Disadvantages of joining the entrepreneurial model:
1, the headquarters will require unified standardization, and the degree of freedom is lower than that of independent shopkeepers. Chain requires consistency, so that every store looks the same. In other words, franchisees must follow the planning of the headquarters, and they can't have too much sense of independence and do whatever they want. Because if every store has its own ideas, it is necessary to buy different goods and do different store decoration, then the whole brand will be chaotic in the end.
2. Pay the head office a fee. The head office authorizes its brand to franchisees and helps franchisees to do a lot of logistics support and counseling. Then it must pay a fee, which will include: initial fee, deposit, decoration fee, equipment fee, management fee, etc.
Advantages of joining the entrepreneurial model:
1, brand awareness. After choosing a chain brand, you can naturally hang its signboard. After hanging its signboard, the brand awareness will naturally be higher than that of independent stores. The higher the popularity, the easier it is for customers to come to the door, because they are already familiar with the store name of the chain system. At present, many brands are famous by advertising. If an individual can't invest so much advertising in opening a shop, his popularity will be relatively poor. As many stores as McDonald's all over the province can be seen everywhere, of course, the popularity will naturally rise. If we often promote new products through advertisements, naturally its business will get better and better.
2. Reduce the failure rate. Joining a business can reduce the risk of failure and improve the chances of success. No one can guarantee the success of joining 100%, but compared with individual entrepreneurship, the success rate is still relatively high, because basically everyone who joins the headquarters has certain experience in opening a store and can copy this business model. As long as they follow suit, the chances of success will naturally be much higher. If you don't choose to join, unless you are already familiar with this industry, what you need is to explore slowly, and exploration is to try. There will be mistakes when trying, and mistakes are costs, so the probability of failure will be higher than joining.
3. Logistics and R&D, the headquarters provides logistics and goods to franchisees, who only need to be responsible for store operation and store management. Otherwise, you may be too busy to do it yourself, manage the store and the marketing, promotion, research and development and management system, and you can't do it so well. In particular, the products of franchise chain stores are constantly innovating, and they can better grasp the first-hand information of the market. Moreover, many goods are not developed by franchisees themselves, but made by outside suppliers. Because suppliers also like to promote new products through chain stores, because a negotiation can push thousands of stores. If it's a single store, we have to talk about it one by one, depending on how long it takes. How much time and energy does it take? Therefore, suppliers certainly like to find chain stores, so that chain stores can master new commodity information. Of course, this also includes machinery and equipment. Because when equipment manufacturers develop new equipment or introduce new foreign machinery and equipment, they always look for headquarters first for the same reason. If the headquarters feels good, it will naturally be introduced to franchisees, so that franchisees will be more competitive.
Summary:
The risk of joining the venture is relatively small, so it has won the favor of many entrepreneurs. However, we must also recognize the advantages and disadvantages of this model in order to foster strengths and avoid weaknesses and achieve better success in the future. If you are interested in joining the catering industry, you can try to know about the project of "Gazing at Fried Beef Buns", which was opened on 20 19 and is a new brand with great potential.