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
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

Number of units

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.

Competitors

Below are some of

Gong Cha

key competitors in the

Coffee & Tea

sector.

Franchise
Franchisees
Initial fee
Total investment
Revenue
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Gross Profit
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EBITDA
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4

New
+
n.a.
n.a.

$34,500

$185,000

$627,000

n.a.

$683,000

$xxx,xxx

n.a.

xx%

n.a.

n.a.

xx%

n.a.

Competitors

Kahala Coffee Traders

Kahala Coffee Traders is a coffee shop franchise serving premium coffee, espresso drinks, teas, and baked goods, backed by franchisor support, extensive training, and efficient operational systems.

Franchisees

?

5
+
67%
67%
Investment

?

$88,000 - $517,000

It's Boba Time

It's Boba Time is a beverage franchise specializing in bubble tea and other specialty drinks. With a diverse menu and a focus on high-quality ingredients, it caters to a wide customer base seeking unique and flavorful beverages.

Franchisees

?

76
+
62%
62%
Investment

?

$466,000 - $597,000

7 Leaves

7 Leaves Cafe is a beverage franchise offering a variety of teas, coffees, and specialty drinks. It focuses on using fresh ingredients and traditional brewing methods to create authentic flavors.

Franchisees

?

14
+
17%
17%
Investment

?

$244,000 - $490,000

Junbi

Junbi is a fast-casual beverage franchise specializing in matcha-based drinks. It combines traditional Japanese tea culture with modern flavors, aiming to provide health-conscious options in a contemporary setting.

Franchisees

?

5
+
150%
150%
Investment

?

$269,000 - $576,000

Black Rifle Coffee

Black Rifle Coffee Company is a veteran-owned coffee franchise that offers premium coffee blends. It targets customers who appreciate a patriotic brand identity and supports veteran causes through its business operations.

Franchisees

?

18
+
125%
125%
Investment

?

$1,594,000 - $3,314,000

Qargo Coffee

Qargo Coffee is a specialty coffee franchise focused on premium beverages and a modern, inviting café atmosphere, aiming to deliver high-quality coffee experiences.

Franchisees

?

2
+
n.a.
n.a.
Investment

?

$155,000 - $299,000