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What is chain operation?
Chain operation is a mode of operation, which means that a number of enterprises (or branches of enterprises) operating similar goods or services form a consortium in a certain connection and form, carry out professional division of labor under the overall planning, implement centralized operation on the basis of division of labor and business circle protection, and combine independent business activities into an overall scale operation, thus realizing economies of scale.

Chain operation should establish a unified distribution center, which is directly linked with production enterprises or non-staple food production bases. Save the circulation cost, reduce the cost, and the general price can be 2% to 5% lower than that of similar stores.

The main advantages of franchise chain operation mode are:

1. Licensor can achieve the goal of scale operation only by investing in brand and management experience, which can not only get returns in a short time, but also rapidly upgrade intangible assets.

2. Because the licensee has purchased a successful operating system, it can save a "learning curve" that must be experienced when starting a business. Including: selecting profit points, opening the market and other necessary groping processes to reduce business risks.

The licensee can own his own company. Control your income and expenses. The operating start-up costs of licensees are lower than those of other operating modes. Therefore, it can recover its investment and make a profit in a short time. The licensee can get the help and support of experienced licensees in site selection, design, staff training and marketing. Make its operation quickly move towards a virtuous circle.

4. The relationship between licensor and licensee is not competitive, which is conducive to expanding market share.

The essence of chain operation is an effective way for enterprises to use intangible assets for capital operation and realize low-risk capital expansion and scale operation, which is also the fundamental reason for the rapid development of chain operation.