Reasons For The Failure Of Franchise Chain

After a long period of working life, many people have a certain amount of money, and they have the mentality of investing. They think that buying a franchisee is like investing in stocks and real estate, and they will make money.

Indeed, for those who do not have experience in operation, they can be trained through the training of chain headquarters, which is easier to enter in a shorter period, and the probability of success is greater.

This is the advantage of joining a chain store.

But no matter how excellent chain system, there are also examples of failure, if you think that once you join a chain store, you can easily sit on the value added profits, it is too naive.

No longer excellent chain system can guarantee that all franchisees can manage one hundred percent businesses successfully.

Take Mosburger in Japan for example, the Japanese are quite proud of their high success rate of 95%, but even so, there is a 5% failure rate.

The company chose the 1000 recruits from one year, and only 5% of them concluded the contract, that is, 50 people.

Although these 50 people have strong entrepreneurial intentions, they are the same as the head office.

The final result is only 95% success rate.

From many foreign failures, we can see that the most important reason for failure is the biased motivation of joining.

Once you join in, you can lie down and do nothing. Everything comes from headquarters.

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The chain headquarters has a number of achievements that have been successful in its operation. However, an example of its successful operation by others (including headquarters and franchiser) does not mean that the operation will be successful locally by you and headquarter.

It must be borne in mind that headquarters and franchisees are two entirely different businesses. What the headquarters provides (Sales) to you is only a set of franchise operations. You must follow the experience and guidance to implement it step by step and effectively, so that you can succeed.

Eager to start a business, some join in order to raise money.

And royalties and fees, and so on.

Once the shop is open, although the business is still smooth, but every day in order to raise money to pay debts, it has no intention to fully invest in the operation of the business.

It should have been a leader in the army who would leave the front line due to the dispatch of funds, and other employees in the store would be affected immediately, so the service quality would gradually decline.

Customers are also sensitive, and slowly will gradually stay away from the store. Of course, the performance can not be further promoted. The shops that were originally good businesses often dragged down the whole business because of usury.

Examples of such failures are rare.

Some of the franchisees do not know clearly about the chain headquarters that they will join. They always think they will join in first. Later, if there is a problem, the headquarters will naturally help to solve it.

As a result, after the opening of the store, there was no guidance for any business headquarters. There was no reply to the headquarters contact.

Specifically, there are mainly the following types: 1. lack of basic knowledge of franchising.

Because there is no such knowledge, only in the relevant newspapers and magazines to see advertisements, call the past, after listening to each other's simple and heartfelt instructions, hurried to join.

It never occurred to me that joining so much capital and having so many bondage greatly reduced the enthusiasm of the work.

All this is due to the lack of knowledge about franchise.

This combination of misunderstanding will eventually lead to "breaking up because of knowledge."