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Answer Tea franchised 250 stores off a Douyin hit — on a trademark it didn't own

A 'fortune-telling' milk tea went viral on Douyin in 2018. Its maker signed 250 franchises promising zone protection — on a name it never owned outright.

Henan Mengmou Network Technology · 2018-01-17

What happened

Answer Tea (答案茶) was a 'fortune-telling' milk tea launched in late 2017 by Henan Mengmou Network Technology, a Zhengzhou startup whose founder Gu Tiefeng had run the errand-service UU Paotui. A customer wrote a question on the cup; a printed 'answer' appeared under the lid. In January 2018 clips went viral on Douyin: within two months the brand drew 350,000 followers, 1.13 million likes and views past 100 million. People queued for hours.

Mengmou turned the traffic into franchises immediately. The first franchise signed on 17 January 2018; within roughly three months it had signed about 250 stores across 27 provinces. To each franchisee it promised a 500-metre zone of exclusivity — no second Answer Tea inside it.

The promise was unenforceable, because Mengmou did not own the name. The '答案' (Answer) trademark belonged to Nanjing Kerunte Intelligent Technology; Mengmou held only a licence, and not an exclusive one. Multiple companies — including a Guangzhou firm and a Henan 'Answer Tea Catering' — claimed the rights too. As clones opened, the zone protection Mengmou had sold could not be kept: a franchisee's neighbour could open an identical 'Answer Tea' under another licence and Mengmou could not stop it.

Franchisees who had paid for exclusivity found none. At the Zhengzhou Erqi Wanda store, franchisees blockaded the premises and demanded their money back. Stores closed in waves; the founding trio of partners — Zhang Jinrui, Zhu Feng and Gu Tiefeng — all quietly left in July 2018, and a manager, Hong Shanshan, took over what one report called 'a battered brand'.

Why it happened

  • The brand was franchised before its name was secured. Mengmou promised 500-metre exclusivity it could not enforce — the '答案' mark belonged to another firm under a non-exclusive licence.
  • Viral attention was mistaken for a defensible business. The cup gimmick was cheap to copy and had no product moat, so clones opened as fast as the originals once the name was shown to be shared.
  • Owning a licence was treated as owning the brand. A non-exclusive licence lets you use a mark; it does not let you promise a franchisee that no one else will.
What it cost≈250 franchises in 3 months; founders out by July; blockadedcostly

The lesson

A franchise's exclusivity is only as strong as the trademark behind it. Secure the name before selling territory — a non-exclusive licence lets you use a mark, not keep rivals out.

Aftermath

The brand carried on under a new manager but never escaped the trademark tangle; by around 2020 it had largely faded from the market and Mengmou's official account was taken down. Answer Tea became a standard reference point in Chinese coverage for the 'internet-famous brand that burns fast' pattern — alongside T97 Coffee, which franchised off a Douyin chant three years later.

Sources

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