High operating costs charter challenge corporate earnings.docVIP

 PAGE \* MERGEFORMAT 4 High operating costs charter challenge corporate earnings Increasing the cost of compressing the Chinese franchise corporate profit margins of China Chain Store amp; Franchise Association today released the ‘China 120 strong franchise,’ where lt;lt; gt;gt; China Franchise Development Report points out, in addition to food monopoly, hotels, training and education The average profit margin dyeing industry has increased slightly over the previous year, the integrated retail, dining, home improvement, automotive after-market, beauty fitness and leisure industry average profit margin of other services have declined. Statistics show that in 2013, China has a total strength 120 franchise stores 139 701, which stores 115,380, each company has stores 1164 .120 average Fortune 9322 new stores in 2013, an increase of 7.2%, which joined the Shop New 5360, an increase of 4.8% .120 enterprises sales volume reached 436.7 billion yuan. Profitability challenges 2013 franchise business costs continue to rise, especially in labor costs and rents staggering. Survey results show that eighty percent of the company’s human cost growth of more than 5%, of which more than four into the human cost of corporate growth rate of over 10%. Universal franchise companies participated in the survey said that further increase the pressure on rents, rental costs 68% over the previous year franchise businesses grew more than 5%, 20% of companies increased by more than 10% of the rent. Among them, the general retail average profit margin of only 2.07%, but nearly two years of training and education industry average profit margins are above 25%, in 2013 the average profit margin of 28%. Rising costs make the payback period is expected to be extended to join, nearly half of the 120 strong enterprises that return on investment in 2014 will be somewhat extended. Direct faster than the second and third tier cities to join was better than first-tier cities The face