Introduction:Heytea has broken its decade-long tradition of direct operation by announcing the opening of its franchise program, attracting significant attention from potential investors, including those looking to switch from other brands. However, Heytea has set strict and high-cost franchise requirements, with clear criteria regarding capital and management capabilities. This article provides an in-depth analysis of Heytea’s franchise policy details and compares the scale differences with major market competitors such as Chun Shui Tang, helping you evaluate the feasibility of investment and market prospects.
Competition in the new tea beverage industry is intensifying, which has also influenced brand business models. Heytea, which had adhered to direct operation for ten years, recently officially announced the opening of its franchise program, clearly targeting second-tier and lower-tier city markets. This move has drawn the attention of a large number of potential investors, with some existing Chun Shui Tang franchisees even considering closing their current stores to join the Heytea system.
However, becoming a Heytea franchisee is no easy feat. The brand has established a series of high-standard screening conditions, not only with relatively high investment amounts but also detailed requirements regarding applicants’ backgrounds, experience, and commitment, making this strategic shift quite challenging.
According to recent media reports, Zhou Xing, a franchisee who has operated a Chun Shui Tang store in Shanghai for about five or six years, is considering giving up her current shop to apply for a Heytea franchise. She said that although her store had been able to maintain profitability in the past, performance has significantly declined over the past two years due to various factors, prompting her to seek new opportunities.
Although Heytea’s franchise requirements include a one-time payment of 413,000 yuan for store setup fees, an annual system usage fee of 20,000 yuan , and a cooperation service fee of 50,000 yuan every three years, along with the requirement for applicants to provide proof of assets worth over 1 million yuan , Zhou Xing still believes these conditions are within an acceptable range, and she says she is willing to undergo six months of training if she can pass the review.
In comparison, Chun Shui Tang, a veteran bubble tea brand originating from Taiwan, China, was established in 1994 and initially started as a street stall before gradually expanding into a chain operation. According to the latest statistics, Chun Shui Tang currently has over 3,600 stores across Taiwan and mainland China, significantly more than Heytea, which has just opened its franchise program.
Heytea is highly selective when choosing franchisees. In addition to financial requirements, it emphasizes that applicants must have a higher education background, team management experience, or at least five years of business management experience. At the same time, the brand requires franchisees to treat the Heytea store as their sole career focus and to complete a three-month full-time training and assessment period. This includes two months of hands-on experience in various positions at a direct-operated store and one month of advanced coursework on commercial district analysis, store location selection, and management skills.
Industry sources indicate that since the announcement of the franchise plan, Heytea has received over 10,000 applications, showing strong market interest. However, as the brand has not publicly disclosed contact information for recruitment, all applicants must submit their information through an official online form and then wait for the brand to reach out. As a result, some applicants may have to wait four to five days or even longer to receive a response.
Zhou Xing has mentally prepared herself to leave Shanghai and move to a second-tier city, hoping to start a new venture by joining Heytea. She admitted that if she is selected, she will inevitably have to give up her current Chun Shui Tang store, as both brands require franchisees to be fully committed. However, she has not yet received a response from Heytea, and her confidence is gradually waning.
Overall, the launch of Heytea’s franchise policy marks an important strategic shift for the brand and signals its imminent significant impact on the non-first-tier city new tea beverage market. For prospective investors, gaining a deep understanding of the franchise conditions and current market situation will be key to making informed decisions.
The above content is compiled by CoffeeHunters, a coffee news website.
