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The concept of franchising I. The concept of franchising chain is probably the most popular word in today's business circles. 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 international franchising 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. Characteristics of franchising (1) Franchising is a business model that combines its own brand, proprietary technology and management model 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 franchise success rate 1, 997.9- 1.0. Gallup survey shows that more than 90% franchisees say their franchise is 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%. Advantages of franchising 1. Because you can directly use the brand, trademark and management technology owned by the headquarters, compared with starting your own business, it reduces a lot of time, money and mental burden. 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/cfdp/4-10.docagent/article _ print.asp? Article Leid = 2096 (knowledge about the concept and types of agents) /myzs/myfs0 1.htm (knowledge about the concept of commercial agents) ps: What is a dealer? Dealers mean that they buy goods from enterprises with money, but sell them by hand. For them, selling by hand is concerned with the price difference, not the price difference. Enterprises do not sell on credit, but collect money. This business refers to businessmen, that is, institutions. Therefore, "dealers" are generally enterprises, which refer to commercial units that take money from enterprises to purchase goods. What is an agent? Agent and distributor are completely different concepts. The agent takes care of the business on behalf of the enterprise, not buying out the products of the enterprise, but giving the manufacturer a quota. The ownership of goods belongs to the producer, not to the merchant. They also don't use their own products, but sell them on behalf of enterprises. So "agent" generally refers to the business unit that earns agency commission. What is the outdated concept of wholesale used by distributors? The fashionable concept is distribution. Distribution means selling separately. It can be seen that in the process of sales, the situation of the next home has been considered, not blind sales, but planned sales, and merchants have the concept of service terminals. Distribution and wholesale are relative, and they are the definitions of businesses from the perspective of management and planning. Therefore, "dealers", usually enterprises, are used to say that they have a sense of service terminal.

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