The vendor opportunity at Gong cha
Gong cha runs 18 US units, all currently franchised, growing 50% year over year as of the 2022 FDD — the fastest growth rate in this batch. Royalty runs 3% of sales. The FDD makes no Item 19 financial performance representation.
Who controls software purchasing
Gong cha operates under GC Group Midco, with a global executive team: CEO Paul Reynish, Chairman Martin Berry, and directors Michael Berk, Peter Rodwell, and Edward Sippel. Item 8's designated-suppliers-only model — covering all products — puts headquarters, not individual franchisees, in the driver's seat for most purchasing decisions.
Tech named in the FDD, and what is actually required
Item 11 of the Gong cha FDD sets the system's technology requirements.
Procurement, renewals, and timing
Item 8 runs a designated-suppliers-only model: franchisees must buy all products from the franchisor or its designated suppliers, though they may propose an alternate supplier for approval. The initial term is 10 years, with renewal notice due 180 to 360 days before expiration and a successor agreement that can carry materially different terms.
How to read the Gong cha FDD
The FDD was filed with state franchise regulators in 2022. Use the embedded PDF viewer below to read Items 8, 11, and 17 in full.
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