Is the potential market for the product or service
adequate to support your franchise? Will the prices you charge be in line with
the market?
OldTown
now exports its instant beverage mixes to more than 10 countries worldwide and
plans to expand its café outlet network in the region. The prices will also be the same as the market price.
Is the
product or service safe and reputable?
The
product have been won a few times trusted brands awards and also get various
certificate in food industry so it can prove that this is safe and reputable. We
will ensure to maintain consistent quality of food and service standards
throughout all outlets. For the service, we will continuously invest in
internal training and development programmed to ensure that all outlet staff is
skilled in preparing food and providing top-notch customer services.
Is the
product or service a passing "fad," or is it a durable business idea?
It is a
durable business idea.
What
will the competition, direct or indirect, be in your sales territory? Do any
other franchisees operate in this general area?
Have
many franchisees operate in this general area like Coffee Bean, Hailam Kopitiam
and other. It will dispersed customer’s whereabouts.
Is the
franchise international, national, regional, or local in scope? Does it involve
full- or part-time involvement?
Local
in scope and it involve full time involvement.
How
many years has the franchiser been in operation? Does it have a sound
reputation for honest dealings with franchisees?
The
business starts in 1999, and until now there is about 14 years it had been
operation. Within this period, they already won many awards and also increasing
their reputation.
How many franchise outlets now exist? How many will
there be a year from now? How many outlets are company-owned?
Number of outlets is 225.
How
many franchises have failed? Why?
3 to 4
per year because financial problem or location problem.
How
many franchisees have left the system within the past year? What were their
reasons for leaving?
Sorry, can’t answer you
this question.
What
service and assistance will that franchiser provide? What kind of training
program does the franchiser offer? How long does it last? What topics does it
cover? Does the franchiser offer ongoing assistance and training?
Having one
month training class for our staff before start working and when have new menu
come out, they were send people come and teach our staff about that.
Will the franchise perform a location analysis to help you find a
suitable site? If so, is there an extra charge for doing so?
Did not have extra charge for doing it but some of them were find location by themselves.
Will
the franchiser offer you exclusive distribution rights for the length of the
agreement, or may it sell to other franchises in this area?
Yes.
What
facilities and equipment are required for the franchise? Who pays for
construction? Is there a lease agreement?
The
equipment are product, machine, chair, table and some else. We pays for
construction and is a lease agreement.
Does the franchiser provide an estimate of expenses
and income? are they reasonable for your particular area? Are they sufficiently
documented?
Yes
Are you
allowed to sell your franchise to a third party? Does the franchiser reserve
the right to approve the buyer?
You are
not allowed to sell your franchise to a third party by your own, except you
have informed the company and they approved.
How
risky is the franchise opportunity? is the return on the investment consistent
with the risks?
If have
any outlets downside to this as this gives rise to the risk of deterioration in
the quality of its services and products, it may have impact on the group as
whole. It will let people have negative perception to our company’s image. So
that, we must ensure that its franchisees are properly trained and abide by the
same system. The potential risks are the ability to retain staff at reasonable
wages while continuing to expand.
