Coffee LiL presents its franchise model at a meeting in Minsk

Coffee LiL took part in “Business Reviews”, an event held in Minsk in early November with support from MTBank. The fast-growing chain presented its franchise model, which charges neither an initial franchise fee nor royalties, and outlined its next development challenges: retaining partners within its own supply system and attracting investors. The bank reported on the meeting on 13 November 2026.

From network growth to sustainable earnings

According to MTBank, Coffee LiL opened more than 260 coffee points in two and a half years. That figure illustrates the pace of expansion, but does not in itself establish the profitability of an individual outlet or the sustainability of the management company’s earnings. The shift from rapid expansion to a sustainable business model was the central theme of the discussion.

The company does more than sell equipment. It trains partners, organises supplies and develops its own app for managing outlets and engaging with customers. Its relationship with each partner therefore covers several areas, from equipping a coffee point to providing ongoing operational support.

For the Belarusian franchising community, the main interest in this case lies in how the partnership is structured. Rather than the familiar combination of an initial franchise fee and regular royalties, Coffee LiL uses other revenue streams. These provide a clearer basis for discussing how the company earns money and which services connect it with outlet owners after launch.

How the model works without a franchise fee or royalties

According to the bank’s report, Coffee LiL’s model involves neither an initial franchise fee nor royalties. The company earns revenue from equipment sales, agency fees, its own trading company and app subscriptions. These are distinct income streams linked both to opening outlets and to ongoing relationships with partners.

Coffee LiL director Maxim Valynets said the margin on the sale of a coffee stand can reach 52% before overheads and labour costs. Both qualifications matter: the figure relates to selling the stand, not operating a coffee point, and excludes those cost categories. It would therefore be wrong to interpret it as the company’s net profit margin or a franchisee’s return on investment.

The absence of two standard franchise charges does not mean there are no costs associated with the partnership. The model described includes equipment, supplies and a paid app. For a prospective partner, the practical question is the full cost of launching and running the business, rather than simply whether the offer includes a line labelled “royalties”.

When comparing this model with other franchises, it is useful to assess one-off purchases and recurring payments separately. This helps avoid confusing the equipment seller’s earnings with the operating performance of the entrepreneur using that equipment at their outlet.

Why Coffee LiL has its own trading company

One of the company’s main questions at the meeting concerned moving existing partners from suppliers’ trading operations to Coffee LiL’s own trading company. The aim was framed not just as moving partners across, but also retaining them. Its second question concerned ways to attract investors.

These questions show the stage the business has reached: the network has already expanded, and is now looking for ways to strengthen the financial basis of its ongoing partnerships. Its own trading company is listed among its revenue sources, so increasing purchases through it is directly linked to the stated goal of sustainable earnings.

For current or prospective franchisees, this approach is a reason to clarify supply terms. Before committing, they should establish which purchases are compulsory, how prices are set, what support is included and what alternatives the contract permits. These are due diligence questions, not statements about specific obligations imposed on Coffee LiL partners.

The app warrants a similar assessment: what tasks does it handle for the outlet owner, and which features are covered by the subscription? The clearer the scope of recurring services, the easier it is to weigh their cost against their practical value to the business.

What was discussed at the Minsk meeting

“Business Reviews” brought together more than 60 guests, including entrepreneurs and business owners. The expert panel comprised Evgeny Nupreichik, MTBank’s director for small and medium-sized businesses; Ivan Bondarev, founder of Umny Dom LLC; and Pavel Goncharevich, director and owner of manufacturing company RBU No. 2 LLC.

In an interactive format, participants examined two businesses facing different challenges. Alongside Coffee LiL, they discussed cleaning company Lyubimaya Chistota, which was seeking a more systematic approach to sales. The franchise case stood out for its combination of an already sizeable network and the search for a more sustainable earnings model.

For Belarus’s franchising community, the value of this case lies in its concrete discussion of the economics of the relationship after an outlet opens. The number of outlets launched and the absence of royalties provide only part of the picture; supplies, digital services and the financial interests of both parties need to be assessed separately.

The practical takeaway: when considering a franchise with no initial franchise fee or royalties, request a complete breakdown of one-off and recurring costs. Calculate the financial performance of your own outlet separately from equipment margins and the franchisor’s other income streams.