How To Prevent Entrepreneurial Pitfalls?

There are many pitfalls in joining businesses and franchising, and it is difficult to recover once economic losses are created.

It is recommended that entrepreneurs invest and sign contracts carefully.

According to the recent reports of some entrepreneurs in the field, some enterprises have made use of the psychology of many laid-off workers, unemployed workers and peasant workers to rush to start their own businesses and find jobs. They have been carrying out false propaganda with the guise of franchising and joining the chain to acquire the cost of joining the company. The products that are basically used for production and operation are basically the tools used for production and operation. Most of the entrepreneurs and franchisee have signed contracts for the purchase of industrial products or agreements, which are not daily life consumption. The products purchased in the contracts are not daily necessities. When the entrepreneurs and franchisee have a dispute, the relevant departments can not protect the entrepreneurs according to the relevant provisions of the law of the People's Republic of China on the protection of consumers' rights and interests.

At present, the Beijing Consumers Association has received several 10 entrepreneurs' response to such problems, involving more than 30 yuan.

The main features of the company are as follows: first, some enterprises publish false advertisements in newspapers, television, magazines, Internet and other media, and advocate investment returns. The purpose is to sell products or related technologies, and ask franchisees to buy expensive machinery and equipment or related technologies that they claim to be "full imports" and "international patents". Two of them are to collect franchise fees but fail to fulfill their commitments.

The value of franchise is not only the technology and equipment pfer, but also the follow-up training and guidance. But when the entrepreneur asks the franchisee to fulfill the various business or technical guidance and training services that he has promised, the franchisees are reluctant to perform with all kinds of excuses.

Its fundamental purpose is to get the high cost of joining the entrepreneur. When the entrepreneur asks to refund the franchising fee, the franchisee will not refund any reason for all kinds of reasons. The three is that some of the franchising companies are more sophisticated, invest in several sample stores first, then carry out excessive publicity and publicity through the early packaging and campaign, and then begin to join the "money trap" for the entrepreneurs. Once the "money trap" is successful, the franchisee will sign an unfair contract with the entrepreneur for their own advantage and against the entrepreneurs.

When the entrepreneur raises the contract doubt, the franchisee will conceal the important facts, exaggerate the benefits brought by the franchise, and allow the entrepreneur to sign the contract to pay the franchise fee. Once the contract is signed and the cost is paid, if the contract is in dispute, the franchisee will turn the corner immediately, and it is clear that the entrepreneur will break the contract first and not return the venture capital.

It is suggested that entrepreneurs should pay attention to the following points: first, investigate the background of joining enterprises, including business registration, operation, reputation and trademark registration.

Second, the interests of the entrepreneurs in the franchising process are often damaged, and they can not be protected according to the law of the People's Republic of China on the protection of consumers' rights and interests. Once disputes arise with the franchisee, it must be resolved through judicial channels.

For this reason, entrepreneurs should keep proper written documents such as handbooks, publicity materials and so on. Once disputes arise in the future, they can be used as the key evidence for safeguarding rights.

Third, the franchisee often comes up with a fixed form contract for entrepreneurs to sign, while most of the contracts are unilaterally biased towards the franchisee, and the entrepreneurs are very strict and restrictive clauses are quite numerous.

If entrepreneurs do not carefully analyze, once there is a dispute, it is very difficult to protect their interests.

The franchise contract is a relatively professional contract. Before the signing of the contract, it is better for the professional lawyer to help the audit.

Xu Qiyun, editor in chief: