Qualification and Requirements
Pretty simple, applicants must have a clear background check, a minimum liquid asset of $150K, and a passion for the boba tea entrepreneurship.
Experience in the food/beverage industry is preferred but not necessary. We welcome anyone who has enthusiasm for boba tea and is willing to grow with us.
It takes approximately 30 days to approve an applicant. This process also includes the applicants’ background screening, financial verification, and a fully executed franchise agreement.
The timeline varies depending on a few factors. Generally, with a takeover of an existing food use space, turnaround time is about 6-8 weeks from the close of escrow. If taking over a similar business, then 4-6 weeks. With an empty shell build-out, it could be 3-4 months or longer depending on your county’s permit/inspection process.
Territory and Store Development
A single-unit franchise is available throughout California.
Look for high foot traffic to draw in customers. Close proximity to schools, anchor stores, and places where people gather.
Yes, you will be assigned to a 5-mile radius exclusive territory.
We recommend a size space between 800 to 1,200 square feet for a seamless operation flow.
The agreement to buy an existing store is made between the buyer and the seller. Costs will vary on a case-by-case basis.
Financial
California’s initial franchisee fee is $30,000. This fee will cover training (up to 3 people) in our corporate-owned stores in the SF Bay Area, a 2-person support team for your store’s opening, and operational resources for you to get started.
We have a 6% royalty fee for all standard menu items that are collected on a bi-weekly basis and a 1% marketing fee for California regional/national-wide promotions.
If you choose to add products outside of our standard menu, that is subject to a 2.5% Special License Fee collected by Gong cha HQ.
However, we ask all stores to reserve 1% to utilize for their own local marketing.
Operating expenses will vary due to multiple factors such as location, sales, and ability to manage the business. For these reasons, we are unable to predict an average operating expense.
Development estimated cost is $217K to $498K. This cost is dependent on the site size, location, and condition. It includes construction costs, equipment costs, initial raw materials, local agency fees, and additional funds for the early months of operation.
We do not provide financing but franchisees can use their own resources. We are approved by the SBA and on the SBA Franchise Directory.
Support and Training
Upon signing a Franchise Agreement, Gong cha will provide sample floor plans, CI files, equipment lists, and more to get you started in building your tea shop. We will also provide feedback on floorplans, location selection, and interior design as needed, based on our previous experience.
We can refer to you a brokerage agency for location searching and our recommended list of vendors for construction.
Yes, 12 days of training at one of our corporate-owned stores and office. Then we provide a 2-person support team for your first 6 days of opening.
From Gong cha CA Franchisor.
For regional/national-wide promotion, the master franchisor will provide and pay for advertising. For local territory promotion, franchisees are responsible for providing their own local advertising. Prior to implementing the promotion, franchisees must let their assigned account manager know the details of the local promotion for approval.
