Venture Join, Be Careful To Fall Into The Trap Of Money.

Fraud prevention guide: Franchising this unique business model has penetrated into all areas of chain operations.

However, the gradual development of the chain operation mode was triggered by the exposure of a "money trap" incident.

Shanghai Sejia Restaurant Management Co., Ltd. was registered in Shanghai in August 20, 2001.

The company provides guidance on the use of imported coffee grinding machines in Italy by means of sale, commission and management. In December 2001, it launched the mobile cafe "Pride Pavilion".

According to the web site of the "4050", the "4050" project of the government, they create employment opportunities for laid-off workers. In a series of "Introduction", the most attractive is their joining conditions: each franchisee only needs to pay 120 thousand to 140 thousand yuan to receive 5000 yuan per month, 1000 yuan per day for the franchisee, and one year to recover the investment; for the franchisee to search for a prosperous shop; for the training staff; raw material distribution, free maintenance coffee machinery and so on.

Favorable conditions are very tempting, and many citizens are paying for it.

Many of the franchisees have chosen to commission business. They have never even been to their stores. They are not aware of where the franchisees are and how they operate. Their work is just sitting at home and waiting for dividends.

But things are not as good as those who join.

First of all, because the city is so large, although Xi Jia attracts more people to join, it can't open so many stores.

Second, the return of the franchisee is not satisfactory.

Xi Jia found a bunk for a franchisee in a building in Pudong, and expected to earn 750 yuan a day, but only 20 people actually patronized each day. The coffee shop was in a state of loss for a long time.

In the past 1 years, the company began to delay the entry of 5000 yuan into the franchisee's bank card, and urged the tight franchisees to get several dividends. However, they did not know that the "leader" was relying on the east wall to make up for the capital chain rather than operating profits.

Finally, the "leader" finally failed to keep on going, so he ran away and fled.

China's franchise has started relatively late, but it has developed rapidly. At present, there are about more than 20 thousand franchise stores in the country, but there are still gaps in the relevant laws and regulations.

To this end, the relevant parties believe that the improvement of this business model requires urgent improvement of corresponding regulations and management systems.

First, establish an intermediary agency for franchising.

A good and professional intermediary should be involved in the franchisees and franchisees. They should conduct project evaluation, licensing assessment, feasibility analysis, credit investigation and so on. They should make a measurement of the promise of return, avoid exaggerating propaganda and mislead investors. As a neutral party, intermediaries should also carefully recommend investment projects. Once the franchisees are deceived, the intermediary will be jointly and severally liable.

Two, strengthen the supervision of franchising.

Industry and commerce, taxation, etc. should jointly manage the franchise dynamically so as to avoid quick money collection and protect the rights and interests of franchisees.

Three, we need to legislate as soon as possible to avoid franchise risks.

Many countries in the world have formulated their own franchise law, which is worth our imitation.

China should also set up barriers to entry for the franchise legislation as early as possible, and formulate rules to avoid risks.

Commented: franchising as a new mode of chain operation has its unique advantages, but without the protection and restriction of relevant laws and regulations, it will become a trap for "money makers".

"Pride Pavilion" may be just the tip of the iceberg. Who will play this dangerous game when the rules are not fixed?

Xu Qiyun, editor in chief: