Matters needing attention in joining the contract
1, certificate:
(1) It is required to show the relevant certification documents of the headquarters for attracting investment, such as business license, trademark registration certificate, service trademark registration certificate, brand trademark right, etc.
2. Join the contract:
(1) business circle: know whether the business circle is defined and whether it is guaranteed: whether it is exclusive operation or multiple operations in the designated area;
(2) Operating period: how long is the contract period, whether it is one year or two years, and whether there is a time limit.
(3) Admission fee:
A. Common joining fees include: joining fee, deposit and royalty. Do you know how to pay royalties? Is it a one-time payment or an annual payment? What expenses can be refunded and what can't be refunded?
B. The fees charged by the headquarters for providing business guidance to franchised stores shall be paid by the franchised stores on schedule, such as store design and construction fees, training fees, advertising fees, equipment rental fees, financial business fees, accident insurance fees, recruitment, evaluation, training, address search and other expenses incurred by the headquarters.
C. If the contract is invalid, the expenses to be refunded, such as brand deposit, contract penalty, etc.
(4) Supply price:
A. Discount: Headquarters supply problem: Generally, the retail price is multiplied by the corresponding discount rate, that is, discount.
B, return price: return rate, is it a refund or just a replacement? Do you want to exchange the same goods or can you exchange them freely? There should be a clear agreement.
(5) Sales tasks
A. Task quantity: whether there is a minimum contract task quantity in the whole year, whether there is a task quantity in each quarter, or whether the predetermined target can be achieved according to one's own ability;
B. Punishment and reward: What may be hidden dangers and what tasks can be accomplished objectively? Does the reward part have practical significance?
(6) Termination of the Contract:
A. Prohibition clauses: We must carefully understand the conditions for the termination of the contract, and avoid the problems of overlord clauses such as non-competition clauses and management regulations.
B termination clauses: whether there is a complete franchise contract, and whether there are reasonable explanations for the return and termination clauses in the contract.
C. handling of liquidated damages and disputes.
(7) Other aspects:
A. Do I have to sign the contract in your company when I join? What documents do you need?
B, such as the safety of goods, operating costs, etc., you should judge whether it is reasonable according to the same phenomenon in the industry.
C. Matters not covered in the contract shall be handled according to the management regulations of the headquarters. It is best to ask the headquarters to attach the management regulations to the contract and become an annex to the contract.
After the contract is signed, each party holds one copy. Be sure to keep a copy for yourself so that you can clearly understand the contract.
3. See through the skills of joining the scam
(1) Try to search Baidu and Google with the name of the clothing franchise project and the word liar.
(2) Liar companies often use the inducement method to lure you to take the bait by fishing with kittens. For example: giving small gifts, reducing the initial fee of clothing, returning cash, returning the decoration fee and other tricks. To ensure business and investment once and for all, "zero risk and high return" is an out-and-out "bait". Dare you join "zero"? "Free" still needs to invest 300,000 yuan, and the joining fee is transferred to the product, and the joining fee becomes "10 yuan management fee".
(3) Visiting the "model house" is the most common and hidden money trap. Be sure to look at the production workshop (or factory) of the clothing brand you want to join, no matter how far away the venue and warehouse they say are, you must go and see it! Don't listen to the introduction of clothing franchisees, find a franchisee who has been in business for one year.
(4) You should be alert to the fact that the project of "All comers come, no loss is made" is a trap. You can join without examining the applicants, as long as you pay the joining fee on the spot, and the joining fee is free or extremely low. Many franchisees attract applicants with low joining fee and low capital "threshold" and promise to recover the cost in the short term. Some franchisees promise that they can help franchisees provide business training only by paying tens of thousands of franchise fees. This is a dangerous signal; Franchise franchisees do not require "harshness" and do not require joining.
(5) Beware of three traps: contract trap, money trap and legal trap. Contract loopholes Some franchisees promise to buy their products, but they will indicate in the contract that they will meet their product standards. Pay equity fund 65,438 yuan +0.98 million yuan. The equity fund will be gradually returned according to the purchase amount, and 3,000 yuan will be returned for every 6,543,800 yuan of goods. Until the return is over, the business will be stopped halfway and the stock fund will not be returned.
(6) Traps, such as: processing "foreign brand clothing", only charging mortgage not to join, joining with prosperity, and selling equipment under false joining. After signing the contract, the "best-selling country" has become a mess, the "leader" cheated with the website, and the investment website has a "way" to make money.
(7) There are no more than two physical stores where the company is located. "Two stores a year" is a hard indicator for franchise leaders, and there is no face-to-face contract with the chain headquarters. Those who have been in business for less than one year are liars, so if you choose a chain brand that has been in business for more than five years, the payback period of franchisees with regular brands is mostly around 1 year.
Of course, it is impossible for a new brand to jump to three or five years in business hours. It must be confirmed from the above channels, and it is possible to obtain various preferential policies from them, and it is also possible to obtain some benefits from an imperfect supply chain, but the corresponding risks will be greater. New brands may also find some treasures.