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What are the reasons for the failure to open a franchise store

First, the motivation for joining is biased

No matter how excellent the chain system is, it is impossible to ensure that all catering franchisees can operate successfully. Take Mosburger in Japan as an example. The Japanese are quite proud of its high success rate of 95%, but even so, it means that there is a failure rate of 5%. The company carefully selected 1,111 applicants in a year, and only 5% of them, that is, 51 people, finally concluded the contract. Although these 51 people have a strong entrepreneurial will and the same business philosophy as the head office, the final result is only a 95% success rate.

From many foreign failure cases, it can be seen that the most important failure reason is biased joining motivation. I thought that once I joined, I could lie down and do nothing, and everything was managed by the headquarters. Chain headquarters has a number of successful achievements in other places, but the success of others (headquarters plus franchised shopkeepers) in other places does not mean that it will be successful if you and the headquarters operate locally. It must be kept in mind that the headquarters and franchise stores are two completely different undertakings. What the headquarters provides (sells) to you is only a set of franchise operation combinations. You must follow its experience and guidance and implement it step by step, so as to be successful.

Second, when joining, the fund scheduling was abnormal

Because of their eagerness to start a business, some franchisees went around and even borrowed usury in order to raise joining fees, royalties and start-up expenses. Once the store is opened, although the business is still smooth, I have no intention to fully devote myself to the business operation in order to raise money and pay off debts every day. Once the operator who should be the leader in the front line leaves the front line because of the dispatch of funds, other employees in the store will be affected immediately, so the service quality will gradually decline. Customers are also sensitive, and will gradually move away from the store. Of course, it is impossible to improve their performance. Stores with good business are often dragged down by usury.

Third, there is no detailed investigation before joining

There are many examples of such failures. Some franchisees don't know clearly about the chain headquarters they will join, and always think that they will join in first. If there is a problem in the future, the headquarters will naturally come forward to help solve it. As a result, after opening the store, there was no business guidance from the headquarters, and it was difficult to contact the headquarters and there was no response. Only then did I realize that I was fooled.

IV. Not thinking carefully before signing the contract

Many franchisees signed and sealed the contract before signing the contract, or because the contract conditions were favorable, or because they were afraid of being beaten to the top, or because they thought that joining early could save the joining fee, and they did not fully understand the contract content, or because the contract content was too complicated to understand, so many people failed.

5. I don't try my best to blame the headquarters

Although I am the owner of the franchise store, I don't want to run it myself. Pay someone to be a store manager, and the salary is not high, but I hope the store manager can work for you from morning till night. In addition, I don't make a considerable investment, but I blame the headquarters for poor guidance because of my poor business performance. There is no practical know-how and method, and I look like "I am unlucky and forced".

in fact, the franchise stores and the headquarters are the same fate, and the success of their careers requires considerable efforts from both sides. If the franchisee thinks he is the boss who pays for the investment, he will cross his legs and wait for the headquarters to make money for you, which is too true.

"Competing shops have appeared in this area, but the headquarters has no countermeasures"; "The site environment has changed, but the headquarters has not taught me anything to deal with it." Yes, the objective environment has changed, but did you report it to the headquarters in time and add your observations? If you don't make relative efforts, you are often doomed to failure.

6. Joining the store owner has another career

At the beginning of opening the store, the franchisee worked hard according to the guidance of the headquarters, and his career was booming. The initial investment was recovered, so he was full of ambition and began to look for other opportunities to make money. Unfortunately, because the new business didn't get the hang of it, all the suspected money was lost, and the original store's performance declined because it couldn't take care of both sides, and finally it failed because the funds could not be turned around.

VII. Overconfidence in one's own business ability

The "franchise operation combination" provided by the chain headquarters to franchise stores is not protected by law like ordinary patents, so it is difficult to connect with the sense of value. In other words, it is difficult to measure the store name, products and customer trust provided by the headquarters by a standard scale. The strength and know-how of the whole chain system are hard to see with naked eyes in the front-line shops. However, it is difficult to identify the efficacy of the franchise operation combination behind the success of supporting the cause. Many franchisees have made the mistake: although they got a lot of help from the headquarters at the beginning of opening the store, they ignored it because they worked hard at that time. Once their performance was stable, they always thought it was the result of their own efforts. They had long forgotten the so-called secrets and practical guidance of the headquarters, thinking that they could do without the headquarters, and relying on their own strength was enough. So I don't want to accept the guidance of the headquarters, I don't want to carry out the orders of the headquarters, and I don't cooperate with the promotion plan of the headquarters. Due to overconfidence, franchisees gradually moved away from the headquarters, which led to failure. China's first franchise alumni association

VIII. Too fond of putting on the boss's airs

Some franchisees used to be office workers, and "daughters-in-law have been wives for many years". They always think that if they want to be the boss, they must put on the boss's prestige, and they always interfere with every employee's work like a mother-in-law, but they don't know how to authorize them, which leads to employees' depression and affects their business performance.

IX. Changing the operation regulations without authorization

Once some franchisees are familiar with the operation of the whole store, they will feel that some operation regulations of the headquarters are not reasonable. If they are put forward to the headquarters in good faith, the headquarters will be happy to accept them. But if it is self-assertion, there will be problems. Especially in the case that the goods sold are processed and manufactured in their own stores, if the manufacturing method is changed, or the processing time is changed, or the order of operations is changed, so that all the regulations of the headquarters are ignored or not implemented, then the franchise stores have actually lost the support of the headquarters and become alone.

all kinds of operation regulations of the headquarters must have their strong characteristics, and if they are changed without authorization, they will lose their characteristics, especially in terms of quality. Once the quality is unstable and the characteristics are lost, customers are very sensitive and will slowly stay away.

11. Without the concerted efforts of the family

Joining the chain business must get the consent and support of the other half first. If you can get the consent of the whole family, including parents, wives and children, it will be better, because once something happens, these people are your backup troops and will all play the role of "internal help".