Detailed explanation:
In order to expand their impression, some manufacturers can join the franchise because they are unable to invest more manpower and material resources. If the company's store is very profitable, the cost of joining will be high.
You need to pay a franchise fee to join. Whether other fees are required depends on the contract between you and the franchise company.
Usually just a franchise fee is enough, and some need to pay a small management fee every year. But it all varies from company to company.
Chain franchise and chain operation refer to a business model that adheres to a consumer-centered approach to meet customer needs to the maximum extent through unified products, unified prices, unified services, and extensive distribution in a timely manner.
The three S principles of chain franchises: Simplification, Specialization, and Standardization.
"Chain franchise" refers to the conclusion of a contract between the franchise head office and the franchisee, and the franchise head office authorizes the trademark, merchandise, and business technology to the franchisee. When franchisees obtain the above rights, they must pay a certain amount to the franchise head office and use the same trademark and use the same goods, services and business technologies in whole or in part according to the guidance, training and assistance of the franchise head office. A management team with professional division of labor and centralized management.
At the same time, most (or all) of the funds required for the establishment of a franchise store are borne by the franchisee, and the personnel required for the franchise store are in principle the responsibility of the franchisee. It has the characteristics of "ten unifications": unified leadership, unified trade name, unified purchase, unified price, unified clothing decoration, unified advertising, unified business form, unified warehousing and transportation, unified after-sales service, and unified management system.
The charm of "chain franchise", for franchise stores: the headquarters provides a complete set of business models, personnel training, trademarks and goodwill, advertising and product supply, reducing time and capital costs and rapidly improving and expanding gain popularity.
The headquarters is responsible for grasping consumer trends and developing new products. It can quickly grasp industry information and sales information, reduce risks, and thus greatly improve the success rate of entrepreneurship.
For the headquarters: Help young entrepreneurs realize their career ideals, and have more and faster opportunities to expand their businesses while reducing capital and manpower to develop markets.
For consumers: Provide goods and services with standardized quality and affordable prices. Franchise chain operation means that the franchisor grants its own trademarks (including service marks), trade names, products, patents and proprietary technologies, business models, etc. to franchisees in the form of a business contract. Engage in business activities under a unified business model and pay fees to the licensor. Authorizers refer to those who provide trademarks, trade names, products, patents and proprietary technologies, and business models.
A franchisee, also known as a licensee, refers to a person who has obtained the right to use the licensor’s trademark, trade name, products, patents and proprietary technologies, and business model.
Knowledge expansion:
What you need to pay attention to when running a franchise store:
In the early stage of joining, you must pay attention to reasonable raising of funds and reasonable investment of funds. Due to the eagerness to start a business and open a store, In order to raise franchise fees, deposits, etc., some franchisees resorted to various means, even borrowing usury loans.
Once the store was opened, although the business went smoothly, in order to raise money to pay off debts every day, I had no intention of investing in the business. Once the operator who is supposed to be the leader leaves the front line due to capital allocation, other employees in the store will be immediately affected, and the service quality will gradually decline. Customers are also sensitive and will gradually stay away from the store. Of course, the performance cannot be improved. Stores that were originally doing well often collapse because of this.
Control operating costs and plan purchase strategies. Cost control in the business process is very important. One less expenditure equals one more profit. It is absolutely necessary to compress costs within a lower range. However, excessive saving is also incorrect. For example, lighting effects are an indispensable condition for attracting customers for the sale of certain goods. If the spotlights are turned off in order to save electricity, the gain will definitely outweigh the losses.
At the same time, planning the purchase strategy and adjusting the turnover speed are also effective ways to control costs. Stores should avoid selling goods as much as possible. Many new owners often have serious capital constraints, and their capital operations are stretched and they quickly fall into trouble.
Seasonal slow-selling goods should be promptly cleared at reduced prices, and new goods should be used to fill the original vacancies. After all, money only comes from selling goods.