Quick Verdict · who it fits
Gong cha fits first-time franchise buyers looking for a mid-scale food & beverage concept.
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.
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%)
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Total / year
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▪ Of-sales fees only · excludes rent, labor, COGS, and one-time costs · for illustration
Free AI summary — the first read on the filing.
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
What our analysis flagged across the 2026 filing.
4
Risks to review
4
Strengths identified
5
Questions to ask
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
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 |
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Free explainers to go deeper before you sign.
Brand Analysis
The 2026 Cinnabon Franchisor SPV LLC disclosure puts a Full Bakery at $196,250 to $715,100 with a $35,500 fee, and reports a $600,536 median across 189 enclosed mall bakeries.
Brand Analysis
Chipotle reported 4,186 company-operated restaurants and 15 international licensed restaurants as of June 30, 2026. None are franchised, there is no FDD, and there is nothing to apply for. Qdoba is the franchised version of the same order line, and its 12/25 FDD puts a traditional restaurant at $548,100 to $1,294,000.
Brand Analysis
Cracker Barrel Old Country Store, Inc. reported 656 company-operated stores in 43 states as of January 30, 2026, and the brand has never sold a franchise. Huddle House and Another Broken Egg cover the same daypart with filed FDDs, at $555,375 to $1,715,275 and $792,500 to $1,804,000.
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.
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.
Yes. Gong cha discloses Item 19 financial performance representations with reported revenue around $363,373. See the financials sub-page for the full distribution.
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.
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.
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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