CHANGSHA, China – Urban Tea Inc. (NASDAQ: MYT), a premier retailer of specialty teas and baked goods based in Hunan, China, today announced that we received the approval from the Commercial Franchise Enterprise Administration on May 20th, 2020 and was approved to seek franchisees for growth opportunities throughout China. Hunan Ming Yun Tang Brand Management Co., Ltd. (“Hunan MYT”), the Company’s variable interest entity, has officially obtained the “Business Franchise Enterprise” license issued by the Hunan Provincial Department of Commerce.
The license enables the Company to grow its business through franchising with its brand “Buoyance Manor,” in addition to operating corporate stores within China.
Management believes that due to Hunan MYT’s efficient brand operation, management and supply chain system, coupled with newly obtained franchise qualifications, we are well positioned to attract potential franchisees across the country.
The Buoyance Manor franchising opportunity represents an exceptional opportunity in the tea retailer industry. In addition to providing franchisees with brand publicity, store design, staff training, and standard administration services, the centralized kitchen will also provide finished products to franchisees.
Given the extensive collaboration with major raw material and equipment suppliers, franchisees will always be offered supplies of the best quality at a competitive price.
Mr. Long Yi, Chief Executive Officer of Urban Tea, commented: “We are excited about expanding our brand and growing the business via franchising. This is a strong indicator that the Company has ushered in a new development opportunity.
There is tremendous growth potential for franchise businesses, and the strength of our brand and management; we look forward to achieving long-term, successful partnerships with our franchisees.”