Zero Affiliate Fee Is Aggressive, And Police Prevent "Pie" From Becoming "Trap".

September 7th, currently franchising

Shearing phenomenon

In the shoe industry, there are also some phenomena of unilaterally increasing the membership fee after the maturity of the brand.

It also needs to be analyzed from the composition of the brand's profit. The profits of the brand include two parts: tangible product income and intangible product income, that is, product price difference income and franchise fee income.

In foreign countries, the royalties from franchised brands account for more than 50% of the total revenue structure.

We can imagine that if the franchisee does not have the benefits of intangible products, it will inevitably lose this part of the loss to tangible products (reduce the cost of products or raise the market price of products). In this way, after the maturity of the brand, it is also a normal business behavior for the brand to increase the affiliation fee. However, this kind of backsliding does indeed damage the interests of the franchisees, which is a typical "shearing wool".

In fact, the footwear industry is licensed.

Now many shoe and clothing brands in the market have pulled out the banner of "1 yuan joining fee" and "zero joining fee", or the threshold of joining the headquarters limit is very low, so long as they pay a very low amount, they can join.

And the pioneer of zero affiliate fee, Wahaha Group has opened hundreds of children's wear stores in the country in the form of zero membership fee, and has become one of the largest children's clothing brands in China.

Although the threshold of franchising in footwear industry has been greatly reduced, some franchising companies are inevitably making a big fuss about related franchising.

In fact, a few years ago, the practice of "zero membership fee" has surfaced, but it used to be used as a gimmick to attract business.

Many industry businessmen quietly pfer some fees to products, that is, pfer costs to the supply price.

In addition, headquarters training is also the most important link. Some shoe and clothing brand enterprises have greatly reduced their training support after promising "zero join".

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Brand expands business opportunities through "zero join" machine

At present, labor costs and bunk rentals are being "depreciate". Many brands join the brand to launch "zero join" at the right time.

"At this time, the launch of" zero join "investment is like shopping promotion.

Wang Junyao, vice president and Secretary General of Zhejiang chain operation association, said that the franchise mode imported from abroad started earlier in Zhejiang province. From a regional perspective, this mode is developing healthily in our province but still in a small and medium scale stage.

In fact, most of the franchised brands need to pay a fee ranging from 1000 yuan to $1 million.

"No affiliate franchise" is very low in the Zhejiang market.

Now, under the economic environment, "zero join" has reduced some risks for many investors.

Wang Junyao believes that, in order to avoid risk, in addition to the full consideration of investment projects, investors need to investigate the existing franchises, production products, training and access to real information.

"Investors first pay attention to whether the headquarters is profitable, conduct a city survey of the projects that need to be joined, and consult the brand store in detail how to provide related services for the franchisee."

Wang Junyao said, "for example, the number of shops in the Hangzhou City, the specific location of each store, and several profitable losses, and other information, investors can request to join the headquarters.

On balance, choose whether to join the investment. "

Now many small and medium-sized brands in order to quickly achieve the establishment of their franchise system and market coverage, all take low affiliate fees or even "zero franchise fees" as bait to attract the attention of investors.

It is understandable for licensed brands to occupy the market. However, lowering the threshold and starting point of market access unilaterally will only destroy the cause.

As we all know, Europe and the United States and other foreign franchise brands have been able to survive through the past hundred years of survival challenges and sustainable development, a very important factor is to maintain the market entry system and market competition barriers firm position and accurate sense of direction.

However, this approach may not be suitable for all brands, and most brands are faced with business confusion after growth and maturity.