Letique Cosmetics Franchise Debacle: A Cautionary Tale for Franchisers and Investors
Entrepreneurs who purchased the Letique Cosmetics franchise from blogger Valeria Chekalina reported that the venture collapsed, according to coverage on the Telegram channel Shot. The tale sparked questions about the realities of franchise models in fast-moving consumer goods markets and the financial risks tied to turnkey business offers.
The purchase was described as a package deal priced at 1,100,000 rubles. The turnkey offer reportedly included products valued at 600,000 rubles along with an island retail unit appraised at 500,000 rubles. In the early days, the business appeared to be profitable. Income flowed in, inventory moved, and the storefronts attracted regular customers. But a shift occurred after roughly two years, altering the trajectory of the venture.
Changes in policy by the blogger reportedly restricted franchisees from conducting sweepstakes and promotional campaigns. This decision coincided with a noticeable drop in buyer traffic at multiple outlets. As promotional opportunities narrowed, the focus of product distribution shifted back toward Chekalina’s own primary store, positioning the blogger as the central channel for raw sales rather than a decentralized network of independently operated locations.
Several franchisees expressed concern about deteriorating turnover. One owner explicitly requested that the promotions cease to protect their own revenue stream. In a bid to salvage the business, the franchisee borrowed 1.5 million rubles. Despite this capital infusion, the efforts did not reverse the downward trend, and the franchisee ultimately faced insolvency in line with other Letique Lerchek operators.
The broader narrative connects the franchise experience to the individuals behind the Letique Lerchek brand. It has been reported that Valeria Chekalina, the blogger associated with the Letique Lerchek name, and her spouse Artem Chekalin, were implicated in a tax-related legal matter. The public record mentions luxury vehicle ownership linked to these allegations, adding another layer of scrutiny to the franchise venture and its leadership. While these details echo through media discussions, they do not alter the core business dynamics observed by franchisees and investors who navigated the Letique Lerchek opportunity.
For readers in North America evaluating franchise opportunities, the Letique Lerchek case underscores several practical considerations. First, a turnkey franchise may include both tangible assets, such as inventory and fixtures, and intangible assets, like branding and online channels. The value of these components can change quickly with market demand, consumer behavior, and the control functions exercised by the franchisor. Second, the success of a franchise network often hinges on a clear, consistent promotional policy. If marketing safeguards shift toward centralized channels, independent operators may lose differentiation and face revenue pressure. Third, lenders and investors should scrutinize cash flow assumptions, debt levels, and the availability of reserve capital to weather promotional pauses or policy changes without triggering a solvency crisis. Finally, leadership transparency and regulatory compliance are essential factors that influence investor confidence and long-term viability in any franchise system.
Observers emphasize that the Letique Lerchek situation is not merely about a single brand or a single influencer. It illustrates how shifts in governance, marketing strategy, and channel management can ripple through a network of franchisees. The insolvency outcomes in several cases highlight the need for robust due diligence before signing franchise agreements, especially when the package hinges on a personal brand and a limited geographic footprint. For prospective franchisees, the lesson is clear: demand clarity on promotional rights, expected revenue models, and the degree of control a franchisor retains over pricing, campaigns, and product allocations. Investors should seek third-party audits of cash flows, inventory valuation, and legal risk factors before committing capital. In any market, including the United States and Canada, a well-structured franchise requires a durable blueprint that aligns incentives across franchisor, franchisee, and supplier networks.
As the story continues to unfold, it serves as a reminder that business partnerships built on personal brands carry distinct advantages and unique risks. The Letique Lerchek case offers a real-world lens into how branding, promotions, and leadership choices intersect to shape the fate of a franchise portfolio. For those weighing similar opportunities, the central takeaway remains the same: thoughtful contractual terms, transparent governance, and disciplined financial planning are the cornerstones of sustainable growth in any franchised enterprise.