Methods to avoid milk tea shop franchise scams:
1. First go to a milk tea franchise store to buy their milk tea, taste it yourself, and first determine whether the taste of the franchise brand's milk tea is suitable.
2. Go online to check whether the company's business license has been registered with the industrial and commercial department and whether the office location is consistent with the registered location. If they are all correct, it means it is not a scam company; if the information does not match, then you need to be more vigilant.
3. Search the Internet for some opinions and remarks about the company. Of course, the most important thing is to add your own conceptual judgment and not just listen to what netizens say. However, if all negative news comes up when searching for the company, then there is a high probability that there is something wrong with the company.
4. If conditions permit, it is recommended that you go to the company headquarters to inspect the company's environment, the company's milk tea products, the company's configuration, etc. Generally speaking, companies that are scammers will not let you go to the company for on-site inspections. Be cautious when encountering this situation.
Extended information
Methods to prevent accidentally falling into chain franchise scams:
First, you should inquire through the Commercial Franchise Information Management System of the Ministry of Commerce.
Focus on understanding whether the enterprise has passed the registration process. After finding out, the franchisor should be required to produce the certificate of rights for the operating resources it owns. For example, they can present written information on their registered trademarks, corporate logos, patents, professional technologies, business models and other information, and at the same time check the authenticity and validity of the above certificates and licenses through the government website.
Second, you should ask for an invoice in a timely manner after paying the relevant fees.
Generally speaking, the headquarters will charge four types of fees from franchisees, namely franchise fee, management fee, deposit, payment, etc. The so-called franchise fee refers to the fee charged by the headquarters to help franchisees with overall store planning, education and training, and brand licensing before opening a store. The management fee is an ongoing charge that may be charged monthly or quarterly.
Third, there are issues with the quality, price and method of supply provided by the franchisor.
In a general franchise contract, the franchisor will require the franchisee to purchase goods from the franchisor and not to purchase goods privately. This is a requirement made by the franchisor to ensure the unified management of its brand and service quality. It is understandable, but this point is often the point of greatest dispute between the franchisor and the franchise store.
Fourth, the issue of rights protection within the franchise authorization scope and authorized areas.
In order to ensure the normal operation of its brand and the operational interests of its franchisees, the franchisor will make reasonable divisions in the authorized scope and authorized areas of its business resources, thereby effectively protecting the rights and interests of both parties. right.
Fifth, the franchisee’s business guidance, technical support, business training and other terms should be as detailed as possible.
In the contract, the content of these matters should be clearly stipulated. In many franchise contracts, these clauses occupy the main content of the contract and are also a reflection of the protection of the interests of the franchisee, but usually In the contract, there will be "Matters not covered in this contract shall be handled in accordance with the relevant rules and management regulations of the franchisor."
Sixth, regarding breach of contract and penalty clauses.
Since the franchise contract is mostly a standard clause drawn up by the franchisor, it will be more beneficial to the franchisor. In terms of matters and penalties for violating the contract, there are usually more sections specific to the franchisee. , while the franchisor's breach of contract is only briefly mentioned. Before signing a contract, the franchisee should fully understand the restrictions imposed by the franchisor in the relevant terms.
Seventh, handling of contract termination.
When the contract is terminated, the most important thing for the franchisee is to get back the deposit, but the headquarters often refuses to return the deposit for various reasons. In practice, the reasons often used by the headquarters are: the purchase volume did not reach the amount agreed in the contract, or the franchisee failed to perform relevant contractual obligations after the contract was signed, such as failing to send the store address, photos, etc. to the headquarters for filing.
Eighth, before signing a franchise contract, professionals should be consulted on the legal issues of the contract. After the contract is signed, both parties must each hold a copy.
If the franchisor retains two contracts and does not leave one to the franchisee, if a dispute arises in the future, the franchisee is likely to be unable to resolve the dispute because there is no evidence to prove the existence of a contractual relationship between the two parties. Protect your own legitimate interests.
Unified platform for business systems of the Ministry of Commerce: How to prevent accidentally falling into chain franchise scams