Gong cha, the bubble tea chain with close to 2,200 locations across 33 international markets, has signed a 50-unit exclusive area development agreement in Texas with Houston-based multi-unit operator Bakers Acres & Cattle Company (BACC). It is the largest direct franchising deal in the brand’s history.
The agreement covers Austin, Houston, San Antonio and Dallas over a seven-year development window, and follows Gong cha’s recent acquisition of master franchise rights covering 170 US locations across 13 states, Texas among them.
BACC is not a first-time franchisee. The group entered franchising in 2015 with Nothing Bundt Cakes, built a bakery operation across Greater Houston and is working toward a 12-bakery platform. Gong cha says the operator consistently outperforms systemwide averages.
Led by Brett and Wendi Walker with a second generation of family operators involved, BACC brings in-house capability across finance, real estate, technology and business development. That combination — proven unit economics in an adjacent category, plus a real estate and finance function — is what makes a 50-unit commitment credible rather than aspirational.
We know sustainable growth starts with the right systems, infrastructure and brand foundation.
Brett Walker, Bakers Acres & Cattle Company
The more interesting structural detail is the rights acquisition. By buying back master franchise rights covering 170 locations across 13 states, Gong cha moved from an arms-length licensing arrangement to direct franchising in those markets. That gives the brand control over who develops which territory, and lets it award large area development packages to operators it has vetted itself.
Geoff Henry, President of Gong cha Americas, tied the interest to format economics — operational simplicity, a flexible footprint and an efficient labour model — rather than to any single menu trend.
Gong cha has been ranked number one in the Tea category on Entrepreneur’s Franchise 500 list for five consecutive years and now runs more than 240 locations across 23 US states, Washington D.C. and Puerto Rico. Since launching direct franchising in the US roughly 24 months ago, it has signed development deals in Texas, California, Massachusetts, Arizona, Wisconsin and Puerto Rico.
The pattern is worth noting for anyone tracking Asian F&B formats abroad. Bubble tea travels well because the unit is small, the labour model is simple and the product carries its own category demand. The constraint is rarely consumer interest; it is finding operators who can build 50 units without breaking the system.
Two lessons sit in this deal. First, owning your development rights is what makes large, disciplined area agreements possible — a brand that has licensed away a territory cannot choose its operator there. Second, the multi-unit operator with a track record in an adjacent category is usually a better bet than an enthusiastic newcomer with capital.
Similar dynamics are playing out across Asia Pacific, where coffee, tea and juice formats are scaling fastest and multi-unit agreements are replacing single-store deals. For a wider view of category-level demand, see our 2026 restaurant franchise outlook for Asia Pacific and the current list of international franchise opportunities.
Source: PR Newswire — Gong cha Signs Landmark 50-Unit Deal in Texas with Experienced Franchise Operator
