Kaohsiung hotpot franchise deal raises concerns as police and bank halt NT$3 million withdrawal

A proposed payment for a hotpot restaurant franchise in Kaohsiung has highlighted the importance of checking transactions carefully in Taiwan’s franchise market. According to a report by the China News on 23 October 2026, a customer was preparing to withdraw NT$3 million to pay a franchise fee when bank staff noticed irregularities and alerted police. The customer ultimately cancelled the withdrawal. Police stressed that their intervention was intended to prevent losses from a high-risk transaction; whether fraud was involved would depend on subsequent evidence and findings.

Large cash payment requested before contract was fully signed

The incident took place on the morning of 16 October. Yixin Road Police Station, part of Kaohsiung’s Qianzhen Precinct, received a report from Mega International Commercial Bank that a customer was preparing to withdraw NT$3 million over the counter to pay a hotpot restaurant franchise fee. After asking about the transaction, bank staff identified concerns over the contract and payment method and called police to help check the details.

Officers Chen Han-hsiu and Ruan Chun-chia reviewed the contract and found that, although its total value was NT$5 million, it did not clearly specify the proposed franchise outlet’s address. The contract had not yet been fully signed, but the other party had already asked the customer to withdraw NT$3 million in cash. The venue for the subsequent formal signing had also not been confirmed; the customer had simply been asked to attend a separate meeting.

Authority, outlet location and reasons for cash payment still needed checking

Further police enquiries found that the company concerned had registered capital of NT$500,000, substantially below the contract value. Checks also revealed inconsistencies in the information provided about the agent’s identity and the franchise outlet’s location. The other party was unable to explain the need for cash payment sufficiently to satisfy police that the arrangement was safe.

These circumstances prompted police to call for careful verification; they did not establish that fraud had occurred. The outcome was that the customer cancelled the withdrawal, not that police announced a definitive finding on the nature of the case. For the franchise community, that distinction matters.

Establish the full picture before paying

Police explained to the customer that a franchise investment is a high-value commercial transaction. Before paying, prospective franchisees should verify the other party’s identity, their authority to act for the company, the outlet’s address, the payment method, and the rights and obligations set out in the contract. Large cash payments are harder to trace and may make any subsequent dispute more difficult to resolve.

If the customer still wished to proceed, police recommended requesting complete company information and proof of authorisation, and paying through a traceable financial channel. Where transaction details remain unverified but the other party asks for a large cash withdrawal in advance, the appropriate response is to pause and check—not to rely on verbal assurances.

Seek advice if in doubt, rather than rushing to pay

Qianzhen Precinct chief Huang Yuan-min commended bank staff for spotting the irregularities and promptly reporting them. Police also reminded anyone entering into a franchise, investment or other high-value transaction not to let time pressure push them into making a payment. Anyone facing an incomplete contract, uncertainty over an agent’s identity or a request to hand over cash can call Taiwan’s 165 anti-fraud advice hotline or contact police on 110 for assistance.

Practical takeaway: Prospective franchisees should verify the company and the authority of anyone acting on its behalf, confirm the outlet’s location and secure a complete contract before arranging payment. If any key information remains unclear, pause the transaction.