3 Commandments For Managing Franchisees

In recent years, with the chain Join in The prevalence of many chain enterprises that expand almost madly has gradually exposed the disadvantages of poor management. In fact, all the chain stores that have problems, their very detailed store standardization processes are often impossible to implement. Most of the reasons are typical common sense mistakes in the following three aspects:

　　 First, try every means to get you in, and then join the franchisee.

Opening up the Handbook of the vast majority of chain enterprises, a series of related costs came into view. Brand usage fees, technical service fees, franchise management fees, margin, project preparation period management fees and so on, these are only the beginning of the operation of raw materials, equipment, materials, product supply, logistics and distribution, etc., many of the terms of the contract will allow franchisees to stop.

The causes are based on the monopoly of exclusive supply and connivance of the arrogance of chain enterprises.

For management fees, industry The hidden rules are extracted according to the percentage of franchisees' turnover, but some chain enterprises do not charge a fixed management fee. No matter whether the franchisee is dead or alive, there are quite a lot of papers per month, especially the large chain of brand stores and store networks. enterprise When franchisees are found, most of the profits have been exploited upstream, and they have begun to struggle to resist, privately purchase, reduce the frequency of purchase, and reduce the quality of service. As a result, chain enterprises' brands have been hurt and their interests have also suffered losses.

At the end of 2009, a famous household chain store in East China launched the "2010 Strategic Alliance Plan for manufacturers". According to this plan, suppliers must form a strategic alliance with them. They must pay 2 million yuan in commercial margin and 800 thousand yuan in promotion fees. The so-called strategic alliance is nothing more than a joint operation mode, and the brand business becomes a franchisee in its retail field, requiring the brand manufacturers to enter the more than 60 large shopping malls distributed in the whole country.

Two, try every means to let you join, after joining, let go.

There is no doubt about the charm of chains. However, without any capital, standardization and service teams, many enterprises will consider joining the chain just by opening one or two stores. It is laughable.

A restaurant chain that has just been listed in the West has experienced the pain of joining and managing. In the context of rapid expansion, the headquarters has no time to take into account the details of franchisee's operation and operation. Whether it is material selection, food, service or management, there are many problems, which affect the image of the brand in the eyes of consumers.

Therefore, regular retail chains often have to carry out on-site inspection system, check all details according to the standard system and process, and good chains also send employees to pretend to be customers' spot prick. The purpose is to check whether the operation of franchisee is in line with the requirements of headquarters. Although this sounds a bit picky, it is this kind of detail operation management that plays a very effective supervisory role.

Three, try to collect management fees, but free management of franchisees.

Store management is the top priority of operation. Many chain enterprises always make mistakes in principle. Those chain enterprises will treat direct chain stores and franchise chains differently, and manage their own direct shops very finely. While joining stores, they only pay attention to operation standards and performance results, and never consider the details of franchise operation and how to increase the turnover of franchised stores. This makes many franchisees free from the headquarters management system and indirectly affects the overall performance and image of chain enterprises.

In the commodity retail industry, exclusive stores and specialized shops, the centralized purchase procedures are generally adopted, and the corresponding information management is also unified. Therefore, the franchisee's purchasing freedom is almost not, and the possibility of losing control is relatively small. The enterprises adopting relative decentralization will allow all stores to purchase and promote themselves, which has left too much room for the franchisee to operate, but also weakened the headquarters's monitoring and management of franchised stores.

In the service industry, the lack of supply chain management means that the direct control system is lost, and the service industry itself is difficult to quantify the business form, which is more likely to lead to the randomness of the franchiser. Under such circumstances, standardization of business execution, standardization of post operation, standardization of feedback and monitoring are the necessary means to manage franchisees. Otherwise, the operation of franchisees is out of control, which directly leads to the development of chain enterprises.

In short, chain expansion, franchising is a win-win strategy, managing franchisees, not only need standardized operation means, but also look at franchisees as "out of their own", no exploitation, no laissez faire, no separation, do not join franchisees as outsiders, so that they can really chain up!