If the agreement has these contents, they are naturally considered a breach of contract.
Two. It's not illegal for them to let the franchisees figure out the market on their own. If you choose to go with such a directly managed store, you should be fully aware of the risks of their immaturity. It's important to know beforehand.
If you really think that their current practice is unfair, you can agree to change the contract with them. If the other party says you unilaterally suspend the contract, you can resort to litigation to solve (recommended to hire a lawyer)
Suspension of the contract to their own detriment is not a bad thing, it is recommended that you take action as soon as possible to avoid greater losses!
The following from Baidu Encyclopedia:
The so-called franchise, is the business organization, the service label authorized to the franchisee master, so that the franchisee master can join the headquarters of the image of the headquarters, the brand, reputation, etc., in the business of the consumer market, to recruit consumers to go to consumption. And the franchisee before starting a business, the franchisee headquarters will first know-how, technology ... and other experience, teaching to the franchisee and to assist in starting and operating the business, the two sides must sign a franchise contract to achieve the cause of the profit for the *** with the goal of cooperation; and the franchisee headquarters can be due to the nature of the different franchises to the franchisee masters to collect the franchise gold, deposit and The company's main goal is to provide the best possible service to its customers.
Directly operated stores and franchises are now the two main modes of consumer terminals, directly operated stores are directly opened by the manufacturer, while the franchise is a manufacturer recruited by the interests of the **** the same body. The relationship between them is like two brothers with the same father and mother, the good may be very cordial, but the vast majority of stores always seem to be inevitable between some bumps and bruises, and become an enemy. Why is this so?
How did the conflict between direct and franchise arise?
At present, many companies are using the franchise and direct mode of coexistence, especially in the same area, the two modes of coexistence of the contradiction will be clearly exposed. Let's look at how the conflict arises:
1, price conflict.
Price is the most sensitive factor that produces conflict, the most direct conflict often starts from the price. Because of the existence of competition, in order to fight for customers, directly managed stores or franchises on one side will often reduce prices as an important means of competition.
2, goods conflict.
In terms of goods display, directly managed stores often have more resource advantages, to maximize the display of all the company's products. This aspect of the sales force is stronger than the franchise. Especially some of the tight goods at the disposal of the self-owned stores tend to have more initiative.
3, image, service and concept of conflict.
Directly managed stores can directly interpret the company's philosophy, show the company's brand image and service norms, while the franchise in some of these performance strength is relatively lacking. Lead to the brand in the two types of terminals can not harmonize.
4, artificial contradiction.
Some directly managed stores and franchisees are easy to stand on the opposite side of the issue because of their respective interests, generating some other contradictions.
In the end, the contradiction is generated on the basis of conflict of interest, as a business or branch of the market managers, the key is to see how we can coordinate their relationship, how to maintain the balance between the two. Both to ensure the interests and development of self-owned stores, but also to take into account the emotions and interests of the franchisee, maintaining the loyalty of the franchisee.
How to solve the direct management, franchise coexistence of contradictions?
1, the development of a reasonable sales radius.
The distance can produce beauty, but also reduce a lot of contradictions. Let the directly managed stores and franchises to maintain a certain sales distance, you can avoid the most direct proximity interests and source of conflict. That is to say, in a certain square range, it is best not to let the direct sales store and franchise at the same time.
Reasonable sales radius between stores in different industries is not the same, we must refer to the local economic level, the main consumer population, consumer habits and other factors to develop a reasonable sales radius distance.
For example, in a city of the same mainstream commercial street, if your product market capacity is very large, you want to open more than two stores, then you are the best of these two stores by the company to unify the self-management, or are given to the same franchisee to open. If there has been a small range of self-managed stores and franchises coexist in the case, the two sides are best negotiated by one of the withdrawal.
Guangdong, a well-known restaurant chain in the Guangzhou market is such an operation: the administrative region as a unit, in the Dongshan District by the company directly opened self-owned stores, and several other districts in each district to set up a franchisee, the franchisee can only be in their own area to open a branch. Effectively maintain their respective distances, so as not to compete with each other for customer traffic.
2, strict price standardization
Said earlier, the price is the most likely to produce conflict of interest factors. This requires companies to have a strict price protection system in order to avoid direct price conflicts between directly managed stores and franchises.
Self-operated stores must implement self-discipline on prices, while the company also has to franchise price control, and strictly prevent the behavior of disguised price cuts. Both sides can agree on a minimum retail sales price (or discount), who shall not arbitrarily break the price floor.
Price protection is the most important to strengthen the strength of price management, such as the franchise can charge a certain amount of operating deposits, in order to franchise the price of constraints and norms, unauthorized violations of the price policy of the franchisee to be resolutely dealt with in order to make it consciously abide by the agreement on price, so as to safeguard the brand's entire price system is not impacted.
A laundry chain into each provincial capital city will pre-open a directly-managed stores, and then the recruitment of franchisees, so almost in each provincial capital city have directly-managed stores and franchises coexist. However, the price of their services in each store has been well controlled. Because the headquarters in the contract with the franchisee are clearly agreed on the minimum price of washing all types of clothing, and the issuance of VIP discount cards are strictly limited. And the headquarters of the people will often go to the identity of the customer to the franchises to carry out open and secret investigations, once found to have violated the price policy of the franchise, will be imposed a fine of 1000 to 3000 yuan, so many cities even if the opening of seven or eight franchises can be peaceful **** at the same time, each other.
3, unified terminal image construction.
Directly managed stores and franchises to maintain the competitiveness of the same, the image of the unity is very important. But some franchisees often because of the concept and their own strength and other reasons, resulting in the franchise in the image can not be unified with the company's own store, decoration grade is not as good as the company's own store. This requires companies to be careful in the selection of franchisees, and in the business philosophy can often give guidance, and often organize supervision and training staff to track management, strengthen the terminal image, service unity.
4, to maintain a unified pace of promotional activities.
Self-operated stores and franchises, one of the parties to do promotions, it is often easy for the other party's sales impact. For example, in shopping malls or self-owned stores during the promotion of the enterprise should notify the franchise synchronization of some promotional activities, or depending on the scale of the promotion to give the franchise a certain promotional subsidies. Self-operated stores in the operation of special activities should also be based on the situation to the franchisee to provide some effective special goods. The company can also require the franchisee to have promotional activities launched, should be reported to the company for approval for the record, and shall not be unauthorized operation of promotional activities.
99 years I used to work for MasterCard, when MasterCard's business staff is divided into two major blocks: direct sales agents and distribution agents. The company is responsible for the management of direct sales outlets and distributors, respectively. Supermarkets are generally responsible for direct sales agents, I remember that once in Dongguan Carrefour to do promotional activities, one day sold out of two large shelves full of goods, the need for urgent distribution, and the Guangzhou branch was too late to transfer goods over. So the industry had to find the local dealer in Dongguan to discuss borrowing goods, the dealer is very willing to cooperate, immediately from the warehouse to transfer a lot of goods to the store. Because the company's promotional activities in the same period, has given the dealer the corresponding compensation (the company's own store promotions, dealers can enjoy the buy ten get one free discount), so that his interests are not due to the company's promotional damage.
5, scientific management of goods categories
In the goods category, goods display, the franchise is often at a disadvantage. Therefore, the enterprise should be for the franchisee to develop a more reasonable return policy, to encourage the franchisee to boldly increase the number of types of goods and displays, to enhance its competitiveness. And can effectively guide the franchisee to optimize the combination of the structure of the goods, accelerate the rate of goods circulation.
There are also some manufacturers use franchise and directly-managed stores to sell different specifications, models of products, so you can avoid the most direct sales conflicts.
In today's market environment, direct and franchise both ways have their rationality and limitations, in many industries, these two terminal mode will be in a certain range of long-term **** exist, how to strengthen the management of enterprises and coordinate the relationship between them, should be the top priority of the market work.