Is it risky to open a franchise store? Are there any risks associated with opening a franchise store

There are risks. Need to understand: 1. Understand the necessary conditions for joining.

2. Start-up capital is required. 3. How many franchise stores does the company have now, and how much their turnover can be in a year. 4. How long is the contract period?

5. If you want to quit after joining, the sales situation is not good, how will the franchise company deal with it? 6. What assistance will be provided by the company's headquarters after the opening? 7. If the sales reach a certain level, there is no rebate.

8. Whether you want to sign the contract in person at the company's headquarters when joining, and what documents are needed. 9. What is the pick-up discount. 10. Which age level is suitable?

11. How much is the first installment of the payment, and whether there is any guarantee. 12. In the future, the amount of goods must be picked up every month, and if there is left, can it be replaced with new goods. 13. How to provide pre-sale, in-sale and after-sales service at the company's headquarters.

14. What measures can you take to make a profit?

Pros: 1. Once the success of the project of individual operators is short-lived, there will be many imitators who will even challenge the business status of franchisees through vicious competition. But if you are a franchisee, you don't have to worry about this, because you can get the exclusive right to operate in the region, so that the business can be done without any danger.

2. The financial and personnel support of the franchise brand headquarters is in place, which makes it more advantageous in product distribution research and development, and can continue to keep up with the fashion in a timely manner to provide high-quality supplies for franchisees, so as to ensure the continuous competitiveness of the brand and its attractiveness to consumers.

3. Franchise brand headquarters to franchisees to implement decoration support, brand activities and publicity support, and even provide quarterly sales data, timely for franchisees to provide training in business management, so that franchisees save a lot of time and energy to concentrate on sales matters, and the strong advertising effect of the headquarters is also incomparable to individual operators.

4. Often the headquarters of the chain franchise industry have been accumulated for a long time to create exquisite technology, with strong capital and strong brand effectiveness. Such an enterprise is willing to open its own technology to absorb the public to join, which is a win-win situation for enterprises and individuals, and franchisees can quickly learn advanced technology by joining these brands, obtain brand recognition from consumers, and quickly enter a mature profit stage.

Cons: 1The biggest cost is a reduction in freedom, which will constrain and lack autonomy.

2.If the company makes a decision-making error, the interests of the franchisee will be implicated. Although every decision made by the company has been repeatedly demonstrated, it is not guaranteed to be foolproof. As a result, reciprocity will not be reflected for a while.

3.Since the company is a large system, in the process of rapid growth, there may be a lag in subsequent services, and the benefits that will be obtained may be compromised.

4.Once you join, you need to be restricted by the franchise contract, and the act of repudiation may lead to litigation and civil sanctions.

The risk of non-purchase is the risk of customer returns and complaints.

The purchase of goods and warehousing is the same risk as in reality, and there is a risk of cantonment.

Overall, both of these have the risk of draining energy.

There is a risk of overstocking, and the goods may become obsolete.

The risk of shortage of funds, the pressure of goods will pressure the funds, if the business is not good, you have to pay various fees every month Competition risk, others will also open stores, why do customers come to your store to buy things?

Mental stress, from inside the store to outside the store, from goods to funds, from customers to employees, you have to be annoyed, if you feel very relaxed, wait for a loss.

It's really hard for ordinary people to start a business.