How Much Can You Lose as a Franchisee?
Joining a small franchise can easily cost you around 300,000 yuan in losses, and if you get pulled into a trending project, delivery expenses alone can rack up million-yuan deficits.
On top of that, franchising often comes with a classic two-front scam.
In this scheme, the fraudulent company first calls potential targets, claiming their product is seeking agents with highly favorable terms.
When the owner hesitates, the scam ring stations fake buyers to inquire about the product, feigning strong interest and promising large orders if supply is available. The老板 hears “an opportunity to make money,” pays the franchise fee, and stocks up heavily.
Once the inventory arrives and the老板 tries to contact the buyers, they cancel the orders for one excuse or another. With the ducks cooked and gone, the老板 panics and requests a return; the scammers naturally obstruct every move and eventually cut off contact entirely. In the end, the老板 is left holding unsellable stock and has no choice but to swallow the loss.
