It is regarded as an effective business philosophy. Just as McDonald's has developed rapidly around the world through franchising, franchisers teach their successful brands, products and operating models to franchisees in the franchise system, giving franchisees the right to operate a product or service that has been sold well.
Franchising is a new type of modern enterprise management organization model. It adapts to the development of market economy and can better serve customers. It uses the transfer of intellectual property rights to fully mobilize all favorable capital and realize the optimal combination.
The definition of franchising is: franchising refers to trademarks (including service trademarks), trade names, products, patents and proprietary technologies, business models, etc. granted by franchisees. It is provided to the franchisee in the form of a contract, and the franchisee engages in business activities under the unified business model of the franchisee according to the provisions of the contract, and pays the corresponding expenses to the franchisee. Cooperation, motivation and team spirit are important factors for the success of franchising. These things mainly come not from legal agreements, but from ethical exchanges, strong leadership and respect for the goals of one party to the other.
In fact, the relationship between franchisees and franchisees is often just like marriage, which is determined by the long-term cooperative relationship and the interdependence of the two sides. The best relationship between franchisor and franchisee is also the goal pursued by both parties. To achieve this goal, franchisees must be mature, objective and persistent. On the other hand, the franchisee must be patient, fair and consistent with its franchisee.
It has to be mentioned that franchising in China is still in its infancy, with mixed fish and dragons, loose management and relevant laws and regulations not yet in place.
If you want to join the franchise, you should check
1. Franchisor's business license;
2. Filing of commercial franchise (please visit the commercial franchise information management system/inquiry of the Ministry of Commerce);
3. Joining resources and qualifications (having at least two direct stores, operating 1 year or more);
In addition, the signing of a franchise contract shall include the following contents:
(a) the basic information of the franchisor and franchisee;
(two) the content and duration of the franchise;
(three) the type, amount and payment method of franchise expenses;
(four) the specific contents and methods of business guidance, technical support, business training and other services;
(5) Quality, standard requirements and guarantee measures of products or services;
(6) Promotion and advertisement of products or services;
(7) Protection of consumers' rights and interests and liability for compensation in franchising;
(8) Alteration, rescission and termination of the franchise contract;
(9) Liability for breach of contract;
(ten) the way to solve the dispute;
(eleven) other matters agreed by the franchisor and the franchisee.
The franchisor and the franchisee shall stipulate in the franchise contract that the franchisee may unilaterally terminate the contract within a certain period after the franchise contract is concluded.
The franchise period stipulated in the franchise contract shall not be less than 3 years. However, unless the franchisee agrees.
The franchisor shall provide the franchisee with the following information in writing at least 30 days before concluding the franchise contract:
(1) The name, domicile, legal representative, registered capital, business scope and basic information of franchise activities of the franchisor;
(2) Basic information about the registered trademark, enterprise logo, patent, proprietary technology and business model of the franchisor;
(three) the type, amount and payment method of the franchise fee (including whether to collect the deposit and the conditions and methods for the return of the deposit);
(4) The prices and conditions of products, services and equipment provided to the franchisee;
(5) The specific content, mode of provision and implementation plan of continuing to provide services such as business guidance, technical support and business training for the franchisee;
(six) specific measures to guide and supervise the franchisee's business activities;
(seven) the investment budget of the franchise outlets;
(8) Evaluation of the number, geographical distribution and operating conditions of existing franchisees in China;
(9) Financial and accounting reports and summaries of audit reports audited by accounting firms in the last two years;
(ten) litigation and arbitration related to franchising in the last five years;
(eleven) whether the franchisor and its legal representative have any major illegal business records;
(twelve) other information stipulated by the competent department of commerce of the State Council.
The information provided by the franchisor to the franchisee shall be true, accurate and complete, and shall not conceal relevant information or provide false information.
If the information provided by the franchisor to the franchisee changes significantly, it shall notify the franchisee in time.
If the franchisor conceals relevant information or provides false information, the franchisee may terminate the franchise contract.
You can refer to the State Council's Regulations on the Administration of Commercial Franchise.
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Good luck!