12% increase in’disadvantageous’ experience rate when joining affiliated store groups last year

Input 2021.01.28 12:00

Last year, the membership rate of affiliated stores was similar to that of the previous year, but the experience rate of disadvantages from group membership activities increased by more than 10%. In order to strengthen the bargaining power of store owners, it is recommended to join the group, but in reality, it appears that they are experiencing disadvantages in negotiations with the affiliate headquarters.

In addition, franchisees hit by the new coronavirus infection (Corona 19) cited’cutting the supply price of essential items’ as the most necessary support policy, but the support policy of the franchise headquarters was’quarantine support such as providing masks’.

According to the results of a written survey of the affiliate headquarters announced by the Fair Trade Commission on the 28th, the percentage of respondents that the transaction practices have improved increased 1.3 percentage points (P) compared to the previous year, and the policy satisfaction rate also increased 4.1 percentage points from the previous year. The Fair Trade Commission conducted a written survey last year for 200 affiliated headquarters (21 industries) and 12,000 affiliated stores.

However, it was found that the rate of experience of disadvantages due to group membership and activities was 20.5%, up 12.0%p from the previous year. The group membership rate was also 40.7%, down slightly from the previous year (41.9%). In order to strengthen the bargaining power of store owners, it is recommended to join the group, but the affiliate headquarters, etc., give disadvantages in negotiations and interfere with this.

In the Corona 19 situation, the support policies that store owners most needed were a reduction in the supply price of essential items (60.4%), a reduction in royalties and exemptions (47.6%), and rental support (43.8%). 62.8% of the franchisees supported the franchisees affected by the coronavirus, and quarantine support (32.5%), such as hand sanitizers and masks, was the most.

Among the store owners who joined the affiliated store group, the percentage of store owners who had been rejected at the time of request for consultation to the affiliated headquarters was 33.3%, 25.8% had no experience of rejection, and 40.9% had no experience of requesting consultation. 96.1% of the store owners who responded that prior consent was required for advertisements or promotional events with shared costs was very high.
Many respondents said that the experience of operating directly-managed stores before recruiting affiliated stores is practically helpful in starting and maintaining the affiliate business of the headquarters (87.6%).

To protect franchisees and strengthen bargaining power, the FTC is preparing an amendment to the Franchise Business Act, which includes information such as ▲ a system for reporting franchisees collectively, ▲ prior consent system for advertisements and promotions, and ▲ mandated experience in operating directly managed stores. to be.