This business model was prevalent in China but it also reminds me of big sugary cookies…
快招 (kuài zhāo) = short for 快速招商, “fast franchise recruitment.” A Chinese industry term for companies whose actual product is selling franchise contracts, not running a business. The brand is the bait; franchisees are the customers.
The pipeline is like this:
First the schemers manufacture a brand — usually in a treding consumer facing category (bubble milk tea, BBQ etc), register a brand name, often a near clone of a real hit (茶颜观色 vs 茶颜悦色). Then the schemers will fake a popularity proof — by opening one or two showcase stores run at a loss with paid queues and fake “already 500 stores nationwide,” bought media placements and awards etc. They would also buy online ’leads’ like TikTok feeds, franchise-listing portals, trade expos. Then the scheme begin — the schemers would sell ‘franchise’ opportunities to uninformed ppl. They will do FOMO marketing like “it’s the last slot in your district”, fee waived if you sign today, non-refundable deposit taken on the spot, no time to think or verify. Extraction — franchise fee (¥30k–300k), deposit, plus marked-up equipment, décor, and mandatory supplies. This is the entire revenue model. Abandon and reshell — no real operational support; the store dies in 3–12 months. The brand entity is dissolved and a new brand launches. One operator often cycles dozens of brands in parallel. The key difference is, legitimate franchising earns from royalties, so the franchisor needs your store to survive. But this kind of fake franchise earns entirely up front through franchise fee and selling marked-up equipment and supplies, so the store’s later failure cose them nothing.
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