Introduction:A milk tea franchise store in Wuxi, Jiangsu, ostensibly operated through group buying and member prepaid services, was actually involved in a suspected fundraising scam with cumulative transaction volume nearing two hundred million RMB, affecting consumers across multiple regions. After the brand terminated its cooperation and removed its signage, the store changed its name and continued operating, while still recruiting new staff. This article breaks down the full story of the incident to alert consumers and job seekers to the associated risks and help them avoid falling into similar traps.
In Wuxi, Jiangsu, a milk tea franchise store that once bore the name of a well-known chain used community group buying and member top-ups as business tactics but was engaged in large-scale fraudulent activities behind the scenes. According to local residents and victims, the case involves over a thousand consumers, with transaction flows in Wuxi alone amounting to nearly two hundred million RMB, even extending to Shanghai, Zhejiang, and Anhui. It has become one of the rare cases of franchise store fraud in recent years.
The store opened in 2022 and initially attracted many customers due to the brand’s influence, with numerous people joining as members and participating in community events. However, as time passed, original employees gradually resigned, and the store continuously recruited new staff, yet frequently reported issues with unpaid wages. Insiders revealed that new employees who noticed irregularities in operations might not only be ostracized but could also face difficulties in receiving their salaries. It is claimed that at least six to seven employees have been left unpaid.
According to descriptions from community members, the store owner claimed to have special supply channels and continuously launched group buying promotions and bonus deals for popular items at low prices through chat groups, attracting consumers to prepay or place bulk orders. This mode of operation continued for nearly two years until early this year when consumers finally began noticing transaction abnormalities and successively reported the issue to the Nanjing Railway Station Police Station in Xinwu District, Wuxi.
After police intervention, it was found that the number of victims was substantial, with over a thousand affected just in Wuxi, and the total fund flow of the case reached nearly two hundred million RMB. The impact also spread to consumers in Shanghai, Zhejiang, and Anhui. On January 19 of this year, public security authorities officially filed the case for investigation on suspicion of fraud.
Surprisingly, just as the police were preparing to detain the main suspect, she claimed to be pregnant, resulting in her being placed under residential surveillance instead, later transitioning to release on bail pending trial after the period expired. Even as judicial proceedings were underway, the store continued operating and persistently promoted so-called “special channel” discount products to members. There are rumors suggesting the actual amount involved may be as high as three hundred million RMB.
As media coverage and community discussions intensified, the franchise brand to which the milk tea store belonged finally issued a statement on November 5, announcing the termination of cooperation with the individuals involved, demanding the immediate removal of the store’s signage, and a complete halt to the use of any brand-related logos or materials in order to uphold the brand’s reputation.
However, according to video footage subsequently taken by nearby residents, the store merely replaced its signage and resumed business. Furthermore, on third-party delivery or map platforms, it had already changed its name and continued taking orders. Due to staff shortages, the store continues to recruit new employees. There are concerns that job seekers unaware of the background may once again face issues such as unpaid wages or an unstable working environment.
Industry insiders advise that before joining a store’s community group, participating in group buys, or making prepaid payments, consumers should carefully verify the store’s operational background, brand authorization status, and user reviews. Activities featuring unusually low prices, frequent promotions, or requests for advance payments should be met with extra caution. As for those seeking part-time or full-time employment, it is recommended to thoroughly confirm the company’s background and operational condition to avoid unknowingly entering high-risk stores.
This case not only reveals some of the potential operational risks hidden within certain franchise stores but also serves as a reminder for the public to stay vigilant and conduct thorough checks when faced with community group buys and prepaid consumption, in order to avoid becoming the next victim of a scam.
The above content is compiled by CoffeeHunters, a coffee news website.
