Bubble tea chain Gong cha has signed an exclusive area development agreement for 50 stores in Texas, US, with franchise operator Bakers Acres & Cattle Company (BACC).
Under the agreement, BACC will develop the chain’s presence over the next seven years in four key markets: Austin, Houston, San Antonio and Dallas.
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The deal is described as the “largest direct franchising deal” in Gong cha’s history and extends the brand’s reach in the US.
It follows the company’s acquisition of master franchise rights for 170 US locations across 13 states, including Texas, a move the company says positions it for faster franchise roll-out and long-term nationwide growth.
Based in Houston, BACC is a multi-generational family business with experience in growing franchise brands. The company entered franchising in 2015 with bakery concept Nothing Bundt Cakes.
The operator has since built a bakery operation across Greater Houston and is working towards creating a 12-bakery platform, reporting performance that exceeds systemwide averages.
Gong cha began its direct franchising strategy in the US around two years ago and has been accelerating growth through multi-unit development agreements in both established and emerging regions.
During this period, the brand has signed expansion deals in Arizona, California, Massachusetts, Puerto Rico, Texas, Wisconsin and other markets.
Gong cha Americas president Geoff Henry said: “As Gong cha continues expanding across the US, we’re seeing strong interest from multi-unit operators looking to grow with the global leader.
“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.
“From our flexible footprint and efficient labor 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.”
