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List and compare four management models
In the franchise industry, there is a very special partnership between the owner and the franchisee. This relationship is very delicate, it is neither superior and subordinate, nor the pure sense of the relationship between the partners. Headquarters how to effectively implement the management of the franchisee, is a headache for many companies.

Fan Xiaojun, industry insiders, according to the headquarters of the degree of control of the franchisee, the alliance of the franchisee's management of the way dramatized into "big tube, small tube, big no matter what, small no matter what," four kinds. In fact, this alliance according to the degree of control of the franchisee to the division of the way, can also be used as a franchise business management model of several types of typical representatives.

Large tube: hosting management

Suitable areas: catering, beauty, jewelry and other service areas, as well as some large international chain enterprises.

Trusted management that is the whole hosting, is the headquarters of the franchisee support or control of a way. By the franchisee to raise all the opening costs, entrusted to the company management, the franchisee is responsible for supervision and management.

Wen Zhihong, a partner at Hejun Consulting, believes that custodial management is mainly based on the immature status quo and legal environment of the domestic franchising industry, and is operated by the headquarters on behalf of inexperienced franchisors, and also due to the headquarters in order to achieve better control of the store to ensure the quality of the operation of the control methods adopted.

This type of management is applicable to those business areas that are relatively difficult to manage, such as catering, beauty, jewelry and other service industry areas, as well as some large international chains.

Small tube: semi-trusted management

Suitable areas: KFC-type fast food companies.

Semi-custodial management is manifested in the form of when the franchisee joins, there is a period of time of hosting, usually half a year or a year's time, until this store is profitable. Then the allied business withdraws and the franchisee manages it on his own. In the process of the franchisee's operation, the headquarters will send supervisors on a regular basis or from time to time to provide on-site guidance to the store. Or by the owner of the alliance to open a new store, and operate for a period of time, cultivate maturity, and then handed over to the franchisee management, and regular guidance. This type of management mode, more common in the franchising industry, more mature, such as KFC.

Large whatever: loose management

Suitable areas: Chengdu snacks, 10 yuan stores and other merchandising categories, the looser the franchise business.

Loose management mode is mainly reflected in, when the franchisee in the opening of the franchise, the headquarters is not too much involvement in its internal management, mainly by the franchise independent management. This management mode is more in those commodity sales type of business, such as: baby products, shoe chain, etc., because of its business model is relatively simple, the headquarters will not be too much involvement in the franchise business process. Long-term profitability of the headquarters is mainly through the distribution of goods to the franchise, through the sale of goods to achieve its long-term profitability.

There is another kind of loose cooperation franchise enterprise, in recent years more appear in the retail industry, for the voluntary franchise chain. That is, in the voluntary franchise system, the ownership of goods belongs to the owner of the voluntary chain of stores, while the system operation technology and store brands are held by the headquarters.

Small no matter: entrusted franchise management

Suitable areas: more dependent on the operator's own flexible operation of the franchise business.

The way of entrusting the franchise refers to the headquarters will be the existing directly-managed stores entrusted to the appropriate franchisee to operate, the franchisee itself does not need to prepare the store or bear the rent, in order to give full play to the franchisee's maximum initiative, and ultimately by the headquarters and the distribution of operating profits between the franchisee. The difference between this way of franchising and general franchising is that the franchisee eliminates the need for capital and physical investment at the beginning of the franchise.

In fact, "entrusted to join" is a form of anti-trust existence, more often appear in more rely on their own flexible operation of the convenience store franchise business, 7-11 convenience stores are more often used in this mode, entrusted to join is also relatively rare in the domestic franchise management mode, the benefit is that the allies can provide the franchisee with a profitable and stable, low-risk entrepreneurial opportunities, but also allows the franchisee to play its excellent business management skills.

Expert comment

"In fact, what kind of management mode a franchise enterprise is going to adopt depends more on its expansion mode." Wen Zhihong said, if the franchise enterprise in the expansion process, pay more attention to stability and quality, can be based on adequate management team to take the hosting type, or direct cooperation type. If the pursuit of speed, you can take a semi-trusted development. As for many franchised enterprises, the mode of cooperation with the franchisee is not a single type. Many companies will have a variety of forms of franchise cooperation: such as Milo coffee, there is a franchise, direct share cooperation, hosting franchise and other forms.

Reference:

/laobanguanli/