Ningji exceeds 250 stores in Hubei, with RMB 12 million planned for expansion and refurbishment

Ningji is increasing its investment in regional franchise operations in Hubei, China. According to a report published by Yilan Business on 8 October, the brand has invested more than RMB 4 million in the province since the start of 2026 and expects full-year spending to reach RMB 12 million. Support covers new-store subsidies, brand marketing, existing-store refurbishment and the development of operating standards. For those considering franchising in China, the significance lies not only in new openings but also in the ongoing support available to existing stores.

Distinguish spending to date from full-year plans

The report states that Ningji now has more than 250 stores in Hubei. Alongside this network, the brand has disclosed investment of more than RMB 4 million so far this year, with full-year spending expected to reach RMB 12 million.

These figures refer to different stages: the first is reported spending to date, while the second is a full-year projection. The entire RMB 12 million should not be treated as support already delivered. Prospective franchisees should also avoid equating the regional total with subsidies available to individual stores.

Funding covers both new and existing stores

According to the report, around 70% of the investment is allocated to new-store subsidies and brand marketing, with 30% going towards existing-store refurbishment and the development of operating standards. The allocation therefore supports both expansion and maintenance of the existing network, rather than focusing solely on new openings.

Importantly, new-store subsidies and brand marketing are grouped together. The full 70% should not be interpreted as cash paid directly to franchisees. Similarly, spending on refurbishment and operating standards cannot simply be converted into a renovation allowance per store. How each form of support is delivered will depend on the specific terms of the franchise arrangement.

Regional figures are no substitute for individual store accounts

The report also states that Ningji’s Hubei stores have generated cumulative sales of more than RMB 700 million, sold more than 40 million cups in total and recorded a lease renewal rate of 95%. These figures offer some insight into the scale of the brand’s regional operations and the continuity of its store network.

However, cumulative sales are not the same as revenue for 2026, and cup sales are not a measure of individual store profitability. The lease renewal rate describes lease renewals; it should not be treated as a measure of franchisees’ return on investment. Reading these figures alongside regional spending helps explain the brand’s support priorities, but does not provide a basis for estimating any particular store’s earnings.

Franchisees should examine how support is delivered

Ningji’s disclosed regional plans offer a concrete example for the franchise community: head-office support includes both attracting new stores and committing resources to existing ones. Prospective franchisees should check subsidy eligibility, payment schedules and associated obligations. Existing operators should focus on the scope of refurbishment, how costs are shared and the specific requirements attached to operating standards.

Practical guidance: when assessing a franchise opportunity, keep regional investment figures separate from the operating budget for your own store. Before signing or renewing an agreement, ensure that the support applicable to your store, the conditions for receiving it and each party’s responsibilities are set out in writing.