Stores closed?! Aunt franchisees in Shanghai hang up banners to complain!

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Recently, the Southern Metropolis Daily reported that some netizens on the social platform posted a banner in front of the shop door of an aunt in Shanghai in Ningbo, Zhejiang Province, saying "be careful to join, you have lost everything", which has attracted the attention of many people.

It is reported that the franchisee of the store told the Nandu Bay Finance Agency that she joined her aunt in Shanghai in August 2022. "at that time, I felt that there were few stores in Shanghai and the brand was still developing. I think they should make money." With this in mind, the franchisee opened a total of four stores in Ningbo in two years, one of which was transferred in October this year, and the remaining three stores were unilaterally closed by the company on October 11.

As for the reason for closing the shop, the franchisee said it was because she refused to pay the fine. She said that because the price of the company's materials was too high, for example, the price of the fruit supplied to the store was almost twice the price of the fruit on the market, so in order to reduce the cost input, she purchased materials from the outside. After the company found out, the three stores were fined a total of 15000 yuan.

According to an internal document published by an aunt in Shanghai on Sept. 9, circulated on the social platform, the brand forbids franchisees from purchasing third-party raw materials in order to further regulate store behavior, and violators will be fined 5,000 yuan per store. However, according to the franchisee, the brand raised the fine to 20,000 yuan last month.

The franchisee who was fined also said that although the brand repeatedly warned franchisees not to touch the rights and interests of consumers, the provisions of the Food Safety Law and the red line of brand compliance, and introduced corresponding fines, there are still stores that violate the rules in disregard of the interests of consumers, brands and stores. Franchisees also admit that due to the high purchase price of internal materials, some operators will secretly purchase materials from outside the company in order to save operating costs.

However, according to a report by Phoenix New Media Technology on October 22nd, the manager of the Shanghai aunt responded that the main reason for joining the closed store was poor management and was not directly related to the brand.

The manager said that the franchisee made money when she opened her first store, and then expanded to open a second store, but the second store was not profitable, so she overdrew her credit card and opened a third store to balance her income. The brand strictly forbids the use of loans to open stores, coupled with the lack of management ability of the franchisee, so that the three stores suffered losses.

However, this claim was denied by the franchisee. She explained that she used loans to pay for rent and other expenses because the store was not profitable, and did not experience the experience of opening a new store with a loan.

She revealed that in peak season, her monthly performance of a store can reach up to 120000 yuan, but she spends 60, 000 yuan from the company's order, and after excluding rent, water, electricity and labor, there is hardly much gross profit. Now, without the consent of the franchisee, the brand has launched a lot of buy one get one free preferential activities, and has not given store subsidies, resulting in many operators having to close their shops because of increased losses.

On October 23, the official customer service of the aunt in Shanghai told the Nandu Bay Finance Agency that the matter had been recorded and reported. On the same day, the reporter asked the relevant person in charge of the auntie in Shanghai to confirm that there was no response before the press release.

Picture from: Internet

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