Six Steps For Franchisees To Achieve Franchising

Step one: recognize the misunderstanding

When you want to expand your career with the intention of joining the company, be calm and avoid misunderstandings from the very beginning.

Myth 1: having a certain amount of capital, plus enthusiasm and desire, can become a franchisee.

Each franchising organization has a set of successful experience which is not easily imitated by the market, and has its unique management. Therefore, there are specific requirements or even special conditions for its franchisees.

In addition, franchising is a voluntary act of both sides. Both sides want to achieve their goals by using the power of the other party and then reach the coexistence level.

Myth two: the head office is obliged to ensure that the franchisees succeed.

The headquarters provides a complete set of operation modes, but it is by no means a holy pill for thousands of trials.

"The master leads the door and practices in the individual". The success of the real business still depends on the practice of the franchisee. We must understand the characteristics of the industry, conduct a correct and effective market analysis, and not rely on headquarters.

It's like buying a good car.

If driving technology is not good, it is also unable to give full play to the superior performance of vehicles.

Misunderstanding three: signing a licence

You can make money easily.

Franchising is not a shortcut to getting rich, but it can reduce the risk of venture compared with other ways, and provide a successful business on the basis of franchisees. It should not be regarded as a way of making money without working.

The second step is to collect data.

Franchising is almost suitable for all business services, so you must collect information from different industries as much as possible, choose industries that you are interested in, and compare the market potential of different industries.

We should recognize the trend of development and return on investment, avoid mistakes in judgment and deviate from our real interests.

Without the support of interest, it will be difficult to succeed in an industry, and it will not be easy to succeed.

The necessary registration information for us franchising includes:

1. registration information about chain stores;

2. business experience of chain store and its directors and general managers;

3. the business development process of chain stores;

4. the history of litigation of chain stores and their directors and major department managers.

5. bankruptcy history of chain stores and their directors and major department managers.

6. description of chain operation;

7. the cost of joining a chain store to acquire or start chain operation.

8. in the process of chain operation, all or part of the cost should be paid to the chain store company or a branch.

9. a form about chain stores and other franchised stores can be traded with them (asked or recommended).

10. real estate, services, supplies, products, inventions, signboards, fixtures or equipment - the franchisees require the purchase, leasing, and the list of franchisees and businesses.

11. when the franchisee obtains the chain operation right from the third party, the third payment instructions to the head office or its branches include royalties and agency fees.

12. chain stores can help the franchisee to raise funds.

13. restrictions imposed on franchisees' commercial activities;

14., the franchisees require the participation of their own affairs;

15. the termination, cancellation and extension of chain operations;

16. statistics on the number of chain stores and the speed of each branch's termination.

17. the power of chain stores to choose or approve the location of franchised stores;

18. training programs for franchised stores;

19. about chain operations

;

20. the financial situation of the chain stores.

The third step is to confirm the industry.

Before joining, first determine the industry to be joined, then select several joining systems to compare, carefully understand the development process, goodwill, profitability and future prospects, financial situation of the system, and make an objective assessment of their financial, capabilities and interests.

A simple way to evaluate franchising system:

1. collect the information of the system as far as possible, analyze and pay attention to the questions.

2. participate in the presentation of the system.

3., go to its franchisee to fully understand the situation;

4. initial contact with the head office.

5. consult professional advisors, lawyers and accountants.

Questions and answers should be raised when contacting the head office.

1. what is the business background and how has the business been developing so far?

2. what preparatory steps have been taken in the process of pforming business operation into franchising?

3. how many franchises have been conducted before the sale of franchise?

4. how do I know that your company has experienced and has the experience of solving daily business problems, so that I have enough confidence to invest?

5. why does your company have a franchise instead of expanding its business by expanding its business?

6. how many franchisees do you have now? Please provide the list and contact details.

7. how many franchisees have been in the past year?

8. how many franchisees have been in the past two years?

A. is terminated by your company. What is the reason?

B. will the franchisee offer to terminate the contract?

C. both sides agree to terminate the contract?

9. please state your company's criteria for choosing franchisees.

10. please provide information on business and financial or banking pactions.

11. what is your company's opening plan in the regional market I applied for?

The fourth step

In the third step, the evaluation focuses on the comprehensive situation of the headquarters, namely the evaluation of the qualification of the general store. The fourth step focuses on the project management and investment analysis, including the support from site selection, decoration and other pre opening businesses.

1. what is the cost of investment and what are the costs involved?

2. in addition to the cost of starting business, what aspects should I invest in and pay?

3. how much is the franchise fee? Is there a royalty? How do I charge it?

4. how much liquidity is needed? What is the basis of it?

5. what support and services can the head office provide before and during the opening stage?

6. what is the opening training content and who will pay for training expenses, including pportation, room and board?

7. can headquarters provide management manuals and operation manuals?

8. what are the preferences of the headquarters for the purchase of equipment and raw materials? Will it be forced to place orders so as to earn the difference?

9. what is the gross profit after opening? When will the profit and loss balance point be achieved?

10. how can supervisors help improve performance and management and service standards?

11. how can the headquarters provide advertising support? Do I have to undertake additional promotional expenses?

The fifth step is to sign the contract.

To some extent, franchising is contractual operation.

Therefore, we must carefully study the contract terms before signing the contract, and ask the practicing lawyer to give guidance.

The sixth step is to start business.

The emphasis of this step is to organize the management of the store and make good use of the brand advantage of franchising.