Daphne Retreats 1000 Franchisees, Accused Of "Killing And Killing"

The brand Daphne has been caught in a whirlpool because of the problem of joining. Its "going to join" strategy has aroused some discontent and even been resisted.

Recently, more than 10 franchisees such as Hubei complained to Daphne industrial and commercial bureau and the people's Government of Daphne.

Under the pressure of public opinion, Daphne has recently renewed its contract with some franchisees, but the franchisee is still not satisfied.

A franchisee told reporters that the price and goods problem still remained unsolved, but there was no bottom.

In addition, according to the reporter's investigation, the franchisee who renewed the contract was only in the Hubei area, and other regional franchisees did not receive the notification.

The franchisee who has not received the notification has indicated that if it is still not resolved, it will take legal channels.

Direct sales promotion leads franchisee rights protection

In September 4th, a red Promo Poster was posted on the outer wall glass of a Daphne store near Yuquanlu Road, Haidian District, Beijing: the whole time special price was 99 yuan.

The staff in the store told reporters that these are the latest styles this summer, and there is a special sale of 79 yuan.

It is understood that at present, most of Daphne's stores in the country are promoting 79~99 yuan, which is Daphne's promotions from Tanabata on the seventh day of the year.

But this event makes Hubei Huanggang's Daphne franchisee Xia lady somewhat depressed or even angry.

"In August 17th, Daphne's direct shop started" 79~99 yuan "promotion, but the average price of our purchase was 120~135 yuan, which is not the cost of labor, pportation and rent.

We used to sell more than 2000 yuan a day, but now we can't sell it at all. We sold 400 yuan the day before yesterday, and we sold 500 yuan yesterday.

In September 4th, in a telephone interview with reporters, Xia said angrily, this is Daphne forced to withdraw from the franchisee.

In February 2009, Miss Xia signed a 3 year contract with Daphne and invested about about 500000 yuan.

In the first two years, Miss Xia has been in the holding shop period in order to open up the market, and has not made much profit. She thought that this year could start to recover the cost.

But in November 2nd last year, Daphne told her that the company did not join the company, and the contract ceased.

"I was blindfolded at once.

At the time of signing the contract, Daphne said that unless he did not want to do it, he could do it all the time.

I invested so much money that I didn't renew my contract, so how can I recover the cost?

Said Miss Xia.

At the same time, Daphne began to exert pressure on franchisees in terms of price and goods.

So Miss Xia began to negotiate with Daphne, but she was disappointed again and again.

Miss Xia's experience is not a case.

According to a reporter's investigation, Daphne, Henan, Chongqing, Zhejiang, Shaanxi, Guangxi, Hunan, Hubei and other places have seen similar situations.

Even some franchisee contracts have not yet expired, and Daphne has unilaterally stopped supplies.

At the end of August, Xia and Hubei joined together to join the Complaints Bureau of the industrial and commercial bureau and the people's Government of Shanghai, where Daphne's headquarters were located.

Under the pressure of media exposure and public opinion, in September 7th, after consultation, most Hubei franchisees reached an agreement with Daphne, and Ms. Xia also signed a two-year contract.

But for goods and promotional prices, Daphne still has no explanation.

Xia said that although the contract renewal, but if the price and goods can not be resolved, the franchisee still can not earn money, we will continue to safeguard rights.

According to the reporter, in addition to other regions in Hubei, the franchisee has not yet received.

Notice of renewal.

Ms. Wang, a Daphne franchisee in Chongqing, told reporters that Daphne had not yet received the notice. If Daphne did not respond, she would hire a lawyer to prosecute.

Huang Yingzhe, director of Daphne public relations, confirmed that the two sides did not allow and should not violate the spirit of contract or violate the relevant laws of the state, and the special departments would properly consult and deal with them according to the specific circumstances of relevant franchisees.

To be franchising, to be accused of "killing and killing others"

Public information shows that as of June 30th this year, Daphne had 4598 Direct stores and 1010 franchised stores, and 411 new outlets in the first half of this year, reducing 45 stores.

{page_break}

A former Daphne manager Zhang Jie (pseudonym) told reporters: "Daphne has begun to join a long time ago.

At the beginning, there were 5000 franchisees and 1000 Direct stores, which were 5 to 1, and then slowly joined in, and now it has been 1 to 5, but now the remaining franchisees are beginning to recover.

Now the shoe and clothing market is depressed, considering the cost, the general enterprises will not take back the franchised stores.

Then why is Daphne doing this?

"After a period of rapid growth, enterprises have entered a stable period, especially in the form of economic downturn now.

Where is the bottleneck at this time? It is mainly the standardized management and efficiency improvement of terminal stores, especially franchisees.

Therefore, all brand enterprises want to be pformed into direct battalions so as to ensure the sustainable growth of profits.

Bian Weilin, general manager and chief consultant of Shenzhen outstanding growth management Consultants Ltd., told reporters.

According to Daphne's semi annual report this year, the turnover in the first half of 2012 was HK $5 billion 80 million, an increase of 28.9% over the same period last year, and the operating profit increased by 11% to HK $700 million. However, the gross profit margin of the core brand "Daphne" decreased by 0.5%, while the average stock turnover days increased from 149 days to 202 days.

Meanwhile, the semi annual report also shows that a stable store expansion plan is very important for sustainable development. Therefore, Daphne should take a strategic opening up plan to focus on developing direct stores.

Zhang Jie also told reporters that there are about more than 3000 counties and cities suitable for opening stores in the country. Currently, there are more than 6000 stores in Daphne Direct stores, and the market is basically saturated. In order to get more profits, Daphne can only open more direct stores, but it will cause competition with franchisees, so this time it can only sacrifice franchisees.

"Go to the alliance" is not wrong, but this time Daphne handled the franchisee's practice too intensely, obviously did not make the foreshadowing.

Franchising should give some franchisees a compensation plan, especially if they have done a lot of work.

The pformation of investment into a company's equity can at least guarantee the interests of franchisees.

Bian Weilin told reporters.