Regulators Tighten Up Hard Targets For Franchisees

Regulators have tightened the audit of the hard index of franchisees to block the listing dream of some clothing companies, so that they have to face how to improve the system management of affiliate mode.

Recently, the Commission has asked the enterprises to verify and report the financial indicators of the three year reporting period and the revenue and net profit of each franchise. The distribution mode needs to provide three years' reporting period and the details of each dealer's terminal customers. "There is also a request for sponsors to go to the representative shops for practical review." A brokerage analyst said.

As of November, a total of 11 garment enterprises participated in the IPO application this year. The ladies' houses, Fujian's odd, wirnas, Leigh, and Su Lang were no more than the same clothes. Wien man temporarily canceled the examination. Only Semir clothing, nine herdel, langzi shares, 100 round pants industry, and Jie Jie share 5 companies successfully passed the meeting, the passing rate was below 50%, the lowest in the IPO industry.

The profit quality, scale and brand strength of the clothing chain have been the key to the listing. A textile and apparel analyst at a brokerage firm told reporters that clothing companies mostly expanded in the franchise mode. Since the second half of this year, the stricter requirements for joining the chain system are likely to be the main reasons for the low rate of garment companies' passing rate.

　　 Joining: advantages and disadvantages

In the first half of this year, the nine herd Wang successfully passed the meeting, one of the IPO successes of the minority, but also a company with a higher proportion. According to the end of 2010 data, the number of sales terminals of the company is 2710, of which 645 are direct terminals and 2065 are terminal terminals. Join in The proportion is close to 80%.

Li Jian, a representative of Limited by Share Ltd securities affairs, told reporters that nine year old Wang had a relatively early time this year. At that time, he did not strictly request the three year reporting period and the financial indicators such as revenue and net profit of each franchised store, but the company also had a definite way to confirm the franchisee's income. According to the standard that most existing garment enterprises confirm the income of franchise business, reasonable confirmation is made according to the transfer of power and responsibility risk.

Affiliate business is the sale of the company to the franchisee, not the sale of the franchisee itself. According to the relevant clauses of the franchise contract signed by the franchisee and the company, the goods are delivered to the first carrier, and after the first carrier's signature is confirmed, the risk of the goods is transferred to the franchisee. The company sells the invoice to the franchisee and confirms the sales revenue.

"Now clothing enterprises are mostly ordering system, ordering will never give the franchisee a mandatory target for sales revenue, and will only guide the franchisee according to the current market situation." Li Jian said, "some of the clothing companies that want to be listed, during the period of IPO, enforce the mandatory pressure on the franchisee and realize the sales revenue growth by pressing goods. It is easy to identify the financial data in real and reliable circumstances. For example, if there is a delivery or not, after receiving the shipment, the proportion of accounts receivable in the business income can be discerned. Pressing goods The risk is still high. " {page_break}

At present, the proportion of apparel companies that are not listed and want to be listed is generally higher. The number of franchisees is directly related to the necessity of market share, market share, capital flow and even IPO. But the lack of effective management level and precise profit statistics joining system are obviously abandoned by the capital market regulators. The verification focus of the revenue recognition of the franchise mode not only points to the authenticity of the franchise mode, the existence of false sales, but also the operation system management capability.

　　 The days of getting rich are gone forever.

Latest meeting Hundred dollars In the prospectus, there are detailed data on franchising in the prospectus, including the total sales revenue and proportion of franchising sales in 2008, 2009, 2010 and the first half of 2011, the sales situation of the top ten customers in each year, the gross profit and gross profit ratio of franchising business, the single store income, single store sales volume, single store operating profit and single store net profit of franchising business.

In the past three years, although the percentage of franchising declined, the total number of franchising companies was a large alliance group. In the past three years, the proportion of companies joining the business has exceeded 90%. The statistical calculation of the financial indicators of the more than 1500 franchisees in the past three years is no small test for the backstage system. As the reporter has not contacted the sponsor sponsor of Everbright Securities Agency of the 100 round pants industry, the main contents and results of the actual verification and verification of the sponsors' representative shops have not been confirmed for the time being.

In view of the rapid growth of the majority of apparel enterprises in China, the franchisee problem is unavoidable. The regulatory authorities have tightened the audit of the hard index of franchisees to block the listing dream of some garment enterprises, so that they have to face how to improve the system management of affiliate mode, and actively eliminate the negative effects and risks. In addition, a variety of financial indicators such as single shop profit and so on also reported a sharp increase in the information system and backstage operation system of garment enterprises. Enterprises need more mastery of data and control of franchisees.

Chen Haichuan, general manager of the marketing department of the Department of marketing, said that the days when he stepped up to join the business and became rich overnight were gone forever. The Brand Company should not only achieve win-win growth from the cooperative policy, but also need to realize the franchise management in the establishment of the operation system, so as to guarantee the consistency of the brand and the linkage of the market.

Listing should be the goal, rather than the entrepreneurial goal. Franchisees and channel operators are not the tools for enterprises to go on the market, but should be regarded as an important part of the enterprises. "The establishment of direct management system for franchise management needs more thinkers and practitioners." An insider commented.