Franchising in Taiwan: Growth, Global Brands, and International Expansion
Franchising has grown to become a dynamic and influential force in Taiwan’s economy. Over the past few decades, Taiwan has not only embraced franchise business models across a wide range of industries but has also produced homegrown franchise brands that have achieved international success. From bubble tea giants to convenience stores and fitness studios, Taiwan has become a hub for franchise innovation and expansion.
This article explores the evolution of franchising in Taiwan, top franchise brands that originated in the country, and how Taiwanese franchises have expanded to international markets.
The Origins and Growth of Franchising in Taiwan
1. Early Adoption: 1980s–1990s
The concept of franchising entered Taiwan during the 1980s, as the country rapidly industrialized and urbanized. Inspired by U.S. and Japanese business systems, Taiwanese entrepreneurs began to recognize franchising as a scalable business model for delivering consistent products and services across multiple locations.
During this period, the first wave of international franchises entered Taiwan. American and Japanese brands like McDonald’s, KFC, 7-Eleven, and Yoshinoya established a strong presence and helped educate the market on what franchising was and how it could be applied locally.
- 1984: McDonald’s opened its first location in Taiwan.
- 1987: 7-Eleven (operated by President Chain Store Corporation) began its aggressive expansion and became one of Taiwan’s most successful franchise systems.
- Late 1980s–1990s: Taiwanese entrepreneurs began franchising small restaurants and retail shops locally.
2. Expansion and Sophistication: 2000s–2010s
By the early 2000s, Taiwan saw a boom in domestic franchising activity. With better understanding and legal support, local brands across industries like food and beverage (F&B), education, beauty, retail, and health services began to grow. Organizations like the Taiwan Franchise Promotion Association (TFPA) and trade shows like the Taipei International Chain and Franchise Exhibition helped standardize practices.
Key developments during this time:
- Franchising expanded across 100+ business categories.
- Taiwan became a testing ground for regional franchise growth.
- Local brands started gearing for international expansion.
3. Global Ambitions: 2010s–Present
Since the 2010s, Taiwanese franchise brands have expanded aggressively abroad, especially in Southeast Asia, North America, and Oceania. Bubble tea led the charge, but other sectors followed as logistics and franchise tech improved.
Taiwan is now globally recognized as a bubble tea originator and a rising franchise player across various industries.
Legal Framework for Franchising in Taiwan
Franchising is governed by Taiwan’s Fair Trade Act under the Taiwan Fair Trade Commission (TFTC). Key regulations include:
- Disclosure Obligations: Franchisors must disclose terms 10 days before contract signing.
- Registration: No formal registration needed, but compliance is mandatory.
- Contract Law: Franchise agreements fall under Taiwan’s Civil Code, protecting both parties.
Key Sectors for Franchising in Taiwan
- Food and Beverage (F&B): Bubble tea, QSRs, bakeries, cafes, noodle shops.
- Convenience Stores and Retail: High-density retail franchises including electronics and fashion.
- Health and Beauty: Skincare clinics, spas, fitness studios.
- Education: English schools, tutoring, STEAM education.
- Service Businesses: Pet grooming, car washes, laundry.
Top Franchise Brands From Taiwan
1. Chatime
- Founded: 2005 (Taichung)
- Franchise Reach: 1,000+ locations in 30+ countries
- Markets: U.S., Canada, Australia, Philippines, U.K.
Chatime pioneered the global bubble tea wave. Backed by a strong supply chain and fresh branding, it has become Taiwan’s most iconic F&B franchise abroad.
2. 85°C Bakery Café
- Founded: 2003 (Taipei)
- Concept: Coffee shop and bakery
- Locations: 1,000+ globally, especially in the U.S. and Australia
85°C positions itself as an affordable luxury café with fresh pastries and brewed coffee. It has succeeded both locally and overseas.
3. Louisa Coffee
- Founded: 2006
- Model: Coffee shop franchise
- Reach: 500+ Taiwan locations and expanding across Asia-Pacific
Louisa Coffee is a domestic rival to Starbucks, with strong pricing and branding that appeal to local and regional markets.
4. Yonghe Soy Milk King (Yonghe Doujiang)
- Model: Traditional Taiwanese breakfast chain
- Menu: Soy milk, fried dough, egg pancakes, rice rolls
Yonghe Doujiang captures Taiwan’s cultural breakfast experience and resonates with both locals and tourists.
5. Ten Ren’s Tea / Tenfu Tea
- Industry: Tea retail and cafes
- Markets: U.S., Canada, China, Australia
These brands blend education, traditional Chinese teas, and retail/F&B hybrid models into their global franchises.
Taiwanese Brands Expanding Into Other Markets
Most Taiwanese franchises begin regional expansion into China, Hong Kong, Singapore, Malaysia, and Indonesiabefore targeting the West.
Success Factors:
- Strong brand identity
- Scalable supply chain
- Cultural appeal (e.g., bubble tea)
- Master franchise strategies
Taiwan as a Franchise Incubator
- Urban Density: Enables rapid testing and scaling of concepts
- Demanding Consumers: Forces quality and service excellence
- SME Culture: Encourages entrepreneurial franchising
- Local Manufacturing: Supports cost-effective international scaling
Franchise Trade Events and Associations
- Taipei International Chain and Franchise Exhibition (TICFE): Biannual trade event showcasing franchise brands
- Taiwan Franchise Promotion Association (TFPA): Resources and networking for franchisors/investors
- TAITRA: Promotes Taiwanese franchise brands globally
Challenges Facing Taiwanese Franchisors
- Localization of menus/services
- Complex international franchise laws
- Brand dilution in saturated categories
- Global supply chain coordination
Despite these challenges, Taiwanese brands continue to succeed through systemization, local partnerships, and cultural alignment.
Conclusion
Taiwan’s franchising journey showcases innovation, cultural relevance, and entrepreneurial success. From the early arrival of McDonald’s to global domination by Chatime, Taiwan has become a respected hub of franchise development.
Emerging concepts in health, lifestyle, and education signal continued global influence. Taiwan remains a prime source for scalable, modern franchise models with international appeal.
For more information on how to franchise your business in Taiwan, contact FMS Franchise Asia.
