Case Study · Cross-border master franchise · Australia & NZ

NingJi 柠季

China's №1 fresh lemon tea brand — ABC Franchise as their Australia/NZ recruitment and onboarding partner. A live engagement representing the fourth brand in our portfolio.

柠

手打柠檬茶 · Hand-shaken fresh lemon tea

Home · Case Studies · NingJi

At a glance

3,500+

China stores (signed)

90+

Overseas stores signed

~20

Overseas open

200M+

Cups sold lifetime

The brief

NingJi is the fastest-growing modern tea chain in China — 3,500+ contracted stores across 30 provincial regions in five years, backed by Tencent, ByteDance and Shunwei Capital. The brand is now executing an overseas expansion across Southeast Asia, Australia and New Zealand, with 90+ stores signed outside China and roughly 20 already trading.

Australia and New Zealand are a 2026 priority. NingJi's first Sydney store has been running for three months at near ¥1M RMB monthly revenue. Melbourne's first store soft-opened end of March 2026 with 600–1,000 cups per day and queues morning to night. Auckland's debut store has hit single-day peaks above ¥30k RMB and is now selecting its second site. Brisbane, Canberra and the Gold Coast are under construction.

The brand needed an Australia/NZ recruitment partner — someone who could screen prospective franchisees against local market reality, brief them properly on a revenue-share commercial model that differs from typical Western franchise fees, and bridge cultural and operational expectations between the China HQ and Australian operators.

That's our engagement.

The fit with ABC's positioning

This is the work our international expertise page describes in the abstract — brand entering Australia through a master-franchise structure, requiring local recruitment, local fit-assessment, and Code-side translation. NingJi is that work made concrete.

For NingJi: ABC brings the Australian operator network, the Code-compliance translation, the regional language fluency (we work in both Mandarin and English at partner level), and the recruitment-funnel discipline they need to avoid the year-two issues that plague rushed overseas master-franchise launches.

For prospective franchisees: ABC is the local presence that gives them a real conversation about whether NingJi suits them — without the time-zone friction or language barrier of dealing directly with a Changsha HQ that's running thirty markets at once.

The commercial model — and why it suits Australia

NingJi runs a revenue-share partnership model rather than a traditional Australian-style franchise fee. The franchisee pays a 2% brand authorisation fee monthly (1.8% if signing 3 stores, 1.5% if signing 5), plus a tiered management service fee that only kicks in above AUD/NZD $48k monthly revenue. The performance bond is RMB ¥20K (~AUD $4,400) for a single store — refundable interest-free at end of the 3-year term if there's no breach.

For Australian operators used to seeing $50k–$150k upfront franchise fees, this is structurally different. The franchisor only earns when the store earns. That's an aligned incentive structure and a much lower entry bar than the AU/NZ franchise market typically presents — which is part of why our recruitment pipeline has filled faster than we forecast.

Why we took this engagement

Three reasons:

1. The brand passed our criteria. Real unit economics (65–70% gross margin, 20–30% net, 12-month payback), defensible IP (proprietary fragrant lemon plantation, hand-shaken SOP), category dominance (21.6% market share in China lemon tea), credible capital structure (Tencent/ByteDance/Shunwei). It scored against the same nine factors we use in our Franchise Fitness Check.

2. The early-market evidence is real. The Sydney and Melbourne traction isn't projection — it's stores we can walk into. Daily queues, sold-out runs, repeat customers. That's the diligence a recruiter can lean on.

3. The category fits the market. Sydney and Melbourne have unusually strong Asian-Australian consumer demand for premium tea concepts. The bubble tea boom of the late 2010s normalised the spend; NingJi's positioning (premium fresh lemon tea, not generic milk tea) sits one tier above. The structural demand is there, and the AU/NZ market is under-served for this specific category.

What ABC is delivering

  • Recruitment funnel design for AU/NZ operators — qualification criteria, application process, multi-store package routing
  • Code-side translation — adapting NingJi's China-standard documentation to Australian Franchising Code disclosure expectations
  • Investor briefings in both English and Mandarin, for operators evaluating single-store, 3-store, or 5+ store packages
  • Senior-partner relationship with NingJi's overseas team for ongoing market feedback and policy iteration
  • Local operator fit-assessment — separating Australian retail/F&B operators with real capability from undercapitalised speculators

Where the engagement sits today

Sydney, Melbourne and Auckland have anchor stores trading. Brisbane, Canberra, Gold Coast under construction. Active recruitment is open for additional Sydney/Melbourne territory operators, the Brisbane/Gold Coast wave, Perth, Adelaide, and the New Zealand second-city expansion (Wellington, Christchurch).

If you're a qualified operator interested in territory: the application page is here.

What other brands considering Australia entry can learn from this

Three things, in order of weight:

Anchor stores first, recruitment second. NingJi didn't open recruitment until Sydney, Melbourne and Auckland had real trading evidence. That made every subsequent recruitment conversation faster and more honest — operators don't have to take projections on faith.

Local partner with regulatory fluency. Trying to recruit Australian franchisees while running a 3,500-store China business from Changsha doesn't work without a local presence that handles the Code-side translation, the operator fit-assessment, and the cultural bridge. The cost of getting this wrong is year-two churn and ACCC attention.

Commercial model adapted to local norms. The revenue-share structure (rather than upfront franchise fee) is unusual in Australia but well-suited to the China-overseas expansion playbook. Australian operators evaluating it need it explained carefully — that's part of our recruitment role.

If your brand is considering Australian entry

Whether you're a Chinese, Korean, Japanese or Southeast Asian brand looking at Australia/NZ, or an Australian brand evaluating master-franchise structures into Asia, the early conversations save money downstream. Start a conversation.

Live AU/NZ trading evidence

Stores already open, selling out daily.

NingJi Eastwood storefront

Featured store · Sydney Eastwood

Shop 3 / 160 Rowe St — opposite Eastwood Woolworths.

Open till 10pm Friday–Saturday. 4.3★ on 47 reviews. Storefront positioned facing the Eastwood street mall — high pedestrian flow from both the Woolworths catchment and the Chinatown-adjacent foot traffic that makes Eastwood one of Sydney's strongest Asian-Australian retail precincts.

A typical NingJi 20–30㎡ format in an A-tier suburban location.

Sydney CBD

First store

Monthly revenue ~¥1M RMB (3 months). Chatswood, George St, Burwood under build.

Melbourne

First store

2-week soft launch end March 2026. 600–1,000 cups/day. Lines all day.

Auckland (NZ)

First store

Single-day peak ¥30k+ RMB. Selecting 2nd site.

Brisbane · Canberra · Gold Coast

Multiple sites

Construction underway. Recruitment open for additional operators.

Two doors from here

Which conversation do you want?