1. Was the training and support provided by the
franchisor to prepare the first year of the franchise's operation?
CHATIME Group will provide support and training to new outlet before start operation. Next, The Franchisor will assist Franchisee to establish local supplies channel.
CHATIME 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, franchisor will also offer a course for staff training.
Yes, franchisor will offer further training to each outlet. If new item, franchisor will also offer a course for staff training.
3. What
are the risks and secure new outlets?
To facilitate CHATIME, 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.
To facilitate CHATIME, 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:
Total cost of the franchise is:
RM200,000.00
Franchise
Term (years) : 5
Royalty : 5%
Marketing
/ A & P Fund: 3%
Estimated
Initial Capital : RM500,000 – RM800,000
5. What
are the risks inherent in Franchising?
The risks inherent in franchising are CHATIME has aggressively opened outlets over the last few 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.
The risks inherent in franchising are CHATIME has aggressively opened outlets over the last few 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.
