Gong cha FDD – Franchise Information, Costs and Fees
Type of Business
The franchisor offers unit franchises for the operation of a single store, operated under the “Gong cha®” trademark, that primarily offers and sells a variety of bubble tea blends, coffees and teas, smoothies, juices, and other related products using proprietary methods of operation.
Corporate Information
Gong cha USA Franchising, LLC is a limited liability company incorporated in Delaware on January 10, 2023. Their principal business address is 200 Clarendon St., Suite #5600, Boston, Massachusetts 02116.
Investment
The total investment necessary to begin operation of a Gong cha® franchise ranges from $174,500 to $619,500. This includes $60,250 to $100,350 that must be paid to the franchisor or its affiliates.
The franchisor also offers multi-unit franchises to qualified franchisees. Multi-unit franchisees will sign an Area Development Agreement (or ADA), which authorizes them to develop multiple Gong cha® stores under separate franchise agreements within a specified development area. Multi-unit franchisees pay an upfront development fee to franchisor typically equal to one half of its standard initial franchisee fee of $34,500 multiplied by the number of stores to be developed. The development fee is in addition to the standard initial franchise fee due for each store, although franchisor will credit a portion of the development fee to reduce the initial franchise fee for each store established under the ADA if certain requirements are met.
