10/01/02 12:51)
counseling in a number of franchises, the author more than once asked students, In fact, I want students to understand is the fact that franchising in essence, to practice the enterprise and between enterprises, between the owners of different business needs based on common products, services, technology, cooperation carried out a profitable division of labor in modern business practices. Highly developed social division of labor to a certain stage of the product. Recognizing that this is a very important practice to carry out the franchise.
I. Review of International Franchise Development
franchise is the world's most popular business expansion and one of the ways individual entrepreneurship. It is suitable for the changes in social production and the objective of modern consumer demand, achieve economies of scale through the expansion of low-cost operation, scientific management through standardized service implementation is an efficient mode of operation.
franchise, from a theoretical definition, is the franchise will have its own trademarks, trade names, products, patents and proprietary technology, such as a franchise business model in the form of grants to franchise contract to use , the franchise holder under the contract, the franchisor under a unified business model business activities, and to those who pay the license fee. As with the existing form of franchise chain business management unified image management, and other basic characteristics, therefore, also known as franchising franchise.
1859, the world's first modern chain (FRANCHISING borrow a word to express their mode of operation. Americans in the last century has created a The use of a license. 50 years ago, the U.S. chain industry to Lack of legal norms, the post-war years of economic recovery, During this period, regular direct chain (REGULAR CHAIN) With modern means of transportation and communication technology continues to progress, are to develop, the chain began to use industrial production methods, management of goods and services in a number of similar businesses in the core business (headquarters ) under the leadership of a large number of assembly and replication, use of standardized management, the implementation of a common operating principles, and consistent marketing campaign, sales of centralized and decentralized procurement phase separation and the ultimate benefit of the combination approach, due to extensive use of advanced management system and modern technical means to enable circulation of commodities and services, a revolutionary change occurred in the United States, Europe and Japan, with business expansion and globalization of capital, consumer demand in industrialized countries great development of personalized service, the chain of capital to be the most effective carrier and Technical carrier, and have been actively developed.
80 years ago, or in the formal chain as the main form of direct chain, mainly consumer goods sales business. 80 years later, due to global market access and complete the appropriate legal standard, which greatly constrains the franchise in the speculative wrongdoing, especially the tremendous progress of science and technology to franchising as a means to restart the franchise, such as million horses galloping trend, begun to infiltrate every aspect of social commerce and services, FRANCHISING been given a new meaning, it has become a new business model and management system. Some advantages of equity capital companies no longer limited to the size and maturity of its self-restraint mechanism, management, technical means, branded goods, cultural ideas and service system to contract out the form quickly within a global Capital holders of different specifications in the contract formed under a unified management of the external image of the capital, ultra-large-scale overseas market,
Louis Vuitton Outlet Online, effective means to produce a simple co-owned enterprise group can hold a candle of scale, creating another As is well known in the KFC, McDonald's, Pizza Hut and so on. To reach tens of thousands of its stores are orders of magnitude, McDonald's has long been more than 25,000. United States formally established in 1959, The United States in the late 90's statistics, annual sales volume of the franchise of 11,000 million U.S. dollars, up to 700 kinds of industry types. The more famous franchise companies such as McDonald's, Subway, Burger King, Century 21 Real Estate, Kentucky Fried Chicken, Dairy Queen, Historical Research Center, Jazzercise, mino's Pizza, Jani-King International and so on. Every 6.5 minutes on the birth of a new franchise, there were as many as seven hundred and fifty thousand. 12 companies have each one is a franchise,
Gucci Messenger Bags, a total of nearly 5,000 franchise companies. GDP ranking seventh largest accounting industry.
currently has stores in the United States more than 70 million overseas, more than 50,000 stores, its tentacles to infiltrate the retail, catering, hotels travel, entertainment, audio-visual products, automotive supplies, printing, photocopying, construction home, books, real estate, equipment leasing, fitness beauty, childcare health, cleaning and maintenance, education, training and other business services to every corner. Especially in the service sector, almost all-encompassing.
Japan, Europe and other developed countries in the mid-80s, after absorbing the form of U.S. franchise, formed their own unique franchise system, especially in Japan, the characteristics of strong vitality has always been amazing, from the 60's, Japan's Asia, Singapore, Taiwan and Hong Kong but also the earliest to introduce the franchise areas, 70 years later to enter the fast growing, large-scale commercial enterprises in competition, the franchise will be more and more small and medium business services companies unite together, also put their technical expertise and operational superiority gather together to effectively resist the encroachment of large corporations and swallowed, such as Taiwan's beauty salon, in 1981 years ago, only one chain, store number is 10 , 1999, beauty salon chain of 11, the number of stores to more than 1,200 rooms. The more well-known cosmetic companies such as Yili Te, the number has reached more than 1,000 stores, the growth rate of their shop up to 500%. At the same time,
Chanel Handbags, but also for them to gradually break into the local market in North America, Europe, and laid the foundation for development in mainland China can be said that franchise and has a natural consistency of the Chinese economy, Hong Kong and Taiwan over the years, franchising could be said to be fond of, bold and innovative promotion of multi-format, industry formats are up to 150 kinds of species, and franchise stores has spread far beyond the number of direct sales stores, his business associate has been extended to all continents, especially in mainland China. Franchise business in the mainland as Hong Kong and Taiwan investors shift from manufacturing to service sector investment pioneer of modern business.
statistics show that the franchise system has strong vitality, in the world, franchising is still a continuous business operations within 5 years 97% of its business, and the owner of 86% remained unchanged; and other forms of commercial companies with the success rate: 40% within 2 years, 10 years, only 10%.
Looking at the history of the franchise world, we see that, although the franchise generated earlier, but really made great development, and international trade shows in the vitality of the past 20 years is something. Currently, the Western countries to make better use of domestic and foreign trade concessions to promote the development of all Franchise Association has set up to study the development of franchise specifications, proposed the draft law, sum up experience, publicity promotion, and often held to discuss the World Franchise Council to discuss the development and role of franchise.
Second, China's mainland Franchise Development Review
the development of modern franchising since the mid-80s, was initially used some old and famous brand commercial enterprises, the development of associated branches. But with the world's leading franchise in the Direct or joint venture, wholly-owned or joint ventures in China's development branch, the international franchise business model to promote the standardization and scale of the franchise board stage of the Chinese market soon common development occurs within the foreign situation. August 1984 to mark the Italian textile Financial Group was chartered to determine the identity of the first in Beijing, Pierre - Cardin store, as the front door KFC 1987 in Beijing, 1989 Yan'an Road in Shanghai,
Gucci Handbags, opening new branches. McDonald's to open branch in Shenzhen in 1990, started the first foreign joint venture enterprise group cooperation in order to open the door, then turned the franchise from the Direct from the counter turned to specialty stores, specialty shops to accelerate expansion. A typical example of Kentucky Fried Chicken restaurant in 1989, Shanghai opened the first store, its standard meal is 6.5. The end of 2000 up to Kentucky Fried Chicken outlets in Shanghai, 58, with annual sales of 660 million yuan, annual profit of more than 6000 million. In other words, This example illustrates the form of franchising this business success in China. In 1993, local commercial enterprises launched Beijing Quan Ju De franchising works. Now, whether domestic or foreign in the regular chain supermarkets as the main mode of enterprises, large convenience store franchising is used by companies as an effective expansion of the region, control the market resources, aids, retail chains as a . The vision, a pioneering courage of Guangdong, Shanghai and other places in the local development company has taken the lead from the chain of clothing stores, cosmetic stores, optical shops, pharmacies, beauty salons, laundry repair, rental and other specialty store, store, and its model of development and progress are basically to create a model shop based Direct started, promoting the franchise business. Such as the operating sound of the Guangzhou CAV company, has reached more than 1,200 stores; the same for drug companies in Shenzhen, has 250 stores; Shenzhen China Resources Articles retail business has reached 110 stores; and Shenzhen, clothing, cosmetics franchise Monopoly is extended to major cities, and some clothing brand has reached more than 200 the number of outlets. The country's largest supermarket chain enterprises in Shanghai Lianhua 140 billion in sales last year, amounting to 1,400 stores, of which more than 400 stores, franchise stores sales of 40%. It can be said, franchising in China has become Liaoyuanzhishi, with the new situation of WTO accession and the great transformation of traditional business services, a major adjustment, franchise business will be bigger and bigger, their boundless prospects.
Overall, the present mainland of China, the franchise restaurant industry is still the dominant force, according to the China Chain Store & Franchise Association figures published in 2000, China has more than 400 franchise businesses, including catering for more than 100. 2000 into the national chain restaurant's total of 11 hundred, of which up to seven Chinese catering enterprises. In the retail, franchise development is the main convenience store and specialty store format, the current has reached more than 3,000 such stores as much as the gradual lifting of foreign investment held convenience store franchise, a new large-scale retail development people to wait and see; this year, the foreign franchise brands into China accelerated the pace, particularly in the restaurant industry brand as the most, in addition to McDonald's, KFC, the Pizza Hut, Domino's, also closely follow up. Other industry franchise brands such as EF Education, Informatics, baby house, 21st century real estate and other developing steadily. Taiwanese brands such as RBT, Ou Difen other grand plans. Monopoly brand apparel industry second only to food and beverage concession in the franchise system to occupy an important component. Other service industries, in particular, rapid development of various types of specialty, such as the provision of technical services as the leading beauty salon, art photography high value-added industry because of its lack of human resources, the development is lagging behind, but the brand advantage of the brand out of weakness competition intensified, the main form of competition is from the contract, sublease, acquisition and other simple way of development to the district, technology, management, capital, personnel and other factors complementary franchise mode of operation, so that these industries the scale of the enterprise management level and the level of brand chain toward the direction of development, especially the trend to move closer to the international brands will become increasingly apparent. Brand franchise based in the unified brand and unified training of human resources, improve service quality in the unity of the increasingly important role, are gradually replacing traditional, dispersed small enterprises and shops, and traditional combination of direct customer service to the project, the beauty and cosmetics, natural health care products sales showed the integration trend. Creating the future of international brand-name beauty salon industry, will be enormous intangible assets, which put even more than the short-term profitability is more direct economic value.
As of 2001, China has over 600 franchise businesses, involving more than 30 formats, sales growth of 76%. Of these, 48% of the enterprises after 2000 began to develop a franchise. Among them, the food industry accounts for more than 35%, consumer goods accounted for 30% of retail enterprises, home services franchise brand about 6%, about 3% of the education industry, other sectors account for about 10%.
the development of China's reform and opening up the franchise due to the rapid development of the world the basic synchronization, so the Chinese government and relevant social organizations to pay close attention to the beginning of this superior form of modern business organizations, and gradually increased the franchise management and guide the efforts. The approach taken is directly related to international practice. May 1997, the original group participated in the Ministry of Domestic Trade, held in Washington, the International Franchise Conference; November 14, 1997 issued by the Ministry of Domestic Trade, times, December 8, 1998 established the China Chain Store & Franchise Association Franchise Committee. 1999 National Internal Trade issued record management
the same time, recent years, China Chain Store & Franchise Association, franchising successively carried out research and promotion organization, organized a number of study abroad, and large special International Franchise Conference and Exhibition held every year the international retail , where a dedicated special concession every year attract many domestic and international franchisor and franchisee to come visit the negotiations, particularly with Taiwan, Hong Kong, Singapore, the franchise companies and business associations to establish a good cooperation and exchange relations. In addition, local franchise agencies are emerging, such as the future of the Code of Beijing consulting firm, various consulting firms in Shanghai, Guangzhou's top consulting firms, launched a multi-level chain management technical training courses, greatly promoted the franchise knowledge and technology popularization and application. We understand chain of coastal cities, domestic enterprises have carried out more than 50% of franchise business, the industry across the retail, catering, laundry, cosmetics, clothing, building materials, home industries, nearly 40 industry species. In particular, Shenzhen, Shanghai, Hong Kong and Taiwan as close to, the start franchise mode by the impact of Hong Kong and Taiwan,
Ji'an seize the provincial government to revitalize the favorable opportunity of, using a more standardized way of internal management and self-restraint, to join the development of a standardized manual and operating manual. And the beginning of the second generation of the franchise to focus on the way, that is, the franchise business model. Avoid a lot of detours.
the Pearl River Delta, Yangtze River Delta region is the food, light industrial products in more developed manufacturing sector, but also the food, clothing, entertainment, beauty make-up industry, an important base. Coupled with urbanization, vehicle maintenance, rental agency, home decoration, laundry, beauty care, education and training, leisure hotels, gas stations and other industries have developed extensive franchise. From the development point of view, franchising in the service industry, fashion industry, commodity distribution to specialty store, store the form of rapid development, and a national chains of a beautiful landscape. Power from the development point of view, are the spontaneous behavior of enterprises,
Prada Sport Sunglasses, so their interests are highly driven, and management and very strong, very strong economic benefits, largely due to speculative herd behavior, the success rate is high . Besides, the government since 1998 to crack down on illegal pyramid selling activities to help regulate a number of direct selling companies were reorganized so that people on the national legal system franchise normative acts have a more clear understanding. Can say that the franchise in the ascendant.
three franchise should pay attention to trends and issues
the next decade, the international franchise will be more than the regular direct chain form, a business services company to expand market, the main form, and strong penetration into more sectors and fields. Franchising industry will be the next widely used high-tech, knowledge economy and become the most cohesive form of business organization. From international development experience, when the direct chain developed to a certain size, form and shape their own brand management model and management software systems, the general are turning to franchising to expand market-based. Conditions in modern society, franchising is to attract a wider range of social capital to achieve cost-effective means of expansion. And also the whole society to maximize knowledge sharing, resource sharing, information sharing, further social division of labor organization in the form of social productive forces. Naturally adapted to the social and economic progress of the trend.
Franchising in China will be a great development of its inevitability. Standard chartered organization, organization, scale of operation and low cost expansion to adapt to the needs of the increasing competitive environment. Meanwhile, personal consumption level of the people of the rapid increase and strengthen brand awareness is also calling for a more modern business service organizations and functions. The face of joining WTO, China will quickly three to five years of opening in phases distribution, services and retail markets, on the franchise, the Chinese Government is committed to: allow foreign companies to form through the franchise marketing activities, remove all restrictions by 2003. Thus, the domestic enterprises of any past success in order to preserve the vitality and continued development to increase the strength of competition does not quickly have a large scale, good management system and excellent technical means is doomed not to last long. Franchising development path is a wise move.
(a), the development trend of China's franchising
1, the form and industries from the licensing of view, the field of franchising in the circulation of commodities and social services has a huge space for development. Specifically, the level of consumption, consumption mode and speed changes in the franchise industry plays a leading role in the development, changes in demand from the consumer to grasp, the per capita income of urban residents reached 3,000 U.S. dollars per year or more, per capita income of rural residents reached 1,000 U.S. dollars , home and personal consumption on the emergence of professional social service needs of a strong personality. This franchise is to meet the development phase of the regions and income groups of consumers benefit in the form of personalized services. In the domestic market, the focus of the franchise will be far exceeded the development of food and beverage, fast moving consumer goods retail and emerging industries in the following areas: First past the commodification of housing, family labor community as the core industries such as real estate agents and evaluation replacement, home health and day services, home decoration and furniture, jewelry, etc.; Second, health care, education and training, beauty salon, entertainment and fitness, home appliances and computer products as the core of information industry; Third, insurance, telecommunications, communications , automotive, financial services as its core business.
2, the content from the competition, means and forms of management point of view, brand competition, service quality competition is the first one, which is behind in this competitive business of its own intellectual property and infrastructure management Construction of full operation of the competition. Around the management system, management of technology, services and human resources means the systematic standardization of the concessionaire company's internal focus, quality of service become the sole judge elements of the brand, the customer, but can not get the same service Brand-name companies behind the franchise is it? Is a complete operating system, the system's infrastructure includes four aspects: First,
Son of founder Carl Rehnborg , Amway Nutrilite Center for Nutrition and Health ,, the standardization and standardized management techniques, how to shape around the management of technology, import ISO9001 quality management system and continuously strengthen the standardization and manuals of (operational) management, a franchise business franchise brand and franchise model to form the basic requirements; the second is the international quality of service and professionalism, that is, knowledge of how to focus on the quality of human resources and service capabilities of the full range of training and supervision, and constantly strengthen the international standard of service and professional quality of service, a franchise business formation and business services franchise value based on the fundamental value of intangible assets; third is the application of information management technology and management information system of the building will become an important market competition means. Franchise is actually the output of the advanced management and advanced technology, in the information era, franchise business asset management, human resources management, financial management, operations development and management, logistics and distribution management, marketing management, customer relationship management, etc. No need to take high-tech information technology to establish a comprehensive information management software systems, including enterprise POS system, front and back office ERP systems,
Louis Vuitton Handbags, supply chain management SCM systems and decision analysis support system, not only to traditional management information inside a computer software system, but also a good step by step framework for Internet e-commerce platforms and distribution channels to support the management data warehouse, to ensure business expansion in the increasingly large, detached the limitations of work experience, and implementation of digital management of scientific behavior, and social resources to achieve the efficient allocation of business capacity and faster customer response. The development of information technology in China ahead of the characteristics of the case, the concessionaire companies should direct means of advanced information technology investment, management technology to seize the high ground.
3, as viewed from the economy, franchising industry will rely mainly on economic development in small and medium enterprises and private individuals, to become the main form of mixed economy in China means business. Universal franchise into the circulation of goods, services, trades, etc. belong to the highly competitive industries, relying on future development and the franchisees are small and medium enterprises and private individuals as the main economy, less investment in the franchise stores, small risk , and more labor-intensive industries, the majority of traditional small and medium enterprises and private investors is the lack of knowledge and investment management approach, so the franchise will certainly take the burden of private capital in the second pioneering, innovation of the forms to guide them , management innovation and technological innovation, the development of local economy, promoting social progress, increasing employment opportunities are a lot of good, franchise companies will be the Government's special attention and appropriate protection to support the advantages of a business, and broad development prospects.
but the development of franchising is a very difficult undertaking, due to its inherent characteristics, its obvious advantages and disadvantages can not be ignored. In particular,
Monogram Canvas, at this stage to fully understand this. This is because franchising in China is in the early stage of development, due to the lack of market regulations and regional imbalance in the environment, franchise doomed to restlessness in the womb as a baby, it will go through many hardships and setbacks to grow into strong Suo giant. The disadvantage of the side more easily to the franchisor and franchisees, bringing disputes and difficulties can not be ignored.
(b), the development of the franchise should be noted that the main problem
1, franchisees of the franchisor's challenges. Franchise franchise business is attractive because of its advantages: First,
Prada Handbags, free from financial constraints, and by the output of intangible assets, the rapid expansion of the scale; the second is to expand the scale and reduce operating costs and headquarters costs, improve management capabilities Headquarters to form a highly collaborative division of labor market distribution channels; three regions or countries to break trade barriers, lower investment threshold, the market, However, everything has pros and cons, the franchise has not avoid the shortcomings and disadvantages. Mainly reflected in: First, efficiency and speed of the franchise issue. Some companies just a little lust when the brand benefits, there is no well-planned economic capacity, without sufficient reserves of experience, not even the core competitiveness of the service system automation technology case, mere speculation blind expansion and recruitment to join who attempt to develop in the short term large-scale stores, and its headquarters in the publicity, management services that exceed the capacity expansion is doomed to failure; Second, the threshold is too low because the franchise at this stage, no end of trouble. Since the early days, eager to quantify speculation, some concessions had reduced conditions and by the promise to join the qualification, franchise contracts are often too simple cause long-term cooperation in the endless troubles, resulting in laws not standardized, short-term interests of the strong and the lack of ###### drive franchisee the effective control of the franchisees and help, and franchisees quality and low capacity of self-restraint, often end up as poor management or control of the individual could not store a result of damage to enterprise-wide license. Thus, according to the experience of a successful business owner, franchising business, ; a lock value, the second lock recipe (this recipe is the gold content of products and services and high-tech content). The early entry into China's profit, after all, the development of the domestic franchise businesses an effective reference.
2, by the promise of the franchise's challenges. Promise in the franchise in person by the investors, but also managers, but different from the independent companies and private owners of the place is licensed by the Hui people are granted access to the intellectual property, but also his franchise and business to the franchisor the right to exchange. However, people often licensed by the promise to provide the contract does not change and room for maneuver. This requires that the general people by the promise to have a basic knowledge of the franchise. Responsible franchisee franchisees should understand this guidance intended mode of operation of the basic legal norms. First, we must clearly tell by the promise them this is an ongoing contractual relationship, and clearly the content and substance of the contract; the same time, unmistakably the headquarters to the actual situation and conditions of this franchisees; franchising activity is not signed before the maximum given contract, but who joined the franchise headquarters guidance and assistance; by the promise them the contract must be clear about their own legal and financial responsibilities between the fundamental interests, then the rights and obligations of each item of the assessment and recognition, in which case Special attention should be whether the concessionaire has a statutory credit certificate and notarized documents; Finally, franchising is the franchise and the people by the promise of modern business practices for a rational pursuit of a rational second venture. Therefore, both sides behave themselves should be clear the basic idea should be management, but not it alone Franchising is actually higher than regular direct chain of social division of labor demand and higher requirements of the basic conditions of senior business practices, the legal system of social entrepreneurs under the investment a In accordance with common practice in foreign countries should accelerate the establishment of licensing and co-organized by the promise of people who joined the committee to form a good democratic checks and balances.
3, Franchising in China will have a profound impact of social life, the state will regulate franchising legislation. Franchising is not just individual acts of some enterprises, as a new form of business, it is highly developed social product of the contractual relationship is to completely re-build the social resources, organizations and individuals the relationship between We are all in the near future from this new type of contractual relationship Xinghuoliaoyuan benefit. As a modern marketing, franchising in promoting the development of tertiary industry,
What social value and significance of 2010-09-07, stable team of SMEs, increase employment opportunities, to better meet consumer needs are of great significance and role. Because of this, countries in the original Trade and Industry Bureau to resolve trademark and corporate name of the relevant provisions of the conflict, This year, the State Department has According to the disclosure, the Ordinance includes protection
Because franchising is a community wide level and influence of business practices, licensing act like Not allow The state will vigorously support, including franchise chain, including all forms of normalization, but for the concession of broader social issues, the state will promote standardization of the direction of its adjustment to the legal system, which is the basic direction of development and adjustment of goals. According to the China Chain Store & Franchise Association, the sources, in 2003, full liberalization of foreign-funded enterprises in China before the limit of the retail business, the state will be formally issued the Want to franchise the franchise must be strictly legal norms, to build the franchise organization and function of building construction, with sound, practical and enterprising attitude to greet the new franchise tomorrow.