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What are the reasons for the failure of franchise chain

July 5, 2017

joined the chain of entrepreneurship in the current has become the choice of many people will be a way of entrepreneurship, it was through this entrepreneurial way to get a success, but also the failure of others to end. The reasons for the failure may be varied, it may be because the choice of business opportunities at the beginning is not correct, there may be differences in the concept of the operating process above, in short, the reasons for the many. So, what are the reasons for the failure to join the chain?

as everyone knows, as early as twentieth Century mid 80s, by way of franchising swept the world "Kentucky", "McDonald’s" have been in China settled, they bring in a new concept of "fast food" to Chinese at the same time, also brought a new concept of "chain management". Franchising as a new trend of business development, its charm is known gradually for Chinese, but the best chain, there is failure in this paper, ten kinds of possible failure reasons, should cause the attention of relevant personages.

many people after a long career, have a certain amount of money to produce the investment mentality, thought to buy a franchise like investing in stocks, real estate, will make money. Indeed, for those who do not have experience in business, it is possible to guide the training through the headquarters of the chain, it is easier to enter the shorter period, but also a greater chance of success. This is the advantage of franchise stores. But no matter how good the chain system, there are examples of failure, if you think that once joined the chain, you can easily sit on the value-added profit, it would be too naive.

1 join motivation biased

again excellent chain system is not possible to ensure that all franchisees can be one hundred percent successful operation. Japan’s Moss (Mosburger), for example, the Japanese are very proud of its high success rate of 95%, but even so, it also means that the failure rate of 5%. The company from a year to join the 1000 candidates in the selection, the final conclusion of the contract is only one of the 5%, that is, the 50. Although the 50 have a strong entrepreneurial intention, and the company has the same business philosophy, the final result is only a success rate of 95%.

can be seen from the failure of many foreign cases, the most important reason for the failure or motivation biased. Once you join, you can lie down and do nothing, all by the headquarters to manage. Chain headquarters is a number of successful operating experience in his office, but in his office by others (headquarters and joined the store owner) successful example, does not mean that the local business will be successful by you and headquarters. Must keep in mind that the headquarters and the stores are two completely different business units, headquarters (Sales) for you, just a join operation combination, you must be in accordance with its experience and guidance, follow the prescribed order and practical to carry out, can be successful.

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