Core Viewpoint - Vanke's decision to open franchise opportunities for its long-term rental apartment brand, Banyu, marks a significant shift from "heavy asset holding" to "light asset operation" [1][21]. Summary by Sections Franchise Models - The franchise model consists of two main types: project franchise and capital franchise. The project franchise offers services such as brand authorization, system usage, sales operation, and member services to property owners who wish to introduce a long-term rental brand [2]. The capital franchise connects investors with projects, allowing those with idle funds to invest in the long-term rental sector [3]. Target Audience - The franchise initiative aims to attract two types of participants: investors with available funds and property owners looking to partner with a rental brand, essentially targeting those who are "cash-rich but asset-poor" and "asset-rich but cash-poor" [4]. Industry Context - Vanke's move to open franchises is unexpected within the industry, especially given its leading position with over 260,000 managed units, and its profitability as reported in 2023 [5][6]. The franchise model is typically used for rapid market expansion, but it poses challenges in quality control due to limited oversight of franchisees [7]. Historical Background - The franchise model has been more common among entrepreneurial rental brands, while developer-backed brands like Vanke have historically relied on their financial strength to support their rental operations without franchising [10][11]. As these brands grow, they are beginning to adopt more market-oriented business models that require broader social cooperation [11]. Competitive Landscape - Other developer-backed brands, such as Longfor and CIFI, have already begun exploring light asset cooperation models, indicating a trend towards franchise and partnership strategies in the industry [12][13][15]. Market Position - According to research, Vanke's Banyu leads the long-term rental market with a significant share of managed units, accounting for nearly 20% of the top 30 rental brands [17][19]. The brand has established a strong operational presence across 29 cities, with a high occupancy rate of 95% and a customer satisfaction rate of 95% [19]. Financial Performance - Vanke's Banyu reported a revenue of 3.46 billion yuan in 2023, achieving profitability for the first time under cost accounting [20]. However, the company faces financial pressures and a projected loss of 45 billion yuan in 2024, prompting the need for sustainable growth strategies like franchising [20]. Implications for the Industry - Vanke's franchise initiative is expected to set a precedent for other developer-backed rental brands, potentially accelerating industry consolidation and increasing competitive pressure on smaller brands [22].