The
Franchiser and the Franchise
1.
Is the potential market for the product or service adequate to
support your franchise? Will the price you charge be in the line with the
market?
A: Children nowadays
are needed more education. I believe it is a huge market to make it big. The
price is in line with the market and it is affordable.
2.
Is the market’s population growing, remaining static, or shrinking?
Is the demand for your product or service growing, remaining static, or
shrinking?
A: From the recruitment
of students , we found that students recruited every year remain static, It
doesn’t have a big differences.
3.
Is the product or service safe and reputable?
A: Yes for sure
4.
Is the product or service a passing “fad”, or is it a durable
business idea?
A: With the established of 10 years, I believe
MRC have its own quality of identity, and it is recognized by all over Malaysian
especially Chinese.
5.
Wha will the competition, direct or indirect, be in your sales
territory? Do any other franchisees operate in this general area?
A: Yes, there are 4
different education franchise at my are but it doesn’t affect my business growing.
6.
Is the franchise international, national , regional, or local in
scope? Does it involve full- or part-time involvement?
A: SMM is a international company. It’s only for
full-time involvement.
7.
How many years has the franchiser been in operation? Does it have
a sound reputation for the honest dealing with franchises?
A: 10 years they have
in operation. Well, people talking about Whole Brain Education, they will it is
MRC. I believe this is the reputation deserved to them.
8.
How many franchise outlets now exist? How many will there be a
year from now? How many outlets are company owns?
A: around 500 outlets
now exist. Some of them were 8 years old. Company owns outlets is around 10.
9.
How many franchises failed? Why?
A: There are seldom
franchises would failed unless they didn’t follow the business modal of the
company.
10. How many franchises
have left the system within the past year? What were their reasons for leaving?
A: As I know, there
is no franchisee leave for the past year
11. What service and
assistance will the 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?
A: The HQ always
provide training for BAs, by time to time. It’s covered business development,
product information, business talk , etc.
12. Will the franchise
perform a location analysis to help you find a suitable site? If os, is there
an extra charge for doing so?
A: The company will
analysis a strategic place for potential franchisee. There’s no any payment for
this.
13. Will the franchiser
offer you exclusive distribution right for the length of the agreement, or may
it sell to other franchises in this area?
A: No. All the
franchisee get the equals services.
14. What facilities and
equipment are required for the franchise? Why pays for construction? Is there a
lease agreement?
A: We have to rent or
buy a assets for our kindergarten, like a house. For JSP they needed to locate
themselves in office block. Normally the construction fees we paid ourselves,
and there’s no lease agreement between us and the company.
15. What is the total
cost of the franchise? What are the initial capital requirements? Will the
franchiser provide financial assistance? Of what nature? What is the interest
rate? Is the franchiser financially sound enough to fulfil all its promises?
A: There is RM30,000
for the franchise. There is no financials support from the company.
16. How much is the franchise
fee? Exactly what does it cover? Are there any confiny fees? What additional
fees are there?
A: RM30,000. It’s
covered licence from the company only.
17. How risky is the
franchise opportunity? Is the return on the investment consistent with the
risk?
A: There is a risk
that we need to compete with other franchise education.
18. Does the franchiser
offer a written contract that the covers all the details of the agreements?
Have you attorney and your accountant studied its terms and approved it? Do you
understand the implications of the contract?
A: There is written
contract and we known it as our constitution. I have read it through and I know
the implications of the contract.
19. What is the length of
franchise agreement? Under what circumstances can it be terminated? If you
terminate the contract, what are the costs to you? What are the terms and costs
of renewal?
A: If we provide
others franchise education materials, we will terminate. I will lost the
potential of the business and may face court. There is no renwal available.
20. Are you allowed to
sell your franchise to a third party? Does the franchiser reserve the right to approve
the buyer?
A: We are disallowed
to sell the franchise to third party. The company reserve the rights to approve
the buyer. All is interchange must be made through company.
21. Is there a national
advertising program? How us it financed? What medea are used? What help is
provided for local advertising?A:
A: To ensure standardize,
All the advertisement design is made from HQ. There is national advertising
program that all the centre will have their page number inside, so that the
potential customer will locate you which nearest to him.
22. Once you open for
business, exactly what support will the franchiser offer you?
The study kit, the business
development strategy and training about education
23. How does the
franchise handle complaints form and disputes with franchisees? How well has
the system worked?
A: HQ will handle the complaints and settle down
with the franchisees. Normally the marketing department will solve it well.
