Chinese coffee giant Cotti Coffee is quietly laying the groundwork for a major U.S. expansion, building a franchise and licensing infrastructure that could accelerate its growth across the country while strengthening its position as one of the world’s fastest-growing coffee brands.
The company, which claims more than 18,000 stores across 33 countries, has been expanding in the United States since opening its first American outlet at Pearl Highlands Center in Honolulu, Hawaii, in spring 2024. Since then, the chain has entered markets including New York, Washington, D.C., Illinois, Tennessee, and California, with additional locations reportedly in development.
While much attention has been focused on the U.S. arrival of fellow Chinese coffee chain Luckin Coffee, newly disclosed franchise documents reveal that Cotti has been quietly establishing a multi-layered American operating structure encompassing licensing, franchising, supply chain management, distribution, and store development.
A key milestone in that strategy is the filing of a Franchise Disclosure Document (FDD) by Cotti Partners LLC, a Delaware-registered entity that appears to mark the formal launch of the company’s U.S. franchise programme.
However, the FDD reveals that most of Cotti’s existing U.S. stores do not currently operate as traditional franchises.
According to the filing, the majority of locations have been established through licensing arrangements overseen by Cotti Tech LLC, a separate Delaware affiliate formed in September 2023. As of March 31, 2026, Cotti Tech had 25 licensed locations operating across the United States, along with one company-owned store in Los Angeles.
Notably, the FDD states that these outlets are not classified as franchises because Cotti Tech “does not provide substantial assistance” to licensees or “substantially control” their operations, distinguishing the model from a conventional franchise relationship.
The filing also details two additional affiliate-operated locations. Cotti Coffee Hawaii LLC operates the brand’s original Pearl Highlands Centre outlet in Honolulu, while Banyan Tree City Investment LLC, a California-based entity registered in Lomita, operates another U.S. location.
Taken together, the disclosure document accounts for at least 28 U.S. locations as of March 31, 2026, offering the clearest picture yet of Cotti’s American footprint.
The FDD suggests that the company is now transitioning from a licensing-led approach to a more structured franchise growth strategy through Cotti Partners LLC, potentially opening the door for a broader network of franchise partners across the country.
Beyond store development, Cotti has also established a dedicated U.S. supply chain infrastructure. The company’s approved supplier network is managed through Cotti Supply Chain LLC, which provides equipment, store fixtures, furnishings, and consumable inventory to operators throughout the United States.
The wider corporate structure includes Cotti USA Inc., Cotti Partners LLC, Cotti Tech LLC, and Cotti Supply Chain LLC, reflecting a comprehensive expansion model designed to support long-term market growth.
Founded in 2022 by former Luckin Coffee executives Charles Lu and Jenny Qian, Cotti has become one of the fastest-growing coffee chains globally. The company surpassed 10,000 stores within two years of launch and now claims more than 18,000 outlets worldwide.
Its international operations are overseen by Hong Kong-based Cotti Coffee International Limited, which, according to the FDD, manages approximately 234 stores outside mainland China, including 47 company-owned locations and 187 franchised or licensed outlets.
The U.S. expansion comes as a growing number of Chinese consumer brands seek international growth opportunities through scalable franchise and licensing models. Alongside companies such as Mixue, HeyTea, Miniso and Pop Mart, Cotti is part of a broader wave of Chinese brands exporting highly standardised, technology-driven business systems to overseas markets.
With a formal franchise programme now taking shape and a growing nationwide footprint already in place, Cotti Coffee appears to be positioning itself for a larger role in the highly competitive U.S. coffee market.
