How to distinguish between franchise and illegal pyramid schemes

if the franchise market is enough to understand the words, you should know that the market also has a lot of profit will magnify propaganda opportunities, as everyone knows, this propaganda and illegal pyramid has what is the difference? Of course, if we choose business opportunities, business opportunities can choose to join the chain, illegal MLM business opportunities are not credible, the key is a distinction. So, how to distinguish between franchise and illegal pyramid schemes?

recently in the country for the occurrence of the "franchise" name, illegal pyramid scheme phenomenon, this phenomenon is due to people of pyramid schemes and the concept of franchising is not clear, will not let it happen again.

This is a large-scale marketing

from after the Spring Festival this year, a large number of provinces and cities in the mainland by illegal MLM "encirclement and suppression", illegal pyramid selling organization gathered in Hainan, when the peak number of up to more than 30 thousand people in the disaster area MLM Qiongshan City, the first two months of this year, industrial and commercial bank payment remittance 6000, about 1. 500 million yuan, of which 90% of pyramid schemes. There are more than 1000 sales personnel every day, ICBC provided against the remittance to qiongshan. In the illegal pyramid selling participants, mostly young people around the age of 20, the youngest only 13 years old, personnel of farmers, laid-off workers, veterans and social Xianzarenyuan, and part of College graduates.

The "illegal pyramid

franchise under the banner of holding membership, membership fee to obtain high activity, become a bright line of the fraud process, the new addition to pay 3900 yuan membership fee, the fee will be on-line in different proportion layer divided, the higher the grade into more.

franchise in the country is a new business model, is one of the three types of chain operation. Chain operation is through a certain link, in accordance with certain rules, will be a large number of scattered isolated business units linked together, and in accordance with certain rules require the operation of. Chain operation is one of the most important management methods in the developed countries.

in the United States in 1859, the birth of the world’s first chain —- the Atlantic and Pacific Tea Company (A& P), in 1999, Fortune 500 global top 438, operating income of up to 101 (). 7 billion 900 million dollars, ranking second only to Air France, more than Gillette Company and Nike company. This year the world’s richest man – Walton family, but also through the development of supermarket chains. Chain operations include direct chain (or formal chain), franchise chain (or franchise chain, contract chain), voluntary chain (or free chain).

franchise chain refers to the leading enterprises to develop their own products, service business systems (including trademarks, trade names and other corporate image is the operating technology)

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