Luckin Coffee announced on January 18 that it is reopening its retail partner recruitment program with immediate effect, releasing franchise applications.
Luckin Coffee does not charge a franchise fee for partners, but franchisees will be required to pay an upfront investment fee provided by Luckin Coffee of between RMB 350,000 - RMB 370,000. This includes renovation costs of RMB 110,000 - RMB 130,000, production equipment of around RMB 190,000 and a deposit of RMB 50,000.
Franchisees can apply to join if they are personally between the ages of 25 and 45, have no criminal record, no credit history, and have a store area of no less than 30 square meters.
The franchise business was launched back in 2019, but Luckin Coffee suspended it in 2020 due to the Covid-19 outbreak.
As of November 30, 2020, the number of Luckin Coffee stores decreased from 4,507 to 3,898. Of Luckin Coffee's current 3,898 owned stores, more than 60% were profitable in November 2020.
Luckin Coffee hopes to have 4,800 to 6,900 owned stores by 2023.
Last December 17, the SEC said Luckin Coffee agreed to pay a $180 million fine in a settlement against allegations of financial fraud.
Luckin Coffee revenue still growing in first three quarters, just at a slower rate
