Jiduoquan Pauses Franchising as Fresh Snack Expansion Faces Store-Level Challenges

The rush to open fresh snack shops is putting store operating capabilities to the test. A Tech Planet report published on 5 November says Jiduoquan, backed by Wu’ai Food Group, announced a pause in franchising in July 2026. For investors considering this segment of China’s franchise market, the development is a reminder that strong demand for franchises does not necessarily mean the store-level profit model is proven.

Franchising pause follows expansion

The report states that Jiduoquan has grown to more than 200 shops. An employee told Tech Planet that interest in franchising had previously been strong, with more than 1,000 people registering their interest. Some store managers also wanted to become franchisees, but a requirement to demonstrate access to RMB 3 million in funds prevented some applicants from proceeding.

These details came from an employee interview and should not be treated as evidence of the number of franchise agreements signed or the investment required to open a shop. Nor should the pause be interpreted as the closure of existing shops: the report specifically concerns changes to the brand’s arrangements for new franchises.

Short shelf lives demand locally tailored ranges

Expanding a fresh snack chain involves more than copying the same product list across different cities. The employee cited above said that popular products in Changsha shops were mainly short-shelf-life snacks braised in seasoned stock, while strong sellers in Wuhan included a short-shelf-life stinky tofu product. Shops need to adjust their ranges to reflect local buying habits.

For franchisees, these differences mean that order volumes, replenishment frequency and stock management must align with local demand. Whether short-shelf-life products can be sold in time deserves closer financial scrutiny than the breadth of the range on display. Investors also need to assess whether the franchisor’s supply capabilities match the pace of sales in individual shops.

Popularity cannot offset rental pressures

The report quotes a franchisee as saying that some shops faced high rent and staffing costs and had incurred substantial losses. This is an individual interview account: it should not be extrapolated to all Jiduoquan shops or used as a benchmark for profitability across the fresh snack sector.

Nevertheless, the questions for an investment appraisal are concrete: can the gross profit from sales cover rent, staffing, stock write-offs and other expenses? Prospective investors should ask to see actual operating records for similarly sized shops in comparable cities, rather than judging potential returns solely by queues or opening-day sales.

The ‘fresh’ label needs clear operating terms

Tech Planet also notes that there is currently no uniform standard for fresh snacks, and that some brands also sell products with longer shelf lives. When assessing a franchise opportunity, investors should therefore examine product shelf lives, delivery requirements, returns and exchange policies, and responsibility for handling stock approaching its expiry date. ‘Fresh’ should not be assumed to represent a consistent product promise.

Practical guidance: Investors following Jiduoquan’s future franchising plans should first confirm whether the brand is currently accepting applications, then check the product range, fees and allocation of responsibility for stock losses. For any short-shelf-life snack franchise, verify day-to-day stock turnover and cash flow before deciding whether to sign an agreement.