Before Joining The Clothing Brand, We Need To Avoid The Failure Of Joining.

Wrong choice of headquarters

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They are almost completely attracted by the people at headquarters, but do not go all in to investigate the operation of the franchising organization. At the same time, they join blindly. But after joining, they find themselves in a predicament. At the same time, they find themselves in a predicament. At this point, they regret that they are late. Some of the franchisees are only a little bit less than the rest. What they see is just a superficial phenomenon of the rapid development of a certain headquarters. The result is nothing to do with whether the follow-up service of headquarters can keep up with the business development. They are only partial to their headquarters.

What the franchisee should notice is that the real good chain operation organization has a very high demand for its prospective members. The people who apply for membership must go through a lot of strict procedures before they can get the approval.

At the same time, in countries with better chain operation, they regulate the chain operation by legislation, so as to prevent inexperienced franchisees from being cheated.

However, in the absence of relevant laws, the possibility of infringement of franchisees' rights is greatly increased.

A lot of chain organizations claiming to be "experienced and outstanding" are seemingly powerful. But if they look carefully, they will probably find that they are not qualified for the chain operation.

Lack of management experience

To create a career, if you want to succeed, the product's feasibility will account for 40% of the success factor, management will account for 30%, and the rest 30% will be heaven, earth, and people.

Here, even small family shops, management can not be ignored.

Many franchises are in trouble.

The dilemma is largely due to the lack of management experience of franchisees.

Managing a company is no easy task. Many of the franchisees may already be the heads of important departments in big enterprises. They know the business management of their departments well, but they should see that they need to host a business. The experience they have is far from enough.

For example, a person who has done sales may have a lack of understanding of the financial aspect. When estimating the total investment, he only takes into account the project expenses necessary for opening the shop, while some of the extra expenses, such as taxes, accidents and charges, are forgotten one thousand and two hundred net, and the inventory and cash flow are not fully estimated.

The other situation is: some of the franchisees already have their own businesses before joining them, and they are investing in chain operations solely for the sake of new development. Such investors often make the same mistake, that is, self righteous.

They believe that they have experience in management, they tend to be arbitrary and do not obey the management of headquarters. At the same time, they often neglect the importance of overall discipline, and it is very difficult to coordinate with other franchisees.

All of these are the lack of franchise management experience.

Serious conflict with headquarters

The relationship between franchisees and their affiliate headquarters is based on mutual benefit, and both sides need a win-win outcome.

The win-win outcome can not be achieved without the cooperation and cooperation between the two sides.

Once the two sides have problems in coordination and coordination, the interests of both sides will undoubtedly be affected.

More importantly, there is no relationship between the headquarters and franchisees in the chain operation. The two parties are independent and restricted each other. Even if they are dissatisfied with the management of the franchisee, the headquarters has no right to replace the franchisee operators, nor has the right to interfere in the personnel management of the franchisees. On the other hand, the franchisees will also consider themselves the owners of the franchisees, and no one can interfere in their own business, so they will resist the instructions of the headquarters.

In the long run, bilateral relations will only become increasingly rigid and contradictions will be deepened, and finally, contradictions and conflicts can not be reconciled.

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For example, a franchisee business is not good, the franchisees may complain that the headquarters business philosophy and guidelines are erroneous, or the price of unified purchase by headquarters is not reasonable, or complain about too many franchisees in the same business circle, resulting in excessive competition and so on.

However, the headquarters thought it was because the franchisor's own fault did not follow the guidelines, and any consequences from it were not related to itself.

There are other reasons for the conflict: because in fact, the status of headquarters and franchisees is not completely equal, there are often unfavorable factors in the contract.

For example, headquarters need to control the franchisee to maintain and guarantee the level and product quality, so the contract usually stipulates the headquarters control over many business aspects of franchisees.

However, when franchisees find that these controls are too harsh for him, and some headquarters force them to do harm to their own business, there will inevitably be conflicts.

A fried chicken shop named chuc Di lett in the United States obliges all franchisees to purchase goods from headquarters, including chicken seasoning and paper products, in the concession contract. The result is that the franchisee must complain more than the supplier's higher price.

One of the franchisees sued the court for making an illegal decision on the restriction agreement, allowing the Kennedy to set up the quality control standard, but the right of the franchisee to freely choose the supplier must be granted.

In short, due to the fact that the force is not equal, whether the two sides produce conflicts or conflicts, the most affected is the franchisees, because a failure to join the operation, does not have a global impact on the headquarters, but the impact on the franchisee is one hundred percent.

Therefore, the franchisee should consider clearly before signing the contract and read the contract of joining the contract carefully.

Affected by headquarters too much

One of the main reasons for attracting the alliance is that once the franchisees join, they can operate under the guidance of the headquarters and not worry about the signs.

In view of the characteristics of franchising, franchisees must use headquarters, trademarks and commodities provided by headquarters when they join franchising, which is also an agreement that must be observed by franchisees.

However, this advantage may also be another reason for the failure of franchised stores.

As a result, the success or failure of the franchisee is almost entirely maintained at the headquarters, especially the goods they sell, which must be provided by the headquarters, so that the franchisee loses the right to freely choose the source of goods.

In fact, the popularity of commodities is changing rapidly. If headquarters can not grasp the trend of the trend change or slow down the changes in the trend, it will easily cause serious losses to the franchisees.

Investors do not operate in person.

The success of a cause is often proportional to the energy and effort invested.

According to a survey data in a certain area of the United States, the main reason for the failure of franchised stores is that they do not personally manage and manage others after joining them.

After careful attention, we can see that some successful chain operations headquarters always insist that franchisees or a major shareholder must devote all their time to management.

The reason is very simple. The spirit of employees' collage is always less than that of investors.

Therefore, the effect of employees' operation is, of course, less than that of investors.

In fact, the franchise headquarters can clearly recognize this, but franchising is like snowball, which is the hardest part to start.

In such a situation, if too many demands are placed on the franchisee, many potential franchisees will be deterred and eventually the franchising project will be difficult to carry out.

Therefore, in order to attract the franchisee, the standard should be lower than the ideal when accepting the application.

Another point to note is that when planning a chain business, the headquarters has already spent a considerable fee on the promotion, contract making and other aspects.

Based on the above reasons, cautious franchisees should manage their franchised stores in person, so as not to cause their careers to be controlled by others and become "puppets" themselves.

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Rent issue

In chain operation, the choice of shops is quite important.

If franchisees have their own shops, they can't be better, but the problem is that many franchisees themselves can't be used as chain stores, so they can only rent other people's houses to do their own businesses.

In doing so, it is easy to produce some negative effects, that is, if the franchisee's business is flourishing, the rental period has been reached. The owner may take the opportunity to raise the rent at that time, and the franchisee can not afford to accept the increase of the rent of the shops for the sake of the continuation and maintenance of his own business.

What is likely to happen is that if the owner refuses to renew the lease after the lease expires, the franchisee will fall into an awkward situation: on the one hand, his business is in full swing and on the other hand he has to find another place.

Therefore, in the chain operation, shop problems often become a headache for the franchisees.

After knowing the reason that easily leads to the failure of joining, the next thing to do is how to avoid failure.

Generally speaking, avoiding the failure of joining can be achieved through the following ways.

Vigilance

You can't believe too much about the data analysis and reporting materials provided by the headquarters, because practice has proved that some bad headquarters will act on the data, and they may also take the exaggerated way to deceive the franchisees. Although some headquarters have set up a model shop for the franchisees to watch, but in fact, his model shop does not make money, it is just used to make faces and appearances.

Those who are eager to "make a fortune" are often cheated.

Therefore, before joining, it is particularly necessary to be vigilant.

Put right relationship

The franchisee should straighten out their relationship with the headquarters.

First of all, to choose a good headquarters is the key to the success of the franchise.

Without a good leader, franchised stores will not be able to manage the future business well.

Choosing affiliate headquarters is critical. The franchisee must be cautious. It takes time to spend more time on it.

Secondly, attention should be paid to relying on headquarters rather than being affected by the headquarters.

Because too much dependence on the headquarters makes the franchisee lose its autonomy and it is impossible to become a franchisee in the headquarters.

Therefore, we should straighten out the relationship with headquarters, relying on headquarters to accept the help and services provided by headquarters, and not rely entirely on it.

Choose the right industry

It is mostly a failure to see whether other people are interested in making money or business, regardless of whether they are interested, able to manage, or have time to deal with them.

Because there is no interest in doing things, the natural success rate is not high.

So choosing a favorite and promising industry is crucial to the success of franchising.

Plan must be few

A good plan helps to reduce blindness and avoid failure as much as possible.

The plan should include: how much the amount of investment to be prepared, the monthly turnover, the monthly profit, whether the rate of return on investment is larger than the time deposit rate of the bank, the number of royalties paid, the amount of monthly fixed income to pay to the headquarters, and when the principal amount is expected to be recovered.

Choose the address

For franchisees who own their own stores, it is necessary to understand the business environment, competitors' status, the competitiveness of the merchandise, its advantages and disadvantages, the local consumption ability and standard, and whether the local market is saturated or not.

Solving the problem of rent distribution

If franchisees can own their own shops, of course, very good, but in fact, many of the shops in the franchise are rented.

This will give rise to a tenancy problem, so in general practice, the franchisees try to make the lease longer, so that they can make the rent fixed and avoid frequent relocation of franchisees and affect business.

Accumulate management experience

Usually, because the franchisee lacks of management experience, it is easy to fail in operation, so the franchisee should be a conscientious person and try to accumulate more experience in practice.

In business, we should manage well our stores and coordinate with headquarters.

To set up a business concept suitable for franchising, a move is related to the rise and fall of the whole chain business.

Accumulated from the management of franchisees.

In this way, the franchisee can lead their employees to make their own shops more heated.

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Prepare for the worst

Any investment will have risks, and chain businesses are no exception.

Therefore, the franchisee should "not win the material, lose first" and prepare for the worst.

The franchisee must not do all his assets.

To join the system, we should also take into account our partners and children. This business is not entirely our own, and also has their share.

We should consider whether we can maintain our life with our family if we fail. So we urge you to join all the potential franchisees.