How Do You Find The Best Way To Choose A Franchises?

Any industry has its own industry characteristics. Investors must strengthen their understanding and understand the key characteristics of the industry before choosing to join in the project. We must know that every industry has its "dark side", while the Allies tend to publicize their "bright side" only when they invest.

Remind investors that even if they choose to join a project, they must follow the basic rules of "business not knowing or not doing".

Nowadays, franchising has greatly improved the chances of success for investors, but small and medium investors must realize that franchising projects have gone too far.

To say that its' Pan 'means that all walks of life are adopting this expansion mode and has penetrated into all sectors of the industry.

In this case, small and medium investors should have more eyes when they participate. First, choose the right industry. They should know that they are afraid of entering the wrong business, and then choose the right ones.

So, what are the issues that small and medium investors should pay attention to when choosing franchises?

There are many projects, although there is a market before, but in the long run, they are contrary to national laws, regulations, policies, or laws, regulations and policies. There are great risks in such projects. As entrepreneurs, they must follow the principle of "legitimate entrepreneurship", and legitimate business begins with options.

The so-called "edge ball" project refers to those "Big Bang" projects, such as individual imitation of KFC and McDonald's franchises, and opportunistic projects, such as drilling policy loopholes.

In addition, small and medium investors should also be cautious in selecting remote projects. Although such projects tend to be "new" and the cost of joining is relatively low, the market space may be very small, or a long time market enlightenment education can start the market. If the road of entrepreneurship is too long, many entrepreneurs may not be able to afford it.

With regard to the history of franchise projects, small and medium investors can focus on the following aspects: first, the number of years of project operation, that is, how many years the project has existed, and how many direct outlets it has; secondly, which areas are operating, which regional markets have been expanded, which regional markets have been successful; the third is the operating performance, the annual profits of each business, the performance of early franchisees, and finally the success cases, and those who have joined the alliance have been successful.

In general, the franchisees usually charge the franchisee the following fees: franchise fee, royalty, etc., and some of the allies are also involved in profit sharing.

Here, we should remind the franchisees to guard against those businessmen who are inexperienced, but are always seeking to join the franchisee in order to collect the cost of joining the franchise, and those who are mainly selling equipment, so as to prevent funds from being cheated.

In fact, these financial traps are not only in China but also internationally.

The allies often make such commitments to the franchisees, because commitments (such as service commitments, quality commitments, technical commitments) are often "important weights" to attract investors to join.

Therefore, investors should not be deceived by the "sweet words" of the franchisee. The key is to see how the franchisee safeguards the implementation of the commitments and whether the measures taken to implement the commitments are feasible.

See whether project culture matches regional culture.

The culture here includes the following aspects: geographical culture, product culture, service culture, environmental culture, and so on, depending on whether it conflicts with regional culture.

Small and medium sized investors want to see their own area for products or services

Or buying habits,

If the market does not match the market consumption or the market is too advanced, the market will grow slowly and the prospect will not become "money scene".

There are three important points in the success of Entrepreneurship: capital, projects and talents.

A good project depends on its own quality and ability. It should not ignore the ability to do things beyond its capabilities, but also consider its resource mobilization capabilities (people, wealth, material, social relations, etc.), because there are many unexpected problems in the process of operation, so it is "how much capacity can be done".