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Mistakes face interviews chain management (Part Two)
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Mistakes face interviews chain management (Part Two)
Fourth, franchising Misunderstanding
Recently, the popularity of franchising wind river north and south of the country, for this new thing, some people call it zero-risk investment; while the Bureau of Internal Trade has recently issued a circular demanding that all localities to further standardize the franchising activity. In fact, franchising is an important marketing and chain operation, one of the main forms. In the United States, Japan and other developed economies, franchise business turnover of the domestic retail sales in general can reach 30% to 40%, but the franchise success rate is not high. In Europe, the United States, Japan and other countries, franchising success rate of only about 90%; in China, the success rate is even lower. Therefore, franchisees involved in franchising, they should keep a cool head.
Misunderstanding 1, franchising is not a business expansion, enlargement agent
On the fourth year, the National Franchise of the General Assembly two days before the opening of the Beijing Quan Ju De-honored formally withdraw from Chengdu, which means its franchise in Chengdu, the failure of attempts, which previously have been Quanjude restaurant in Nanjing, Hangzhou branch, Shenzhen shop, shop, Shantou, Guangzhou shop has closed or operating loss, the media called ‘five-game losing streak’.
Although Beijing Quanjude Group Co., Ltd., Chairman Jiang Junxian for the ‘five-game losing streak’ reports do not agree with, he said that five franchises in the closing time between 1999 and 2002, closed for different reasons: Nanjing shop in a small scale, reach the excellent strategic criteria Group Company, in February 2000 by the Group announced the closing; Chengdu shop contract expires and investors the strength is not enough to terminate the contract in June 1999 ceased; Hangzhou shop shareholders a dispute between the September 2001 suspension of business; Shenzhen,
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