Gong Cha Franchising Information & Startup Cost

Thinking about joining an international beverage franchise opportunity? Gong Cha franchise presents you with such an opportunity. This Taiwanese company was founded in 2006 and began its franchising operations in 2015.

Today, it has gone global with a presence in several countries including the United States. Gong Cha launched in the U.S. in 2013. Since then, it has made steady progress in growth and acceptance.

Today, it’s offering you the opportunity to become part of its family of franchisees.

Products

Gong Cha offers a variety of quality and healthy beverage products. These include tea sourced from the finest Taiwan tea estates, as well as its signature milk foam topping.

That’s not all! Other products include its fresh tea brewed & pearls (tapioca) which are cooked to perfection every four hours.

The Gong Cha franchise abides by a strict quality control code that ensures only the best ingredients are used. This franchise has a culture of consistent product innovation.

With such a tradition of excellence, you can become part of a great brand with enormous opportunities.

Financial Requirements

To join the Gong Cha franchise, you’ll need to fulfill its financial requirements.

This includes a minimum capital requirement of $150,000. A higher sum applies to multi-unit franchise outlets. Gong Cha requires that prospective franchisees meet its net worth amounting to a sum of about $250,000.

There’s a franchise fee of $30,000 as well as a royalty fee of 6.0% of gross sales and a marketing fee of 2% of gross sales. Development estimated costs ranges from $217,800 to $498,000. The development estimated costs depend on your location, site size, as well as its condition.

The development estimated cost includes local agency fees (including licenses & permits), construction costs, and initial raw materials sufficient to last for about 2 to 3 weeks.

Additional funds to last 3 months are also included in the development estimated costs.

How Reliable is this Investment Opportunity?

If you haven’t made up your mind as a prospective franchisee, that’s okay. That’s the sole purpose why this article is written; to inform. Gong Cha’s efficient business operations are driven by huge investments in technology. This significantly reduces labor costs.

Gong Cha franchise also has fast transactions and turnaround times for its drink products. This results in a significant volume of units sold. So, as its franchisee, you get to tap into this high level of service and sales efficiency.

This franchisee also has a systematic and clean kitchen operation as well as cost-effective raw materials. Its raw materials can be used in making a variety of recipes.

Support

The level of support you get as a franchisee will determine how successful your operations become. Luckily, Gong Cha provides you with local franchisee support and service. This helps you succeed in running your operations.

Details of such support include;

  • Training

A specialized training program is provided by this franchisor in key areas of its operations. Training also comes with a quarterly audit system. This helps with quality and efficient store operations.

  • Logistics

In the area of logistics, Gong Cha has a dedicated logistics department. This department is responsible for streamlining raw material supply to franchise outlets.

  • Local Warehouse

Local warehousing helps with cutting the delivery time for inventory, thus enhancing cost-efficiency.

  • Quick Feedback

Getting feedback is vital for franchise operations. Gong Cha understands this and handles all complaints or issues with dispatch.

  • Centralized Marketing

One of the ways Gong Cha franchise helps promotes your business as its franchisee is by adopting a centralized marketing strategy as well as localized marketing. That way, your business easily gets the recognition it deserves.

  • Events Support System

Sales opportunities aren’t only restricted to in-store locations. There are outside of store opportunities to explore. Due to such, Gong Cha provides you with an events support system to leverage available opportunities.

  • Universal Gift Card

The franchisor understands the value of customers. As such, it provides you a universal gift card in addition to its reward system. This places the customer first and rewards them for their loyalty.

Ownership Process

There’s a process of ownership for prospective franchisees. If you feel this opportunity is right for you or you want to find out more, it all starts by filling and submitting its short online form. Another option is to give them a call.

A review of your submitted form is carried out to determine if you’re qualified for this franchise opportunity. A Gong Cha franchise representative calls you with the contact details supplied for further discussions and a Q&A session. Here, you get to find answers to pressing questions.

If you meet all its requirements, you are invited over to its corporate headquarters and handed its FDD.

This is followed by the franchise agreement signing. You are taken through Gong Cha’s ownership process review including an initial consultation session.

Next, your franchise location is approved after a layout review. The training follows immediately including the stock in of equipment and supplies.

Finally, the last ownership process involves the grand opening. This is a marketing strategy adopted by Gong Cha to publicly announce the opening of your new franchise outlet.

Are there Franchise Opportunities Nearest to Me?

One of the questions likely to be asked by prospective franchisees is the availability of Gong Cha franchising opportunities closest to them.

If you’re one such person, we’re sorry to disappoint you that Gong Cha only operates within the state of California. So, only persons within this location can become its franchisees.

This means prospective franchisees outside of California cannot own a part of the Gong Cha franchise. Nevertheless, this franchise opportunity is growing at a fast pace with new locations being considered. Hopefully, your location will soon be considered for expansion.

If you’ve read to this point, you should have a better idea of what it takes or what’s needed to apply for a Gong Cha franchise opportunity. Full details regarding its terms and conditions are available in its Franchise Disclosure Document (FDD).

We recommend seeking legal expertise in interpreting its content. There’ll be no need for that if you have some legal exposure.