1. Cheating by low joining fee, the joining company is actually dumping machinery and equipment at a high price in the name of joining. If you want to join, you must buy their machinery and equipment, and the price is often two or three times higher than the market price.

2. Rebirth fee scam. The franchise company attracts entrepreneurs to join under the guise of "Rebirth fee", and then when the entrepreneurs open a shop, they claim that part of the franchise fee will be refunded to you only after the purchase amount reaches the standard. This must be asked clearly before signing the contract to avoid being fooled.

3. False propaganda. When the so-called franchise chain companies advertise with gimmicks such as international brands, foreign backgrounds, chain organizations and domestic branches of a company, or claim that they are endorsed by a star (usually a star who is not very popular), we should pay attention to it, and it may be a liar.

4. Irresponsible promises. Think twice when you say words like "111% profit", "absolutely no loss" and "the best in the industry". Such propaganda words are not even allowed in the advertising law!

5. Follow-up service is zero

Mature franchise brands will provide a full range of support services from site selection and decoration, staff training, publicity and planning, technical support, material distribution, etc., but the information is not necessarily true.

6. There is a problem with the guarantee of business circle

Usually, in order to ensure the operating interests of franchise stores, the franchise headquarters will have a guarantee of business circle, that is, no second branch will be opened within a certain business circle.

7. No central kitchen for unified distribution

Some catering brands do not have complete purchase channels and R&D centers, and there is no central kitchen for unified distribution, so franchisees are required to purchase raw materials by themselves, which has potential risks.

Extended information: The refund of the franchise fee requires certain conditions. In general practice, the court will consider the following factors:

1. It is necessary to claim the refund through litigation within a reasonable termination period (the earlier the franchisee, the better).

2. Whether there is actual operation or the amount of services received.

3. The franchisee is at fault.

Legal basis: Article 266 of the Criminal Law of the People's Republic of China stipulates that whoever defrauds public or private property in a relatively large amount shall be sentenced to fixed-term imprisonment of not more than three years, criminal detention or public surveillance, and shall also or only be fined; If the amount is huge or there are other serious circumstances, he shall be sentenced to fixed-term imprisonment of not less than three years but not more than ten years and shall also be fined; If the amount is especially huge or there are other especially serious circumstances, he shall be sentenced to fixed-term imprisonment of not less than 11 years or life imprisonment, and shall also be fined or confiscated.