Four Commandments For Investors To Franchise

And then the excellent franchise system can not guarantee that all franchisees operate successfully in one hundred percent places.

For the vast number of investors, it is very important to choose an investment project with what kind of mentality.

If we trust the effect of franchising too much and neglect the evaluation and inspection of the project, we think that once joining is successful, it will be a big mistake.

Many failed cases tell investors that four commandments should be kept in mind.

Commandment one: the motivation of joining is biased. The so-called "partial motivation to join" means that joining can lie down and do nothing. Everything is managed by headquarters.

According to the survey, although many excellent franchise brands have some successful examples all over the world, there will always be 5% unsuccessful rate.

The same management mode, the same quality support and guidance, the same supply system, has produced different results.

The success of other regional operations does not mean that you will succeed if you operate locally and headquarters.

The key factor is the motivation to join.

According to Long Linxi, general manager of insect pest clothing, partners who wish to join insects and insect clothes every year often exceed expectations.

However, after many examinations, for some partners who are ready to join, the work of insect worm clothing is not to persuade them to join, but to persuade them to give up. "Because we think that if the franchisee does not know clothes, there is no passion for clothes, obviously it is very difficult to do well, let alone the motivation of joining is not in line with our requirements".

As for the headquarters, the contract will definitely support the franchisee, and the success of the franchisee will also represent its success, in addition to bringing profits to expand the market, it will also help recruit new investment partners.

Therefore, if you do not make relative investment, you will end up standing in the queue of losers.

Commandment two: before joining, no detailed investigation was conducted. Franchisees often knew that they had to do market research before joining, but often they were not in place.

For example, due to the lack of a survey of the whole industry, after joining in a hurry, it is found that there are more excellent enterprises in the same industry, better conditions of joining and support guidance.

If you want to quit again, you will have no way out because of "breaking the contract".

Another situation is to visit the flagship store unilaterally.

Before joining the company, although they also followed the advice of experts, they learned what kind of business the head office was doing. They also went to see how the franchisee was operating. However, the general headquarters only took you to see a well run store and conceal unprofitable shops.

Only after joining, did I know that there were so many shops that did not make money.

However, according to Long Linxi, the practice of insects and costumes is different in this respect.

Under normal circumstances, insects and insect costumes will provide at least 3-4 stores for franchisees before joining, including direct flagship stores, better performance franchisees and franchised stores with poor performance. Franchisees can also visit the shops themselves.

For small and medium-sized investors, it is obviously unrealistic to invest a certain amount of funds to do a detailed market investigation. Therefore, it is more appropriate to do some case studies and understand the overall situation.

Commandment three: too confident, far away from headquarters many franchisees have made such a mistake: although at the beginning of the store got a lot of help from headquarters, but once the performance is stable, it is always considered the results of their efforts, the headquarters of the so-called secret and practical guidance, has long been thrown away, that no headquarters can also rely on their own strength is enough.

As a result, the guidance of headquarters was reluctant to accept, and the headquarters orders were not willing to be executed, which did not match the promotion plans at headquarters.

Wei Dongping, a franchise research expert, reminds the franchisees that this is a very dangerous practice; because in many cases, the headquarters will adjust the products from the market demand, which requires the franchisees to keep pace with headquarters and fully understand the inside of the brand, and will also adjust their business strategy.

It turns out that the franchisees who have formed a consortium with the headquarters have achieved better performance.

Therefore, due to overconfidence, franchisees are gradually away from headquarters, they often face the risk of declining performance, even leading to the consequences of failure.

Discipline four: unauthorized changes in the operation of the provisions of the franchisee arbitrarily change the operating rules, is also something that happens.

Once some franchisees are familiar with the operation of the whole store, they will feel that some of the headquarters's operational provisions are not reasonable. If they are put forward to headquarters based on goodwill, the headquarters will be happy to accept them.

But if it is self assertion, there will be problems.

Take small clothing chain stores as an example, many franchisees can increase their clothing brand and style by not having the permission of the headquarters, originally hoping to attract customers through increasing clothing varieties.

However, because of the disunity of styles among different brands, the quality of the original distinctive features is also uneven.

Once the quality is unstable, once the characteristic is lost, the customer is very sensitive, and slowly away.

Another bad result is that the franchisee will lose support from its headquarters and become a solitary force.