There may be many reasons for this, including:
1.** False propaganda: * * Merchants may attract franchisees through false propaganda or misleading advertisements, which violates the Consumer Protection Law or relevant laws and regulations.
2.** Breach of contract: * * The merchant may violate the terms of the contract signed with the franchisee, such as failing to fulfill the promise on time and providing unqualified products or services.
3.** Fraud: * * Merchants may defraud franchisees of their property or interests by fraudulent means such as false promises and illegal charges.
4.** Illegal business activities: * * Merchants joining the company may engage in illegal business activities, such as illegal business operations, tax evasion and infringement of intellectual property rights.
No matter what causes the fine, it may cause economic losses and goodwill damage to the investment company. In order to avoid being punished, merchants should abide by relevant laws and regulations, operate in good faith, keep their promises and establish good cooperative relations with franchisees. At the same time, franchisees should carefully consider each other's reputation and cooperation history when choosing brands to join.