Can the money trap be filled?

May 1 This year, China's first administrative regulations on franchising-"commercial Franchise management regulations". It stipulates that the franchisor must be an enterprise, has a mature business model, with at least 2 direct stores and operating time of more than 1 years, and also provides the franchisor's information disclosure system and filing system. Why is the ordinance introduced at this time? Before the introduction, what is the problem of China's franchise market? What changes and controversies have been brought about after the introduction?　　Reporter recently interviewed chain management industry experts, focusing on the franchise market "past and present life."　　Past life: 5 kinds of chaos in the middle of the 90 's, franchising mode landed in China.　　In a short span of 10 years, it with "0 cost to join" "Everywhere gold and so you take" "investment 10,000, month earn 100,000" and other highly inflammatory propaganda slogan, in the nationwide "siege swept Land", become a hot business model.　　Development so far, China's franchise has more than 2000 brands, the number ranked first in the world, franchise stores more than 100,000, the scale of 50% per annum increase, practitioners about 2 million people, covering clothing, laundry, minilab, supermarkets, convenience stores, such as more than 60 industries. "There are more than 500 licensed brands in Shanghai and more than 100 of them have joined our association."　　"The Shanghai Chain Management Association secretary General Hu Wenzhang introduced, along with the franchise market continuously heats up, emerges a series of chaos phenomenon," 2004 years about the most chaotic, the domestic successive occurrence many high fraud case ". Some unscrupulous businessmen to use the franchisee entrepreneurial mentality, dug a lot of money traps.　　The franchisee is slightly inattentive, may be deceived, lose the return. Bait is "cost recovery in the short term" "investment 50,000 yuan, return 500,000 yuan" "investment margin of more than 100%!" "Tempting ads abound.　　To attract attention, most concessionaires have mixed false information in advertising.　　The franchisor's usual bait is "cost recovery in the short term"--3 months or less, and a hundreds of thousands of-dollar investment can be recovered. Is it easy to make a profit?　　Such a promise is almost entirely a bluff. The Countermeasure any alliance project, must pass through a basic investment recovery process, only then may profit.　　Franchise can not guarantee to make a lot of money, rely on it "overnight wealth", but also fantasy. Model Shop "Customer" is "child care" many franchisees signed the contract before, how long a heart: Ask first field trip, Goodbye machine acting. Franchisee with the franchisee into the model shop, often see customers crowded, business booming.　　In fact, many "customers" are "child care" hired by them. The franchisee knows the franchisee's mind, in advance "packaging" several franchise stores, the illusion of making business hot.　　Franchisee mistakenly think that see a better future, the result of their own shop, but business is dismal. Countermeasures to join in the decision-making before, in addition to looking at the head office, but also to their own random choice of several franchise shop unannounced visits.　　Do not go to the headquarters designated by the franchise, it is likely that the franchisee deliberately forged the model shop. No franchise fee is fake, selling equipment is really some franchisor shouting"Waive fees and management fees", but secretly playing other abacus-to sell equipment to franchisees, some products unsalable enterprises often take this approach.　　A small number of companies once "circle money" then fled, in a weak franchisee can only consider themselves unlucky. Countermeasures this situation is usually concentrated in the laundry, coffee shop, Minilab, such as relying on large-scale equipment to join the project.　　If the entrepreneur found that the price of the machine is significantly higher than the market price, and the cost of buying a machine accounted for the bulk of the join fee or even all, you have to increase vigilance. The contract is vague, the franchisee Yaba many franchisor in the authorization pledge, all buys the franchisee's product, "How many to receive", but will add a sum in the contract, must meet their product standard. The standard seems to require low, but very vague.　　Franchisor often to "not conform to the standard" for the rejection of products, franchisees can only Yaba. Some concessionaires use ineligible subjects, such as "offices", when signing contracts.　　Even if there is a problem, the franchisee also complained about no door. Countermeasures to join the franchise chain projects, the contract is a key barrier to protect rights and interests, can not be casually signed, must carefully scrutinize all the provisions.　　If you have the conditions, it is best to invite professionals to help. The threshold is very low, pay can join in the invitation to join, the franchisor is often anxious to say: "A lot of people lined up to join, pay a deposit now."　　"As long as someone is willing to pay the franchise fee, they are open. This type of franchisee one-sided pursuit of the number of stores, that as long as the unified store name, clothing and shop layout, even if "franchise", unwilling or unable to in the management mode and service mode to guide the franchisee.　　At this point, the so-called franchisee, more like distributors. Countermeasures in order to require the consistency of products and services, the formal franchisee will strictly review the qualifications of the franchisee, including funds, credit, operating capacity and so on. If the threshold is very low, as long as the payment can join, most of the problem.　　Rather than go with the flow, choose the higher threshold of the project, intensive cultivation, steady profit. This life: "The regulation" after the implementation of controversy "one of the causes of confusion is the legal system is not sound."　　"Hu article introduced, from 1997 the" commercial franchise Management measures "to 2005 implementation of the" commercial franchise management measures ", all belong to the State Council department regulations, lack of legal force, can not guarantee the development of franchising norms.　　"Commercial Franchise management regulations" since May 1, the implementation of China's franchise finally law, franchise market look forward to rebirth. Hu pointed out that the "regulation" is the most important feature is "the emphasis on standardizing the franchisor's behavior." The key to managing franchising is to manage the franchisor.　　This is the "regulations" to improve the franchisor's record and information disclosure system, aggravating the franchisor's legal liability, or even remove the franchisee's conditions, obligations.　　The controversy arises as to whether the regulations are overly targeted at the franchisor and protect the rights and interests of the franchisee. Affirmative action of the franchisor the person in charge of a franchise brand shop in the city said that the franchisee also has irregular behavior-some delay evenRefuse to pay, and some continue to use the franchisor's trademarks and even steal the franchisor's core technology after the termination of the contract. There are no corresponding provisions in the ' regulations ' that govern these acts. While protecting the rights of the franchisee, we call on the legislature to pay attention to the rights and interests of the franchisor. "The entire ordinance has always put the franchisor as the focus of surveillance, but who will oversee those who are malicious and fraudulent, stealing business secrets?" said one of the experts. Such regulations may scare away some of the businesses that want to do franchising, and even cause franchising to shrink gradually in China.　　"The legislation of franchising should be tendentious." The head of a large supermarket group believes that franchising legislation belongs to "tendentious legislation"--restricting the undesirable behavior of the franchisor and safeguarding the basic interests of the franchisee who belong to the disadvantaged group. The relevant responsible person of Ministry of Commerce explains, from abroad successful experience and our country actual situation look, standardize franchise activity, maintain market order, the key is to standardize the behavior of franchisor.　　Therefore, the "regulations" focus on the franchisor's franchise behavior, highlighting the protection of the franchisee's rights and interests, which is in line with the development of China's franchise practice.　　"Related cases" franchise 3 fraud case "Granville" casually take the foreign name July 2006, Beijing "Granville" coffee shop Headquarters 2 managers suddenly "evaporation", with them "evaporation" there are nearly 40 franchise to pay the joining fee, a total of more than 7 million yuan. "Granville" known as the Canadian famous coffee brand, but after investigation, Canada does not have this brand, "Granville" is the boss casually named.　　A letter of authorisation from the headquarters of Canada is for the boss to ask a college student to write a forgery. "Proud Pavilion" with tens of millions of dollars to escape August 2004, Shanghai XI plus the company a large number of high-level join fee "collective disappearance."　　Their "Proud pavilion" coffee chain, 2 years in the national development of 278 stores, only Shanghai has 116 to pay the franchise, according to each pay 120,000 yuan calculation, the franchisee's loss amounted to more than 10 million yuan. At the start of 2002, Xi added that the company promised to pay 120,000 yuan to join the fee, the monthly can sit 5000 yuan dividends, 2 years to recover the cost to continue to be the boss. After investigation, Xi add is the company selling coffee grinder, a coffee machine worth more than 10,000 yuan.　　The "Pride Pavilion" all the promotional material is a cover, selling coffee machine is the real purpose. "Poole Matt" debt 2 billion yuan 2004, in the country has more than 40 supermarkets in the mall, the total debt of 2 billion yuan, the executive flight of billions of dollars in the astonishing insider.　　"Puma case" immediately stir the whole country.　　In fact, the Pursmatt of the United States has never invested a penny in China, and China's Pursmatt are private enterprises run by the Beijing people Liu Buiyi in franchise mode. Beijing first trial of the Intermediate People's Court, found that 8 senior management contract fraud 16.35 million yuan, a flight of funds of 105 million yuan, the law sentenced to these 8 defendants imprisonment 1 years 9 months to thePunishment。