Franchising accounts for over half of Laiyifen’s first-half revenue as store growth accompanies a shift in its business model

Franchising is becoming Laiyifen’s main source of revenue. According to a report published on the NetEase platform on 28 October, the Chinese snack retailer generated RMB 983 million in franchise revenue in the first half of 2026, up 36.14% year on year and accounting for 54.26% of its core operating revenue. This reflects a change in the brand’s business model, but revenue growth at head office does not necessarily mean franchise stores are seeing a corresponding rise in profits.

Franchising becomes the largest revenue source

According to the report, Laiyifen has accelerated its shift from directly operated stores to franchising since 2024. In the first half of 2026, revenue from directly operated stores fell 48% year on year to RMB 455 million, while franchise revenue rose to RMB 983 million, making it the largest revenue source.

The contrasting trends are important to understanding this transition. Under direct operation, the brand bears store costs such as rent and staffing. Under franchising, independent operators fund the initial investment and take on the associated operating responsibilities. Anyone assessing a franchise opportunity in China should examine both changes in the franchisor’s business and the costs borne by individual stores: these are separate sets of accounts.

Store numbers and expense changes need separate assessment

The report states that Laiyifen had 2,968 stores at the end of June 2026, an increase of 150 from the end of 2025. This is a net change in the total store count, not the number of new stores opened during the period. Nor does it establish how all stores are performing.

Meanwhile, first-half selling expenses fell by RMB 173 million year on year, a decline of 38.28%. Selling expenses as a proportion of revenue dropped from 23.32% to 15.41%. These figures show changes in the franchisor’s cost base, but cannot be used directly to estimate how quickly a franchisee might recoup their investment.

For prospective franchisees, store numbers and the franchisor’s expense ratio provide useful context for the brand’s transition. An investment decision still needs to rest on the rent, staffing, sales and day-to-day expenses of the specific store.

Waiving the franchise fee does not remove start-up costs

The report also says that Laiyifen began waiving its RMB 39,000 franchise fee this year. For a standard store of 50–60 square metres, it puts the total investment at around RMB 250,000, excluding rent but including a RMB 10,000 performance deposit.

The key distinction is what these figures cover. A franchise fee waiver applies only to a particular charge; it does not mean that opening a store requires no capital. The investment figure is also only an indicative estimate from the report, not a substitute for a budget based on the city, premises and contract terms involved.

Before signing, prospective operators should request an itemised breakdown of costs, check the conditions for returning the deposit and identify the ongoing expenses they will face beyond rent. An introductory recruitment incentive should not be the sole basis for a decision.

Look beyond the franchisor’s transition to verify store-level performance

Laiyifen’s changing revenue mix shows that franchising is becoming more important to its business. However, these head-office figures are not enough to conclude that franchise stores have become more profitable.

Practical takeaway: assess brand revenue growth, changes in total store numbers and individual store returns separately. Use a written fee schedule, contractual responsibilities and a site-specific budget to judge whether you can fund the ongoing operation after opening.