In recent years, boba, commonly referred to as bubble tea, has grown in popularity. As a result, a large number of franchises have popped up, offering a huge selection of boba drink flavors and designs. Gong Cha is one of the biggest and most prosperous boba franchises.
Gong Cha was established in 2006 in Taiwan and swiftly spread to other nations. Gong Cha now boasts more than 1,500 facilities in 20 nations, including the US, Canada, and Australia. Gong Cha is renowned for its premium tea and distinctive toppings, which include fruit jelly and milk foam.
You will require a considerable quantity of money if you want to start a Gong Cha franchise. The website for Gong Cha states that between $200,000 and $400,000 is needed to operate a Gong Cha store. This covers costs for things like rent, tools, supplies, and marketing.
Franchise owners also pay continuing fees to Gong Cha in addition to the initial investment. These fees include a 5% royalty fee on gross sales as well as a 1% marketing fee. Additionally, franchise owners must buy their materials from Gong Cha-approved suppliers.
There are alternatives if you’re not prepared to purchase a full Gong Cha franchise. To run a Gong Cha kiosk or cart, persons must be licensed by Gong Cha. Depending on the location and size of the kiosk or cart, the cost of licensing a Gong Cha business might be anywhere between $30,000 and $80,000.
There are more opportunities if you’re interested in franchising a different boba brand. For instance, T4, a well-known boba business, offers franchise opportunities with a $250,000–$350,000 upfront investment. Franchise owners for T4 must pay a $35,000 franchise fee in addition to ongoing royalties of 6% of gross sales and a 2% marketing fee.
In conclusion, one of the greatest and most prosperous boba franchises in the world is Gong Cha. If you’re interested in starting a Gong Cha franchise, you’ll need a sizable amount of money in addition to continuing to pay Gong Cha expenses. Gong Cha also provides licensing opportunities for kiosks and carts if you’re not quite ready to make the financial commitment necessary for a complete franchise. Other boba franchises are also offered, such as T4, which has comparable startup costs and recurring costs.
I’m sorry, but the article you linked to doesn’t discuss the profit margin for bubble tea. The success of Gong Cha, the largest boba franchise, is primarily the subject of this article.