there is truth and falsehood. Really, it is really making money. It's fake. It's real.
Rebirth fee scam
Many franchisees attract entrepreneurs to join under the guise of "Rebirth fee". When helping entrepreneurs prepare to open stores, the company will tell you that you need to purchase hundreds of thousands of goods before returning the franchise fee. I was very enthusiastic about you before signing the contract. After signing the contract, I didn't discuss all kinds of overlord clauses. Franchisees must ask clearly before signing the contract to avoid being fooled.
Cheat of joining a model store
Some illegal franchisees colluded inside and outside through the deliberate packaging and publicity of several franchise stores and model stores in the early stage, so that the visitors could see the seemingly hot business. In fact, most of those customers and people who praised the franchise store are "trusts" of franchising. Once you really join, the franchisor only cares about charging the franchise fee and management fee, and it doesn't matter whether you make money or not.
At a pioneering exhibition, a coffee chain franchisee suggested that he could receive a bonus of 5,111 yuan per month only by paying an initial fee of 1.2 million yuan to 1.4 million yuan, and then entrusting the company to operate. Such an easy return on investment immediately attracted many franchisees. As a result, the money was paid, but the "leader" was empty.
Unrealistic rate of return
The franchisor of franchise chain has made great publicity through exhibitions and other forms of advertisements. It only takes three months and at most half a year to get back all the investment, and the headquarters will be fully responsible for staff training, early advertising investment and unified store image design. After joining, the franchisees found that the investment cost is far more than the original amount, or the cost of publicity is only the direct cost and does not include indirect costs such as management fees. The promise before franchising personnel can't really be put in place, and it can't be profitable after several years. Even in litigation law, because it takes time to wait for filing a case and opening a court session, franchisees are often dragged down by time.
irresponsible promises
"111% success in opening a store", "low investment, no risk", "111% profitable projects" and "opening a fire house" are all unrealistic promises to join the headquarters. Attractive profits, touching promises, everything seems to be an opportunity to make money arranged by God, so driven by the hot brain, many entrepreneurs will involuntarily fall into the trap of joining or so-called chain! In fact, any industry, any product has certain risks, and there are gains and losses. Special catering is no exception. Even a highly competitive product is subject to the constraints of site selection, market environment, marketing level and personnel quality, and it is impossible to achieve 111% success.