Gong Cha Franchise FDD, Profits & Costs
Gong Cha, an international beverage franchise, is famous for its premium teas, bubble teas, and coffee. Founded in 2006 in Kaohsiung, Taiwan, its name, “Gong Cha,” means “tribute tea for the emperor,” symbolizing the brand’s dedication to quality.
The idea for Gong Cha began in 1996 with founders Huang and Wu, who wanted to offer personalized tea service with innovative flavors. By 2006, the first Gong Cha store opened in Kaohsiung, marking the brand’s rise to global recognition.
Gong Cha is best known for its signature Milk Foam, a creamy, sweet, and savory topping that enhances its freshly brewed teas. This hand-crafted foam, made from the finest ingredients, is a defining element of the Gong Cha experience.
Gong Cha Franchise Initial Investment
How much does it cost to start a Gong Cha franchise? It costs on average between $185,000 – $627,000 to start a Gong Cha franchised restaurant.
This includes costs for construction, equipment, inventory, and initial operating expenses. The exact amount depends on various factors, including the type of restaurant you choose, the location, and whether the franchisee chooses to lease or purchase the property.
| Type of Expenditure | Amount Range |
|---|---|
| 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 | $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 Initial Investment | $184,500 to $627,060 |
Gong Cha Franchise Average Revenue (AUV)
How much revenue can you make with a Gong Cha franchise? A Gong Cha franchised restaurant makes on average $683,000 in revenue (AUV) per year.
Here is the extract from the Franchise Disclosure Document:
Gong Cha Franchise Disclosure Document
Frequently Asked Questions
What funding options are available for a Gong Cha franchise?
Most franchise buyers in Gong Cha’s investment range finance their unit through an SBA 7(a) loan, with some multi-unit operators using SBA 504 loans for real estate. Buyers with rollable retirement funds sometimes use a ROBS structure to reduce debt service. See SharpSheets’ financial model hub for funding guidance.
How long does it take to pay back a Gong Cha franchise investment?
Payback periods for franchises in Gong Cha’s category typically run 3-7 years, depending on investment level, location performance, and financing structure. Actual payback varies significantly by unit performance and debt service obligations.
Who owns Gong Cha?
Gong Cha is owned by TA Associates, a private equity firm that acquired a majority stake in the company in 2019. This acquisition has helped Gong Cha expand its global footprint and continue growing in markets across the world.
SharpSheets Editorial Team | sharpsheets.io | Last Updated: June 2026
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