FDD-based startup cost, franchise fee, revenue, profit, SBA default rate, and investment risk signals for Gong Cha.
Based on 2025 FDD · 8 filings in corpus
Cost and profit at a glance
Based on FDDIQ's FDD corpus, a Gong Cha franchise shows an estimated initial investment of $172K – $354K. Reported owner economics show $18K. Use the links below to compare the cost, revenue, SBA loan history, and ROI against other franchises before you request the full FDD.
Quick fee read: $35K franchise fee · 8% royalty/ad burden. These figures are directional screening data, not a substitute for reading the current FDD and speaking with existing operators.
Gong Cha requires a total initial investment of $172K to $354K (midpoint approximately $263K), with an initial franchise fee of $35K. The ongoing fee burden is 8% (6% royalty plus 2% advertising fund). This is below the industry average of approximately 14.2%, leaving more margin for the operator.
According to Item 19 of the 2025 FDD, the median revenue for Gong Cha locations is $364K. The implied franchisee EBITDA is approximately $18K, based on the margin assumptions disclosed in the FDD. The estimated cash-on-cash return is 6.9% with a payback period of approximately 14.4 years.
Gong Cha operates approximately 147 franchised units. The SBA 7(a) loan default rate of 0.0% is well below the industry average of approximately 9.4%, indicating strong franchisee financial outcomes.
Prospective franchisees should verify all figures against the most recent FDD, conduct validation calls with multiple existing franchisees, and consult with a franchise attorney before signing any agreement.
Analysis based on 2025 FDD filing. FDDIQ Editorial Team · Methodology
Estimated using sector-average margins. Actual franchise economics vary by location, operator, and market conditions.
Industry averages based on FranchiseIQ corpus benchmarks. ▲ = better than avg, ▼ = worse.
Real lending data from SBA 7(a) loans (2018-2025). 15 loans across 6 states.
Source: SBA 7(a) loan data via FOIA. Default rate = charged-off loans / total originated. Industry avg default rate ~7.2%.
Gong cha franchise costs $184,750-$627,060 to open with a $34,500 franchise fee. 6% royalties.
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