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 enterprises registered capital is the enterprise financing investment, but through a number of intermediaries, as long as through the verification can be Industrial and Commercial Bureau, then returned to the registered capital of the intermediary. Exaggeration to say that the chain may all the time there is only ten thousand or twenty thousand yuan, but also a registered capital of more than 1 million yuan in the enterprise. 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. Join the investigation to other areas, enterprises for various reasons to shirk. There are many franchisees eager to see the model because the shop, store business is hot after joining the blind, ultimately 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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