I've seen one McD closed down (= bankrupt ???). It was operating in a shopping complex. It started out quite well. But since the complex had failed to attract patrons, McD "died" with it.

You can get real franchising information from their webby. Apparently it's not easy to become a franchisee. Having enough capital doesn't necessarily mean you'll get the franchise. Franchise applicants must go through one-year long training to see if they are eligible to become franchisees.

dead thread?
i talked to a franchiser yesterday. food industry. similar to starbuck.
franchise fees 100k first. then 4 percent of sales goes to them.
all in should be about half a mil to 1 mil to start operation.

whao..
half a mil..
huhhu..

Time to kickstart this thread back to life!

I have visited and spoken with several F&B franchisors and shortlisted two based on the following criteria:
- Responsive to emails, phone calls and questions
- Franchise fee + start-up capital less than RM100,000 (this rules out big brand names like MacDonald's, KFC, Delifrance, Starbucks, Secret Recipe)
- Attractive brand positioning
- Stable sales at existing outlets
- Reasonable well prepared franchise procedures

The two franchises are 1901 Hotdogs and Daily Fresh, both have over 50 outlets across the country and still growing. Seeking 1 or 2 partners who are interested to JV to set up a franchise outlet in their area. Start-up costs, monthly costs and profits will be split according to a profit-sharing ratio to be discussed in more detail. Drop me a PM and we can discuss further.

Cheers,
Sam

This post has been edited by techventurer: Jul 28 2008, 03:24 PM

better do own business than franchising....no royalty whatsoever

when you are venturing into unchartered waters, franchising is an insurance to mitigate risk. i have and am talking to this f & b franchiser. in the process of getting approved. swensen's franchise in thailand is about 0.5 million ringgit. ( all in to start operations). i called vincci to get their franchise but they reply that they have appointed 1 single company in bangkok and it is up to the bangkok company.
about the card reload machine, sure they are desperate.. in bangkok motor show, the silly machine only cost 2-5 thousand ringgit malaysia.!!!
selling to people in malaysia for 48K ???? how much profit.. ? like this i also desperate to sell la.
actually many other business is giving more profit and income but franchising is more for people who want to diversify their business income.

If the start up capital is less than RM100,000 than we as normal ppl still can consider.
But say the startup is 0.5mil or 1mil, think about this.
1) How many years is required to recoup that capital.
2) Monthly expenses incurred i.e. hirings, stocks, bills etc.... should be included into calculation.
3）Risk is being minimize but could you sustain the business in the first place. Talking about 1901 hotdogs; how many of us here actually visit the stall? I hardly have 1901 hotdogs. Thus when franchise fee is low doesn't necessary mean good business.

This is all I could think of now.

What is daily fresh franchise?

1) recoup capital at 2-3 yrs ( IF YOU hit jackpot, 7 month recoup)

2) .5 million includes operation and stock for 2-3 months
3) You are right but in different hands, the risk can be almost zero.

If you are in my position,you will not be talking about risk of losing but only talking about which investment is getting more return.
existing business in churning out money and in existing business, we buy alot of rice cooker, fan,shirt,umbrellas,mattress,etc ..every month .all these are actualy given free to our customers (i am in financing ) so in stead of buying rice cooker, i can give free vouchure or sell these vouchure worth 10 ringgit for 2 ringgit to those customers. the 2 ringgit is not important but to make sure that my food is not branded as cheapskate.
So my existing business buys the vouchure from new franchise and it's like mother company helping baby company while mothercompany got nothing to lose and baby company got safety net to ensure profit.
if profit still not good, i close down 3 yrs later with 0 loss .
it's like son sells lemonade and no customer so father buys the lemonade and belanja to staff. ( since father have to belanja staff anyway)

i am also getting bank loan of 300k to do this franchising.. maybe looking for a trustworhty partner ( i dont need to see the business so often).

i have opened an independant laundry business, no franchising involved, still get good money although just 1 and a half month......already covered rental, wage, electricity, water, phone line, streamyx soho, makan, petrol plus plus profits !!!

You should check out the Malaysian franchising association. There are quite a number of F&B franchises around that you can apply for.

And remember - sometimes, you can even propose a franchise!

congratulations!
but your time is tied up in the shop. you cannot go anywhere.. work eat work eat laundry..
wish you open 2nd ,3rd 4th branch..

well guys how to evaluate and sell your franchise?

yes this is the point of opening up business, for the first several years, I have to stick here and gather as much money to open more branches. this is the way self employment all about. i don't have to pay royalty to anybody. my plan is for my children, i want them to have their own business when they grow up. i don't mind sacrificing my time and money for them. but i don't stick here all day long actually, i can hangout with my wife and baby at anytime i want as my counter system is computerized and cctv is watching all corners. my staff can take care of the customers. hear my advice for example if you want to open a franchise laundry (Pressto or Mr. Clean) you have to invest 4 times than what i have invested in my own laundry business plus i have no need to pay any royalty to anybody. i don't have to attend any meeting organized by the franchisor and don't have to pay for advertisments. If you do your own business, you are independant, you can even do your own of marketing strategy without asking for permission from anybody. If you are a franchisee, it's like you have to obey your franchisor, becoming the head of one business, you don't expect to be UNDER somebody, do you?

got different ...

like mcdonald, it already a famous restaurant world wide ... means owner can save time to promote it and enjoy instant profit if in good location ....

compare u open a new restaurant, you having a tough time to advertise/promote it ...

and most franchising is in F and B field ...

like kopitiam also, damn famous now ... franchising fees is killing

Glad to see some good points being raised on both sides of the discussion - franchising versus setting up own business. No doubt that each has its advantages and disadvantages.

I would say that in franchising, you are basically paying for two things - an established brand name and the business knowledge. This usually means that the business can be set up more quickly and with less headaches and hassle, especially if the franchisor is a good one that can provide advice, guidance and well-documented procedures. In some cases the money forked out for franchise fee is also covered by cost savings, because there is no need to hunt for cheap suppliers. In addition, franchising itself may actually be a stepping stone to setting up your own business, as it will allow you to gain knowledge and experience quickly.

On the flip side, definitely there is some loss of control. You don't feel like you own the business 100%, because franchisors usually impose restrictions on what you can sell and how you can sell them. Also there are fees to be paid to the franchisor, both initially (franchise fee + setup) and on a regular basis (royalty and admin fees). For some very established franchises like McDonald's and Coffee Bean, the franchise fee alone can be above RM100,000 and the total start-up cost close to RM1 million. However, there are also some newer franchises where the start-up capital is less than RM100,000.

As mentioned earlier in the thread, I have shortlisted a few based on certain criteria. It has always been one of my business dreams to own a small F&B business. If there's anyone who has similar interest in such ventures, feel free to PM me!

in short words, franchising is easy to start up... and less brainstorming while own business is the opposite of it...

both have equals risk... in different factors.

Sorry if this is old. But I just read this at McD website. Basically the cost of starting a McD franchise depends on the size, type, location, style of decor and landscaping. It could be anything between RM1.5mil to 3.5mil.

Sauce: http://www.mcdonalds.com.my

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This is not the case, because you will have to fork out such huge amount of money. Normally people wont have alot of money if they were to setup their own business. Normally frm small->large. No body can afford to fork out 1-1.5m to start a new business if they're not entrepreneur or self-employed before. So this argument is flawed.

This post has been edited by keith_hjinhoh: Apr 28 2008, 02:11 PM

yes about that range, last i checked.. so.. do you have rm1.5mil?