What are the common forms of franchise scam


What are the common forms of franchise scam

venture capital market in the whole, the franchise industry can be said to be the most confusing, the most natural fraud. Therefore, if we are ready to venture capital in this industry, it is also necessary to understand the industry as a whole, some of the fraud often appear in the form of. So, what are the common forms of franchise scam?

is now a lot of franchise companies will play tricks on the registered capital, the registered capital of millions of dollars on a regular basis, so many investors mistakenly believe that this is a very strong business. In fact, there is no direct link between the registered capital and the strength of the enterprise.

and many registered capital of the enterprise is not the company's own investment, but through a number of intermediaries to finance, as long as you can pass the verification of the trade and Industry Bureau, the registered capital will be returned to the agency. Exaggeration to say that the chain may have only ten thousand or twenty thousand yuan of all property, but the same can be registered in a capital of more than one million yuan. So investors should not be fooled by the registered capital of the enterprise.

1, the use of false advertising to deceive entrepreneurs

for back to this period, single store profitability, joining threshold franchisee focus, some enterprises exaggerated advertisements, irrational franchisees are often in the impulse to make decisions, and ultimately deceived.

Although the majority of

, to join the project have a ready-made model for reference, however, the business to join the development level and industry trends, business location and store related, such as "profit of 30% to 50%", "two months back", "sit in the house when the boss promises, and rate of return the return time was significantly higher than the industry average level of enterprises, entrepreneurs deserve careful consideration.

2, model room business hot

a small number of companies colluded with stores and model stores, so that visitors see the hot business illusion, hiding the real business situation. Franchisees to other areas of investigation, the enterprise on a variety of reasons to shirk. There are a lot of franchisees eager to shop, to see the model store business after the popular blind to join, eventually deceived.

3, as long as the purchase of the product can become a franchisee need to guard against

now the market has a class of projects, the conditions for the entry of the franchisee is very low, only investors need to buy the product can become a franchisee, such projects require investors wary.

does not have any audit conditions, only need investors to buy products, the vast majority of the project is a strategy for the sale of products.

if MLM scam hurts more than ordinary families, business cheat

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