Franchise Facts Report → brands → Gong Cha
Gong Cha franchise — is it worth it?
Risk level — in the report
Gong Cha is a food & beverage franchise with a disclosed Item 19, indicating a degree of financial transparency.
Unlock what the free page above only hints at:
- The actual Item 19 earnings — reported average unit revenue, not just “disclosed.”
- How it compares — every number ranked against food & beverage peers (median & quartile).
- Litigation detail — beyond the case count above: each case, franchisee vs. corporate, with summaries.
- Outlet churn & the questions to ask — behind the net change above: closures, terminations, transfers, and what to put to the franchisor.
Figures above are as disclosed in Gong Cha's most recent FDD (registered 2025). Source: California Dept. of Financial Protection and Innovation — Franchise Registration · filing app-30004. The risk level, the Item 19 figures, how it compares to peers, and the litigation & churn detail are in the full report.
How much does a Gong Cha franchise make?
Gong Cha is one of the franchisors that answers this on the record: its most recent FDD makes an Item 19 financial performance representation — actual unit earnings figures, disclosed by the franchisor itself. The average revenue Gong Cha reports, what that figure does and doesn't include, and where it ranks against food & beverage peers are in the full report. See every food & beverage brand that discloses earnings in the Food & beverage franchises with disclosed Item 19 earnings ranking.
Gong Cha franchise profit vs. revenue
Revenue is not profit. An Item 19 almost always reports sales — what a location takes in — not what an owner keeps. Out of that number come Gong Cha's 6% royalty, the ad fund, rent, payroll, supplies and debt service. No FDD tells you a Gong Cha franchise's profit, because profit depends on your site, your rent and how you run it — so treat any "Gong Cha franchise profit" figure quoted elsewhere as someone's estimate, not a disclosure. The full report sets Gong Cha's disclosed revenue against its total ongoing fee load, so you can see what that revenue has to cover before anything reaches you.
Gong Cha lawsuits & legal history (FDD Item 3)
Gong Cha's most recently filed Franchise Disclosure Document (2025) does disclose 3 legal proceedings in Item 3 . Item 3 is the item where a franchisor must put its material legal history on the record. Two things it is not: it covers the franchisor and its predecessors, parents and affiliates, so a disclosed case is not necessarily a suit against Gong Cha itself; and a disclosure is a fact, not a finding of wrongdoing — most entries are contract disputes with former franchisees, which every large system accumulates. The full Gong Cha report lists each case with what it was about and how it ended, separates franchisee disputes from corporate and securities matters, and flags the ones a franchisee started — the split that actually matters, because franchisees suing their franchisor is the signal a buyer is looking for.
Gong Cha closures & failure rate
Before you sign, Gong Cha will hand you a list of current owners to call as references — and they choose who's on that list. It won't include the owners who quit, got bought out, or were forced out last year. The FDD does report that number, even though the reference list leaves those people off. Below is what Gong Cha's most recent filing shows, and whether it's normal for a food & beverage of this kind.
The closest thing an FDD has to a failure rate is Item 20 — outlet openings, closures, terminations and non-renewals, reported by the franchisor. Gong Cha's latest tables show a growing franchised network. The actual closure and termination counts, and how Gong Cha's churn ranks against food & beverage peers, are in the full report.
The actual Item 19 earnings, every figure ranked against food & beverage peers, litigation and churn detail — emailed as a PDF.
Who owns Gong Cha?
Gong Cha's franchise is offered by Gong Cha CA Franchise, LLC — the franchisor named on the cover of its most recently filed Franchise Disclosure Document (2025), and the entity a franchisee actually signs with. That name comes straight off the filing at CA DFPI; it identifies the franchisor, not necessarily the ultimate parent company behind it.
Other food & beverage franchises
Anyone weighing Gong Cha is really weighing it against the other brands their money could go into. These are the closest by total initial investment (FDD Item 7), each with its own FDD-based page.
Gong Cha franchise — frequently asked
Who owns Gong Cha — who is the franchisor?
Gong Cha's most recently filed FDD (2025) names Gong Cha CA Franchise, LLC as the franchisor — the entity you would actually sign the franchise agreement with, as stated on the disclosure document itself. A registry filing names the franchisor, not necessarily its ultimate parent company.
How much does a Gong Cha franchise cost?
Gong Cha's most recently filed FDD (Item 7) puts the total estimated initial investment at a range disclosed in Item 7, with an initial franchise fee of $30,000 and a 6% royalty. That price is the franchisor's own estimate of what it takes to open, not a quote. The full report breaks down every fee line and benchmarks it against food & beverage peers.
How much profit does a Gong Cha franchise make?
Gong Cha discloses unit earnings in Item 19, but that figure is revenue — sales — not profit. Royalties (6% of gross for Gong Cha), the ad fund, rent, payroll and supplies all come out of it, and no FDD discloses what an owner nets. Any Gong Cha franchise profit number quoted elsewhere is an estimate. The full report shows the disclosed revenue against the full ongoing fee load it has to cover.
Does Gong Cha disclose financial performance (Item 19)?
Yes — Gong Cha reports unit-level earnings in Item 19. The full report shows the actual revenue figures and how they rank against food & beverage peers.
Are there lawsuits against Gong Cha?
Gong Cha's most recently filed FDD (2025) discloses 3 legal proceedings in Item 3. Item 3 covers the franchisor, its predecessors, parents and affiliates — so a disclosed case is not necessarily a suit against Gong Cha itself, and a disclosure is not a finding of wrongdoing. The full report lists each case, separates franchisee disputes from corporate and securities matters, and flags the franchisee-initiated ones.
Is Gong Cha a good franchise to buy?
That comes down to how Gong Cha's investment, earnings, litigation and franchisee churn stack up against food & beverage peers — which is exactly what the full report answers. For $99 you get the risk level and what's driving it, the actual Item 19 earnings (disclosed in this FDD), where every figure ranks against peers, and the specific questions to ask the franchisor before you sign.
Everything the sections above point to, in one place: Gong Cha's risk level and what's driving it, the actual Item 19 earnings, every figure ranked against food & beverage peers, and the litigation & churn detail — with the questions to put to the franchisor before you sign.
Get a free email when something changes on Gong Cha or food & beverage: a new FDD registration, a new lawsuit, an outlet count that shifts, or Item 19 earnings going from undisclosed to disclosed. Pulled straight from the same registries every report is built on.