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 [WTA] Hailam Kopitiam Franchise, Opinions and Advice

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TSstupidbump
post Nov 4 2009, 11:33 PM, updated 16y ago

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My wife and some friends are interested in investing in these Hailam Kopitiam Franchise Biz.

I would like to hear comments and advice from u all in here.

Please share what you think, the pros and cons, etc...

Here's a little info as a start.

1. Project Cost ~ RM320-410K depending on corner or typical lot.

2. Breakeven analysis ~ RM1600 - RM2530 sales per day.

What do u all think?
Can go ahead or just forget bout it?
TSstupidbump
post Nov 6 2009, 12:25 PM

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QUOTE(PrinceHamsap @ Nov 5 2009, 03:14 AM)
1. Project Cost ~ RM320-410K depending on corner or typical lot.

the franchise cost?
*
franchise lisence fee is RM60k for 5 yrs.
already included in project cost.


Added on November 6, 2009, 12:26 pm
QUOTE(Reformist @ Nov 5 2009, 05:50 PM)
Assuming 1 head spends RM10, so u need at least 160-200 customer per day?
*
yes...thats the breakeven point.


Added on November 6, 2009, 12:29 pm
QUOTE(istrong @ Nov 6 2009, 11:39 AM)
Sounds interesting. Since you have done some study on this company, do you mind telling us more?

The project cost include renovation + deposit?
How much you need to pay for the annual loyalty fees?
Did they disclose their current operational branch margin of profit or sales volume?
What is their advantage over other kopitiam, will they help you to do marketing, they will have promotional item each month to attract customer?
What is their future plan?

biggrin.gif hehe, seems like a lot question... Hope you can get this info before deciding to go on.
*
Yes. Reno n deposit included in project cost.

Royalty is included already in breakeven analysis. it is 5% of sales.

profit n sales volume is not provided as yet.


Added on November 6, 2009, 12:41 pm
QUOTE(ETEAM TRADING @ Nov 5 2009, 04:09 PM)
almost 2 yr only can take back the cost..
if business not good then big loss
*
Project cost is start up cost.

Breakeven analysis is only for monthly operating cost and and sales. Not included the project cost.

Rough estimation provided for cashflow and payback computation is:

assuming 70k cash inflow, minus all expenses cost, net cash inflow is estimated at only 17k.

so payback period for project cost is 1yr4mths.

This post has been edited by stupidbump: Nov 6 2009, 12:41 PM
TSstupidbump
post Nov 6 2009, 05:54 PM

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QUOTE(Odin` @ Nov 6 2009, 04:57 PM)
wow ROI 1yr 4mths???

Thats very good already. Anything that has ROI of less than 2 yrs is good enough for me.
Imagine you can open a new outlet after 2yrs.
Then on the 4th year you can open another 2 more smile.gif
*
somehow i am not very optimistic of the figure they provided unless they can show me real track records.
TSstupidbump
post Dec 28 2009, 09:56 AM

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QUOTE(ckm1609 @ Dec 27 2009, 11:05 AM)
Hi stupidbump,
  My friends and I are thinking about investing with the same franchise brand. I bet, taking the corner unit is better, more space. We have identified the location, but yet decide which shop lot to rent. 1 more thing that is still running over my mind, the franchiser did not mention whether they will be taking in local or foreign workers.

Anyway, good luck to you and me...  biggrin.gif  thumbup.gif
*
Kind to explain more detail on what info u gathered with ur frens?

 

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