&；nbsp；&；nbsp；&；nbsp；&；nbsp；&；nbsp；&；nbsp； The investment of hundreds of thousands to millions of yuan often deters prospective entrepreneurs. In the current special economic situation, some franchising companies have introduced preferential conditions such as early payment plans and equipment leasing. This is a scenario tied to the 11th Franchise Joining Conference.
Lowering thresholds to attract franchisees
According to relevant responsible persons from the Funaite Laundry Store joining department, it costs about 480,000 yuan to join a basic store, which includes 350,000 yuan for equipment expenses. This year, the company has launched a financial lease plan where franchisees can pay for equipment in installments through a third-party leasing company over 2-3 years. "This method can alleviate the initial capital pressure on franchisees and quickly expand the company's service network," said the responsible person.
As the co-organizer, Secretary General Pei Ming of the China Chain Operation Association analyzed that some enterprises reduce equipment investment requirements by offering equipment leasing to franchisees, thereby lowering the initial investment for franchisees and satisfying more investors' needs for joining, which can help franchising companies accelerate market layout.
Besides lowering the franchise threshold, re-franchising existing stores is also a focus for many franchising companies. According to Sun Danwei, Deputy General Manager of Wuyutai, if franchisees choose to re-franchise an old store, the company will lower the collection ratio of franchise fees and deposit. At the same time, this year they have also introduced regional sub-agency methods, conducting only one sub-agency in suburban counties of Beijing or even around Nanjing. This can ensure the benefits of franchisees and facilitate management of the franchisees.
According to statistics from the China Chain Operation Association, 73% of franchisees hope to open new stores and engage in multi-store franchising this year. Industry insiders have introduced that compared to new franchisees, the maintenance cost for small franchisees is significantly lower than re-franchising existing stores. Moreover, due to more mature management experience and better understanding of the market, the success rate of re-franchising is higher. This news spans 2 pages, currently on page 1. &；nbsp；&；nbsp；1&；nbsp；&；nbsp；2&；nbsp；&；nbsp；