Warning: Franchising Has Pitfalls

The rapid dissemination means to increase the brand effect, and the floating population and consumption habits have achieved a chain form. Franchising has become a popular investment item at the moment.

At the same time, lawbreakers also began to stare at franchising.

Take Mr. Tian of Chengdu, in September last year, he saw a biochemical technology company inviting franchisees advertising, claiming that it had the patented technology of extracting heparin sodium and chondroitin from animal liver, lung and intestines, and joined 3600 yuan, with an annual profit of 200 thousand yuan.

Although he heard a bit of chatter, he paid 3600 yuan to join the club after a visit, and in the middle of November of last year, he bought 2600 yuan for the purchase of raw materials.

On the 22 day, the company's office phone and the leader's cell phone could not get through. Mr. Tian was somewhat worried and began to investigate the local authorities to see if this was a hoax.

At the same time, two franchisees from Hunan and Sichuan came to the police to be reported to be fooled.

In the past few years, it has been common for people to cheat in the franchise fees.

Experts remind investors to take note of the following risks and avoid the risk of franchising: false propaganda.

Many franchise franchisees throw attractive slogans such as "one day start up operation", "one month recovery cost" and "one year package to make millions", but these slogans are often just empty promises that can make you dizzy.

The success of franchising is closely related to the market situation, changing trend, store location, operation level and follow-up service capability. Investors must carefully investigate and decide where to invest.

The two is contract trap.

Some franchisee licensors promise to recycle products, but they will indicate that they have to meet their product standards in the contract. At the same time, these standards are very vague.

After the franchisee produces the product, the malicious Licensor can completely reject it according to the standard, and the franchisee can only eat it.

Therefore, on the one hand, investors can choose projects with relatively strong market demand and high gold content; on the other hand, they can earnestly deliberate on the contracts to be signed with the help of professional personnel.

In a society with more and more commercialized atmosphere, long-term credit cooperation needs more time to verify. It is better for entrepreneurs to cooperate with enterprises with genuine technical strength.

The three is money trap, the most common and the most hidden way to cheat money.

Some franchising operators make several model stores, and then begin to "collect money" through the early packaging and campaign. They only take charge of affiliation fees and management fees.

However, these "money makers" are not hard to identify. They often have the following characteristics: there is no sound operation system; they can not provide the necessary continuous training system, management and logistics system; there is no development of stamina and so on.

As an investor, we must choose strong brand cooperation and understand the background of the authorized party in detail.