1. Was the training and support provided by the franchisor to prepare the first year of the franchise's operation?
Oldtown Group will provide support and training to new outlet before start operation. Next, The Franchisor will assist Franchisee to establish local supplies channel.
2. When procedures change, does the franchisor offer further training?
Yes, franchisor will offer further training to each outlet. If new item or food launch, franchisor will also offer a course for staff training.
3. What are the risks and secure new outlets?
To facilitate Oldtown, management faces the need to secure new outlets at strategies location. Tenants who intend to secure new premises for outlet expansion are usually required to prepay their rents 3-12 month in advance. Hence, the group’s aggressive expansion plan, especially with regard to fully owned outlets, may strain its cash flow.
4. What was the total cost of the franchisee's initial purchase?
Total cost of the franchise is :-
RM80,000.00 Franchise Term (years) : 5 Royalty : 5%
Marketing / A & P Fund: 3%
Estimated Initial Capital : RM600,000 – RM800,000
5. What are the risks inherent in Franchising?
The risks inherent in franchising are Oldtown has aggressively opened outlets over the last six years; there is a downside to this as this gives rise to the risk of deterioration in the quality of its services and products. For instance, the negative perception of a few below-par outlets may have impact on the group as a whole. As such, it 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.
6. Is the service and food safe?
Yes, the service is safe we note that labor shortage and the inability to get locals to work in the retail sector is a common problem in the F&B subsector, hampering efforts to maintain consistent quality of food and service standards throughout all outlets among local F&B operators. Hence, Oldtown will need to ensure that their salary package is competitive and continuously invest in internal training and development programmes to ensure that all outlet staff is skilled in preparing food and providing top-notch customer services. Failure to do so may lead to customer dissatisfaction and adversely impact the patronage at Oldtown outlets.
7. Is the franchise international or local?
Oldtown White Coffee Company expanded vertically into the food service industry by opening a chain of cafes. Today, the company exports its coffee mix to more than 12 countries and operated 207 café outlets as of end July 2012.
8. How many franchise outlets now?
Number of outlets is 207.
Oldtown White Coffee environment area.
I taken picture with Oldtown Supervisor.
During interview with Oldtown Supervisor.
Interview # 2
Thanks to Oldtown Supervisor spends some time to me
Thanks to Oldtown White Coffee give me a chance to interview.