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How is the franchise system established?
Franchise, as a commercial activity of human beings, has its special transaction object-franchise. Franchising, as the transaction object of buyers and sellers, is different from tangible goods and tangible physical space, and does not have the exclusivity of trading. Franchise is an intangible right, which can realize parallel transactions between a franchisor and n franchisees. On the basis of this one-on-one business relationship, large-scale A new economic organization system of property right structure-franchise system.

(I) Basic Structure of Franchise System Franchise system is a large system including N subsystems, and its structure is as shown in the figure.

Basic structure of franchise system

(II) Basic Principles of Franchise System Design and Construction (WilliamEdwardsDeming,1900-1993) System Theory Introduction: General MacArthur urgently needed high-quality radio to communicate with the Japanese army in postwar Japan. At that time, Japanese manufacturers could not meet the technical requirements, so he invited American engineers Sarrasin and Pu rozman to help the Japanese factory resume production, and ordered all Japanese enterprise executives to attend a 32-day training course. Sarrasin suggested to MacArthur that Deming, who was famous for introducing statistical quality control method (SQC) during World War II, should be hired to teach quality management courses in Japan. On June 1950, Deming visited Japan for the first time, and then * * * visited Japan 27 times. The courses he taught the Japanese gradually evolved into his management philosophy. One of the most famous is that "everything is a system, and we are in it". 1. The "Three S" design principle S refers to simplification ()? Standardization ()? Specialization () is the first letter of three English words. 3s principle is not only the general principle of franchising, but also the basic principle of designing and constructing franchising system. 2. Creative principle Creative principle refers to the process of designing and building a franchise system, which should fully tap the potential and creativity of individuals and realize differentiated and personalized design.

(III) Basic Roadmap for the design and construction of franchise system The basic roadmap for the design and construction of franchise system is shown in the figure below.

Basic Path of Design and Construction of Franchise System

1. Definition and system composition of single store Single store is an inseparable basic business unit and an indispensable subsystem in the franchise system. As a system, a single store consists of the following three parts: ① the core part: the business model of a single store; ② Basic part: single store operation management system; ③ External part: identification system of single store. 2. Classification of single-store systems Single-store systems can basically be divided into two types: commodity distribution type and service type. Commodity distribution single store refers to a single store that mainly provides retail or wholesale services to customers. A service-oriented single store refers to a single store that mainly provides consumer services or labor services to customers. 3. The important role of the single-store system As a subsystem of the whole franchise system, the single-store system plays a very important role, which can be summarized as follows: (1) Every single store is a profit center, (2) Every single store is a carrier of joining, (3) Every single store is a front desk, directly serving customers and regional markets, and (4) Every single store is a whole store. 4. Steps and methods of design and construction of single-store system The steps of design and construction of single-store system are shown in the figure. Design and construction steps of single store system

The design and construction methods of single store system are as follows: single store investigation → design decision → writing design report → establishing experimental single store → collecting real operation management data of single store → adjustment → writing franchise operation manual.

(D) Single store business model design

1. Overview of single-store business model design

(1) Definition of single-store business model. Single store customer orientation? A combination of single-store goods/services? The profit model of single store and the strategic control and support of headquarters to single store constitute the business model of single store.

(2) The significance of single store business model design. The single-store business model is the core of the single-store system. That's why there is a saying that franchising is a successful single-store business model. In other words, the single-store business model is the genetic code of successful franchising-DNA. To sum up, it can be seen that the design of single-store business model plays a decisive role in the success of a franchise system.

2. Design steps of single-store business model

(1) single-store customer-oriented design. Choosing the target customer group of a single store and locking the single store should satisfy the psychological preference of the target customer group, so as to guide the design of other elements of the single store business model and other subsystems of the single store system. The so-called customer preference refers to the items that the customer considers important, and he is willing to pay a premium for these items. When he can't buy this kind of goods here, he will turn to other suppliers. Customer orientation is based on the complex and diverse market assumptions of customers, and it is impossible for an organization to provide the best service for all market segments. It can only concentrate on serving one or several market segments according to its own goals and resources.

(2) The design of single-store merchandise/service combination. The design of a single-store combination of goods or services refers to the combination structure of all goods or services that can meet the needs and preferences of the single-store target consumer groups, as well as the business attributes of each commodity/service in the whole combination structure. The so-called management attribute design of goods or services is to divide all goods or services in a single store into main goods or services according to the different effects of different kinds of goods or services on the profit of a single store? Auxiliary goods or services? Three kinds of related goods or services.

(3) The design of single store profit model. The profit model refers to the way in which a single store obtains returns when creating value for its selected customers or target consumer groups, that is, the combination of various profit models of a single store. Will the single-store profit model of different industries be different? 3. Design of single store operation management system

(1) single store operation management process design. The design steps of single store operation management process are shown in the figure.

Design steps of single store operation management process

(2) The design of single store operation management system. From the definition of single-store operation management system, it can be clear that the design of single-store operation management system is the design of five parts in the organizational system model of single-store SIOPC, as well as the business objectives of single-store.

4. Design of single store identification system The single store identification system refers to the organic combination of all identification elements used to distinguish single stores in different franchise systems, including the following parts: trademark? Trade name? The visual identification system of the store.

5. Return on investment model design The return on investment model design includes the following five financial models: single store investment model? Single store profit and loss analysis model for 3~5 years? Single store 3~5 years cash income model? Single store investment return analysis model? Single store initial investment model. (5) The headquarters design franchise headquarters was established on behalf of the franchisor? Development? The organization of management franchise system is an indispensable subsystem in franchise system. As a system, the headquarters is composed of core parts? The basic part and the external part are composed of three parts. The core part: the business model of the headquarters. Basic part: headquarters operation management system. External part: identification system of headquarters. 1. The headquarters plays an important role in the franchise system. Single store is the basic organizational form in the franchise system, but the headquarters plays an important role completely different from single store in the franchise system. To sum up, there are seven points: ① the role of leader, ② the role of licensor, ③ the role of operator, ④ the role of innovation manager, ⑤ the role of trainer, ⑤ the role of backstage supporter and ⑤ the role of information center. This book will introduce this point in detail in project three. 2. The design and construction steps of the headquarters system are shown in the figure.

Design and construction steps of headquarters system

3. Business model design of headquarters. Positioning of headquarters customers? What is the commodity/service mix of the headquarters? The profit model of headquarters and the franchisor's strategic control over the whole franchise system combine to form the business model of headquarters. Therefore, the design of headquarters business model is the design of the above four elements. Customer-oriented design depends on whether these customers can bring profits. The design of profit model often depends on the design of commodity/service portfolio of headquarters. The design of franchisor's strategic control often depends on what kind of customer positioning and what kind of goods/services combination. The design of commodity/service combination must meet the needs of target customers, and there must be rich profit space to facilitate the franchisor's strategic control.

4. Design of Headquarters Operation Management System Design of Headquarters Operation Management System, as shown in the figure.

Design steps of headquarters operation management system

5. The design steps of the headquarters operation management system can be clearly defined from the definition of the headquarters operation management system. The so-called design of the headquarters operation management system is to design the five parts of the SIOPC organization system model that constitute the headquarters and headquarters business objectives, and its design steps are shown in the figure.

Design steps of headquarters operation management system

Compared with the design of single store operation management system, the biggest feature of headquarters operation management system design is that the former is a relatively static design, while the latter is a dynamic design. One-store management system is one of the elements of franchising. It is granted to N franchisees to use and copy, and it is basically a standardized system that does not change with time or in different regions where franchisees are located? Relatively static design. One of the important functions of the headquarters operation management system is the system promotion and market development. With the continuous expansion of the scale of the system (the number of franchisees and single stores and the continuous expansion of geographical distribution), the headquarters operation management system will also change in time and space, and the design of the headquarters operation management system should reflect the development and changes of a franchise system in the next year. In addition, the operation management system of the headquarters does not exist in isolation, but operates in a larger system, that is, a specific industry or business ecosystem. Therefore, when designing the headquarters operation management system, we must also consider the influence of various competitive forces and participants in the industry or business ecosystem on the headquarters operation management system.

6. Design of strategic control of headquarters to single store In order to ensure the profit of single store and the high cooperation between the two parties, all successful franchise systems have strong strategic control of headquarters to single store, as shown in the table.

Strategic control of single store by headquarters

In short, the overall design of franchise management system includes static design and dynamic design, in which the static design includes the organizational structure and management system of the network, and the dynamic design includes the macro-development strategy of the system? Shop opening mode and urban layout strategy.