Laiyifen plans up to RMB 80 million in financial assistance, with lending caps for stores and related parties

Laiyifen plans to support selected partner stores through financial assistance. According to a Sina Finance report dated 24 September 2026, the company announced that day that it and its subsidiaries proposed to provide franchisees and joint-operation partners with up to RMB 80 million in total funding. For those considering China’s franchise market, the key points extend beyond the size of the fund to eligibility, borrowing costs and repayment requirements.

RMB 80 million total facility, with two levels of lending caps

According to the announcement cited in the report, the funding is earmarked for store operations, with a cap of RMB 1 million per store. Total assistance to any one franchisee and its related parties must not exceed RMB 5 million.

The proposal therefore limits both funding per store and aggregate funding to a franchisee and its related parties. RMB 80 million is the proposed overall facility, not an amount already disbursed. Nor does it mean that every partner store will receive support.

Targeted support, not a non-repayable subsidy

The assistance is intended for franchisees or joint-operation partners in priority cities or regions that operate at a certain scale and have the capacity to repay. It is therefore not a blanket subsidy for all franchised stores: repayment capacity is an explicit eligibility condition in the announcement.

The charge for using the funds will be set at no less than the prevailing bank lending rate for comparable borrowing, and each funding agreement will have a term of no more than 36 months. Operators considering an application should assess financing costs alongside their future repayment commitments, rather than focusing solely on how much they can borrow.

Board approval secured, but shareholder approval still required

At the time of the report, the board had approved the financial assistance proposal, but it still needed to be submitted to Laiyifen’s second extraordinary general meeting of 2026 for approval before taking effect.

The overall facility will remain valid for 12 months from shareholder approval, with funds available for revolving use within the limit. These two timeframes should be distinguished: 12 months refers to the availability period of the overall facility, while the maximum 36-month term applies to each individual funding agreement. Stores should base their financing plans on the final approved scheme and their specific contracts.

The brand’s own earnings pressures also merit attention

The proposal comes as Laiyifen faces pressure on its own business performance. According to the company’s 2026 interim report, as cited in the coverage, first-half revenue was RMB 1.812 billion, down 6.6% year on year. Its net loss attributable to shareholders of the parent company was RMB 92.13 million, widening from a year earlier.

These figures provide context for the funding proposal, but they do not establish how individual franchised stores are performing, nor do they demonstrate that borrowing will improve store profitability. Those assessing a franchise opportunity should evaluate headquarters’ financial support separately from the store’s own operating performance.

Practical guidance: partners interested in applying should first confirm their eligibility and the scheme’s approval status, then assess repayment capacity against financing charges, contract terms and store cash flow. An operating loan should not be mistaken for non-repayable support.