Gong Cha Signs Largest US Franchise Deal in Company History with 50-Store Texas Agreement
Key Takeaways
- •Gong Cha signed its largest direct franchising agreement to date, a 50-unit exclusive development deal in Texas with Houston-based BACC, an operator that previously focused on Nothing Bundt Cakes.
- •The company recently acquired master franchise rights for 170 of its existing US locations across 13 states, transitioning from regional master franchisee reliance toward centralized corporate control.
- •Gong Cha currently operates approximately 2,200 locations across 33 global markets, with roughly 240 stores situated in the United States.
- •Gong Cha Americas President Geoff Henry stated that the deal advances the brand toward its target of 1,000 US locations, which would more than quadruple its current domestic presence.
- •The US bubble tea market has experienced steady growth over the past decade, with Gong Cha competing against international chains such as Kung Fu Tea, Sharetea, and Chatime.
Global bubble tea franchise Gong Cha has signed a 50-unit exclusive area development agreement in Texas, marking one of the brand's most aggressive expansion moves in the United States to date.
The deal was made with Bakers Acres & Cattle Company (BACC), a Houston-based franchise operator. Gong Cha described the agreement as the largest direct franchising deal in its history.
BACC entered the franchising business in 2015 with the bakery concept Nothing Bundt Cakes. The company is now expanding its portfolio into the beverage sector through its partnership with Gong Cha.
Texas has become one of the most competitive US markets for beverage and quick-service franchises, driven by rapid population growth and expanding consumer spend in cities like Houston, Dallas, and Austin. Gong Cha's decision to place 50 stores in a single exclusive territory reflects the broader industry trend of operators consolidating development rights in high-growth Sun Belt states.
The Texas agreement follows Gong Cha's acquisition of master franchise rights for 170 of its existing US locations across 13 states, including Texas. That acquisition gave the company greater direct control over its American operations as it accelerates domestic growth, shifting from a reliance on regional master franchisees toward a more centralized corporate oversight model.
Founded in Taiwan in 2006, Gong Cha has grown into one of the world's largest bubble tea chains. Bubble tea, a tea-based beverage that originated in Taiwan during the 1980s, has become a booming global industry with expanding consumer demand across North America, Asia, and Europe. The US bubble tea market has grown steadily over the past decade, with multiple international chains — including Kung Fu Tea, Sharetea, and Chatime — competing for footprint alongside independent operators.
Gong Cha Americas President Geoff Henry said the new franchise deal will help the brand advance toward its target of 1,000 US locations.
"As Gong Cha continues expanding across the US, we're seeing strong interest from multi-unit operators looking to grow with the global leader," Henry said. "Franchisees are looking for concepts with operational simplicity, strong consumer demand and the ability to scale efficiently at relatively low cost, and Gong Cha delivers on all of these."
Henry added that the company's operational model is designed to support sustained franchise growth.
"From our flexible footprint and efficient labour model to the strength of our global brand recognition, we've built a platform designed to help operators grow strategically and sustainably across high-potential markets like Texas," he said.
Gong Cha's global network currently comprises approximately 2,200 locations across 33 markets, with roughly 240 of those situated in the United States. Reaching the 1,000-store US target would more than quadruple the brand's domestic footprint.