Adjusting the Mindset: Franchising is Not a Guarantee of Worry-Free Success
As a large portal website for investment, entrepreneurship, and franchise chain industries in Shandong—Shandong Franchise • Entrepreneurship and Business Recruitment Network (www.liansuo178.cn)—will also leverage its own advantages to assist the vast number of entrepreneurs in Shandong. Finding a suitable path for entrepreneurship is undoubtedly of utmost importance. In this regard, experts from the network, Shandong Franchise • Entrepreneurship and Business Recruitment Network, with integrity as the foundation, have established the largest project information database in Shandong, screening thousands of investment, entrepreneurship, and franchise chain projects across various industries for investors to choose from. It has become an authoritative platform for obtaining and publishing entrepreneurial information and finding excellent entrepreneurial projects.
The greatest advantage of a franchise store is the ability to directly borrow the headquarters' prestigious brand name and leverage the headquarters' experience, thereby reducing investment and operational risks. However, for franchisees, "replicating" the environment, atmosphere, and products of the headquarters' business premises does not mean they can rest easy.
Franchisees, as the main victims of franchise chain fraud, are increasingly drawing widespread social attention. Originally intended to avoid risks, franchisees end up in greater risk due to deception by the franchise headquarters. This reflects the lack of industry experience among franchisees, making them unable to identify franchise fraud schemes and thus easily falling victim.
Shandong Franchise: Building an Online Home for Investors and Entrepreneurs
Regarding the operating qualifications of franchise chain enterprises, the most basic requirement stipulated by the "Regulations on the Administration of Commercial Franchising" is "two stores and one year," meaning the franchise headquarters must have at least two direct-operated stores and have been in operation for over a year. In reality, some franchising companies that rely on franchises have yet to establish their own direct-operated stores. Investigations reveal that many branded chain stores today are predominantly built through franchising. Projects without their own direct-operated stores should raise red flags. Such franchising companies that only offer franchises without running their own stores may eventually exit the market. Currently, the franchise industry is undergoing a process of survival of the fittest, which will help improve the overall quality of the industry, allowing ordinary consumers to reap tangible benefits.
For the selection of excellent projects, experts from the Shandong Franchise Entrepreneurship and Business Recruitment Network suggest choosing franchise projects with broad prospects, mature management and operations, and high brand recognition. Additionally, the selection process must be cautious. Visit existing franchisees, conduct detailed inspections at the headquarters, consult extensively with professionals, and carefully review the terms of the franchise contract.
Exaggerating profits to franchisees and promising no risk or low risk are common tactics used by scammers. Statements such as "Invest three to five million, annual income over ten million," "Risk-free profit-making projects," "Invest in a certain project and generations of life will be worry-free"... are all franchise traps that need special vigilance.
According to analysis reports provided by the China Chain Store Association, there is an investment recovery process for a franchise project, with profitability possible only after at least 1 to 1.5 years of operation. For those claiming returns far exceeding the industry average, suspicion is warranted. Moreover, low capital amounts do not necessarily mean low risk; sometimes they may even imply greater risk.
Relevant officials from Shandong Franchise introduced that compared to some national-level similar network platforms, Shandong Franchise • Entrepreneurship and Business Recruitment Network emphasizes integrity, strictly screens real information, and thoroughly investigates project reliability. With standards of honesty, reliability, mature models, and obvious advantages, it strives to recommend projects truly suited to the Shandong market. Furthermore, to better serve the vast number of investors and entrepreneurs in Shandong, Shandong Franchise Entrepreneurship and Business Recruitment Network now offers free entrepreneurial advisory services to investors. It aims to provide objective and fair opinions and suggestions, offering maximum support to entrepreneurs!
One principle investors should clearly understand is that franchising itself involves doing business under someone else's brand name, which to a certain extent avoids or reduces risks, lowering risks far below those of independent entrepreneurship. However, whether the franchise can operate successfully depends closely on the individual investor's operational status.
Beijing is a hotspot for franchise scams. According to Wang Song, director of the Contract Department of the Fengtai District Administration for Industry and Commerce, using contract clauses to defraud franchise fees is one of the commonly used tactics by unscrupulous businessmen. Just this year, the Fengtai District Administration for Industry and Commerce has filed 54 cases related to such illegal activities. "In our inspections, we found that office buildings and commercial-residential buildings near stations, universities, and high-tech parks are the most frequently chosen locations by lawbreakers. During inspections, we discovered up to 12 case leads in a single building."
Recently, warning signs reading "Beware of Franchise Fraud, Guard Against Standard Contract Traps" have been prominently displayed in more than 50 key office buildings in Beijing's Fengtai District. A consultation hotline has also been published, reminding entrepreneurs to stay vigilant before transactions. Unlawful franchise operators often "dig pits" in contracts to swindle money, and office buildings near stations and technology parks have become their favored venues. The Fengtai District Administration for Industry and Commerce has designated 20 areas and office buildings, including the South Square of Beijing West Station, as risk points, conducting inspections every two days.
By leveraging the brand, experience, and service of successful enterprises, joining a franchise chain undoubtedly increases the success rate for initial entrepreneurs compared to independent entrepreneurship. This holds true both domestically and internationally. Starting a business through a franchise model is undoubtedly the best choice. However, some franchise recruitment companies exploit legal loopholes during the early stages of market development to extract improper profits from startup franchisees. In the chaotic mix of franchise brands, how investors can discern and choose excellent franchise brands is indeed a significant issue in today’s franchise industry.
In the course of operations, franchisees will inevitably encounter numerous factors such as financial management, personnel management, market expansion, and competition from peers. Moreover, each franchise outlet may differ significantly from the headquarters due to local customs, market location, and competitive environments. Choosing a franchise not only requires the franchisee to invest a certain amount of capital but also demands substantial time and effort.
When selecting a brand, investors must remain vigilant. Related thematic articles: Expert Network. Two weeks later, Wealth Creation Information. They will all drive to the countryside to experience agritourism. Internet Culture Operation Permit No. [2003]0053. Authoritative entrepreneurship guide, market analysis, profit-making methods, and management operation information. Comprehensive entrepreneurship opportunities, franchise and recruitment projects, shop opening entrepreneurship projects, wealth-creation and prosperity good projects. Wealth Creation Q&A. An expert platform integrating business, sales, management, marketing, and operations. Entrepreneurship opportunity information, publishing franchise and recruitment projects, finding entrepreneurship projects for opening shops, profitable wealth-creation good projects.