Gong Cha's Ontario footprint is still small and concentrated — clustered along corridors like Toronto's Yonge Street rather than spread across the province — and its Canadian franchise team is currently as focused on recruiting new partners as it is on facilitating resales. That means a Gong Cha resale here is often one storefront changing hands between operators who already know each other rather than a broad open market, and it's worth confirming upfront whether an opportunity is truly an existing resale or a new-build being framed as one.
Gong Cha resales follow the franchisor's own approval process on top of the usual purchase mechanics — here's how the two run together.
Getting approved
Price and terms, conditioned on franchisor consent and confirming whether the location is a genuine existing-store resale or a new-development opportunity.
1–2 weeks†Gong Cha's Canadian franchise team reviews the incoming buyer and can exercise its right of first refusal instead of letting the resale proceed as negotiated.
several weeks, typically†A franchise disclosure document may still be required for this resale — Ontario courts read the resale-disclosure exemption narrowly, so franchisor involvement in the sale can trigger it even where it's called a private deal.
assessed early†Getting to closing
A mall or street-front premises agreement needs the landlord's written consent to assign, timed alongside the franchisor's own review.
2–6 weeks†The incoming owner typically completes Gong Cha's drink-preparation and recipe training before the transfer is finalized.
before or shortly after closing†Funds, keys, and signed documents change hands, alongside a count of perishable tea and topping inventory.
1 day, once conditions are met†Official gongchacanada.ca franchise portal actively recruits Canadian franchise partners for this global bubble tea brand
Existing Gong Cha locations in Ontario (including Toronto's Yonge Street corridor) within an expanding Canadian store network
This is the first real decision in a Gong Cha resale — and it changes what you're buying, what you're taking on, and how the franchise agreement moves.
| Question | Asset purchase | Share purchase |
|---|---|---|
| What you buy | The kiosk's brewing and sealing equipment, refrigeration, leasehold improvements, inventory, and the benefit of the existing franchise agreement, subject to consent. | The shares of the operating company — the location it holds, and everything it owes. |
| Seller's liabilities | Generally stay behind with the seller's existing corporation. | Generally come with the company, known and unknown. |
| Franchisor consent & ROFR | Required for this specific unit, and typically the pacing condition on the deal. | Required for the change of control itself — the franchisor reviews who is actually taking over. |
| Approved-supplier relationship | Continued access to the franchisor's approved tea and topping suppliers doesn't transfer automatically — it's confirmed as part of consent. | The operating company's existing supply accounts generally carry over with the shares. |
| The premises | Needs the landlord's consent to assign, timed alongside the franchisor's own review. | Usually stays in place unless the agreement carries its own change-of-control clause. |
| Tax angle | Buyer gets a stepped-up cost base on the assets purchased. | Seller may access the lifetime capital gains exemption on qualifying shares. |
The kiosk's brewing and sealing equipment, refrigeration, leasehold improvements, inventory, and the benefit of the existing franchise agreement, subject to consent.
The shares of the operating company — the location it holds, and everything it owes.
Generally stay behind with the seller's existing corporation.
Generally come with the company, known and unknown.
Required for this specific unit, and typically the pacing condition on the deal.
Required for the change of control itself — the franchisor reviews who is actually taking over.
Continued access to the franchisor's approved tea and topping suppliers doesn't transfer automatically — it's confirmed as part of consent.
The operating company's existing supply accounts generally carry over with the shares.
Needs the landlord's consent to assign, timed alongside the franchisor's own review.
Usually stays in place unless the agreement carries its own change-of-control clause.
Buyer gets a stepped-up cost base on the assets purchased.
Seller may access the lifetime capital gains exemption on qualifying shares.
We tell you which structure fits — before you sign anything.
No open-ended hourly surprises — the cost is confirmed in writing before any work begins.
| Type of work | Fee | How it's confirmed |
|---|---|---|
| Straightforward purchase or sale | Starting from $3,388.87 Our charges · taxes included | Confirmed in writing once we see the agreement. |
| Larger or more complex deal | Quoted to scope | Short call → fixed written quote before any work begins. |
| Searches, filings & third-party fees | At cost | Itemized on your invoice, not marked up. |
A single Gong Cha storefront changing hands between one buyer and one seller, with a standard premises agreement once its resale status is confirmed.
Start my file →Confirming whether an opportunity is a genuine resale or new development, or an existing operator taking on a second Gong Cha location as the brand's Ontario footprint grows.
Book a consultation →Not sure which you are? That's our job to figure out, not yours. As a rough guide, most deals under a couple of million dollars are the first kind — above that, you're usually in Mergers & Acquisitions territory.
It makes the market smaller, not necessarily riskier. With a concentrated Ontario footprint, genuine resales come up less often than with an established chain, so it's especially worth confirming the seller actually holds a transferable location and current standing with the franchisor before you commit time to a deal.
We start by getting the franchisor's own confirmation of the location's status in writing, rather than relying on how a listing describes itself — the legal path for taking over an operating store is different from signing on to develop a new one.
Not automatically — it's typically confirmed as part of the franchisor's consent process, and we make sure that confirmation is in hand before you're relying on it.
Not necessarily. Ontario courts have read the resale-disclosure exemption narrowly, and franchisor involvement in matching buyer to seller can still trigger a full disclosure requirement.
It's a different kind of opportunity than buying into a mature network — you're weighing an earlier-stage brand's Ontario growth against a smaller current base of proven, transferable locations. We help you separate that business judgment from the legal steps, which stay the same either way.
Related
Where we close franchise resale deals
Treadstone Law is an independent law firm. We act for buyers and sellers of franchise businesses. We are not affiliated with, endorsed by, or retained by Gong Cha or its franchisor.
Tell us about your Gong Cha resale — we'll point you the right way and confirm the cost in writing before any work begins.