What should you pay attention to when joining a store?

What franchise stores should pay attention to

In recent years, franchise entrepreneurship has become the choice of many people, especially the franchise model in catering, retail, education and other industries has attracted much attention. However, franchising is not a one-and-done “make money” model. Entrepreneurs need to choose carefully and avoid potential risks. The following are the key points that franchise stores need to pay attention to. We will provide you with a structured analysis based on recent hot topics and industry trends.

1. Industry trends and popular franchise areas

According to the hot search data of the entire network in the past 10 days, the following areas have become hot spots for franchising:

2. Five major issues that need to be evaluated before joining

1. Brand strength and reputation

Recently, a certain Internet celebrity milk tea brand caused a dispute over rights protection due to losses suffered by franchisees, highlighting the importance of brand inspection. Suggestions:

• Check the brand establishment time, number of directly operated stores and survival rate;
• Retrieve negative public opinions through platforms such as Black Cat Complaint;
• Conduct on-site inspections of at least 3 franchise stores that have been operating for more than 1 year.

2. Fee structure and hidden costs

3. Regional protection and competition analysis

Recently, there was a case of vicious competition in a first-tier city where the same brand opened three stores within 500 meters. Need to confirm:

• Whether the contract clearly states the radius protection (usually 1-3 kilometers);
• Headquarters' market capacity assessment report for the region.

4. Supply chain stability

In 2023, many fast food brands experienced shrinking profits for franchisees due to price increases on frozen products. Key points:

• Whether the procurement of raw materials is mandatory to be bound to the headquarters;
• Compare the market price to determine whether the markup rate is reasonable.

5. Exit mechanism

Focus on:

• Equipment recycling price when the contract is terminated;
• Terms for rescinding the right to use brand VI.

3. Typical cases of recent franchise disputes

4. List of necessary terms for franchise negotiations

According to the Commercial Franchise Management Regulations, core terms should include:

• "Cooling-off period" clause (usually 7-15 days to terminate the contract without liability);
• How to query the franchise registration number;
• Division of liability for intellectual property infringement;
• Specific implementation standards for business district protection.

5. Three common characteristics of successful franchisees

1. Choose a category that matches your own resources (for example, choose convenience stores instead of high-end restaurants for community background);
2. Reserve at least 6 months of operating funds (exceeding the minimum budget required by the headquarters);
3. Participate deeply in headquarters training and establish localized operation plans.

Franchise entrepreneurship is both an opportunity and a challenge. Recent hot searches include successful cases of making millions a year and cautionary tales of losing all your money. It is recommended that entrepreneurs conduct due diligence for at least three months and consult professional lawyers when necessary to maximize risk avoidance and achieve stable operations.