After every chain franchise enterprise adopts the franchise model, the first thing it desires is to obtain an efficient investment promotion method. There are many investment promotion models. There is no best investment promotion model, only whether it is suitable for the current stage of the enterprise. Investment model. Chain enterprises can consider the following angles when designing investment promotion models, so as to design the investment promotion model that is most suitable for them at the emerging stage.
1. Only after determining the business model of the enterprise can there be an investment promotion model.
2. The investment promotion model requires overall design rather than patchwork.
3. The investment promotion model changes with the development stage of the enterprise.
Zero franchise fee model
If the enterprise is a chain enterprise in the early stages of development and needs to expand rapidly to achieve economies of scale, and products, equipment, materials, etc. for more than 80 stores can be purchased from the headquarters. A zero-franchise chain model can be adopted. However, the collection of franchise fees is one of the basic benefits of franchise chain enterprises. If the franchise fee is zero, the alliance owner needs to recover this part of the profit space from other angles, otherwise it will affect the subsequent business model. operation. After this policy is launched, it is inevitable that some potential franchisees who like to take advantage of opportunities will plan to join. The alliance leader must implement the strategy of "opening the door wide and inviting in the lowest" and strictly control the screening.
Negative franchise fee model
Some companies even adopt the negative franchise fee model, which actually achieves investment promotion from the perspective of franchise fee exemption, but this driving force method cannot Achieve true self-fission. The implementation of this model must be carried out with the overall implementation of matching business models, otherwise it will directly affect the subsequent development of the enterprise, or lead to weak development. Without the collection of franchise fees, it is difficult for the investment department and the supporting service departments to obtain high-quality welfare benefits, and the internal resources are weak. More importantly, the deduction for the negative franchise fee amount must be truly implemented without giving up too much profit margin. At the same time, the franchisee should feel that it is worth the money after receiving the products or services with the deduction amount. Just fine.
Licensing business model
When most companies develop to the mid-term or above, they need to penetrate the market deeply and achieve economies of scale, so they will adopt the chain model of licensing business. The company will charge a certain amount of franchise fee, brand deposit, equity fee, etc. This requires the company to have relatively strong support capabilities for the store, have a matching information management system, and the protection of the business district must be tightly designed.
Financial leasing model
If the added value of the product is high and there is a certain room for value-added, the franchise chain model of financial leasing can be adopted. This requires a certain amount of franchise fee, brand deposit, equity fee, etc. It requires the company to have strong support capabilities for the store and have the ability to operate funds. For some product franchise projects with room for appreciation, or franchise projects that require high-end equipment to complete store operations, adopting this model can greatly lower the investment threshold for the alliance owner.
The business environment of chain enterprises requires high-end value-preserving products, high-end beauty equipment, dry cleaning equipment, etc. Enterprises can use quasi-financial models to design their own franchise chain models.
Whole store export model
Chain enterprises in the middle stage of development and above can also adopt the chain franchise model of whole store export. This can reduce the risk of opening a store. Such an ultra-low-risk project can fully arouse potential franchisees' desire to understand the project.
This model requires the store to be built first and operated for a period of time. After the potential franchisee chooses to join, the leader can directly transfer the normally operating store to the franchisee.
When KFC and McDonald's entered the Chinese market in their early stages, they adopted the whole store export model to expand. On the one hand, the purpose was to quickly withdraw funds, and on the other hand, it was to tentatively open up the franchise business.
For the current domestic market, the chain franchise model is relatively mature. The importance of opening this model lies in high-quality single-store replication.
Compared with other types of franchise models, the whole store output model has a higher success rate, but chain companies under this model are relatively slower in expansion. Chain enterprises using this model can fully adopt the fission model of internal investment to expand. Its basic operating principle is that the head office is responsible for the initial investment in the store. The invested store can be publicized on the company's information platform, and anyone in the company can invest in subscribing for the store. If the store completes the investment recovery within the four items agreed by both parties, then the ownership of the store will belong to the subscriber, and the store will be directly converted from a direct-operated store to a franchise store.
Corporate employees who have become the "owners" of a franchise store can also list the store in the company's investment promotion system, and then the investment promotion department will be responsible for "raising the price and selling" the franchise store. This operation can reduce costs for the alliance leader, motivate employees, achieve expansion at the highest speed, and maximize the return of funds.
Pre-industrial chain layout, post-industrial chain value-added model
Franchise chains with pre-industrial chain layout and post-industrial chain value-added model are suitable for chain enterprises at any stage of development. This model must charge There is a high amount of brand deposit, and certain conditions must be met when choosing a franchisee, and the franchisee must have strong copying capabilities. This model either has sufficient financial strength or can withstand the loneliness of low investment returns. Because a large amount of capital is needed in the early stage to quickly occupy the market, and at the same time, the alliance leader needs to give up most of the profits to the franchisees, so that the franchisees can quickly deploy across the country. In the process of deploying across the country, the alliance leader needs to simultaneously build related companies that provide store services, such as decoration companies, logistics companies, design companies, container production companies, product companies, etc. The main reason why the alliance leader needs to build the above-mentioned companies is that it will cede almost all the benefits of the front-end industrial chain to the franchisees. It must use the front-end layout of stores to support the survival of the post-industry chain companies, and the post-industry chain companies can take advantage of external reception. Other aspects of business have developed rapidly. The risk to note is that if the layout of the headquarters' post-industrial chain cannot keep up with the pace of chain development, the post-industrial chain will not be able to operate properly. The rising administrative costs of group companies pose a great challenge to the overall management capabilities of the team.
Buy-back model
Chain enterprises with certain market development and operation capabilities can adopt the buy-back chain franchise model. Most companies with business capabilities
store managers or strong operations team reserves can adopt this model. Because for the vast majority of franchise entrepreneurs, their biggest worry when choosing a project is what if the franchise project fails to make money. Franchise projects under this model are attractive to entrepreneurs. Full of strength because they have nothing to worry about.
For the alliance owner, this franchise model can quickly attract a large number of franchisees to join. Each time these franchisees open a store, it means that the franchise store needs to purchase a large amount of equipment, products, etc. from the headquarters. Materials and other items needed for the store can allow the headquarters to obtain a large amount of cash. If the headquarters can agree on a settlement cycle with upstream and downstream suppliers, the headquarters can use these funds for financial operations. In this way, the headquarters can also obtain a good additional income.
This "repurchase" does not mean that the alliance leader repurchases all the investment of the franchisees. For some investments, the headquarters can repurchase, some investments can be repurchased by the headquarters at a discount, and some investments can not be repurchased by the headquarters.
Another important piece of information is that the alliance owner must set certain thresholds for store repurchase, such as the store operating time must be no less than one year, the store has not violated the terms of the franchise contract, etc.
For the stores that have been repurchased, if the operation team of the alliance owner can revitalize the repurchased store, then this store can become a sustainable direct-operated store in the future and can be sold to new franchisees at a high price.
If this model is operated properly, it can achieve a win-win situation for both the alliance owner and the franchisees.
Agency model
The vast majority of chain companies with later store operations can divide the entire market into regions, and then find partners with the ability to continue project development in the region, and then Guide these regional partners to carry out market development step by step. The ultimate node of market development is chain stores. One thing to note is that agents at all levels are not agents of the specific products operated by the stores, but are responsible for "selling stores" so as to This allows the franchise owner to obtain larger-scale terminal stores through partners at all levels in the short term, and finally distributes the revenue from the terminal stores to partners at all levels.
Chain model
With the advent of the platform economy era, chain companies that adopt the traditional model have also encountered new development bottlenecks. "Interlock" can be understood as the main party's cross-industry alliance, upstream Supplier integration, downstream consumer enjoyment, bundled expansion of single stores, business project interspersion of chain single stores, procurement alliances, building industry platforms, leveraging national platform institutions, etc. What exactly does a chain enterprise “connect” to? It is connected to big data, cheap logistics, market share, bulk purchasing, joint marketing, consumer confidence, and human resources. Chain enterprises should provide continuous support to franchisees in management, marketing, products, technology, services, models, culture, talents, etc. during the franchise period, and these supports can help franchisees embody their life values ??from different perspectives. , obtain wealth and income, realize life dreams, and gain a sense of honor. All the above contents will eventually be gathered into the word "brand", and this word will also become synonymous with the core competitiveness of the enterprise.
After completing the consideration of the above issues, franchise chain enterprises can design an "interlocking" model suitable for their own enterprises based on their own business models, product characteristics, market conditions and other aspects.
Joint operation model
Chain enterprises with complete store operation and management teams can adopt the joint operation and franchising model. The highlight of this model is that it can enhance the confidence of entrepreneurs in choosing to join. It will give new franchisees the motivation to forge ahead and provide the older batch of milk merchants with better development support. The business license of the joint-venture store is registered by the company, and the store is legally a direct-operated store, preparing for the company's next step of valuation, financing, and listing. It can greatly increase the success rate of stores opened by excellent franchisees. The cash flow of the headquarters can also obtain the maximum return value at this stage. Through the joint venture model, we fully mobilize the resources of all partners to further assist the franchise headquarters' national layout and development.
The joint store model is an attractive franchise chain model for entrepreneurs, and a career planning incentive model for new franchisees. A model that maximizes the potential capabilities of franchisees. By implementing this model, franchisees can avoid being unable to open new stores in the short term due to financial pressure. The alliance owner can obtain a lot of shares in new stores operated by outstanding franchisees with a small investment
.
The risk is that the franchisees of joint-venture stores do not have the ability to manage multiple stores, which has never led to a decline in performance of both new and old stores. The viability and life cycle of stores are limited, resulting in bleak business for stores that have started joint operations.
O2O model
The vast majority of chain companies in the middle stage of development and above can also adopt a chain model that combines online and offline, opening stores offline, attracting traffic online, attracting customers offline, Online maintenance breaks through the physical store operating environment. This model is suitable for chain companies in different business formats. However, chain companies in different fields must first understand the nature of online and offline clearly, and then design business models.
The essence of online and offline lies in clearly defining and dividing the 16 functions of the "store", placing store functions that are conducive to the Internet model online, and placing store functions of offline applications offline.
What this business model can achieve is to continuously import the customers from offline physical stores to online, then use the online network platform to fission the offline customer sources, and finally transfer the fission customers Sources are diverted offline. This will ensure the success rate of franchise stores and reduce the difficulty of recruiting franchisees.
Cross-shareholding model
For chain enterprises with certain capital operation capabilities, the alliance owner invests in various forms, and the new store and the alliance owner cross-shareholding, which can improve the risk resistance of a single store The ability allows the alliance leader to make a profit in the replacement. The prerequisite for the alliance leader to implement this model is to have a certain skilled single store as the basis for equity exchange.
For the alliance leader, the alliance leader can use some valuable products, equipment, expenses, etc. in his company as investments in new stores after conducting a certain valuation. For the franchisee, he will greatly reduce the capital investment in the early stage of opening a store, because the franchise fee that should be paid to the headquarters has become an investment from the headquarters, and the equipment, goods, etc. that should have been purchased at the headquarters have also become investments from the headquarters. If the headquarters has a certain proportion of investment in stores, it will support the stores more carefully. This approach invisibly gives franchisees a reassurance. In addition, franchisees can exchange shares of mature stores designated by the headquarters for shares in new stores, which undoubtedly increases the probability of success for franchisees of a new store.
Social e-commerce model
The social e-commerce model is applicable to chain enterprises at any stage of development. Social e-commerce is a business model that relies on physical stores. A simple understanding of this model can be "based on physical stores, leveraging the attributes and characteristics of the mobile Internet, and deeply operating precise customers within the store's largest business district, thereby realizing the store and brand The overall ecology of the owner develops in a cyclical manner
In the process of cyclical development, the store first needs to use a profit-driven approach so that every potential consumer who enters the store can not only become an actual consumer of the store, but also become an actual consumer of the store. It can use its social software to influence the people in the social circle and make them potential consumers of the store. Of course, if the content of this communication cannot fully arouse the curiosity of the group in the consumer's social circle, it will be consumed. The agency operation model is more suitable for chain enterprises with rich store management experience. The main operation is for the alliance leader to provide agent operations to the franchisees. Generally, the franchisees are responsible for the investment in the store, and the alliance owner is responsible for the actual operation and management of the store. Without investment, the alliance owner obtains a certain proportion of the shares of a single store, or receives orders. Management of a certain percentage of store turnover is used as income.
The alliance operation is generally divided into several situations:
1. The alliance owner assigns members with core positions to the franchisee's single store. .
2. During the period of opening of the new store, the alliance owner will assign core staff members to the franchisee’s single store.
In addition to the above, the alliance owner can. Allow franchisees who lack financial strength but have operational capabilities to get entrepreneurial opportunities. For example, the alliance owner can entrust its own direct-operated store to the franchisee, and the franchisee will be responsible for the operation of the store. The disadvantage of this method is the operation of the store. Once there is a long-term loss or even store closure, the franchisee will put all the responsibility on the alliance leader.
The franchisee will use some special methods and means to recruit staff from the headquarters. , training, and management have become the burden of corporate human resources.
Direct sales model
In order to reduce the overall investment and absorb people with investment capabilities at all levels, some companies will adopt the direct sales model of franchise chains.
This model requires a good profit distribution mechanism within the direct sales system and a profit distribution mechanism between stores. In the process of expansion of direct selling, it must be supported by a certain number of physical stores in order to be able to legalize the layout of the entire domestic market. However, in the process of physical store layout, it is difficult to keep up with market demand by relying solely on the headquarters for store layout. Therefore, the best expansion model for physical stores under the direct sales model is to use the chain franchise model for rapid replication.
Financial model
This model can only be used when the alliance leader intends to complete the nationwide layout in a short period of time, and on the other hand intends to reduce the investment risk of franchisees as much as possible. The business model design will adopt the financial operation chain franchise model. First, we need to pay attention to the survival cycle of a single store. Second, the investment amount cannot exceed 500,000 yuan, and the number of single stores must continue to increase according to a certain proportion.
Entrepreneurship model
The core of the development of franchise chain enterprises is actually people. If chain enterprises can have the ability to copy talents, the success of the franchise will be greatly improved. When adopting the entrepreneurial incubation and franchise chain model, comprehensive training can be carried out through the method of "old and new", and this training will be accompanied by specific implementation operations. In this way, after a period of time, those who have the ability to open a store will Basically, they can master the work points of each position in the store, and have the skills to open their own store. In this cycle, every person who is copied will have very strong comprehensive abilities, which also ensures that the entire system can be fully operated. As a basic condition, under the condition of ensuring that the whole system can achieve healthy operation, the self-fission of each store will begin with the stability of the business of each store.