The six aspects that should be paid attention to when investigating the project party, or the six things that smart investors must do, are:

1. Legitimacy

The investigation of the legitimacy of the project party mainly includes:

1. Whether the project party has industrial and commercial registration, and whether the project party’s industrial and commercial registration is within the validity period;

2. The project party may use someone else's license to cheat, so investors also need to identify whether the license held by the project party is owned by the project party. If the project party provides information, pay attention to the company name in the information and the business license provided. Whether the company name and business scope are consistent. If they are inconsistent, the project party needs to provide a reasonable explanation. When signing a contract, you must sign with the legal person on the business license and affix the official seal of the legal person on the business license. For safety reasons, you may further inquire with the local industrial and commercial authority that issued the license.

3. According to the relevant national regulations on franchise chains, the project party must meet the "2+1" conditions (2 directly operated stores, operating for more than one year) before it can attract external investment. This is the national requirement. Special policies issued to protect the interests of investors. According to "Scientific Investment", a considerable number of projects that are currently actively promoting franchise chains fail to meet this requirement. This is a violation of relevant national regulations, and investors must remain vigilant.

2. Credibility

In view of the frequent occurrence of scams in franchise chains, and some investors have suffered heavy losses, it is necessary to conduct a credibility investigation on the project party before considering joining. The main contents of the inspection include:

1. Whether the office address provided by the project party is true and consistent with the address on the business license. General investors like to look at the registered capital of the project party. From the size of the registered capital of the project party, although it can be seen its strength and ability to bear liability for breach of contract, with the emergence of large and small capital verification agencies, investors must change concepts in this regard. The higher the registered capital does not mean stronger strength or better credit. Although some project parties have small registered capital, they have great development potential.

2. Has the project party ever operated other enterprises or conducted investment promotion for other projects? What were the results?

3. Some project parties are willing to promote the number of franchisees verbally, in advertisements and materials. This number is often very large to increase the appeal to investors. Pay attention to check its authenticity;

4. Some project parties often promote themselves as leaders in the industry, often exaggerating their own strength. Investors should still pay attention to the operating conditions of other opened stores, and try not to visit multiple stores in a certain area during the inspection. They should make an analysis based on the operating conditions of their stores nationwide.

3. Risk

In order for the project to achieve "guaranteed profit but no loss", investors must fully examine the risk of the project. The contents of the inspection include:

1. Inspection of project feasibility;

2. Inspection of project pioneers. When you are interested in a chain franchise project, you can inspect the operating conditions of the franchisees of the project. The inspection objects can be provided by the project party, but it is best for the investors to choose themselves. Without informing the other party, first act as a consumer. Make observations. The inspection content includes the store location, customer flow per hour, customer flow throughout the day, product popularity, the operator's business method, number of employees, business proficiency, and estimation of its cost and input-output. Then appear as an investor and ask the other party directly. Most of the time, if the other party's operating conditions are not good and they have feelings for the project party, they will introduce the real situation to you; if the operating conditions are very good, they may hide it from you. Or the introduction is untrue to prevent competition. At this time, investors need to have good judgment and cannot completely believe the words of those who have joined. When an investor inspects a franchise store that is in poor operating condition, it is necessary to find out why the other party is in poor operating condition. Sometimes it is the franchisee's own fault, or lack of ability, or failure to follow the guidance of the project party. Investors Generally, they like to listen to the side of the story of franchisees, because the other party has a similar identity to themselves, and it is easy to share the same hatred and hatred, so that they miss out on good projects.

However, it is better to know more about the situation of several franchisees, preferably those who have joined for more than one year. If the business situation is okay, then there should not be a big problem. If you feel that you are really incapable of distinguishing, then it is better to believe that they have You can’t believe it. After all, for small and medium-sized investors with insufficient risk tolerance, investment safety should be the first consideration. Of course, if you really want to start a business, it is impossible not to bear risks.

3. Understand whether the project party has any disputes in terms of intellectual property (technology, trademarks, etc.) and brand, and whether it has full ownership;

4. Understand the taboos of the project party and what they are In this case, the investor may be disqualified from joining the chain. It is important to understand whether the taboos set by the project party are reasonable. These details should be clarified in the contract. If there is no such content in the contract, the contract can be supplemented to explain. For project parties that require franchisees to pay a certain amount of fees at once, such as 2-3 years of management fees and service fees, investors must remain vigilant to prevent the other party from taking the money and leaving after collecting the money, or if things do not go well. The time has slipped away.

4. Sustainability

For investors, after finally choosing the right project, they certainly hope to be able to operate it for a relatively long time and bring benefits to themselves. For this reason, Investors also need to conduct sustainability inspections of the project party's operations, including:

1. Whether the project party's operations are standardized, including codes of conduct and charter regulations. Code of conduct: whether there are unified internal and external signs; whether the operation process is standardized; whether the process flow is standardized, whether the service process is standardized, etc.; whether uniform and standardized training is provided to franchisees, the training items and time, whether the training is charged, and the charging standard. Charter specifications: Whether the project party provides a unified operation manual, service manual, management manual, and training manual, and whether the preparation of the manual is standardized, feasible, easy to implement, and free of ambiguity;

2 , if distribution is required, whether the distribution equipment is complete and advanced, whether there is a unified distribution center, what is the quality and management of the distribution personnel, whether the distribution center can respond to franchisees' requirements in a timely manner, whether distribution raw materials are often in short supply, and whether the distribution price is reasonable , whether it is fickle. Some project parties charge very little or even no franchise fees and put all their profit points on the later distribution of raw materials, which is not necessarily a good thing. Because as investors invest more and more, they can no longer escape easily. When delivering raw and auxiliary materials, the project party asks for prices at will. The prices are getting higher and higher, and the conditions are becoming more and more harsh, so that franchisees feel like they are being blackmailed. , this is very abnormal. So take precautions and take precautions before they happen.

5. Scalability

Everyone hopes that the business will grow bigger and bigger. If a project is carried out for three to five years, it will still only be a store of seven or eight square meters. Every month An income of several thousand yuan shows that such a project lacks scalability. Expansion comes from two aspects. One is whether the project party has the determination to make the business bigger and whether it has a long-term strategic plan. This is from a high level. At a low level, whether the project party can provide strong support to investors in market expansion, such as material support and policy support. These all have a direct impact on investors' business expansion. Whether the project party can continue to improve the value of its own brand will have an indirect impact on whether investors can effectively expand; secondly, the project party's product and marketing innovation capabilities also determine the results of investors following the growth. Some project parties After a project is launched, there is no improvement or innovation in marketing for several years, and the market can only gradually shrink.

Sixth. Extensibility

When inspecting the project party, in addition to inspecting the character, personality, experience, knowledge structure, corporate resources and ownership of the project leader, In addition to social resources, we should also focus on inspecting the project team. At various investment promotion meetings, we can see that many investment promotion teams are improvised by Caotai teams. It is not difficult to imagine what kind of guarantee such a team can provide for your future investment projects. The inspection of the project team includes: first, the quality, professional experience, experience, past performance, and reputation in the circle of the team members; second, the team’s complementarity in personality and expertise; and third, the stability of the team. For some more experienced investors, reliable conclusions can be drawn by observing the project team and conducting surprise interviews with the project team.