Gong cha Franchise Review 2026: Ratings & Verdict

Product details

Contents

Key facts


The Verdict

Quick Verdict · who it fits

Gong cha fits first-time franchise buyers looking for a mid-scale food & beverage concept.

✓ Strengths

Key FDD Facts

The numbers a buyer needs first — straight from the filing.

Initial investment (Item 7)

$207K - $648K

Franchise fee (Item 5)

$37K

Royalty (Item 6)

6% + 1–2% ad

Item 19 median rev

$363k all franchised units

System size (Item 20)

211 +45

Agreement term

10 yrs

Item 3 litigation

4 suits

Model Gong cha's costs in the investment calculator → Prefilled from this filing — startup cost, cash flow and break-even.

Buyer qualifications

Data extracted from the 2026 FDD filed with state regulators. Fees and terms may have changed since filing — request the current FDD from the franchisor before deciding. Not legal, financial, or investment advice. Full disclaimer.

What you'd pay the franchisor

Drag to your projected annual sales. Royalty 6% + ad fund 1–2% on gross sales.

PROJECTED ANNUAL SALES$360,000

$100k$2M

Royalty (6%)

—

Ad fund (1–2%)

—

Total / year

—

▪ Of-sales fees only · excludes rent, labor, COGS, and one-time costs · for illustration

Executive Summary

Free AI summary — the first read on the filing.

Key Numbers

241 total Gong cha® stores in United States

Total units open

38 direct unit franchisees, 28 operated by master franchisees/affiliates, 2 company-owned, 175 operated by third-party subfranchisees/sublicensees

32 franchised units opened in 2025

Units opened last year

AI Due Diligence Findings PREMIUM

What our analysis flagged across the 2026 filing.

4

Risks to review

4

Strengths identified

5

Questions to ask

Industry Benchmarks

How Gong cha ranks against 811 Food & Beverage peers we've analyzed.

Initial investment

22nd pct · of 811 peers

Franchise fee

53rd pct · of 811 peers

System size

85th pct · of 811 peers

Food & Beverage industry averages

Avg investment

$528K - $1.3M

Avg franchise fee

$38K

Avg system size

235

Franchises analyzed

811

How Gong cha stacks up

Closest concepts by category and investment.

Brand Item 19 Fee Investment Royalty Units
Gong cha Disclosed $37K $207K - $648K 6% 211
QuiznosSimilar price Disclosed $5K $214K - $649K 5% 138
Doctor's AssociatesBiggest system None $15K $227K - $630K 8% 18,773
Vintage Hospitality GroupTop-rated in category Disclosed $50K $3.5M - $6.4M 5.5% 33

Compare side-by-side ↗

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Frequently Asked Questions

How much does a Gong cha franchise cost?

Gong cha requires a $37,000 initial franchise fee and a total initial investment range of $207,450–$648,460, per the most recent FDD on file.

Who owns Gong cha?

Gong cha is franchised by Gong cha USA Franchising, LLC, the franchisor entity of record on its Franchise Disclosure Document. Item 1 of the FDD discloses the franchisor's corporate history, parents, and predecessors.

Does Gong cha disclose financial performance (Item 19)?

Yes. Gong cha discloses Item 19 financial performance representations with reported revenue around $363,373. See the financials sub-page for the full distribution.

What ongoing fees does Gong cha charge?

Franchisees pay a royalty of 6% and an advertising fund contribution of 1.0% to 2.0% on gross sales as defined in Item 6 of the FDD.

How many Gong cha locations are there?

As of their 2026 FDD, Gong cha has 211 total locations, with 45 new locations opened in the most recent reporting year. This information comes from Item 20 of the FDD.

What are the renewal and exit terms?

Per the FDD, Gong cha discloses an initial agreement term of 10 years. Review Items 10 and 17 for the full renewal and termination provisions.

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