Many investors will face two choices at the initial stage of Entrepreneurship: whether to start from scratch or to "borrow chicken and eggs" - seeking an experienced, brand mature franchise company to join.

According to one data, in the developed countries such as Europe and the United States, more than 70 of the commercial enterprises operate in the franchise mode, especially in the United States, 95 of the franchisees are successful, and the failure rate of alone business is as high as 80.

Franchise chain has become one of the successful business models in the world today.

However, even so, it does not mean that franchising will be suitable for every investor. Joining a big brand does not necessarily make big money. There are also many risks and pitfalls in investment and operation.

In this business mode of coexistence of risks and benefits, how to avoid business risks to the maximum extent will undoubtedly be the investors' greatest concern. For this reason, reporters interviewed Dr. Zhang Bin of Beijing Zhong Tong law firm and Dr. Zhong Yong of the Business Administration Research Department of Beijing Administrative College, asking them to give directions to investors.

Some investors think that joining a big brand will make money, because franchising can reduce advertising expenses through brand advantage, share the headquarters business know-how, and regularly get headquarters support. This has made many entrepreneurs without relevant industry background taste the sweetness, and has also made some people feel the illusion that they can set foot in any field with the support of franchisers.

Therefore, some people are obviously ignorant of the catering industry, and watch others' business flourishing, and then join in it without hesitation. Some people originally opened beauty shops because they wanted to join the convenience store in pition, and the result was not satisfactory.

Zhong Yong, an expert in business administration at Beijing Administrative College, points out that franchising is now in a variety of industries and involves all walks of life.

If investors want to join franchising companies, first of all, they must have a certain understanding of the market. We should make a preliminary investigation of the market demand in the early stage.

What makes money makes it easier to recover costs.

Because different brand positioning is different, consumer groups are also different.

If the consumption level is not up to that standard, choosing a big brand as a franchisee will be divorced from the specific consumption ability and level, and the consumption atmosphere will be different.

So when choosing franchised brand, we should consider whether the store is in line with the consumption level, and whether the people in this circle approve of the brand, otherwise there will be no benefit.

Secondly, we should start from the financial condition of the franchisee.

Now all walks of life can do franchising, but the demand for funds is not the same. Some require a very large store area, and the threshold of franchise fees is also very high, or even hundreds of thousands of millions.

This requires franchisees to select franchises based on their own capital status.

Finally, choose the industries and fields that you are familiar with and suitable for yourself.

Running the industry that you are familiar with may be more handy in the process of operation, and understand the basic condition of the chosen industry, which is of great benefit to the franchisees.

Misunderstandings in the two areas: low cost, big return and rich fortune are just around the corner. Nowadays, there are always some exaggerated franchises such as "20 thousand yuan to open fast food shops", "zero cost to join, and 1 years to recover costs".

Under these advertising attacks, some people think that the franchise market has a low entry threshold and can not afford to spend too much money on the boss.

Zhang Bin, a lawyer in Beijing Zhong Tong law firm, reminded investors that this propaganda method is fundamentally inconsistent with the characteristics of franchising. In the process of franchising, no franchiser can guarantee that the franchisee will be profitable after joining the company, regardless of the size of the brand.

The franchisee is a brand, a franchise system, rather than once joined.

Many non-standard franchisees, under the guise of franchising, promise to recover their costs in the short term, sell products and machines in a disguised high price, and even illegally collect money.

Therefore, before deciding to join the franchise mode, franchisees should have a full understanding and understanding of franchisees, and must not be blinded by those unrealistic false advertisements.

Lawyer Zhang and Zhang solicitor put forward the following suggestions for the franchisee: 1., to inspect the situation of the franchise headquarters in person.

Do not listen to the bias, the hype can be heard, but the franchisees can not receive all these publicity photos. They should know their operation and whether they are suitable to join them through their own investigation.

First, we should inspect trademarks.

Because joining is actually a brand's franchise. The core of brand concession is brand, technology and service. The franchisee's unique things can only get a certain franchise fee, so that the franchisee can get the maximum profit in the shortest time. At this time, the brand is the most important.

Therefore, we need to know the status of trademark registration, whether there is a trademark registration certificate, how long the registration time is, and how much the franchiser's brand is known or understood.

2., through the franchisee to understand the actual operation.

Franchisees can reflect the real situation of franchising enterprises, including business conditions, service conditions, etc., and get first-hand information. To see whether the franchisee can earn money is a good reference sample for their investment.

3., we examine the strength of franchising companies.

You can go to the industry and Commerce Bureau to inquire about the company's registration, including the company's registration location, registered capital, the ability to research and develop new products, what services can be provided, the proprietary technology and the core of the exclusive service.

We can also understand the headquarters management and management ability by observing the operation of its direct stores.

The 4. franchisees should understand the relevant policies and regulations.

By the end of 2004, the Ministry of Commerce issued a new "business franchise management approach" and has been put into effect since February 1, 2005.

This management method is the first time that the franchisor should bear some responsibilities, especially their information disclosure obligations.

The franchisor's own situation must be truthfully disclosed. The franchiser understands the relevant legal provisions, and knows what support and obligation the franchiser should provide for the franchisee, which is very beneficial to protect their own rights and interests.

It is also necessary to think twice before joining the big brand. The three mistake is that the big brands will not be a cat in the contract. In the process of concluding the franchise contract, the lack of agreement on certain clauses is a common problem, which may also cause the legitimate rights and interests of the franchisee to be damaged.

For example, the contract stipulate that the franchisor provides training and guidance to the franchisee, but if it does not stipulate the amount of training and approximate time provided annually in the contract, it is likely to be a mere formality without actual binding force.

The experts point out: in practice, usually the franchisee is strong and the franchisees are relatively weak. Therefore, in order to avoid their rights being infringed, Zhang Bin lawyer pointed out that the franchisors often have a set of standardized and fixed texts to let the franchisees fill in. When joining the franchisee, they should carefully look at all the terms and conditions, which provisions are unfavorable to themselves, or very difficult to enforce, and argue for them instead of passive contracts.

Because at this time, some non-standard franchisees will drill into legal loopholes and create traps.

If there is any dispute between the two parties in the execution of the contract, the only basis is the contract, so the contract is very important for both sides.

First, before signing the contract, we should check the franchisor's business license, tax registration certificate, trademark registration certificate and other related documents.

Second, you can entrust a lawyer to identify the contents of the contract.

Third, the contract text should avoid ambiguity and accurately express the true meaning of both sides of the contract.

Fourth, strive for equality between rights and obligations of both parties.

The franchisee must think twice when signing the contract, and the clause that he thinks he needs to protect himself should be added to the contract.

Sometimes, because of the strong power of the franchiser, the status of the two sides may be unequal. If it is not a principled problem, the franchisee can take a step back. But if the terms that are really related to their interests can not be accepted, it is better not to sign the contract, or it will cause great losses to the future operation.

Fifth, do not believe in verbal promises, but based on written documents.

Four of the misunderstandings of the company, of course, can be easily achieved by joining the "successes". Some of the franchisees believe that the franchisees who rely on the mature brands can take advantage of the profits of the fishermen and earn no money, but they do not take into account that for the operators, taking the corresponding risks at the same time, they are both the basic rules of the market economy and the general principles of the law.

Experts point out: in the process of contract fulfillment, the obligation of the franchisee is to pay the corresponding cost. First, we must pay the franchise fee. Usually, we have to pay certain royalties and management fees every month.

After paying the fees, the franchisees should enjoy the services provided by the franchisees, especially the obligations stipulated by the franchisees. The franchisees must take the initiative to defend their rights when they are in need of service.

Therefore, the quality of the contract directly affects the operation.

Besides, business is still on its own. Although many franchised brands have a ready business model, the size of the brand may have a certain effect on the operation, or even more powerful. But ultimately, it is necessary to rely on their own efforts to improve their internal skills, study hard and operate properly. It is better to participate in some professional training in advance, systematically learn the theoretical knowledge and legal documents of franchising, improve their management and management capabilities, and do well in their own services so as to open up the market situation.