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Franchise chain concept

Chain operation refers to the mode of operation that insists on taking consumers as the center, unifies goods, unified prices, unified services, widely distributes points, and meets customers' needs to the maximum extent in time.

Three principles of chain operation:

1. Simplify

2. specialization

3. standardization.

Chain operation includes three types: regular chain (RC), voluntary chain (VC) and franchise chain (FC).

"Franchise chain" refers to the contract signed between the head office and franchisees, and the head office authorizes franchisees with trademarks, commodities and management technologies. When obtaining the above rights, the franchisee must pay a certain fee to the franchise corporation, use the same trademark, all or part of the same goods, services and business technology, and implement professional division of labor and centralized management in accordance with the guidance, training and assistance of the franchise corporation. At the same time, the franchisor is responsible for most (or all) of the funds needed for the establishment of the franchise store, and the franchisor is responsible for the personnel needed for the franchise store in principle. He has the characteristics of "ten unification": unified leadership, unified name, unified procurement, unified price, unified clothing decoration, unified advertising, unified commercial form, unified warehousing and transportation, unified after-sales service and unified management system.

The charm of "franchise chain"

1. For franchisees, the headquarters provides a complete set of business models, personnel training, trademarks and goodwill, advertising and commodity supply, which reduces the cost of time and capital, and rapidly improves and expands the popularity. The headquarters is responsible for grasping the consumption trend and developing new products, which can quickly grasp the industry information and sales information, reduce risks and greatly improve the success rate of entrepreneurship.

2. For the headquarters, help young entrepreneurs to practice their career ideals, and have more and faster opportunities to expand their business while reducing funds and manpower to open up markets.

3. For consumers: provide goods and services with standardized quality and popular prices.

Franchise chain operation refers to trademarks (including service trademarks), trade names, products, patents and proprietary technologies, business models, etc. granted by the licensor. In the form of a commercial contract, the franchisee shall engage in business activities under the unified business model of Licensor according to the contract, and pay the fees to Licensor.

Licensor refers to the person who provides trademarks, trade names, products, patents, know-how and business models. Franchisee, also known as franchisee, refers to the person who has obtained the right to use the trademark, trade name, products, patents, know-how and business model of the licensee.

Franchise chain operation has many advantages compared with single independent operation:

1, high success rate.

Chain operation has been proved to be effective in the world, and more than 90% customers have achieved different degrees of success after joining the chain system. Because the chain operation reduces the purchase cost, sales cost and management cost, it also improves the brand image and reputation of the enterprise and reduces the competition risk, so it has also achieved a high success rate.

2. Short learning curve

Successful business model. Franchisees can learn successful management experience and knowledge in a short time with little cost, which can make them take fewer detours.

3. Brand advantage

Franchisees can share the well-known brands and reputation formed by the licensor through long-term business efforts at a small cost, thus effectively promoting sales and greatly expanding the business scope.

4. Advantages of large-scale procurement

Unified procurement can make chain enterprises enjoy preferential purchase in large quantities, strengthen cooperation with suppliers, expand the scale of procurement, improve the speed of collection and sales, reduce procurement costs and greatly save procurement costs.

5. * * * Advertising and promotion

Chain enterprises can concentrate resources on advertising promotion, reduce the average cost of advertising promotion and help chain enterprises establish brand image.

6. Professional management improvement

Licensee can help franchisees improve their management level by exporting their successful business experience and management model.

Step 7 cultivate

Franchisees often receive targeted training and guidance from authorized personnel to continuously improve their business and management capabilities.

8. Service support

Franchisees can enjoy comprehensive services such as logistics distribution and after-sales service provided by license issuing agencies at a small cost, while the chain operation system makes services more professional through scale effect.

The concept of franchising

First, the concept of franchising

Franchise (chain) is probably the most popular word in business today. Companies that engage in franchise business are also located in every corner of various industries. So, what is franchising? What are the advantages of franchising? Why is franchising successful? If you don't know these problems, you won't do a good job in joining.

1. Interpretation of franchising by the International Franchise Association

Franchising is a contractual relationship between franchisor and franchisee. According to the contract, the franchisor provides a unique franchise to the franchisee, and gives guidance and assistance in personnel training, organizational structure, business management, commodity procurement and so on. The Franchisee shall pay the corresponding expenses to the Franchisee. Generally speaking, franchising is a business model for franchisers to expand their business and sell goods and services.

2, the characteristics of franchising

Franchising (1) is a business model that combines its own brand, proprietary technology and management mode with other people's capital to expand its business scale. Franchising is the expansion of technology and brand value for franchisees, the cloning of business model rather than the expansion of capital.

(2) Franchising is a win-win business model. Franchising can only be carried out if the franchisor can get more efficient development than his own direct operation and the franchisee can get more benefits than his own operation.

(3) Franchising is a clever form of business organization. Franchising enables franchisees to fully combine and make use of their own advantages and absorb a wide range of social resources to the maximum extent, while franchisees reduce risks and risk costs such as time and capital.

In a word, franchising is the new trend and trend of opening a shop and starting a business in the 2 1 century, and it is the new driving force for future social and economic development. It will bring new entrepreneurial opportunities and profit prospects to many entrepreneurs.

Second, the success rate of franchising

From1September 1997 to 10/October, Gallup survey showed that more than 90% franchisees indicated that their franchise was successful or very successful. Among them, 18% exceeded the expected value, 48% largely met the expected value, and 24% basically met the expected value. Two-thirds of the respondents believe that if they started the same industry alone, they would not have achieved such success. Almost two-thirds of people said that they would buy or invest in the same franchise store if they had such an opportunity again. The actual survey shows that the success rate of joining in business is 95.5%, and the success rate of starting a business alone is 4.5%.

Third, the advantages of franchising

1. Because you can directly use the brands, trademarks and management technologies owned by the headquarters, compared with starting your own business, it reduces the burden in time, money and spirit. For people who have no business experience at all, they can enter the business in a short time.

2. Excellent headquarters, in order to improve the goodwill of the whole chain enterprise, will always develop original and high value-added goods, and lead competitors with product differentiation. Franchisees do not have to set up their own development departments.

3. Because the headquarters handles the promotion, purchasing and even accounting affairs as a whole, the franchise stores can concentrate on the sales work without being distracted.

4. Franchise stores inherit the goodwill of the chain system, which is equivalent to giving customers a reassurance. They will feel intimate with newly opened or unfamiliar stores, and even the language barriers and living habits that new immigrant franchisees are worried about can be maintained under the same signboard.

5. If you start your own business, there may be various difficulties in purchasing raw materials, and franchisees can buy equipment, dining tables, chairs and miscellaneous equipment cheaply because of mass production and customization at headquarters.

6. Pre-job training before opening can be assisted by the headquarters, and there will be special personnel to give various guidance regularly after opening.

7. Create your own original business. If there are competitors, you can only fight alone, and the franchise stores are backed by the headquarters, which can be used as support;

8. If you want to start your own business, you must decide the location of the store yourself, and you often have no confidence in the quality of the location; Franchise stores can consult the headquarters, evaluate the site conditions, and even help the head office choose a site.

9. As the head office conducts market research on the surrounding environment at any time, including changes in customer level and consumption tendency, franchisees can take corresponding measures as soon as possible.

10, the success of the franchise store is the success of the headquarters, which is equivalent to helping the headquarters expand the market. Therefore, the headquarters has a reward system and benefits for franchisees with good performance.

What should I pay attention to when opening a franchise store?

1. What are the necessary conditions for joining?

2. What are the start-up capital requirements?

3. How many franchisees does the company have now, and how much can their annual turnover be?

4. How long is the contract term?

What will your company do if we say that the sales are not good after joining and want to quit?

6. What assistance did your company provide after its opening?

7. If there are promotional activities, can you give franchisees appropriate compensation?

8. Is there a rebate when sales reach a certain level?

9. Do you want to sign a contract in your company when you join? What documents do you need?

10. What is the product price of your company in spring, summer, autumn and winter?

1 1. What's the delivery discount?

12. Which age group is it suitable for?

13. What's the down payment? Is replenishment guaranteed?

14. How much must I pick up every month in the future? If I leave it, can I exchange it for a new one?

15. How does the company provide pre-sales, mid-sales and after-sales services?

16. What measures can make franchisees profitable?

17. How did the company supply the goods in time? How many days does it usually arrive?

18. Can I choose my own clothes when I purchase them, or will they be delivered by our company?

19. Do you have samples or pictures to choose your own goods? How many pieces of the same product should I bring at least? Do you want to promote yourself locally?

20. How many order fairs are there in a year? When will the new products come on the market every season?

2 1. How about the freight?

22. Do you choose your own clothes or do you send them by the company?

Six points that should be paid attention to when joining chain stores

The biggest advantage of chain stores is that they can directly borrow the golden signboard of the headquarters and use the experience of the headquarters to reduce the risk of investment and operation. But for franchisees, "copying" the environment, atmosphere and products of the headquarters does not mean that they can sit back and relax.

Franchisees will definitely involve many factors such as financial management, personnel management, market development, peer competition and so on. And each franchise store will be very different from the headquarters because of the differences in local customs, markets and competitive environment. Based on the continuous research and analysis, the British-Chinese Entrepreneurship Laboratory draws the conclusion that franchisees must absorb the business philosophy and operation mode of the headquarters as their own available methods and cultivate their own management ability if they want to stabilize their profits.

In other words, choosing to join requires not only a certain amount of money, but also a lot of time and energy. After all, shopping malls are like battlefields, and any mistake may lead to your wasted efforts.

First, at the initial stage of joining, we should pay attention to reasonable financing and reasonable investment.

Some franchisees, eager to start a business and open a shop, run around and even borrow usury in order to raise the joining fee and deposit. Once the store is opened, although the business is still going well, I have no intention to devote myself to the business operation in order to raise money to pay off debts every day. Once the operator who should be the front-line leader leaves the front line because of the fund scheduling problem, other employees in the store will be affected immediately, so the service quality will gradually decline. And customers are also sensitive and will gradually stay away from the store. Of course, it is impossible to improve performance, and stores with good business will often close down.

Mr. Feng borrowed money from people everywhere in order to raise the initial fee and start-up fee. After successfully joining the store, the business is very prosperous. Seeing that it was profitable, a creditor offered to lend Mr. Feng 654.38 million yuan to participate in hotel management and profit distribution. If he doesn't agree, he will pay off the debt immediately. In order to raise money to pay off debts, Mr. Feng has no intention to invest in hotel management, and the service quality has gradually declined.

Therefore, the British-Chinese Entrepreneurship Laboratory believes that franchisees should do what they can and choose the franchise fee that suits their threshold. Otherwise, they will be heavily in debt and worried all day, which will have a great impact on the operation of the store.

At the same time, franchisees should determine the reasonable distribution ratio of the whole capital investment and make overall planning. Don't wait until you open the store to find that there is no money in the later operation of the store, then it will be a big joke.

Second, control operating costs and plan purchasing strategies.

Cost control is very important in business process. One less expense equals one more profit. It is absolutely necessary to control the cost in a lower range. However, excessive saving is also incorrect. For example, lighting effect is an indispensable condition for attracting customers in some commodity sales. If you turn off the spotlights in order to save electricity, you will definitely lose more than you gain.

At the same time, planning the purchasing strategy and adjusting the turnover rate are also effective ways to control the cost. Shops should try to avoid pressing goods. Many new bosses are often under severe financial pressure, and their capital operation is stretched, and they soon get into trouble. For seasonal unsalable goods, it is necessary to reduce the price and clear the warehouse in time, and fill the original vacancy with new goods. After all, only the goods sold are money.

Third, learn to manage employees.

Although after joining, the headquarters will conduct a series of employee management training for franchisees and provide corresponding support, but far water can't put out a near fire. Franchisees need to find problems from the source and really understand and learn how to manage employees. From many examples of entrepreneurs, the British-Chinese Entrepreneurship Lab found that many new bosses did not correctly understand this problem, and started from their usual thinking and acted according to their own temperament, so it is not surprising that internal employees broke the news.

"When I first came into contact with the franchise chain, I thought that as long as I joined successfully, I could enjoy it easily." Ms. Wu, who once joined a beauty chain, has this feeling. Ms. Wu believes that lying down and doing nothing, everything is managed by the headquarters. After the real opening, the problems of employees also followed. An employee of the company took advantage of his work to promote other beauty products to customers; In less than a week, several key employees of the company were poached by other beauty salons and took away dozens of regular customers. Ms. Wu re-recruited, and not long after, she found herself making a wedding dress for others.

Therefore, franchisees must realize that managing employees is their own business and must be done well. First of all, franchisees should fully understand their employees. As a manager, it is not easy to fully understand employees. But if managers can fully understand their employees, the work will be much smoother. Every employee has his own advantages and disadvantages in ability, personality, attitude, knowledge and cultivation. Some employees do things neatly, some are cautious, some are good at dealing with interpersonal relationships, and some like to work silently in statistical data. As the saying goes, "a scholar dies for a confidant", a manager who can fully understand his employees will be a first-class manager in terms of work efficiency and interpersonal relationship.

Secondly, we should communicate with employees more and listen to their voices. Employees always have their own dissatisfaction and opinions, although some are correct and some are incorrect. But if you don't vent and guide, there may be big problems. Therefore, managers need to communicate with employees frequently, consult their opinions and listen to their questions. Untie the knot of employees, the team will be more United and work enthusiasm will be higher.

At the same time, employees should be allowed to make mistakes and be praised for their good performance in real time. The real world is full of uncertainty. Under such circumstances, it is naturally impossible to succeed in everything. As a manager, if you ask your subordinates not to make any mistakes, it will inhibit the spirit of innovation and make them afraid to work. Of course, employees who make contributions should be rewarded and praised in time to boost morale.

Learn to manage customers and establish good customer relationships.

A grain of wheat has three fates: first, it is ground into flour and consumed by people to realize its own value; Second, as a seed, after sowing, it will bear new wheat grains and create new value; Third, due to poor storage, it is moldy and deteriorated, losing its value. In other words, if wheat is well managed, it will create value for mankind; Poor management will lose value and even bring negative value. The same is true for customers. If the franchise stores operate well, customers will become their loyal consumers. If the business is not good, it will lose a lot and affect other customers.

The UK-China Entrepreneurship Lab reminds franchisees to learn to manage customer files, retain old customers and tap new customers. Customer files include basic information of customers, transaction status, credit ability, etc. This is also important information for franchisees to manage and track. Careful analysis of customers' files will reveal their respective preferences, vision and purchasing power, so as to recommend products and provide services for them more pertinently.

Developing a new customer is six times the cost of developing an old customer, so retaining old customers is the basis for franchise stores to survive. It is an effective way to provide after-sales service for customers and strengthen communication with customers. At the same time, franchisees can give back to old members in time through member preferential activities to improve customer satisfaction and loyalty.

In order to explore the market and tap new customers, franchisees can adopt a variety of business methods for marketing. For example, the joint operation method: joint ventures can be made with commercial organizations with the same customer base, such as cafes, cinemas and Internet cafes nearby. For example, if you buy a specified commodity, you may get a movie ticket.

Verb (abbreviation of verb) is coordinated with the headquarters.

The relationship between franchise stores and franchise headquarters is very subtle, as close as lips and teeth, and each has its own axis of interest. Therefore, there will inevitably be some conflicts between franchise stores and headquarters. Franchisees often complain about the bureaucracy of the headquarters, only know how to command blindly and lack understanding of the actual situation; Headquarters will also think that franchisees are self-centered, go their own way, and do not support or cooperate with the work of headquarters.

This is often because franchisees are more or less suspicious or contradictory to the company's policies, or at least wary. Therefore, franchisees should invest a lot of energy to investigate when choosing to join the headquarters; Once we succeed in joining, we should actively cooperate with the work of the headquarters with the mentality of "* * * creating a win-win situation".

The so-called "too much is not enough", suspicion, conflict and complete dependence are not the management methods of franchisees. The UK-China Entrepreneurship Lab reminds the entrepreneurs who have joined, because most parts of China are very regional, and the consumption levels and concepts of different cities and regions are very different, the successful headquarters joining business strategy elsewhere may not be suitable for local franchisees. Therefore, franchisees should actively communicate with the headquarters on the basis of listening to the opinions of the headquarters, timely transmit local information, and use the existing experience of the headquarters to explore business strategies suitable for local conditions.

Sixth, actively accumulate industry experience.

Industry experience is Han Xin's point soldier for franchisees, the more the better. The so-called interlacing is like a mountain, and the peers are different, which is caused by familiarity.

Industry experience is hard to get from one or several books, and many things can only be obtained by personal experience. Therefore, franchisees should pay attention everywhere and accumulate more. For example, to open a clothing brand franchise store, franchisees should read more popular magazines and participate in fashion activities to cultivate their own unique fashion concept and keen fashion sense. When every customer walks into the store, you can provide her with a unique look. Aren't you worried that the turnover of franchise stores will not increase by leaps and bounds?

To sum up, in order to join a company successfully, franchisees themselves must work hard and learn to operate, in order to get multiple returns and improve the chances of success and profit!

Four elements of the success of franchise chain operation

Start a business, open a shop and be a boss! This has always been the dream of many people, especially for those office workers who are tired of nine to five, and they are eager to have a career of their own. Opening a small shop as a small boss often becomes the favorite of these aspiring entrepreneurs.

At present, the business model of franchise chain seems to have become more and more prosperous. Many shopkeepers have opened two or three stores. After the business is booming, many people who want to start a business take the initiative to join. Once a lot of people want to join, the boss often thinks, since so many people want to join, they can open a franchise store to expand the chain map, and they can charge the franchise fee, so of course they will open it. However, success is often in the air.

However, what are the success factors of joining a chain store? According to the author's observation of chain industry for many years, it should include four elements: simplification of store operation, popularization of products and popularization of business circle, and the charm of channel brand is stronger than that of product brand, which is described as follows:

First, store operations are simplified. The basic idea of joining is brand authorization and knowing how to teach. Franchisees want to join because they don't know management skills, that is, laymen can operate on the spot through short-term education and training. In the short term, if franchisees want to change from amateurs to experts, the technology of store operation must not be too difficult and must be simplified.

Therefore, convenience stores can display a large number of stores because store operations are simplified. As long as the clerk can hit the cash register and change the money, the goods will be replenished on the shelf when they arrive. The operation is very simple. Therefore, no matter how the work-study students in the store change, new employees can always get online quickly in a short time. Some people joke that simplification is simplification, that is, what everyone can do except what the dead and Bai Yi can't do is called simplification.

Second, the product must be a mass consumption product. Many people think that there is nothing wrong with opening a shop, and the products must be unique, distinctive and distinctive. But the premise of this concept is that it only applies to single stores, famous stores and multi-stores, that is, it only applies to a certain number of stores. Once a large number of stores are copied and displayed, the products sold can no longer emphasize the unique and differentiated market, but must be transformed into the mass consumer market.