Franchising is an enterprise organization, or a continuous contractual relationship between franchise chain headquarters and franchise stores. According to the contract, unique commercial privileges must be provided, and unconditional assistance (personnel training, organizational structure, operation and management, commodity supply and marketing) must be added. And franchisees also need to pay relative compensation.
I. Characteristics
1, there is a franchise owner, that is, the leader of the franchise chain.
2. The leader has a franchise, which can be products, services, business technology, trade names, labels, and other special forces that can bring commercial benefits.
3. Contract is the main link between the leader and the franchisee.
4. Franchisees have the ownership of their own stores, and store operators are the owners of the stores.
To manage the leader's headquarters, the franchisee must operate in full accordance with a series of regulations of the leader's headquarters, and he has no operational autonomy.
6. The headquarters has the obligation to teach franchisees a complete set of business systems such as information, knowledge and technology to complete their business, and at the same time grant franchisees the monopoly right to use specific areas such as store names, trade names, trademarks and service marks, and provide continuous business guidance during the contract period.
7. Franchisees should pay certain paid fees to the leaders, usually including one-time franchise fees, sales or gross profit commission.
8. Leaders have a vertical relationship, but franchisees have no horizontal relationship.
Second, the type:
1, lack of basic knowledge of franchise chain.
Because I didn't have this knowledge, I just saw the advertisement in the relevant newspapers and magazines, so I called and listened to the other party's simple and wonderful explanation, and then I joined in a hurry.
I didn't expect joining to cost so much money and so many constraints, which greatly reduced my enthusiasm for work. All this is due to the lack of understanding of franchise chain.
2. I only know that this industry is good, but I have not investigated my peers.
At first, I just saw the attractive conditions and beautiful company catalogue in the advertisement, so I joined in a hurry, but I didn't know that there were better enterprises in the same industry, more favorable joining conditions and support and guidance after entering the business. I wanted to quit halfway, but there was no way out because of breach of contract.
3. More is to only visit the shops that make money and not know the shops that fail.
Before joining, although I listened to the advice of experts and learned what kind of business the head office is doing and how the franchise stores are doing, the general head office only shows you the well-run stores and hides the unprofitable ones.