The penalty for inviting merchants to join may be due to the violation of relevant laws and regulations or commercial contracts, which led to the punishment of relevant regulatory authorities or partners.

There may be many reasons for this situation, including:

1. ** False propaganda: * * Merchants may attract franchisees through false propaganda or misleading advertising, which violates the Consumer Protection Law or relevant laws and regulations.

2. ** Breach of contract: * * Merchants may violate the terms of the contract signed with franchisees, such as failing to fulfill their commitments on time and providing unqualified products or services.

3. ** Fraud: * * Merchants may cheat franchisees of their property or interests by fraudulent means, such as false promises and illegal charges.

4. ** Illegal business activities: * * Merchants joining companies may engage in illegal business activities, such as illegal business operations, tax evasion and infringement of intellectual property rights.

No matter what causes the fine, it may cause economic losses and goodwill damage to the companies that join China Merchants. In order to avoid being punished, China Merchants should abide by relevant laws and regulations, operate honestly and keep promise, and establish good cooperative relations with franchisees. At the same time, franchisees should also carefully consider each other's reputation and cooperation history when choosing brands to join.