Daphne Direct Store Sink Conflict: Stores Were Blocked By Franchisees

There are new developments in Daphne franchisee's rights protection activities, according to reporters.

All the direct outlets of Daphne in Xiaogan have been blocked by franchisees for nearly 6 days.

Daphne Xiaogan franchisee is out of stock

Starting in September 12th, as of yesterday, franchisees in Hubei have blocked Daphne's 4 Direct stores in Xiaogan for 6 days.

As of last night's latest news, Daphne's 4 outlets have been closed.

A Hubei franchisee Mr. Xu told reporters that this is just the beginning. If the problem is still not solved, people will close their respective outlets.

Earlier, because Daphne adjusted its marketing strategy, it extended its direct outlets only to large and medium-sized cities to the county level market. In the process, it had a conflict of interest with its franchisees.

Ms. Gan is the only franchisee in Xiaogan, Hubei.

Ms. Gan said Daphne has been looking for outlets in several counties and cities.

In the newly opened outlets, the price of the same style products is much lower than that of the franchised stores.

She told reporters that sun Chun, the representative of the company, told her when he came to Hubei last year to discuss the renewal of the contract with her. The company took a fancy to her market and proposed to enter the direct store, which was rejected by Ms. Gan on the spot.

The franchisees in the Xiaogan area said that the company had set many "thresholds" in the renewal of the contract because they had not agreed to enter the direct store. "The company asked for 500 thousand of the goods to renew the contract, but there was no specific explanation when signing the contract."

Ms. Gan told reporters that two weeks ago, she had already paid the money to the company. When the payment was made, the company would deliver the goods a week.

And according to Ms. Gan, all other franchisees have received the goods.

Mr. Xu, a franchisee, said that Daphne has been in Guangshui for more than a year. Due to the variety of products and the low price, the sales of local franchisees have caused a great impact.

The goal of direct channel operation has gradually become clearer.

Reporters interviewed Daphne PR Director yesterday.

He said he had sent people to the local consultations, and the company had never explicitly stated the idea of joining in the past. Only the proportion of franchisees might be reduced or the growth of the outlets would be faster.

In the industry, according to the current situation, Daphne has not only optimized the franchisee structure.

Independent commentator Ma Gang believes that Daphne's purpose is obvious and wants to go straight to the camp.

In the first half of this year, Daphne increased 411 stores and reduced 45 stores. The proportion of the core brand stores increased to about 83%.

For the layout of franchisees in the direct store, Huang Yingzhe said: "the company's business secrets are involved, and the company is inconvenient to disclose in detail."

"Now, whether franchisees continue to join is no longer important, mainly the interests of the above disputes."

Ma Gang believes that franchisees should seek legal protection in accordance with the contract.

Yan Yiming, a well-known rights lawyer, said there was controversy about whether the company entered the franchisee market.

From the perspective of contract, the company violates the contract.

"However, according to the anti-monopoly law, a franchisee in a place will impose restrictions on competition objectively, and when direct stores join, they will be conducive to competition and consumer interests."

For Ms. Gan's company that has not yet delivered her goods, Huang Yingzhe said that the company will not deliberately delay delivery, which may be the issue of factory delivery and logistics.

Daphne asked the franchisee to get 500 thousand of the goods, and Yan Yiming said it was an unreasonable condition.

"Because there is no clear demand in the related contract, the company is now trying to refuse to deal with a bit of predominance."

Daphne's tough pition to direct store mode is a victim of thousands of franchisees.

In the past three years, the thousands of franchisees who laid the market base for the three or four tier cities for Daphne seem to have completed their mission in Daphne.

It is the most realistic choice for Daphne to make direct efforts to abandon the franchisee, and from this point of view, the franchisee has become the first victim of Daphne after its initial pformation.