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How to identify franchise scammers

Clear franchising scammers collapse after seeing their tricks

There are all kinds of franchising scams on the Internet. How to prevent these franchising scams? Take a look at the 5 liar tricks often used by the liar leader. Let me slowly tell you how to remove them and let the liar show his fox tail.

Step 1 - Exaggerated propaganda

With an international background, scammer companies begin to exaggerate and exaggerate the brand. For example, some clothing companies find a very ordinary Hong Kong designer and say that he is internationally famous, has held many international fashion exhibitions, and won many international awards; or that this clothing brand has a long history. , has been prosperous for hundreds of years abroad...

The second is to exaggerate profits and the speed of making money. You can often see overwhelming franchising advertisements on investment websites, local satellite TV and other media, and the language is very tempting

: "Earn a lot of money easily", "Join ×××, and the wealth will roll in", "The myth of wealth is created with you." Some brightly dressed franchisees introduced their successful experiences

The subtext is: I have made money, a lot of money, and you will definitely make money after joining.

In addition, some companies also use the guise of "zero franchise fee". In investment advertisements, most scammer companies claim that there is zero franchise fee and the first batch of goods will be given away for free. After sales reach a certain amount, they also claim to return franchise fees, deposits, reimburse decoration expenses, etc. For example, if sales reach 200,000, half will be refunded; if sales reach 500,000, all will be refunded.

Finally, some franchisors also want celebrities to help out. The franchisor is sure of the public's trust in celebrities - celebrities have endorsed it, so how can it be fake? In fact, most celebrities will not go on-site inspections, as long as the business license is genuine.

Removal

Investment advertisements with the purpose of making money have one obvious feature: they claim that the project investment is very small, the profit is extremely high, and it is a risk-free project. For example, this year

Franchise projects such as "9 yuan underwear" and "9 yuan women's pants" have emerged. The "franchisees" in the advertisements keep saying that the investment in this project is very small and the store business is amazing

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The ground is good.

When you are interested in an emerging clothing franchise project, you should immediately understand the market in depth, such as understanding the minimum investment

to join a brand. If the conclusion is consistent with the advertisement, you can call first for consultation. When calling, be sure to find your boss or person directly in charge. When talking to the person in charge on the phone, you should discuss extensively and consult with multiple parties to see if he is very knowledgeable and whether his explanations and answers to questions are sincere and reasonable.

If you ask them if they have any successful franchise stores, where they are, and whether they have a phone number, the scammer company will not tell you. The unified answer is to come to the company.

On-site inspection, otherwise they will tell you a city far away from you. Their purpose is not to let you go see it or learn about the situation from other channels.

Tip 2 - Hat Disguise

Put on the "international" hat, fake a famous brand, and make up a business model, but it is actually an empty shell. Such scam companies often advertise that they are a certain international chain organization and a famous international brand from Japan, South Korea, France, Hong Kong, China, Taiwan, etc. when recruiting investment.

In fact, many scam companies have no loopholes in the licensing procedures. Registering a company is the first step for them to set up a scam. This is equivalent to the scam laid out by the "general" among the eight generals in the Qianmen family. The international background of these companies usually works like this: register a company in China, and soon after, register an enterprise group with the same name in Hong Kong. For example, if you register "Beijing Blue Sky and Baiyun International Clothing Co., Ltd." in Beijing, then when you arrive in Hong Kong, you will register it as "Hong Kong Blue Sky and Baiyun International Fashion Enterprise Group", or you can add a background from another country and call it "Korea" Blue Sky and White Clouds International Fashion Enterprise Group".

Because Hong Kong is not very strict in interfering with corporate name registration, 80 to 90 percent of similar companies are registered there.

Afterwards, they often register an industry association or a group headquarters, registering a "Hong Kong Garment Industry Association" or "France International

Fashion Industry Association"; headquarters group It is called "Blue Sky Baiyun Enterprise Group China Chain Headquarters". There are also companies that are not registered at all, but still use such banners in publicity.

In order to prove the authenticity of the company, the company often presents brand management authorization letters given to them by some international brands or companies. In order to fool people, these authorization letters are mostly It is in English, but there are many flaws in it. For example, the Chinese signature habit is still used, while foreign-related documents recognize the signature of the supervisor. Of course, over the past few years, these franchise scammers have been constantly upgrading, and their obvious loopholes have been constantly filled.

Dismantling

There are several effective ways for investors to judge whether the other party is just a "foreign" shell: First, check the company's registration place and registration time, the more

In an unknown small country, the shorter the registration time, the greater the possibility of a scam; second, collect information about the company from multiple channels, among which the Internet is the most convenient channel

Tao; The third is to inspect the company headquarters to see if there are foreign employees in the headquarters. If not, the possibility of a scam is greater.

The "foreign" agent is just a cover. Although some project parties do not have a "foreign" shell, they claim to be the exclusive domestic agents of a well-known overseas company

. In fact, this kind of "foreign" agent is just a cover. There are two reasons: first, it is more trouble-free than registering a "foreign" shell and does not require any capital investment; second, to find a way out in the future, once there is a dispute with investors, these agencies can Disappear at any time.

If you want to confirm whether the company is a domestic agent or franchisee of a foreign brand, you can check the national trademark database. If these brands want to enter China, they will definitely

register their trademarks in advance. You can also go to the relevant departments to check the company's registered capital. If the registered capital is low (less than 500,000), the possibility of fraud is greater.

Step 3 - Lure the enemy deeper

Currently, clothing fraud companies are mostly concentrated in cities such as Beijing, Guangzhou, Wuhan, and Zhengzhou. According to industry insiders, in Beijing, most of these companies are concentrated in Haidian District, with many near the West Railway Station.

Most of these companies rent office buildings with luxurious decorations, people coming and going, all kinds of information are complete, and employees are busy, giving people a sense of strength. When investors

make inquiries over the phone, such companies will urge them to visit the company headquarters. This is actually a trick to "lure the enemy in depth." Many people who were deceived later recalled

, as soon as they arrived at the so-called company headquarters, the staff in charge of investment promotion would talk freely. The investors were bombarded with words and quickly signed the franchise contract and paid the deposit.

It is worth noting that most of the fraudulent companies claim to have their own directly operated stores and processing plants. In fact, it is very likely that they are the products of commissioned processing and branding; some are even purchased from the wholesale market and then labeled with their own brands. And the directly operated stores they claim have all the procedures in place. They also brag about how large their factories are and how advanced their equipment is. But if you ask to visit, they will come up with lots of excuses. It is their usual practice to make geographical differences

For example, if the headquarters is in Beijing, they say that their production base is in Guangdong; or they will take you to the warehouse and tell you that this is a factory. If the franchisee does not pay attention, he will Got hit

.

They also play the favor card and psychological warfare. As long as franchisees come to inspect, the reception staff will be extremely enthusiastic. Before you pay the deposit, he will agree to whatever you say.

In order to exaggerate profits, they usually find some examples and give you a formula to calculate how much money you must make after excluding rent, water, electricity and other costs. In fact,

This algorithm is not scientific at all. It does not consider whether it is consistent with the consumption power and personal business situation of your region. It is not uncommon for people to be lured into the trap by saying things like "If you are one step too late, your name will be given to someone else."

In short, they show their most flawless side to the franchisees, lure them with benefits and talk sweetly. They play a good role as a "smiling tiger" before they get the money.

role.

Dismantle the recruitment

No doubts were found during telephone consultation, so a visit to the company is a must. But we should pay attention to the following misunderstandings: First, the company's big scene does not explain all the problems.

Being reasonable and moderate is authentic and credible; secondly, don’t be confused by the etiquette and high-end reception in big cities. The inspection is only the second step in decision-making, so don’t owe any favors.

Third, we must learn to use reverse thinking and observe and think about problems from the other party's perspective. Pay attention to research the company's background and experience. Calmly observe whether the other party is a company that wants to do things and can do things. Whether the various step designs and operation models are true, reasonable and responsible, whether they are short-term actions or ambitious and long-term cooperation

and whether partners are treated equally and fairly; fourth, it is necessary to ensure that there are no company personnel Go to inspect the so-called "direct store" with your company, and carefully observe the store's decoration, product display, staff attitude and sales status.

One more thing to remind franchisees: Many scam companies require remittances to personal accounts instead of company accounts. Their excuse is usually that this will

pay less tax. . In fact, this is completely inconsistent with the financial system and legal regulations. If the company has such a requirement, investors should be more cautious.

Step 4 - Online News Reports

The Internet is now filled with soft articles. Soft articles can appear in various forms of text such as news and stories. The scammer company uses this as a basis to claim that they are a formal franchise project. Look, a news website has reported it. Is it rare that there is still a fake one? Not only that, the deeds, development and reputation of these companies can be compiled using fake news

stories, and the website editors are paid to put them on the Internet.

Dismantling

There is no need to pay attention to his news reports and the like. In a word, you don't have to believe his "self-promotion". It is recommended that you use some third-party platforms,

such as Anxin Franchise Network. After you find a franchise project, do not invest blindly. You can get Anxin Franchise Network to verify it

Whether the franchise project is authentic and reliable, they will check it for you for free, and then make a decision before it is too late. Moreover, the projects and corporate information on the website have been strictly verified, and you can also use it to check. Choose the right franchise program.

Step 5 - Catching a turtle in a urn

After the money is obtained, the ugly faces of these scam companies are gradually exposed.

First, the follow-up service was cut off. The full set of support promised during early consultation, including staff training, publicity planning, sales planning, advertising support, sales training, product knowledge training, etc., is often just a show. They randomly found some so-called training materials and used a very short time to train franchisees. In fact, they just read them once.

This will not have any effect on the later franchise store operations. When the franchise store opens and you come to them if there is a problem, they will push it forward if they can.

There are even more problems with supply. Many of these institutions implement online ordering. They give franchisees a username and password, and after logging in, they select goods and pay.

On the Internet, there are processed pictures, with color, texture, style, size, etc. marked below. However, the final products sent to franchisees are often defective products, bulk goods, and slow-moving goods.

I want to return the product, but the return conditions stipulated in the contract are very strict - the packaging and labels must not be damaged at all. Even if they agreed to your return request, they kept delaying the process, refusing to inspect the goods or give an explanation. Some organizations that do not adopt the online ordering transaction model claim to have a complete delivery system, but after a few deliveries, they completely disappeared.

When the franchisees found out that they had been deceived and asked them to recover the deposit and other fees, they were not worried at all, because they had already set the trap in the contract.

They are all terms that unilaterally bind the franchisees. They can walk along the river without getting their shoes wet. Only the poor franchisees need to bear the responsibility for breach of contract.

Removal

In the event of similar disputes, investors can rely on the leader's untruthful information disclosure, false advertising and exaggeration, and false contracts to show deficiencies, depending on the situation

< p>Fairness, unfavorable business district protection, insufficient product styles, poor quality and other issues, sue the scammer company for one of the claims of invalidity, voidability, or breach of contract.

But "all lawsuits must be based on the franchise contract, and the evidence is the most important." Due to the non-standardization of the entire franchise chain industry, when franchisees first come into contact with the

project, You should pay attention to retain relevant materials in time, just in case. It mainly includes: the first investment advertisements seen, promotional materials obtained from the headquarters, recordings of discussions with the reception staff at the headquarters about joining, contract documents, purchase invoices, vouchers, etc.

As long as all franchise investors can use these 5 tricks, they can basically avoid some franchise scams. I hope everyone will spread the word to each other to prevent franchise scams

. (Editor: Xiaoliang)