What Should You Pay Attention To?

Joining is indeed a shortcut to success for those who want to start a business. According to the statistics of Japan's retail industry, 80% of independent stores close in the first year, and only 8% can survive until the fifth year; However, only 20% of chain stores end their business in the first year, and 77% of chain stores can survive to the fifth year. This survey proves that "joining is definitely more cost-effective than starting a business on their own." However, it is also worth noting that in Japan, nearly 80% of chain headquarters will fail within five years after their establishment. Therefore, we must be very careful when selecting headquarters. Look for headquarters with certain experience in opening stores and chain stores of a certain scale or at least two years of development to ensure operation. Some new franchise systems have not developed in the market for a long time, have not gone through the market experience, and customers' consumption habits have not been formed, which is likely to cause the illusion of temporary business prosperity.

In addition, the competitiveness of chain brands is also the key to success. Observing the development of the United States and Japan, the future of chain operation is bound to move from single store competition to brand competition, that is, competition between chain systems. Therefore, although franchisees who choose weak brands can pay less franchise fees and royalties, they can enjoy less resources and help from the headquarters; Many things are handled by franchise stores themselves, so the competitiveness is naturally weak. In fact, the headquarters with more stringent joining conditions often have a more complete joining system and stronger financial resources and strength, but are more capable of ensuring the profit of the franchisees. Because of this, the more reputable chain enterprises are, the tighter they are in selecting franchisees. Before filling in the application form, I do not deny that the franchisee has the freedom to choose the headquarters, but once the form is completed, it is the head office's turn to choose the franchisee.

Many franchised headquarters like married Franchisee , it would be better to come with a couple who have some money but are not too rich. "Because people with this trait, on the one hand, have economic pressure, and also have work experience, because they really want to do this business, they will not give up easily because they can't bear hardship." An industry insider in Taiwan commented on the choice of franchisees in this way. On the other hand, although the headquarters should not be chosen for small gains or small gains, it should not be chosen because Investment amount Not very big. The mentality of management is to herd cattle and eat grass. The chairman of a chain company in Taiwan said that if the franchise fee is only 10000 or 200000 yuan, many franchisees tend to have the idea of "losing is enough"; If the franchise fee is increased to one or two million yuan, the operators will be more diligent. In this way, the franchise stores and headquarters of both operating parties can get due benefits.

Want to join Entrepreneurship Those who want to consult the former franchisees and ask them to understand. This will avoid some unnecessary troubles. Therefore, it is necessary to go to the headquarters and its franchise stores in person to collect first-hand on-site information. When screening franchise chain enterprises, prospective franchisees can request the headquarters to provide relevant information. If the headquarters cannot provide such information, it is better to think twice. In addition, the headquarters can be asked to provide the number and location of the existing franchise stores. The headquarters can recommend three franchise stores similar to the expected business district. Prospective franchisees will spend some time to visit and negotiate after selection to find out whether the actual operation of the franchise stores is really as the headquarters said, What problems are likely to occur in the normal operation of the store, how to deal with them and the support of the headquarters. Many franchisees said that some headquarters would say that the cost is relatively low. After signing the contract, they found that the actual figure was higher than what the headquarters said at the beginning. "Picking" - of course, it is one of the tasks that the franchisee should do, but you should pay attention to the above many criteria to reduce your own business losses.