Gong Cha Franchise Analysis

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Gong Cha is graded based on our most recent FDD research!

Franchise Opportunity Facts

What are the requirements to buy a Gong Cha franchise?

Gong Cha has a franchise fee of up to $30,000, with a overall upfront investment range of $217,800 to $498,000.

  • Initial Franchise Fee: $30,000
  • Total Investment: $217,800 to $498,000
  • Working Capital: $60,000 to $80,000
  • Royalty Fee: 6.0%

The initial investment of any franchise includes multiple fees. Check out this investment opportunity to better understand the specific costs required to buy a Gong Cha, such as franchise fees, construction and costs, grand opening advertising, and technology fees. It should be noted that, franchise companies must to provide you with details about all upfront fees. These fees include those that are actually paid when signing the franchise agreement and commitments to fees you are required to pay.

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How much does a Gong Cha owner make?

As with any new investment opportunity, there should be a strong ROI and net profit potential. The specific franchise owner's salary and the earnings from a Gong Cha business will depend on many factors. One way to validate the potential revenues or profits earned from a Gong Cha franchise investment is to review the franchisor's Item 19 within their FDD. This is called a financial performance representation. This is not required within a franchisor's disclosure and approximately 68% of all franchise companies in our database will disclose financial performance data within Item 19 of their FDD. Some franchise companies may disclose limited information such as average gross revenues. This type of information is not always helpful to determine profitability for you directly. So review overall sales data with caution. As expected, usually earnings and owner's salary are proportionate to the overall size of the upfront investment. The larger the initial investment, the larger return you should expect to see. Another factor to owner's salary potential is based on the number of locations you purchase. If you buy multiple locations (usually defined as Area Development Agreements), you can anticipate that as you launch the next unit, you will generate more revenue and profits overall. Demand for your products, your labor costs in your city, commercial lease rates and several other variables also play a huge role in your bottom line and your personal salary. Your future returns are associated with the overall franchisor's success. Your returns and owner's salary is not just reliant on how well your own location operates, you should assess how well the entire franchise system is operating. Determine how the franchisor earns income and review their financial returns.

For more details and system-specific data on the earnings of a Gong Cha franchise, unlock this franchise opportunity

How many franchise outlets does Gong Cha franchise system have?

As of the 2020 Franchise Disclosure Document, there are 24 franchised Gong Cha locations across the United States.

Did you know there are over 3,000 franchise opportunities across the United States. More than 80% have less than 10 locations.

Are there any Gong Cha franchise opportunities in my area?

Based on 2020 FDD research, Gong Cha has franchise locations in 1 states. There may be no locations in several states as each franchise plans their growth strategy differently.

CA

Based on the data collected this franchise is expanding into new cities and could be available in your city. While planning your franchise purchase, you should be considering what is a good location for my franchise. Anlayze the potential customer base to confirm that the area you are looking at has a need or customers for this brand.

One of our franchise experts will have detailed knowledge about this franchise opportunity. Unlock to learn more and connect with our experts.

Last Reviewed: 2020

Gong Cha Franchise DATA

Total Investment
$217,800 - $498,000
Franchise Fee
$30,000
Franchise agreement
Initial Term
5 Years
Renewal Term
5 Years
Franchise outlet growth
2017
11
2019
24
Ongoing fees
Royalty
6.0%
ad fees
1.0%
# of franchised outlets
24

EXTRA INFORMATION

Does this brand provide any initial training and opening assistance?

Yes, they have an initial training program of 64 hours. This includes 2 hours of classroom training, 62 hours of on-the-job training, and 0 hours of online training. In their FDD they outline who's in charge of the training. Unlock to find out more.


Online 0
On-the-Job 62
Classroom 2
Total 64

Does this brand provide Territory Protections?

Gong Cha offers territory protections. For an explanation of territorial rights, unlock this franchise opportunity for more details.

Do they have marketing and technology support in place?

No, Gong Cha does NOT offer comprehensive support for franchisees.


How long ago did they begin franchising?

They began franchising in 2014. The average Coffee, Bakery and Snacks franchise began franchising in 2005.


Does Gong Cha offer financing support?

No, but you can click here to fill out our affordability calculator and understand your financing options.

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  • What are the historical franchise owner revenues?
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  • How many new locations have they opened over the last 5 years?
  • How many franchised locations have closed over the last 5 years?
  • How many new outlets have they sold in the last 5 years?
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  • Does this brand operate any corporate or affiliate owned locations?
  • How long is their initial and renewal term lengths?
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  • How are the royalty, advertising and marketing funds administered and managed by the franchisor?
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  • Why has new franchise outlet growth been so high?
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