Franchise

FAQs for Franchisees 常見問答-中文版

What are the territories available?

NY, NJ, MA, and TX are currently open for development. Please fill out the application to apply.

Where can I receive the following information?

The above information is available in our Franchise Disclosure Document (FDD). After you submit your application, a company representative will contact you. Before receiving our FDD, you will need to sign a non-disclosure agreement. You will have one month to review and sign the agreement.

Where will training be held? Who should attend the training?

Before opening your first store, you and a designated store manager must attend the training program in NY which will take about one week.

Is the investment different for non-traditional locations?

Estimated cost range is varied by location and situation, but it is usually cheaper to build a non-traditional store.

How many units do I have to develop as an Area Developer?

We expect our Area Developer to establish 2 or more stores within the first year, 5 or more stores within 2 years.

What does it cost to buy an existing Gong Cha Store from a franchisee?

The agreement to buy an existing store is made between buyer and seller. Costs are varied with each specific case.

What is the profitability of the business?

It is impossible to predict future results about the profitability of the business. There are many causes that can influence the result, including: sales, location, the financing terms, your ability to manage the business and other factors. For these reasons, we do not predict sales, costs, or profits for any store.

You may review our Franchise Disclosure Document (FDD) to see the business with existing franchisees for your reference.

May I qualify financially with other partners?

A single applicant must personally meet the financial qualifications. However, if a partnership or corporation is formed, we will consider the overall financial strength of the business partnership or corporation.

What happens after I submit my online application?

We will email you a confirmation when we receive your online application.

Our representative will contact you via email or phone for further discussion.

What is the start-up cost for a new Gong Cha Store?

The estimated initial investment for a new Store can range from $162,430-$320,400 (per unit).

How long is the entire process of becoming a Gong Cha franchisee?

The process includes Applicants Pre-Qualification, Business Plan Review and Approval, Agreement Signing, Training, Location Selection, Construction and Grand Opening. On average, it takes approximately 30-60 days to approve an applicant. The length of time between signing the Franchise Agreement and opening a store is 4 to 8 months.

Is it still possible to be approved as a new franchisee if I do not have direct experience before?

Experience of food/beverage is preferred, but not necessary. Management or Business Experience is required if you would like to apply as an Area Developer.

Why is the franchisee fee different across the United States?

Initial Franchise fees are based on some factors such as existing brand presence in the specific area.

Is there any financial or development incentives for having multi-locations?

We intend to offer qualified Area Developer, who sign5 or more locations, a 10% discount on the Initial Franchise Fee if paid upfront.

Can I develop a Combination Store with Gong Cha and another brand?

A Combination Store will need both brands to have a separate POS system. It is preferred to have a wall or a partition between the two brands.

Can I buy Gong Cha ingredients and provide Gong Cha Products in my existing Restaurant?

No, our ingredients can only be used in Gong Cha Stores.

What separates Gong Cha between its competitors?

We provide high quality products and service to our customers. Additionally, we have a support system from the headquarter in Taiwan and a strong international brand presence. We cooperate with our headquarter in Taiwan to offer new menu items every 6 months, which is great for customers who enjoy trying new drinks.

Is financing available?

We do not provide financing but franchisees can use their own resources.

Disclaimer: Information made available through this web site regarding the Gong Cha franchise opportunity is for general information only and is not intended to be a franchise offer. Offers are made only after delivery of an effective Franchise Disclosure Document in compliance with applicable federal and state laws. None of the communications made through this web site should be construed as an offer to sell any Gong Cha franchises in, nor is any such communication directed to the residents of, any jurisdiction requiring registration of the franchise before it is offered and sold in that jurisdiction. No Gong Cha franchises will be sold to any resident of such jurisdiction until the offering has been exempted from the requirements of, or duly registered in and declared effective by, such jurisdiction and the required Franchise Disclosure Document has been delivered to the prospective franchisee before the sale in compliance with applicable law.

Pre-Disclosure: Assuming you qualify as a Gong Cha prospective franchisee, we may provide you with a Franchise Disclosure Document in electronic format. The Franchise Disclosure Document will be provided in a Portable Document Format (PDF) file. You must use the Adobe Acrobat program in order to open and view this type of electronic file.

Gong Cha Franchise Condition (USD)

Availability of Territory New York, New Jersey, Massachusetts, and Texas
Initial Franchise Fee Single Franchise: $24,500/ per Unit

Area Developer: $110,250 and/or above

Estimated Initial Investment $162,430-$320,400/ per Unit
Deposit
Agreement Duration 10 years
Franchise Fee (monthly) 4.5% of Sales
Marketing and Advertising Fee (1)1% of Sales for national

(2)1% of Sales for local

1. Initial Franchise Fee will be collected when you sign the franchise agreement.

2. Deposit will be collected when you ask to review the FDD.If you decide to sign the agreement, the deposit of $5,000 will be deducted from the initial franchise fee. If you do not sign, the deposit will be fully refunded.

Gong Cha Franchise, LCC

August 31st , 2015