How to Start Gong Cha Franchise In USA?

Overview

Gong Cha is the most recognized tea drink franchise around the world. This delicious bubble tea brand is known for quality tea and service. In 2012 they expanded internationally offering proven system franchises throughout the USA and around the world. Gong Cha Franchise are growing in the United States and are operating in the Northeast and the South of the United States. 

Gong Cha started from  Kaohsiung, Taiwan in 2006 and also expanded to Hong Kong in the same year. In 2012 its footprints spread to 20 countries including South Korea, Australia, and the United States. Currently, they are offering sixty different drinks in 1,600+ locations. Its headquarters is located in London, United Kingdom.

Benefits

Gong cha offers exciting benefits for passionate owners that stand out from other QSR concepts. They provide expert training to their franchisees and help their franchisees achieve their entrepreneurial dreams. Its established global presence is famous for giving it an edge against local competitors. Its Global Support Network and Exceptional Franchise System take Gong cha even higher.

Training:  They provide expert On-The-Job and Classroom Training of 111 hours and 19 hours and provide worldwide network support.

Premium Products: Its premium products are game-changing. You can get the benefit of serving the finest handcrafted ingredient tea on earth.

Diverse Demographic Groups: Its demographic group is diverse attracting all kinds of beverage lovers like families, students, Millennials, Gen Z, and many others.

Global Support Network: You will receive global support from the entire team of tea masters.

Exceptional Franchise System: Its profitable business system in the U.S. has previously experienced $898,370.  Its Average Gross Revenue is also increasing.

Fast-Growing: it’s growing fastly and is very popular for its healthy Business. Its huge popularity is giving rise to its position globally.

Read More: How Does A Food Franchise Work?

Requirements

Here’s what you need to know if you are making up your mind to start this franchise business. Know about its franchise requirements from the below-mentioned details.

  • Initial Franchise Fee of $41,500
  • Net Worth Requirement $300,000 – $4,000,000
  • Cash Requirement $150,000 – $2,000,000
  • 5.5% of Royalty Fee
  • 2% of Ad Royalty Fee 
  • 5-10 years of Term Agreement.

Cost

The total investment necessary for a Gong Cha master franchise business ranges from $188,200 to $684,500, which includes $115,000 to $515,000 that must be paid to the franchisor. To begin the operation of the first affiliate sub-franchise, the total investment ranges from $159,200 to $571,800.

The total investment necessary to begin the business in the USA takes $177,430 to $335,400. They have not provided the breakdown cost data analysis of its franchise cost.

Profit

Gong Cha has kept many things official, they do not show any FDD records regarding its franchisee’s development, neither its past financial performance, nnor the franchisees’ future financial performance. They have kept its Income statement also confidential, but they can provide actual records of that Gong Cha if you are purchasing an existing Gong Cha.

  • Based on various online information it’s estimated that sales for a single-unit Gong Cha franchise are $370,000.
  • At an average of 18% profit margin it will take 8.1 years for Gong Cha franchise owners to recoup their investment.
  • At an average of 23% profit margin it will take 6 years for Gong Cha franchise owners to recoup their investment.
  • At 18% profile margin it yields $66,600 estimated annual profits and at 23% profit margin it yields $85,100. 

Note, these figures can vary according to different factors.

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Menu

Gong Cha Menu offers Creme Brulee Series, Brown Sugar London Fog Series, Creme Brulee Mochi Waffle, Gong Cha Tea (Hot & Iced), Toppings, Milk Foam, Creative Mix, and much more in the USA 

Creme Brulee Series: Matcha Milk Tea, Strawberry Milk Tea, Strawberry Smoothie, Earl Grey Tea.

Brown Sugar London Fog Series: Fog Eclipse, Fog Milk Tea, Fog Latte, Fog Cloud.

Creme Brulee Mochi Waffle: optional toppings: Ice Cream & Pearl.

Gong Cha Tea (Hot & Iced): Tea, Foam Tea, Milk Tea, Fruit Tea, Iced Smoothie, and Coffee.

Toppings: Pearl, White Pearl, Rainbow Jelly, Milk Foam reg/matcha, Pudding, Herbal Jelly, Aloe, Coconut Jelly, Ai-Yu, Basil Seeds.

Milk Foam: Creme Brulee Milk Foam Tea, Original Milk Foam Tea, Green Tea, Black Tea, Earl Grey, Oolong, Winter Melon.

Creative Mix: QQ Passion Fruit Green Tea, Taro Milk Tea, Mango Green Tea, Lychee Oolong Tea, Lemon Juice White Pearl & AiYu, Honey Green Tea, Lemon Winter Melon /Basil seed, Ice Cream Black Tea.

Milk Tea: Pearl Milk Tea, Panda Milk Tea, Premium Milk Tea, Earl Grey Milk Tea, Brown Sugar Milk Tea, Royal Thai Tea, Strawberry Milk Tea, Matcha Milk Tea with Pearls, Marble Mango/ Matcha/ Strawberry.

Fresh Milk: Earl Grey Fresh Milk Tea, Winter Melon Fresh Milk Tea.

Brewed Tea: Premier Brewed Tea, Winter Melon Drink, Longan Honey Drink.

Coffee: Milk Foam Milk Coffee, House Special Milk Coffee, Americano.

Smoothie: Matcha Smoothie, Strawberry Milk Smoothie, Mango Smoothie, Taro Smoothie.

Sparkling: Rainbow Lychee, QQ Passionfruit.

Snack: Mochi Waffle, Creme Brulee Mochi Waffle.

Locations

Currently, they are operating 1,600+ locations in the USA and other parts of the world. In the USA they are currently operating nearly 200 stores across different states of the USA. Its stores are located in Washington, D.C., including New York, New Jersey, Texas, California, and others. They are planning to exceed 500 stores in the USA by the year 2025.

Application Process

If you want to become a partner of Gong cha, then you need to be dedicated, goal-oriented, and committed to your profession. Here is its application process if you may be a good fit for Gong cha.

Get-in-touch: Fill out its get-in-touch form and its team members will come in touch with you.

Franchise Application: once you will come in touch and get to know each other, they will invite you to apply for its franchise. Fill out the application form and send it back to them, if you need any kind of help in this process Gona Cha is going to help you on every step.

Know more and in a Better way: once you are done with an application, you will know them and its team in a better way. You can ask questions regarding ownership, benefits, and team. You can also get a chance to know how it looks behind the counter.

Franchise Agreement: if you are ready to move forward then sign its Franchise Agreement.

Open Store: now they will help you in setting up your store. Congratulations you are now a part of its family.

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Conclusion

It is a stable industry and it’s the most popular area for franchising. In the United States, the market for Gong Cha business is increasing. The industry is expected to register an 8.9% of annual growth rate from 2020 to 2027. They are providing opportunities in the USA for interested investors, get yourself started with this growing business.

FAQ’s

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