More than 90 suspects have been apprehended for allegedly running a milk tea franchise scam, Shanghai police said today.
The suspects profited over 700 million yuan (US$108 million) from the alleged scam.
Shanghai police started their investigation last December after finding that a number of milk tea franchises in Songjiang under the same brand name were closed shortly after opening.
One of the shop owners was a man surnamed Wang who closed his “Chazhilan” milk tea shop after only three months.
In May of 2020, Wang saw an online advertisement about franchising a famous milk tea chain, and contacted the agency that advertised the service.
Wang was told the advertised franchise program had no more slots for newcomers, and was introduced to the…