With the development of various economic formats, models such as chain franchising and investment franchising have become increasingly popular in China in recent years. For some newbies in venture capital, cooperation and franchising are considered a shortcut. But the road to fra

With the development of various economic formats, models such as chain franchising and investment franchising have become increasingly popular in China in recent years. For some newbies in venture capital, cooperation and franchising are considered a shortcut. But the road to franchise is not always smooth. Are you worried about the pitfalls of chain franchise? Take a look at the following points and you won’t be afraid anymore.

Worried about the pitfalls of chain franchise? Let’s take a look at these points and you won’t be afraid.

1: To determine whether the industry you are joining has a “money prospect”

For venture capital investment, you must first see whether the project has future development prospects. If this industry is only for people’s livelihood needs, not Being popular for a while and in the blank and growth stage means that there are not many competitors at present and there is a lot of room for market growth in the future. If you invest early, there will be more room for profit.

Competition is ubiquitous. For a brand or business district, there is always fierce competition. Good locations and good business districts are easy to be taken advantage of by franchisees who join early. The more hesitant they are, the more time they wait for the project. As you become more mature and want to join, you can still get a share of the pie, but it is far inferior to those who joined early.

2: Determine the operation or brand strength of the franchise headquarters

Due to the uneven products in the current market, some headquarters have not even set up direct stores and do not have the management and operation capabilities, so they cannot assist franchise entrepreneurs to properly operate stores in the long term. Therefore, after understanding whether the project has development prospects, the company's brand strength of the product or project is also an important aspect of judgment.

Worried about the pitfalls of chain franchise? Let’s take a look at these points and you won’t be afraid.

Dingzhu Technology Co., Ltd., as an enterprise focusing on the research and development, production and promotion of intelligent equipment, has a strong brand. Its Little Crocodile brand focuses on unmanned intelligent amusement equipment for children. In the field of integrating smart devices and combining Internet of Things technology, through big data analysis, we independently developed and designed smart cabinets for strollers that are more adaptable to market demand and more popular with children.

Three: Determine whether the franchise headquarters contract is too restrictive

Strong headquarters franchise support can provide partners with substantial help in logistics, financial structure, operations, maintenance, etc. This is a good thing, but it does not have the strength. It does not mean "following the leader". If you use a strong attitude to override the IQ of your partners and frequently make things difficult for your partners, fine them, etc., you must pay attention, keep your eyes open, and do more inspections.

Worried about the pitfalls of chain franchise? Let’s take a look at these points and you won’t be afraid anymore.

For the crocodile stroller smart cabinet project, the headquarters develops cooperation with partners, which is neither a franchise nor an agent. There are no franchise fees, agency fees, deposits and other fees. Adopt a managed cooperation method and sign a cooperation agreement. In the early stage, only 10,000 yuan will be charged for each group of cabinets. The fee itself includes headquarters software and hardware equipment, technical training, operational services, customer service, logistics fees and other content. In addition, within the first 90 days after the cooperation, the headquarters will ensure that the partners have 100 yuan of revenue sharing every day.