expenditure Amount
Initial Franchise Fee$34,500
Training Expenses$3,600 to $7,200
Architect and Engineering Fees$5,150 to $13,000
Leasehold Improvements$51,500 to $270,500
Furniture, Fixtures, and Equipment$30,250 to $62,300
Technology Systems$5,850 to $6,610
Exterior Signage$2,050 to $5,400
Security and Utility Deposits and Rent$5,150 to $32,500
Professional Fees and Business Permits/Licenses$1,250 to $29,000
Initial Supplies and Inventory$25,750 to $61,800
Grand Opening Advertising$4,000 to $5,400
Insurance$5,400 to $12,350
Additional Funds – 3 Months$10,300 to $86,500
Total$184,500 to $627,060

Franchise Disclosure Document

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Competitors

Below are some of

Gong Cha

key competitors in the

Coffee & Tea

sector.

Started franchising
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Franchise fee

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Gross Profit

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EBITDA

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Home-based

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Passive investment

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FDD
Gong Cha
2009
4
+
n.a.
n.a.
$34,500
6.00%

$185,000

-

$627,000

n.a.

$683,000

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n.a.

n.a.

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n.a.

n.a.

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No
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No
No
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No
2011
5
+
67%
67%
$30,000
6.00%

$88,000

-

$517,000

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n.a.

$0

n.a.

n.a.

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n.a.

n.a.

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2011
76
+
62%
62%
$45,000
5.00%

$466,000

-

$597,000

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n.a.

$0

n.a.

n.a.

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n.a.

n.a.

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2017
14
+
17%
17%
$35,000
6.00%

$244,000

-

$490,000

Upgrade

n.a.

$0

n.a.

n.a.

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n.a.

n.a.

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2020
5
+
150%
150%
$30,000
6.00%

$269,000

-

$576,000

Upgrade

n.a.

$0

n.a.

n.a.

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n.a.

n.a.

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No
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No
Yes
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Yes
2017
18
+
125%
125%
$35,000
6.00%

$1,594,000

-

$3,314,000

Upgrade

n.a.

$0

n.a.

n.a.

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n.a.

n.a.

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2020
2
+
n.a.
n.a.
$50,000
6.00%

$155,000

-

$299,000

Upgrade

n.a.

$0

n.a.

n.a.

Upgrade

n.a.

n.a.

Upgrade
Upgrade
Upgrade

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Total investment

?

Revenue (AUV)

?

Revenue growth (last 3 years)

?

Profit margin

?

Franchise Disclosure Documents
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Watchlist

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Priority support

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Training 

Gong Cha ensures its franchisees are well-equipped to operate their stores through a comprehensive training program covering essential aspects of the business:

Initial Training: Gong Cha mandates an initial training program for franchisees, specifically designed for the Designated Principal, the General Manager, and one additional individual, allowing up to three participants in total. The training lasts approximately two to three weeks, tailored to the specific roles of the attendees.

Training Locations: All training sessions are held at locations specified by Gong Cha, which may include their headquarters or other designated venues.

Ongoing and Refresher Training: Gong Cha provides continuous training as needed. Franchisees, along with their Designated Principal and General Manager, may also be required to participate in refresher courses, seminars, and additional training programs periodically.

Training Costs: Gong Cha covers the costs of training instruction and necessary materials. However, franchisees are responsible for other related expenses. For any additional training sessions conducted by Gong Cha, a per diem fee may be charged to the franchisees.

Territory Protection

Franchisees are granted the right to operate a Master Franchise Business within a designated Authorized Territory, as specified in the Key Terms of the Master Franchise Agreement.

However, this Authorized Territory excludes certain locations such as airports, sports arenas, hospitals, schools, college campuses, corporate campuses, health clubs, military bases, casinos, convention centers, theme parks, and similar areas with restricted trade, collectively referred to as "Non-Traditional Locations."

Franchisees receive conditional protection within their Authorized Territory, but this protection can be revoked under certain circumstances. If a franchisee violates specific clauses of the agreement, such as those pertaining to subfranchising, use of the trade name, fees and payments, business operations, or purchasing requirements from the franchisor, their territorial protection may be jeopardized.

Number of units

2025
Franchised units

0

0

4

Company-owned units

3

2

2

Total units

3

2

6

Competitors

Kahala Coffee Traders

Franchisees

?

5
+
67%
67%
Investment

?

$88,000 - $517,000

It's Boba Time

Franchisees

?

76
+
62%
62%
Investment

?

$466,000 - $597,000

7 Leaves

Franchisees

?

14
+
17%
17%
Investment

?

$244,000 - $490,000

Junbi

Franchisees

?

5
+
150%
150%
Investment

?

$269,000 - $576,000

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