October 17, 2024 Copyright ©️ 2024 by goldkeen International Patent & Trademark Joint Office
“Franchising is really just about selling two things: milk tea, and milk tea shops.” — Liu Run
This statement couldn’t be more spot-on.
It captures the essence of how franchise headquarters primarily profit through selling ingredients, and it highlights the importance of brand licensing.
Milk tea represents a product with distinctive features.
For instance, the southern Taiwan brand “Tea’s Magic Hand” (茶的魔手) became a regional powerhouse by perfecting tea quality.
It even received exclusive rights from the Taiwan Intellectual Property Office to use the trademark “茶魔” (Tea Magic).
When it launched in Taipei, the store drew hour-long lines.
Milk tea shops, on the other hand, demonstrate a profitable store model.
If a single shop proves to be profitable, franchise prospects at trade shows will see potential for replication.
That’s when they’re willing to pay for franchise rights.
Initially, it starts with a trademark application.
Once the name gains recognition, the trademark becomes a “brand” that can generate licensing revenue.
But once the franchise HQ starts collecting licensing fees, the real responsibility begins: management.
This includes:
- New product development
- Logistics and distribution
- Marketing and promotions
- Quality control
These are exactly the things you should closely observe and inquire about at franchise exhibitions.
After paying your franchise fee, what support will the headquarters actually provide?
What’s your favorite drink brand?
Let’s be honest—top-tier franchise brands are usually the ones putting real effort into marketing exposure and product innovation.
Is your trademark already protected?
👉 Click below to consult with us now
or search @goldkeen on LINE, or visit:
https://line.me/R/ti/p/@goldkeen
