Gong cha Franchise Cost and Profits in 2026

Cost Breakdown

Revenue and Profit Analysis

The median Gong cha franchise generates $401,211 in annual revenue. With estimated margins of 13%, that is approximately $52,157 in annual EBITDA.

Revenue per dollar invested: 0.99x.

Unit Count

SBA Loan Performance

July 2026 Expansion Update: Direct Franchising and Texas Density

In March 2026, Gong cha announced that it had acquired the master-franchise rights covering 170 U.S. locations across 13 states. The company described the shift as a way to support larger multi-unit developers, manage supply-chain costs, deploy digital tools, and accelerate toward a stated goal of 1,000 U.S. locations. Gong cha reported nearly 2,200 locations globally and more than 240 U.S. locations at the time. Source: International Franchise Association.

The brand also signed a seven-year, 50-store Texas area-development agreement covering Austin, Houston, San Antonio, and Dallas. The developer, Bakers Acres & Cattle Company, has prior Nothing Bundt Cakes experience. This is evidence of multi-unit operator interest—not proof that every Texas trade area can support another bubble-tea store. Source: Verdict Food Service.

Questions buyers should answer before treating expansion as upside

• Who supports your market now? Confirm whether training, field operations, procurement, and local marketing are delivered directly by Gong cha or through a remaining regional structure.
• How much protected white space remains? Map signed-but-unopened units, delivery radii, mall and street locations, and competing tea concepts—not just existing Gong cha stores.
• Does the beverage labor model work at your expected volume? Validate prep time, peak throughput, waste, delivery mix, and manager coverage with franchisees operating comparable formats.
• Will direct franchising improve purchasing economics? Ask for evidence on ingredient availability, landed costs, approved suppliers, stockouts, and any required “Gong cha 2.0” refresh spending.
• Can the FDD revenue support the lease? Underwrite the median revenue and a downside case against local rent and labor; do not substitute national unit-count growth for store-level cash flow.

Frequently Asked Questions