FRANCHISE·WATCH·DESK

ITEMS 5–7 · 2025 FDD

How much is a Gong cha (Unit) franchise?

Per Gong cha (Unit)'s 2025 FDD, the initial franchise fee is $34,500 (Item 5) and the total initial investment runs $185K–$627K (Item 7); once open, you pay an ongoing royalty of 6.0% of gross sales (Item 6).

Franchise fee · Item 5

$34,500

one-time, to buy in

Royalty · Item 6

6.0%

of gross sales, ongoing

Total investment · Item 7

$185K–$627K

franchisor's own estimate

Gong cha (Unit) vs food & dining medians186 systems benchmarked
Cost lineGong cha (Unit)Sector median
Initial franchise fee ITEM 5$34,500$35,000
Ongoing royalty ITEM 66.0%5.5%
Total initial investment ITEM 7$185K–$627K$375K–$957K

MEDIANS: LATEST FDD FILINGS (≤24 MONTHS OLD) OF 186 FOOD & DINING SYSTEMS · FULL FOOD & DINING BENCHMARK →

Breakeven framingwhat it costs · what it drags

The buy-in is the smaller number. The larger one is the drag: 6.0% of every sale leaves before rent, labor, or your salary — so breakeven depends on volume you cannot know from the FDD; use the Item 19 figures as a starting point, not a promise.

To open (Item 7)

$185K–$627K

all-in investment range

Franchise fee (Item 5)

$34,500

upfront, one-time

Royalty (Item 6)

6%

of sales, ongoing

If a unit does this in annual sales…$500K/yr

Starts at a placeholder of $500K — a round figure for the sector, not from Gong cha (Unit)’s filings. Set your own figure and check it against this brand's Item 19 and what owners tell you.

Royalty you'd pay / yr

$30K

6% of sales, before profit

Over a 10-yr term

$300K

royalties alone, excl. ad fund

This estimate is computed by software from the brand's public filings and any inputs you enter. No CPA prepared it for you and no assurance is provided on it. Actual results will differ, and the differences may be material.

This is not profit. It covers what the FDD fixes: what you put in, and the royalty you owe on sales. Your take-home depends on labor, rent, supplies, and the months to breakeven, none of which the FDD fixes for your unit (some Item 19s include cost data — read it).

Build a real pro-forma for Gong cha (Unit) with a buyer-paid CPA

Gong cha (Unit) cost questions, answered from the filing

How much is a Gong cha (Unit) franchise?

Per Gong cha (Unit)'s 2025 FDD, opening a franchise requires an initial franchise fee of $34,500 (Item 5) and a total initial investment of $185K–$627K (Item 7). Item 7 is the franchisor's own estimate — treat the low end as a floor, not a budget.

What royalty does Gong cha (Unit) charge?

Gong cha (Unit) charges an ongoing royalty of 6.0% of gross sales, per Item 6 of its 2025 FDD. The median across 186 food & dining systems tracked here is 5.5%.

Does Gong cha (Unit) tell you what franchisees earn?

Partly — Gong cha (Unit) makes a financial performance representation in Item 19 of its 2025 FDD. Unit revenue is not owner profit: subtract royalties, ad fund, rent, labor, and debt service.

The Gong cha (Unit) validation checklist

questions built from this brand's own filings · read them all on the profile

Want this as a checklist you can take to the calls?

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Before you sign anythingfree · 30 min · no commission

A broker is usually paid by the franchisor to place you. I'm paid only by you, never by a franchisor you're considering — and the job is pressure-testing Gong cha (Unit)’s numbers, including talking you out of a bad deal.

Don Drummond, CPA — Virginia #43775 · what I charge

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