In the process of franchising, enterprises need to build a successful franchise system. It is difficult to guarantee the healthy development of franchise business when the system is not perfect. The franchise is generally composed of eight systems, namely: franchisee recruitment system, franchisee management system, training system. , franchisee support system, supervision and management system, visual image system, franchise portfolio promotion, management information system. The franchisee recruitment system is generally a step forward in the process of establishing the entire franchise system, and is also a crucial step. Therefore, this article will elaborate on some problems existing in the construction and operation of the system and provide corresponding suggestions for your reference.
Recruited franchisees without a good overall plan
The winning champion wins and then fights, and the defeated soldier wins first and then wins. Many franchisors often start recruiting franchisees without doing a good job of planning. In addition to the inefficiency, non-directionality and inability to quantify the assessment, the most important thing is the opening of some franchisees' direct sales stores in some key areas. Or the establishment of regional divisions has created obstacles; even worse, the distribution of stores and the internal environment have seriously affected the expansion of their business and market competitiveness, so that re-planning in the future will bring huge cost losses. Therefore, it is recommended that the franchisor must first plan two aspects before recruiting the franchisee: First, why do you want to do franchising? The following answers are available for your reference: First, lack of funds and teams, you need to solve the pressure of your funds and personnel output through the franchise model; second, the profit model of the franchisor can be fully realized through the large-scale operation of the franchise stores. It can more quickly integrate upstream suppliers and downstream end-customer resources than direct-operated chains; third, first-tier cities can directly operate, but second- and third-tier cities can only quickly occupy the market through franchising, and increase brand awareness to a large extent; It is possible to join this "mirror", which in turn enhances the management level of the franchise headquarters. Therefore, as a franchise headquarters, it is necessary to clearly recognize the reasons for the franchise and the final purpose in advance, and do a good job in the early stage planning.
Second, why did you choose to do franchising in this area? This is what we often say about market positioning and expansion plans. The franchisor must first position the market according to the characteristics of the industry and the company's products and business models, and classify the country's first-level market, secondary market, and tertiary market. At the same time, it is more important to distinguish different markets. Is it a direct store or a franchise store? It can open several direct stores and franchise stores. I understand the practice of a franchise headquarters at this point. I personally think that many places are worth learning from. This is a franchise headquarters engaged in metal trade circulation. In order to understand the market conditions and characteristics of various regions of the country, the company has set up a special department, the electric visit department, to carry out research and census work in the national market. This department searches the resources of cities across the country through the Internet, industry journals, newspapers, yellow pages and other media, namely local suppliers, competitors, end users and so on. First of all, the primary electric interviewers will negotiate, consult and improve the information of these customers through telephone surveys. The senior electric interviewers will further follow up, negotiate and verify, and gain an in-depth understanding of the local market conditions. Analyze and organize the formation of local business plans. These business plans provide a solid basis for the franchise headquarters to plan the national market in the future and lay a solid foundation for expanding the national network.
There is no basis for making the franchise fee franchise fee reasonable. The main reference is based on the profitability of existing direct stores and franchisees. How much profit a franchise store can earn in one year is a more important factor. Since different industries have different risks, different headquarters also have different joining risks. Here we can only analyze with a more common risk level. How to make a reasonable joining fee? If we look at the current economic situation in China, the return on investment of the retail industry is about 30%, so that we can calculate the reasonable annual return on investment and calculate the profit. The calculation formula is as follows: total investment × 30% = annual investment return amount = annual expected profit + initial fee: initial fee = total investment × 30% - annual expected profit (Note: 30% of the return on investment can also be different according to different industries The characteristics of the enterprise are adjusted, then the formula of the initial fee can be promoted as: initial fee = total investment × average return on investment - annual expected profit).
According to the above formula, we can calculate a reasonable franchise fee on different total investment, different return on investment and forecast different profit levels. Similarly, we can calculate the level of profit that investors expect from the basis of determining the initial fee.
When analyzing whether the initial fee is reasonable, it only considers the profit factors that the franchisee can obtain. In fact, the cost of joining fees is affected by many factors. In addition to the profit factors, there are the following aspects: 1. The development stage of joining the headquarters When the franchise business of the headquarters is still in the beginning stage of exploration, its franchise The concept has not yet been fully and thoroughly tested by the market. When the business risk is high, in order to attract more investors and expand the influence, the headquarters often does not hesitate to sell the concession at a low price. When the headquarters business matures and has a high reputation and a considerable number of franchisees, the franchisees will often be selected strictly at this time, and the franchise costs will also increase.
2. The assistance provided by the headquarters to join the headquarters to provide assistance to the franchise is an important factor in determining the cost of joining, because the more assistance provided, the more the royalties are spent, to compensate for the use of the franchise. The franchise fee charged for the fee also increases accordingly. For example, in Japan's “7-11†convenience store, in addition to providing common assistance, the headquarters is different from other headquarters. He also provides all the equipment needed for the franchise store. The franchisees do not have to invest in this area. In addition, they also provide regular services. The inventory fee, bookkeeping accounting service, financing service, etc., the franchise fee is generally higher than other headquarters, which is 45% of the gross profit.
3. Management level of joining headquarters Although the level of joining fees has a lot to do with the management level of the headquarters, it is very difficult for outsiders to accurately assess the management level of the headquarters at a glance. The characteristics of all walks of life and the doctrines of various factions, coupled with various manifestations, make outsiders only pay attention to form and can not see the essence. When the headquarters is carrying out the franchise business, it is necessary not only to make its own management quality truly high-grade, but also to pay attention to the management quality of the outer packaging, to strive for excellence, even as small as a small business card for promotion, but also to print well, absolutely Can not be shoddy, damage the company's image.
Third, the legal system documents are not formulated in combination with the status quo and characteristics of the enterprise in this industry. Many legal system documents, especially franchise contracts, can be replaced by each other. The main reason is that the legal contract texts of the enterprises are all written in a hard template. of. The template is necessary, but the franchisor and the franchisee are essentially a contractual relationship. The relationship between the two parties is dependent on the franchise contract and exists and maintains. Therefore, if the contract does not fully reflect the specific rights and obligations of the franchisor and the franchisee, the franchisor can not achieve its monitoring of the franchise, the franchisee may not be able to get the assistance and support of the franchisor, then the relationship between the franchisees It is difficult to maintain by other forms. Therefore, it is recommended that the franchise contractor must be a team, including business owners, operations management departments, marketing departments, chain service departments, business consultants, financial personnel, franchise lawyers, etc., and not a single person can not blindly refer to Templates do not combine the current status and characteristics of the company.
Authorized team without business experience
From the authorized director to the authorized manager and authorized assistant, in addition to mastering the professional knowledge of franchising, it must be familiar with the operation modes of various departments of the enterprise, especially the business modules. Of course, it is better to experience and operate the business process. Because the success of the real authorization is not a matter of paper, but to let the franchisees deeply understand the true profit model of the company. Generally speaking, it is to recognize the way the franchise chain earns money and to make an investment when it can successfully replicate. determination. Franchising is indeed a good business model, but this model is a tool for enterprises to expand externally, but its core carrier should also be the business system of the company itself. The so-called "the skin does not exist, the hair is attached". Therefore, it is recommended that we authorize the team to go to the front-line business department to experience, so that in the process of authorization, it can be truly easy, and does not lay a hidden danger to the follow-up chain service department.
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