Franchise
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.
Appendix
Appendix
Oldtown White Coffee environment area.
Oldtown #2
Oldtown #3
I taken picture with Oldtown Supervisor.
During interview with Oldtown Supervisor.
Interview # 2
Interview #3
Interview #4
Thanks to Oldtown Supervisor spends some time to me
interview.
Thanks to Oldtown White Coffee give me a chance to interview.
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