Fake Luckin Coffee Franchise Scam: Exploiting Brand Popularity to Harvest Franchise Fees and Deposits

Who Gets Targeted

Victims are mostly middle-aged individuals in third- and fourth-tier cities, returning migrant workers, and small-scale investors who have saved between 100,000 and several hundred thousand RMB but lack the awareness to verify brand authorization. Their psychological weakness lies in their blind faith in the profit potential of famous brands, believing that 'if Luckin stores have such long queues, franchising must be a guaranteed profit.' Fearing that 'limited spots' will be snapped up, they sign contracts and transfer funds under pressure without performing due diligence, with some even borrowing money to cover the franchise fees.

骗局怎么运作

• Step 1: Scammers register fake websites that closely resemble the official Luckin site or place 'Luckin Coffee National Partner Recruitment' feed ads on short-video and search platforms, using enticing slogans like 'regional protection,' 'headquarters support,' and 'fast return on investment' to induce victims to leave their phone numbers.
• Step 2: Fake recruitment agents call back, claiming to be authorized Luckin franchise managers. They use scripts emphasizing 'limited spots for direct-managed stores' and 'franchise fee waivers for signing this month,' using forged business licenses, authorization letters, and store revenue screenshots to gain initial trust, then urge victims to pay a few thousand RMB as an 'intent deposit' to lock in a spot.
• Step 3: Victims are invited to a so-called 'headquarters visit' or an online presentation. On-site, shills posing as existing franchisees share success stories to create a herd effect, inducing victims to sign formal franchise contracts and pay franchise fees, deposits, and equipment costs ranging from tens to hundreds of thousands of RMB.
• Step 4: After signing, scammers continue to demand fees under the guise of 'site selection assessment,' 'design and renovation,' and 'material procurement.' However, the promised site selection and training are never delivered. Stores either fail to open or are shut down by Luckin's legal team after opening with counterfeit signage, leaving victims trapped and suffering losses on both ends.
• Step 5: When victims demand a refund, scammers refuse based on breach-of-contract clauses, then change their company name and office location to continue the scam. The funds collected have long been transferred through multiple layers, leaving victims with a shell company and no legal recourse for enforcement.

红旗信号（看到这些快跑）

• 🚩 Seeing 'Luckin open for franchising, low threshold, limited spots' in short-video or feed ads. Luckin official channels never recruit through such channels; any pop-up franchise ad should be treated as a high-risk signal.
• 🚩 The website domain provided by the recruiter does not match the official Luckin domain. The page looks unprofessional, and the contact number is a personal mobile number or a 400 number that cannot be verified. These fake websites are the most direct indicator.
• 🚩 The other party demands an 'intent deposit' before showing the contract or authorization documents, and uses pressure tactics like 'deadline is today' or 'only one spot left in this region.' Legitimate brands do not use time-limited pressure tactics.
• 🚩 Authorization letters and business licenses cannot be verified through the National Enterprise Credit Information Publicity System. The company name on the contract does not match any Luckin Coffee-affiliated entities, and the official seal on the contract is ambiguous.
• 🚩 Promises of 'headquarters-guaranteed site selection, renovation, profit, and return on investment in six months.' Any franchise project promising fixed returns is suspected of false advertising and is a typical franchise scam tactic.
• 🚩 The payment account provided is a personal account or a corporate account that does not match the contract entity. Legitimate brands always use official corporate accounts and provide formal invoices.

真实案例

• Since 2020, fake Luckin recruitment websites have appeared across China. Luckin officially stated that it has not authorized any third party to recruit franchisees, warning the public to be cautious. Multiple media outlets reported on investors losing tens to hundreds of thousands of RMB in deposits after trusting fake ads.
• According to media reports, an individual entrepreneur in a certain city left their phone number after seeing a 'Luckin City Partner Recruitment' ad. They were charged over 200,000 RMB in franchise fees and deposits by fake agents under the guise of site visits and signing. After payment, the scammers disappeared, the website was taken down, and police investigation revealed the receiving company was registered at a virtual address.
• Public reports indicate that between 2021 and 2023, market regulators in various regions received complaints regarding fake franchise scams for famous tea and coffee brands. The modus operandi is identical: feed ads for lead generation, high-pressure sales, and shell company collections. Some cases were filed by police as contract fraud, with gangs divided into roles including ad placement, telemarketing, and fake site visit reception.
• Luckin Coffee has repeatedly stated in public channels that its store expansion model and authorization policies are subject to official announcements, reminding entrepreneurs not to trust third-party recruiters and cooperating with law enforcement to crack down on trademark infringement. Relevant statements can be verified on their official investor relations and news channels.

Official Stance

• In 2020, Luckin Coffee issued an official statement clearly stating that the company has never authorized any third-party institution or individual to conduct franchise recruitment, warning the public to be vigilant against scams using the Luckin name.
• On April 22, 2020, the CBIRC (China Banking and Insurance Regulatory Commission) addressed Luckin-related events, stating it would strictly punish financial fraud and other illegal acts, while warning investors and consumers to guard against various frauds using famous brand names.
• Market regulators and public security organs have repeatedly issued consumer warnings, highlighting the characteristics of 'quick franchise' scams: feed ad traffic, time-limited pressure, shell company collections, and mismatched payment accounts. They advise verifying enterprise credit information before signing.
• Industry organizations like the China Chain Store & Franchise Association (CCFA) advise that legitimate franchise brands must be registered with the Ministry of Commerce's Commercial Franchise Information Management System. Recruitment projects without such registration are extremely high-risk.

How to Protect Yourself

• ✅ Before signing, check the official Luckin channels for franchise policies. Any franchise model not officially announced is a scam; block the contact and report the ad immediately.
• ✅ Use the National Enterprise Credit Information Publicity System to verify the registration information, shareholder background, and business anomaly records of the contracting entity. Check for franchise registration and brand authorization chains. Do not sign with any entity that has no equity or authorization link to Luckin.
• ✅ Check the Ministry of Commerce's Commercial Franchise Information Management System to see if the brand has franchise registration. Exclude any project that lacks registration but promises regional protection or fast returns.
• ✅ Only transfer funds to the corporate account matching the contract entity and demand a formal invoice. Never transfer money to personal accounts or unclear third-party accounts. Keep all chat logs and contracts as evidence for legal action.
• ✅ Before paying, visit at least three real stores to verify franchise policies with staff and managers, and call the official brand customer service number to confirm the identity of the recruiter. Any recruiter refusing official verification is a scammer.
• ✅ If scammed, report it to the police immediately and file complaints with market regulators and payment platforms to freeze the funds. Consult a lawyer to claim contract rescission due to fraud. Do not trust the scammers' secondary 'pay more to process the refund' tactics.