McDonald's, KFC, and Dicos have an initial franchise fee of 3 million yuan, 8 million yuan, and 2 million yuan, respectively.

KFC and McDonald's entered the China market in 1987 and 1991, respectively. Initially, they all adopted direct chain stores, and basically did not develop franchise chains.

KFC began to franchise from zero starting point in 1999

McDonald's has always adhered to a single direct chain model, and it was not until it entered China in 2114 that it began to consider the two-way development of direct chain and franchise chain

What kind of investors do they like?

Tip:

McDonald's: You must be willing to devote all your time and energy to the daily operation of McDonald's restaurants, and multiple investments are not allowed;

KFC: Franchisees should not only have a capital of 8 million yuan, but also have enough management experience;

Dicos: There are many types of stores and investment methods aiming at different investment abilities, and some investors can be accepted to be Dicos while doing their original businesses.

In the 7th China Franchise Chain Exhibition in 2115, McDonald's received 3,111 applicants, but only a tiny part of them finally became franchisees of McDonald's. As we all know, for international fast food chain brands like McDonald's and KFC, the conditions for developing franchisees are very harsh. It is reported that almost 91% of KFC's 21 franchisees are returnees, either from the United States or Australia. They generally have high academic qualifications and rich management background. In addition, strong financial strength is also their common feature.

McDonald's franchise plan in China this time is to find individuals or individuals who meet the following eight conditions: having noble ethics; Have entrepreneurial spirit and strong desire to succeed; Outgoing and sociable; Willing to devote all his time and energy to the daily operation of McDonald's restaurant; The applicant is willing to accept the training for 12 months; Have the ability to effectively manage and train personnel; Can be competent in the franchise organization; The investment amount is not less than RMB 3 million. "If you want to become a McDonald's franchisee, in addition to the threshold of 3 million yuan, the franchisee also needs to have rich management experience. He is a successful manager and a businessman who knows how to wear an apron. His blood is tomato sauce." Zhu Yuanhe, senior vice president of McDonald's China Development Company, said vividly.

KFC provides franchisees with "not starting from scratch" and low-risk joining. Franchisees must first have 8 million yuan of funds, but even if they have 8 million yuan, they may not be able to become franchisees of KFC. KFC requires franchisees to have four conditions at the same time: eager to develop and really willing to engage in KFC business in person; Have sufficient management experience; Be trained and willing to establish a cooperative relationship for 11 years; Have the corresponding financial strength. The franchisee who meets the above conditions will become a successful candidate, and he will be required to attend a comprehensive 12-week training.

Comparatively speaking, the entry threshold of Dicos is much more flexible. Among the joining fee of 2 million yuan, it has basically covered most expenses such as store rent and decoration expenses, and there is no mandatory one-year or 11-month off-job training period for franchisees, but the main training focus is on front-line employees, not investors themselves. Because the investment is relatively small and the operating requirements are flexible, it attracts many repeat investors. It is reported that the phenomenon of repeated joining has become an important feature of the rapid development of Dicos. According to Deng Renrong, associate director of Dicos Development Department, as of February 21th, 2115, the total number of Dicos repeat franchise stores has reached 195, accounting for half of the 423 Dicos stores. The so-called repeated joining means that a franchisee continues to join Dicos after the opening of the first franchise store, and the number of stores has reached more than two (including two). These franchisees have become franchisees or even subsidiaries of Dicos.

what should investors pay most attention to?

Tip:

McDonald's and KFC: Can the training have a good effect on you? Is it necessary to spend nearly one year on training? Dicos: Is the site selection good and whether there is a stable cash flow?

Some franchisees often only pay blind attention to the brand and franchise fees when choosing franchise projects, but they often ignore many specific details in the franchise process. However, many details have become the key to success or failure. Therefore, it is necessary for franchisees and franchisees to understand and study each other in the process of selection and selection. In this regard, no matter which project you choose, you must first like this industry and the business model of this store, and you will be willing to invest instead of just looking for a profitable thing. In addition, we should compare in many aspects to understand the background of the enterprise, the time of development and the stability of the store. Because the longer an enterprise develops, the more stable it will be. Unlike many enterprises, which are short-lived, it takes several years for an ordinary enterprise to start making profits, so you should be very clear about the background strength of this enterprise.

"Be sure to visit the headquarters of an enterprise to learn about the development of the enterprise. In fact, you can tell whether the headquarters of an enterprise is developing well at the headquarters, whether they are considerate in their service to franchisees, whether employees are busy and whether communication with franchisees is frequent. Be sure to talk with people who have joined the enterprise about the joining situation." It is suggested that investors should not invest all their possessions, leave a back road, and don't invest 111%. Any investment is risky. "Therefore, Dicos will examine the background of franchisees. Apart from operating this store, is there a stable cash flow to ensure their daily expenses?"

Experts unanimously suggest that before joining the company, the choice of location is the most important. Different industries have different site selection characteristics, and site selection is the most critical. It is best to spend more time on detailed evaluation of the address. After joining, people are the most important. We should find the right people and build the right team.

Zhu Yuanhe, senior vice president of McDonald's China Development Company, thinks that franchisees need to know what this enterprise can offer you, whether there is a good training mechanism for you, and whether the training can have a good effect on you. "Then we need to know whether the operating system of this company is perfect, and whether franchisees need to worry about the source of daily materials themselves. There is also the ability to understand the company's daily promotion. " Zhu Yuanhe went on to say. Finally, Zhu Yuanhe thinks that he should study himself to see whether his personality is suitable for this company and whether he can have a good relationship with this company.

Franchisees should know the return on investment

Tip:

McDonald's: Generally, it will recover the cost and make a profit within five years. For those who are not well managed, McDonald's will buy back. Investors are advised to focus on the brand effect of McDonald's for long-term investment;

KFC: It doesn't estimate or promise franchisees, and it depends on franchisees to judge the reasonable payback period of the project;

Dicos: The investment can be recovered in about two and a half years with lower initial fee and lower operating cost.

The joining fee is often the most concerned issue for franchisees, because the joining fee directly affects the investment choice and return on investment of franchisees. The franchise fees of McDonald's, KFC and Dicos are 3 million yuan, 8 million yuan and 2 million yuan respectively in this China franchise chain exhibition, which is the highest among all franchise projects. Therefore, for investors, calculating the return on investment will help to rationally choose and reduce investment risks.

regarding the return on investment, the first article on Dicos' publicity page clearly states that the annual return on investment exceeds 41%. The relevant person in charge of KFC told reporters that they don't estimate and promise franchisees because they all choose mature franchisees, and they all have their own reasonable payback period for evaluating and judging the project. Zhu Yuanhe said that franchisees can recover their costs and make profits within five years, and McDonald's will buy back those who are not well managed. Ding Liming, deputy general manager of Shanghai Little Tail Sheep Catering Management Co., Ltd., which specializes in franchise chains, said that the five-year investment return period is long, which will exclude many investors with slightly thin financial strength. However, some professionals believe that if you have strong financial strength, it is more operable to make long-term investment with a focus on the brand effect of McDonald's.

As an investor, it is not enough to believe in the calculation and commitment of the enterprise, and it needs to be analyzed with the help of relevant data. For example, to calculate the return on investment of McDonald's and KFC, it is necessary to understand the operating conditions of the enterprise in China. According to the data of 2113, the number of restaurants opened by McDonald's and KFC in China is nearly 611 and 1,111 respectively, and the operating income is 5.3 billion yuan and 9.3 billion yuan respectively, so the average operating income of a single store is 9 million yuan and 9.3 million yuan respectively. In addition to the normal operating costs, KFC franchisees have to pay 6% of the sales royalties and 5% of the advertising fees to the headquarters every year. On the basis of these data, combined with operating costs, we can roughly estimate the average annual rate of return of a single store.

compared with the high franchise fees of KFC and McDonald's, Dicos claims lower franchise fees and lower operating costs. Dicos claims that their investment is only between 1 million and 2 million yuan, and the operating cost is strictly limited in an appropriate range. The average operating cost of a single store is 11% ~ 15% lower than that of KFC and McDonald's. According to the annual average turnover of a single store of Dicos, it can recover the investment and make a profit in about two and a half years. However, the obvious disadvantage of Dicos lies in its weak brand power, which will affect its ability to make profits steadily to a certain extent.