Bubble Tea Franchise Cost Australia: Gong Cha vs Chatime 2026
Compare Gong Cha and Chatime franchise costs in Australia — investment ranges, royalty rates, marketing levies, and what the numbers don't reveal.
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Franchise Comparison 2026
FranchiseInsights | Independent Analysis
Across the 306 Australian franchise brands for which FranchiseInsights maintains Brand Intelligence Reports, the bubble tea category stands out for its compressed investment range and above-average ongoing fee burden. Gong Cha's total investment sits at approximately $300,000–$350,000 AUD; Chatime's ranges from $250,000 to $500,000 AUD. This comparison unpacks what those figures actually mean for a prospective franchisee, and what the public numbers cannot tell you.
Quick Comparison
The table below summarises the key cost metrics for both brands against the retail food category benchmark drawn from FranchiseInsights operator research.
| Metric | Gong Cha | Chatime | Retail Food Category Avg (27 brands) |
|---|---|---|---|
| Total Investment | $300,000–$350,000 (est.) | $250,000–$500,000 | $300,709 |
| Franchise Fee | Included in total investment | Included in total investment | $42,898 |
| Royalty Rate | 6% of weekly net sales | 5% of gross revenue | 6.1% |
| Marketing Levy | 1% (option to increase to 2%) | 2% of gross revenue | 2.7% |
| Combined Ongoing Fee Burden | 7–8% | 7% | ~8.8% |
| Australian Network Size | ~150 locations (growing) | See report | — |
Across the 27 brands in the retail food category that FranchiseInsights maintains Brand Intelligence Reports for, the average total investment is $300,709. The average franchise fee is $42,898. The average royalty is 6.1%. The average marketing levy is 2.7%.
Both Gong Cha and Chatime sit within normal parameters for this category at the investment level, though Chatime's upper range of $500,000 reaches into territory more typical of full-service dining than a beverage-format kiosk. For a broader perspective on how investment tiers compare across the Australian market, the franchise investment tiers analysis provides context across all formats.
What "Included in Total Investment" Means for Franchise Fee Disclosure
Neither Gong Cha nor Chatime publicly itemises a standalone initial franchise fee separately from total investment in their consumer-facing materials. This is not unusual in the beverage category, but it does limit the ability to compare like-for-like against brands that break out the fee explicitly. Prospective buyers should request the franchisor's franchise disclosure document, which under clause 13 of the Australian Franchising Code of Conduct must itemise all fees payable before and on entry.
Gong Cha Investment Breakdown
Gong Cha is a Taiwanese-origin bubble tea chain with approximately 150 Australian locations and a growing national footprint. Publicly available data indicates total investment ranges from approximately $300,000 to $350,000 AUD, with format-dependent variation between kiosk and full-store configurations.
estimated; format dependent — kiosk to full store
Cost Components — Gong Cha
The estimated investment breakdown across a standard Gong Cha store includes:
- Fit-out and establishment: approximately $100,000–$400,000 (format-dependent; kiosk configurations sit at the lower end)
- Equipment including bubble tea machines, display units, and point-of-sale systems: approximately $40,000–$150,000
- Initial stock and supplies: approximately $5,000–$15,000
- Working capital reserve: allow for additional contingency beyond the above
The wide fit-out range reflects the difference between a shopping centre kiosk and a full inline store with seating. Kiosk formats carry significantly lower capital requirements but may face restrictions on product range and customer throughput. Prospective buyers may wish to clarify with the franchisor which format applies to their intended location before comparing cost estimates.
Gong Cha Ongoing Fee Structure
Gong Cha's publicly reported royalty rate is 6% of weekly net sales. The marketing levy is reported at 1% of weekly net sales, with an option to increase to 2% with 90 days notice. The royalty base is weekly net sales — a subtle but meaningful distinction from gross revenue, as net sales calculations may exclude GST and certain refunds. Prospective buyers should confirm the exact definition of the royalty base in the franchise agreement.
Google reviewers rate Gong Cha locations at an average of 3.3/5 across 1,387 reviews (based on publicly available Google reviews sampled 2026-06-28).
Chatime Investment Breakdown
Chatime is one of Australia's most widely recognised bubble tea chains. Publicly available data indicates total investment ranges from $250,000 to $500,000 AUD. The Chatime brand report provides the full independent risk classification, profit scenario analysis, and dimension-by-dimension assessment.
Cost Components — Chatime
The estimated investment breakdown for a Chatime store includes:
- Lease deposit and fitout: approximately $100,000–$250,000
- Equipment including refrigeration, blenders, point-of-sale systems, and cup-sealing machinery: approximately $50,000–$100,000
- Initial stock and working capital: approximately $40,000–$80,000
- Training, legal, and insurance setup costs: variable; allow for professional fees in addition to the above
Chatime Ongoing Fee Structure
Chatime's publicly reported royalty rate is 5% of gross revenue, with a marketing levy of 2% of gross revenue — a combined 7% of gross sales. The royalty base is gross revenue, which is typically a broader measure than net sales. Relative to the retail food category average royalty of 6.1%, Chatime's 5% royalty sits below average, offset partially by the 2% marketing levy, which exceeds the category average of 2.7% only marginally when considered in isolation.
Google reviewers rate Chatime locations at an average of 3.8/5 across 821 reviews (based on publicly available Google reviews sampled 2026-06-21). This sits above the Gong Cha aggregate rating of 3.3/5, though both figures represent sampled location data and should not be treated as system-wide measures.
For a comparable analysis of how other food and beverage franchises structure their fees, the Boost Juice vs Chatime franchise comparison examines a similar cost structure in the Australian beverage category.
Ongoing Fees
| Fee Type | Gong Cha | Category Avg | Cheapest | Most Expensive |
|---|---|---|---|---|
| Royalty | 6% of weekly net sales (publicly reported) | 5-8% | 4% | 10%+ |
| Marketing Levy | 1% of weekly net sales, with option to increase to 2% with 90 days notice (publicly reported) | 2-4% | 1% | 5%+ |
Interpreting the Fee Structures
The fee structures of both brands sit within the normal range for food and beverage franchises, but the mechanics differ in ways that affect a franchisee's financial planning:
- Gong Cha bases royalty and levy on weekly net sales — requiring more frequent calculation and remittance cycles
- Chatime bases both fees on gross revenue — a broader base that typically results in a higher absolute dollar payment at equivalent turnover
- The marketing levy optionality in Gong Cha's structure (1% with the right to increase to 2%) introduces a variable that buyers should model across both scenarios
For context on how royalty rates function in Australian franchise agreements more broadly, franchise royalty rates explained covers the mechanics and negotiability of these structures.
The Australian Competition and Consumer Commission (ACCC) administers the Australian Franchising Code of Conduct, which sets the disclosure and conduct standards both franchisors must meet. Under the Code, franchisors are required to disclose all ongoing fees in the franchise disclosure document prior to signing — including any fees payable to the marketing fund and the basis on which they are calculated.
Prospective buyers may also wish to consult business.gov.au for the Australian Government's guidance on evaluating franchise costs and obligations before committing.
Operator Experience
Day-to-Day Complexity
Bubble tea operations are equipment-intensive and ingredient-sensitive. Both Gong Cha and Chatime rely on proprietary tea blends, flavoured syrups, and tapioca pearls sourced through franchisor-controlled supply chains. This concentration of supply reduces the operator's ability to manage input costs independently, which is a structural characteristic common to branded beverage formats.
Key operational considerations for prospective buyers include:
- Peak-period staffing requirements are significant — beverage customisation at high volume requires trained staff and efficient workflows
- Ingredient wastage management is a direct margin variable; both brands require adherence to proprietary preparation standards
- Shopping centre and high-street locations typically involve percentage-of-revenue rent clauses that compound the ongoing fee burden beyond the royalty and marketing levy alone
Staffing and Hours
Neither Gong Cha nor Chatime publicly discloses average weekly operator hours or staffing ratios. Based on publicly available data on comparable food and beverage formats, prospective buyers should anticipate that single-location operations in high-foot-traffic locations typically require a minimum of two to four part-time staff members per shift, with the franchisee or a dedicated manager present during peak trade. Employment obligations for all staff are governed by the applicable Modern Award under the Fair Work Act, administered by the Fair Work Ombudsman.
Format Differences
Gong Cha's ~150 Australian locations span a mix of kiosk and full-store formats. Chatime's footprint includes a higher proportion of full inline stores. Format type materially affects not only the entry cost but the ongoing lease obligations, staffing structure, and customer capacity — factors that do not appear in the headline investment figures.
What the Numbers Don't Tell You
The public fee comparison above covers the cost structure both brands disclose through franchisee-facing materials and media. It does not — and cannot — answer the questions that determine whether either franchise represents a sound investment for a specific buyer.
The Gong Cha Brand Intelligence Report and the Chatime Brand Intelligence Report each provide what the public data cannot:
- A five-dimension independent risk classification — scoring each brand across Financial, Structural, Operational, Market, and Legal dimensions. The overall classification label is available as a tease here; the numerical score and dimension-by-dimension breakdown are in the paid report.
- Profit scenario modelling — what the fee burden actually means at different revenue levels, and how the two structures compare at equivalent turnover
- Regret driver analysis — the specific conditions under which franchisees in comparable systems report poor outcomes, drawn from FranchiseInsights operator research
- Suitability assessment — which buyer profiles are better matched to each brand's operational demands and financial structure
- Franchisor question list — the specific questions to ask each brand before signing, derived from the risk and structural analysis
The public data shows that both brands sit within normal cost parameters for Australian food and beverage franchises. It does not show which brand carries the lower structural risk, which has the stronger franchisee renewal rate, or which is better positioned for the buyer who has $300,000 to invest and five years of retail management experience. Those answers are in the reports.
For buyers at the early research stage, the free Financial Reality Calculator allows you to model different revenue scenarios against the fee structures above — before committing to a paid report or a franchisor conversation.
For context on how to approach the full due diligence process across any franchise, the best franchises Australia overview and the franchise cost comparison Australia reference piece both provide useful framing. The Guzman y Gomez vs Zambrero franchise comparison and Domino's vs Pizza Hut franchise comparison illustrate how the same analytical framework applies across different food and beverage categories.
Overall classification across investment, regulatory, operational, market, and brand-stability dimensions. The underlying numerical score and the dimension-by-dimension breakdown are in the full Brand Intelligence Report.
Overall classification across investment, regulatory, operational, market, and brand-stability dimensions. The underlying numerical score and the dimension-by-dimension breakdown are in the full Brand Intelligence Report.
Read the Full Reports
Brand reports are compiled from publicly available data and independent research. FranchiseInsights is not affiliated with any franchise brand. Information may not be current. Verify all data independently before making decisions.
Frequently Asked Questions
How much does a Gong Cha franchise cost in Australia?
Publicly available data indicates Gong Cha's total investment ranges from approximately $300,000 to $350,000 AUD, depending on format and location. This covers fit-out, equipment, initial stock, and establishment costs. The royalty rate is publicly reported at 6% of weekly net sales.
How much does a Chatime franchise cost in Australia?
Chatime's total investment is estimated at $250,000 to $500,000 AUD, covering lease deposit, fit-out, equipment, and working capital. Ongoing fees include a royalty of 5% of gross revenue and a marketing levy of 2% of gross revenue.
Which bubble tea franchise has lower ongoing fees — Gong Cha or Chatime?
Gong Cha charges a royalty of 6% of weekly net sales and a marketing levy of 1% (with a reported option to increase to 2% with 90 days notice), giving a combined ongoing burden of 7–8%. Chatime charges 5% royalty plus 2% marketing levy — a combined 7% of gross revenue. The structures are similar in total burden, though the royalty and levy split differs.
What is the franchise term for Gong Cha and Chatime in Australia?
Franchise term details are not publicly disclosed by either brand at the level required for a definitive answer. Prospective buyers should request the franchisor's franchise disclosure document and review clause 13 of the Australian Franchising Code of Conduct, which mandates disclosure of term length and renewal conditions.
Do Gong Cha and Chatime operate under the Australian Franchising Code of Conduct?
Yes. Both Gong Cha and Chatime operate franchise systems in Australia and are therefore bound by the Australian Franchising Code of Conduct, administered by the Australian Competition and Consumer Commission (ACCC). The Code requires franchisors to provide a disclosure document, a copy of the Code, and a cooling-off period of 14 days.