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 (WTA) Franchise profitable?, Info on franchise

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DarkNite
post Apr 10 2011, 04:42 PM

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QUOTE(uberlebender @ Apr 10 2011, 03:00 PM)
hi all!

I have saved up an amount of savings and would like to venture into business. however, I have no experience in business and from what I have read, franchise gives me the experience but in a controlled environment (with guidance depending on which franchise). I read that mc donalds have a good franchise programme. I'm afraid without business guidance I will fail which is why toying with the franchise idea.

another issue I would like to clear out is, what is the ROI like considering the high amount of capital I have to put up and also funding I have to take loan. I haven't asked PNS what the exact figures are for capital n funding of the various franchise. just a ball park figure would be ok.

would really appreciate if anyone with experience in owning a franchise, give their opinion.
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Made-in-Malaysia franchise is profitable for the FRANCHISOR!
Other than McD which Made-in-Malaysia franchise have proven program to ensure success for the franchisee? hmm.gif
DarkNite
post Apr 10 2011, 11:11 PM

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QUOTE(uberlebender @ Apr 10 2011, 07:47 PM)
yeah. of course. franchisor will always make money from franchisee. but it is a win-win situation, the way I see it. the person investing follows a a proven track-record of services and get profit. and the franchisor is relieved from the burden of investment and risk from all the outlets.
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That is the sales pitch by the franchisor.

QUOTE(uberlebender @ Apr 10 2011, 07:47 PM)
... but I guess like any investment, lower risk(just follow a system), lower yield(pay franchise fees etc).
*

Would you say RM3.5m CASH as eligibility for McD franchise is low or high risk?


QUOTE(uberlebender @ Apr 10 2011, 07:47 PM)
I'm not so sure I understand the made-in-Malaysia franchise term but I believe any famous franchise would be ok because they have a proven track record. mcD, KFC, burger king maybe? those are the ones in F&B but any other experience from different area also welcome. for now still open.
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McD, KFC & BurgerKing are international chains and not made-in-malaysia. Only McD is having franchisee program. Made-in-Malaysia are 1901, PappaRich, 1Station dll.

What are you actually looking at? F&B or retail like 7E or HABA or education?

This post has been edited by DarkNite: Apr 10 2011, 11:12 PM
DarkNite
post Apr 19 2011, 10:20 AM

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QUOTE(uberlebender @ Apr 11 2011, 01:24 PM)
...u only need 30% of the total cost n the rest will be from loan. so the cheapest according to the mcD website it 1.5mil n that means 450k cash. n ur required to be a full time 'on-site operator'.
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1.5mil will not be enough and that figure is a sales pitch. Do bear in mind, some of the fees and expenditure require up-front cash and not payable by loan or installments.

If you only have 450k cash and without any other steady income of RM1x,xxx, you will be at a great dis-advantage to negotiate and to service your loan. Dun forget your steady income of RM1x,xxx comes from sources that do not requires your presence or attention whilst you are working full time 'on-site operator'.
DarkNite
post Apr 19 2011, 11:33 AM

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QUOTE(HaoYuan @ Apr 19 2011, 11:29 AM)
Do MacD, very profitable
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Nope. Depends.

 

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