What are the disadvantages of convenience stores using the mode of chain franchising

There are many drawbacks, I will say two points:

1, the purpose of the convenience store chain is to scale, the marginal effect is maximized. However, in the operation of convenience stores in several major cities in China, there has been a gradual marginal effect of zero state. In fact, the process of scaling up, there will be multiple marginal effect not rise but fall in the stage, if the enterprise can not survive, it may fail;

2, convenience store franchise model is copied from Japan, but in China is not very applicable. Japan's model is more of a requirement for long-term business, believe in the headquarters, the reliance on the headquarters is very large. China's convenience stores to join the market, there are too many uncertainties, including operators are also more short-term behavior, often franchise business but do not do direct stores, this is then Japan is completely the opposite.

The Chinese market is huge, this model should be said to be not saturated, at most, in some areas saturated.

The way to overcome these drawbacks is to continue to expand, across the marginal effect of zero area; the second is to wait for the market and consumers to continue to mature, more attentive operation of the store. As for alternative models, the world has yet to see a new one emerge.