(Source: https://pltfrm.com.cn)
Introduction A disciplined, phased approach is the difference between franchising success and failure in China—overseas brands that follow a clear roadmap open pilot stores in 12–18 months and scale nationwide in 3–5 years. Here is the exact timeline we have executed for dozens of international chains.
- Phase 1: Market Validation and Pilot Stores (Months 1–12)
1.1 Consumer and Location Research Category Testing: Conduct in-market concept testing via pop-ups and surveys to confirm demand. Tiered City Strategy: Start in tier-1 and strong tier-2 cities where disposable income supports premium pricing. Data-Driven Decisions: Use footfall analytics and competitor mapping to select the first 3–5 pilot locations.
1.2 Establishing the Required Directly Owned Stores Two-Plus-One Compliance: Open and operate at least two company stores for over one year before franchising. Brand Showcase Role: These flagship units serve as training centers and proof of concept for potential franchisees. Investment Level: Budget RMB 5–15 million per store depending on category and city.
- Phase 2: Legal Entity Setup and Franchise Package Preparation (Months 6–18)
2.1 WFOE Registration with Retail Scope Franchise-Ready Scope: Include “franchising, training, and technical services” explicitly in the business license. FTZ Advantage: Register in Shanghai or Beijing FTZ for faster approval and capital flexibility. Timeline Reality: Complete in 30–60 days with experienced local counsel.
2.2 Developing China-Specific Operations Manuals Localization Depth: Adapt store design, menu, and SOPs to local regulations (fire codes, labor ratios, etc.). Digital Integration: Build WeChat Mini-Program ordering and loyalty systems mandatory for Chinese consumers. Training Academy: Set up a certified training center—often inside one pilot store—to demonstrate capability.
- Phase 3: Franchisee Recruitment and Launch (Months 18–36)
3.1 Marketing the Franchise Opportunity Road Shows and Exhibitions: Attend China Chain Store & Franchise Association fairs and host private events. Digital Campaigns: Use Douyin and Xiaohongshu to target potential investors with strong ROI stories. Lead Qualification: Screen hundreds to select the first 10–20 high-quality franchisees.
3.2 Training and Grand Opening Support Comprehensive Programs: 4–8 week initial training plus ongoing field support and mystery shopper audits. Marketing Launch Packages: Provide grand-opening campaigns, KOL events, and delivery platform integrations. Performance Tracking: Implement cloud POS systems for real-time royalty calculation and standards monitoring.
Case Study: European Bakery Chain
A popular French bakery brand followed this roadmap precisely: validated demand with Shanghai pop-ups, opened three company stores to meet the two-plus-one rule, and registered a retail WFOE. After translating manuals and building a WeChat ordering system, they recruited 15 franchisees in year two. The disciplined phases resulted in 120 stores nationwide within four years and consistent 20%+ same-store growth.
Conclusion
A structured, phase-by-phase franchise entry eliminates guesswork and regulatory surprises. Overseas brands that invest properly in pilots and localization before scaling capture market share profitably and sustainably.
PLTFRM is an international brand consulting agency that works with companies such as Red, TikTok, Tmall, Baidu, and other well-known Chinese internet e-commerce platforms. We have been working with Chile Cherries for many years, reaching Chinese consumers in depth through different platforms and realizing that Chile Cherries’ exports in China account for 97% of the total exports in Asia. Contact us, and we will help you find the best China e-commerce platform for you. Search PLTFRM for a free consultation!
