Bubble Tea Franchise: Yi Dian Dian Franchisees Flocking to HEYTEA?!

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In recent years the new tea beverage market has undergone tremendous change. Even HEYTEA, which insisted on self-operation for ten years, has finally decided to open franchising. It is clear that HEYTEA is targeting lower-tier markets this time. This major shift from directly operated stores to franchised stores has attracted many franchisees who want to join in and get a piece of the action, and some are even planning to abandon their current franchise stores to switch to HEYTEA. But is joining HEYTEA really such a simple matter?

Today, according to a report by Sina Finance, Zhou Xing, a franchisee of the well-known franchise brand Yidiandian, plans to abandon Yidiandian to switch to HEYTEA. She has a Yidiandian milk tea shop in Shanghai that has been open for 5-6 years, but perhaps due to the impact of the pandemic or other factors, business has gradually declined over the past two years. It used to be profitable, but now it is just getting by.

After hearing that HEYTEA was opening franchising, Zhou Xing immediately filled out the application form. Compared with Yidiandian milk tea, she would rather open a HEYTEA store, and the strict selection criteria do not seem significant to her. Zhou Xing said firmly, "As long as I can pass, I am willing to undergo training for half a year."

Yidiandian milk tea was founded in 1994 and is a Taiwanese milk tea brand. It started as just a roadside beverage stall in the Tainan area of Taiwan. After business prospered, it transformed into store-based operations. The first milk tea shop was established in 1997, and it now has a 28-year history, having successfully built a well-known franchise brand. According to data from the Zhaimen Restaurant Eye platform, Yidiandian currently has 3,646 stores, far exceeding HEYTEA, which has just announced its franchising program.

Moreover, the "threshold" for joining HEYTEA remains quite high - not only in terms of fees, but also in HEYTEA's strict requirements for partners and the numerous rules and regulations it has established. Whether abandoning an existing franchise store to join HEYTEA is the right choice is a question only HEYTEA's franchise market can answer.

HEYTEA's Franchise Conditions

Regarding HEYTEA's franchise conditions, the brand has already published them in its partnership guidelines on its WeChat public account. Besides a one-time payment of 413,000 yuan initially, there is also an annual system operation fee of 20,000 yuan and a single-store cooperation service fee of 50,000 yuan every three years. In addition, HEYTEA requires proof of legitimate cash assets or equivalent liquid assets exceeding 1 million yuan, independent investment in the store, and reasonable asset flow statements proving that the funds come from personal accumulation rather than others' investments.

Furthermore, HEYTEA requires franchisees to make the store their sole business. Preference is given to those with a higher education, their own core team, or over five years of business management experience. Applicants must also undergo three months of full-time training and assessment, including two months of full-time work in various positions at directly operated stores and one month of advanced management, business district analysis, store site selection, and other business-related assessments.

It is clear that HEYTEA wants franchisees who can get started immediately, yet these established rules have not dampened franchising enthusiasm. Many peers have abandoned other brands for HEYTEA. According to industry insiders speaking to Tech Planet, the number of HEYTEA franchise applications has already exceeded ten thousand.

HEYTEA has not publicly listed a franchise phone number. After submitting the application form, applicants can only wait for HEYTEA to contact them. It is understood that, facing such a large number of applications, HEYTEA's franchise team works overtime every day, still calling applicants even at 10 PM. Even so, applicants need to wait at least four to five days, and Zhou Xing is one of those anxiously waiting.

Knowing that HEYTEA is targeting non-first-tier cities, Zhou Xing has even made preparations to leave Shanghai and exit Yidiandian, willing to start over in a second-tier city for HEYTEA. "Both require franchisees to be full-time in the store. If I am really selected, I can only exit one," Zhou Xing explained. But a week has passed, and seeing peers receive callback calls from HEYTEA while she has not, she has gradually lost hope.

From HEYTEA's partner screening system, it is not hard to see that HEYTEA is very cautious about opening franchising. But regardless, HEYTEA's impact on the non-first-tier tea beverage market will soon arrive.

Image source: Internet

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