How to distribute the difference income between direct selling and joining?

The simple understanding is that direct selling is directly invested by the company headquarters, and the income is completely controlled by the company headquarters; Joining is the franchisee's own investment, and after deducting the related expenses, the income belongs to the franchisee.

1. Joining: refers to the organization and operation mode in which the franchisee (franchisor) allows the franchisee (franchisor) to use its name, logo, proprietary technology, products and management experience to conduct business activities by contract.

2. Direct operation: refers to the chain stores directly operated by the head office, that is, the business form in which the head office directly manages and invests in retail outlets. This chain form has no franchise stores. The headquarters adopts the deep management mode and directly controls all retail outlets. Undoubtedly, retail outlets must fully accept the command of the headquarters.

The main task of direct chain stores is "channel management", that is, to obtain profits from consumers through the expansion of operating channels. Therefore, the direct chain is actually a "management industry".

Extended data:

1. The advantage of joining is that franchisees only need to invest brand and management experience to achieve the purpose of scale operation, which can not only get returns in a short time, but also quickly upgrade intangible assets. Franchisees can get help and support from experienced franchisees in site selection, design, staff training, market and so on, so that their operations can quickly move towards a virtuous circle.

The disadvantage is self-financing, the company provides assistance, and the main operator is himself. To put it bluntly, whether the business is good or not depends on how you run it.

2. The advantages of direct selling are: unified management and unified scheduling of the company can maximize brand influence and enjoy information and management resources at the same time.

Disadvantages are large capital investment, high cost, poor flexibility, slow marketing adjustment and difficulty in adapting to local conditions.

References:

Baidu Encyclopedia-Chain Management Mode