Clothing Franchising: Beware Of Pie Traps

"All the profits", "annual profit millions", "day earn 3000", chain companies have attracted a large number of investors in this way of publicity. However, in an interview, reporters found that these chains are not all pie in the sky.

Trap 1: processing foreign countries

"Fortunately, I did some market research before joining, otherwise all my savings would be lost."

A few days ago, Mr. Qi of Hahi told a story that he had been fooled by a clothing company.

According to Mr. Qi, in June this year, he heard that a foreign clothing brand was selling well in a website. The head office of Beijing is recruiting. Mr. Qi decided to join. For this reason, he went to Beijing with his friends.

In an office building of Beijing machinery mansion, Mr. Qi met with the salesman of the company. The salesperson enthusiastically introduced the product to Mr. Qi. The salesperson said that besides the brand management clothing, the company also ran the same brand of cups, office paper and various daily necessities. The quality was good and the price was low.

At present, the company has franchises in Beijing, Nanjing and Changchun, and the benefits are good.

The membership fee is 38 thousand yuan and the agency fee is 198 thousand yuan. The agency fee can be gradually returned to the franchisee through the quantity of the franchisee.

According to the salesperson's theory, a franchisee is only 200 thousand of the affiliate fee and agency fee, plus the purchase, rental and decoration, and the total investment will be 400 thousand.

Mr. Qi dared not rush to sign contracts with them, and decided to investigate privately. During his several months' inspection, Mr. Qi saw the trick.

A family in Beijing

Mr. Qi is increasingly skeptical of the commitment of Beijing headquarters, and even doubts whether the clothing brand really exists.

After many surveys, Mr. Qi learned that there was no such brand in foreign countries, only a large shopping mall with the name of this brand.

Mr. Qi is very fortunate, but fortunately he has not joined. Otherwise, the dream of making a fortune will not be broken, and he will still owe a large sum of foreign debt.

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Trap two: no collection

Like Mr. Qi, various advertisements have made many citizens dazzled, unable to distinguish true from false.

"Overnight riches", "all profits," and "millions of millions of dollars" advertising campaigns are more eager for investors to make money, and most of them are based on online advertising and TV direct selling. Most companies do not charge for affiliate fees. Instead, they offer a one-time investment to the franchisee to pay $10000 or even about one hundred thousand mortgage or deposit.

A franchise website lists hundreds of franchise projects including clothing, shoes and hats, catering and health care entertainment, jewelry and gifts, home building materials and so on. Every businessman is introducing the company without risks and quick results.

Reporters randomly selected a Guangzhou "2 yuan student supplies shop" to join the phone, the other said, the brand has more than 30 kinds of student supplies, sales are very good, the purchase price ranging from 0.3 yuan to 1 yuan, the franchisee can sell 2 yuan to 30 yuan, and other franchisees are different, the company did not have the joining fee, only received 8800 yuan mortgage.

The franchisees do not have to sign the agreement at the headquarters of Guangzhou. The headquarters will send the rules and decoration plans to the franchisees by e-mail. After the completion of the decoration, the new store photos will be sent to the headquarters. After the examination, the franchisees will be able to open their shops and the products will be sent to the franchisees within 7 days.

The reporter asked whether the proceeds from the franchisee promised by the company could be written into the contract.

The other replied, "no, according to the standard of service required by the company, the cost will be recovered in a short time, but if the company runs a deficit, the company will not be held responsible for the poor management of the franchisee.

Another 10 yuan jade jewelry joined the head office's low price of promotional products. It is tempting to say, "thousands of genuine jade ornaments in the mall are sold for $10, and the franchisee only sells 10 yuan". The headquarters explanation is that jade jewelry is jointly operated with jade production bases such as Guangzhou, Xinjiang and Fujian, so as to reduce the cost of the circulation link.

However, there is a price list at the bottom of the web page. The franchisee must invest 198 thousand yuan for the first time. After that, the total sales volume will reach ten thousand yuan every year, and the manufacturer will return to one thousand yuan until the investment amount is returned to the end.

Reporters roughly calculated an account, if the affiliate company to play a "zero investment risk" advertising, set out very attractive conditions of joining, such as "to ensure more than 100 thousand yuan a year", it is easy to attract a large number of entrepreneurs.

Each person will pay 10 thousand to 50 thousand yuan in the franchise fee. Dozens of people will gain millions of yuan in the "joining fee", and the profits will be astonishing.

Trap three: joining the company is a thriving scene.

Entrepreneurship is the most uneasy and impetuous. Some join the company is to seize the urgent psychology of making money, create the illusion of unlimited prospects, and set traps.

Zhang, a teacher at the school of economics, Harbin University of Commerce, believes that entrepreneurs should not be confused by the phenomenon of affiliate companies. Some join offices will be located in high-grade office buildings. The spacious office will give people a vision of company prosperity. When the franchisees find that they are being cheated, the company is likely to be deserted.

In addition, do not trust the "international brand". Some franchisees will give the company the title of "international" in order to show their noble dignity. But not all the "foreign" companies are from abroad. These foreign trademarks are also specially posted by businesses. "Two"

Mr. Chang said that for ordinary entrepreneurs, choosing a franchise project is very important, including selecting industries that are consistent with their interests, abilities and ideas, and are more reliable, with a certain reputation and reputation.

When choosing a project, the franchisees are advised not to choose Internet franchising. Because China's franchise industry is not perfect, the franchisee is separated from the head office by thousands of miles, so it is difficult to investigate the real operation of the company.

If you choose a good franchise project, entrepreneurs should not be eager for quick success and instant benefits. Because they work down-to-earth and accumulate wealth with their work experience, don't fantasize about getting rich overnight.