It feels a little unreliable. Comrades who want to enter the profession must be cautious. Now, the investment promotion economy and franchise chains are flourishing in China, which is spectacular. However, laws and regulations are relatively backward, market supervision is lacking, and there are too many blind spots. There are too many investment exhibitions in franchise chains, which leads to the ineffective audit of investment promotion units. Basically, you can only judge for yourself, so you must confirm it and avoid disputes.

Popular science tells us how to join the scam:

Not qualified to join the development.

According to Article 7 of the Regulations on the Administration of Commercial Franchise, franchisers should have at least two direct stores in franchise activities, and the operating time should exceed 1 year. [1] However, many brands simply failed to meet the above requirements and began to develop and join.

In addition, Article 8 of the Regulations on the Administration of Commercial Franchise stipulates that the franchisor shall, within 15 days from the date of signing the first franchise contract, file with the competent commercial department in accordance with the provisions of this Ordinance. In other words, if you can't find the filing information of relevant institutions through the official entrance on the Internet, such as the filing inquiry of the franchise of the Ministry of Commerce [2], legally speaking, these institutions are not qualified to do franchise development business.

Using false advertisements to blind entrepreneurs

For franchisees concerned about the return cycle, the profit level of a single store, the threshold of joining, some enterprises exaggerate the facts in advertisements, and irrational franchisees often make impulsive decisions and are eventually cheated [3].

Although most franchise projects have ready-made models for reference, the business of franchise stores is related to the location of stores, the management level of shopkeepers, and the development trend of the industry, such as "30% to 50% profit", "you can return your money in two months" and "sit at home as a boss". The promised rate of return and return time are obviously higher than the industry average, which deserves careful consideration by entrepreneurs.

The business of model houses is booming.

A few enterprises collude with franchise stores and model stores, so that tourists can see the illusion of prosperous business and cover up the real business situation. Franchisees proposed to visit other regions, and enterprises shirked it for various reasons. There are also many franchisees who are eager to open a shop after seeing the booming business of the model shop, blindly joining, and finally being deceived.

This contract is full of "sugar-coated shells"

Article 11 of the Regulations on the Administration of Commercial Franchise stipulates that a franchise contract shall include the following main contents:

(a) the basic information of the franchisor and franchisee;

(two) the content and duration of the franchise;

(three) the type, amount and payment method of franchise expenses;

(four) the specific contents and methods of business guidance, technical support, business training and other services;

(5) Quality, standard requirements and guarantee measures of products or services;

(6) Promotion and advertisement of products or services;

(7) Protection of consumers' rights and interests and liability for compensation in franchising;

(8) Alteration, rescission and termination of the franchise contract;

(9) Liability for breach of contract;

(ten) the way to solve the dispute;

(eleven) other matters agreed by the franchisor and the franchisee.

However, in practice, it often happens that:

1, the brand holds the universal template contract, and the franchisee has almost no room for negotiation and maneuver. In fact, the contract should be reached by both parties through consultation, and franchisees do not only have the right to sign and agree.

2. The terms of the contract are not clear, and franchisees have no way to complain.