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 Island Red Cafe, MLM Business 5% fixed return

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keith_hjinhoh
post Jan 20 2008, 01:25 AM

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QUOTE(yhtan @ Jan 20 2008, 01:10 AM)
Red Island Cafe...never heard before
but if is J.Co, i'm sure everyone will rush to invest on it tongue.gif
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Even J.Co biz model doesnt guarantee a success. Unlike McD. The donut is very much competitive, there's so many donut in the market. You dont and wont see J.Co open as much stores as McD because they are catering another segment of market which tends to spend more on food. Because of that, they dont need to open up as much franchise stores as the other did.
keith_hjinhoh
post Apr 25 2008, 06:32 PM

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QUOTE(b00n @ Apr 25 2008, 01:39 PM)
Again like I asked before, is this considered MLM for starters?
I'm not sure.
IRC wants investors. Say Investor A joined. So when investor A introduce investor B and investor B joined, what will investor A gain?
When investor B introduce and recruited investor C, what does investor A and B gain?!....
As the way I see it like my previous post, it's only 2 level as MLM is multi level.

In some sense, it looks more like direct sales and yet not direct sales.
It's more like what Playbook had mentioned.
The only thing uncertain here is whether or not it's legal to "collect" funds or capitals from the general public. But than again IRC can always defend themselves by saying that it's a relation between them an the potential capitalist, depending on their defense on their stance.

It's rather a simple idea.
EG:
I want to open a shop selling computers. And I do not have enough capital or I don't want to coup up so much.
I would invite my friends to join in it as sleeping partner. Than when it's profitable or gaining momentum and I'm hungering for more, I would ask more friends and maybe my initial friends would ask their friends thus gathering capital for another shop. And it goes on as expansion as business grows.

Concept is similar, just that this IRC put up a rather strong stance in paying back 5% of the investment whereby if it's my method, it's profit sharing according to "share portions". It's a great business idea but if I'm the owner, I'm more worried on paying back the 5% if my business drops. This eventually led to the discussion and debates we're having here now.
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That's the problem now, ppl have too much of money and refuse to put into FD because the interest is so low. Therefore, these people is now coming out with so many creative idea to indirectly getting funds from public to funds their own business. Anything happened, they're neither the employee/creditor/ shareholder of a shell company with RM1/2 paidup capital. In the end of the day, they get nothing. That's the worst scenario anyway...
keith_hjinhoh
post May 1 2008, 07:34 PM

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QUOTE(cappuccino @ May 1 2008, 05:22 PM)
Hi all, I'm one of the investor in this Island Red Cafe.
First time i heard this, I feel that the concept is awesome. Anyway, I still spent more than 1 month period to do some survey before decided to invest it. I even seek opinion from a lawyer about the legalize & the S&P lawyer letter provided by IRC for the benefit guarantees.
Let me summarize the information i have about this investment concept.

Island Red Cafe (IRC) Global Partnership Franchise Business:

1. Whenever the region accumulated 50 slots investment, an IRC will be opened. 1 slot = RM6000. The investor will be the shareholder of the company & the royal customer and definitely will brings up more customers to the cafe. In short, win win situation for the shareholders and the company.

2. Shareholder's benefits:
i. Fix return RM300/slot (5% of the investment) for 1st and 2nd year = RM7200
  Fix return RM150/slot (2.5% of the investment) for 3rd, 4th & 5th year = RM 5400
ii. RM100/slot food voucher given every month & will be give for total 5 years = RM6000
iii. VIP member discount 15%
iv. Birthday discount 30%

Total up the fix return & food voucher, the return is equal to RM18600, which is around 3x return of ur investment.
Imagine if u invest RM2 millions, ur return are RM6 millions after 5 years,  tongue.gif

After 5 years, no more fix return but company will distribute 49% of the net profit to share among all the shareholders.

3. IRC's strengths:
i. Delicious food with vary choices.
ii. Reasonable price, with 6 star expenses but 3 star fees
iii. Good strategy and business plan, whereby the shareholders can share the company's profit
iv. All the shareholder's benefits are black & white guarantee with S/P & stamping from the lawyer, clarify the shareholder's benefits and protect the shareholder's rights.

4. Currently there are 3 IRC outlets already officially opened & operating.

i. IRC Cheras:
15G, Pandan Indah 1/23 B,
Pandan Indah,
55100 Kuala Lumpur

ii. IRC Puchong:
68, Jalan Puteri 5/1, Puteri Avenue,
Puchong 47100,
Selangor Darul Ehsan

iii. IRC Malacca:
G30,
Plaza Malacca Raya,
75000 Malacca

Feel free to ask me more questions & i'll answer it genuine, smile.gif


Added on May 1, 2008, 5:38 pm
Yes, ur name will be listed inside the company license.
U can check it at the  Register Of Company...


Added on May 1, 2008, 5:48 pm

em, the cafe will only be opened if there is 50 slots or more than that...
so no matter how, the cafe will hv a group of royal customers...
take me as example, i hv RM100 voucher...definitely i will go there to eat frequenctly....
when i go there to eat, i will always ask my family or friends....


Added on May 1, 2008, 5:54 pm

did u try all the food there? different people will hv different taste.
what i can say is the food there is the food i eat every day in other place.
so it give me an idea that, since eat the same thing, y not go bek to the cafe i invested?

drink u may try the island red cafe (hot) or ice blended laici....i prefered this 2... smile.gif
food u may try the penang prawn mee, red sate, island nasi lemak, chicken wings...


Added on May 1, 2008, 6:03 pm

we need to compare the cash generator btw sunshine empire & island red cafe...
the cash generator i mean is the business & method of how the company generator profit...
wat i can see that is the cash generator in sunshine empire haven't completely setup but they need to pay out more return to the investor...

island red cafe already hv 3 branches operating and generating profit...
in the coming may, johor skudai IRC will be opening soon....it will the the largest cafe in malaysia....
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Then can you tell me what would be the case when the company wound up? Bankrupt?

I've seen and touch too much of these shits, basically i believe no one except myself....

Still remember my father last time went to court a few times just because some shits left in a private limited company...
keith_hjinhoh
post May 4 2008, 08:48 PM

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A Simple calculation tells more than a thousand words

You give him 6000/plot
He pays you 300/month = 18000 in 5 years.
He have to make use of the money 100% to extract a profit element of 40% pa to pay your scheme.

My calculations tell me it's not possible.
keith_hjinhoh
post May 4 2008, 09:27 PM

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Anyone interested with the calculation then refer to my attachment...

Assumption:
1. Owner does not cash out a single cents for his remuneration
2. Raw material prices does not changes upon 5 years period
3. Amount of customer remains the same. 320 customer per day. Consume RM8/meal.
4. All expenses remains the same for the 5 years period.


[attachmentid=461211]
keith_hjinhoh
post May 4 2008, 10:04 PM

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QUOTE(siliconwiper.com @ May 4 2008, 09:52 PM)
nice calculation...thanks man....will share with my accountant to verify the possibilities to succeed in this 2 3 yrs...actually this calculation not included those pay out for their MLM levels pioonners and new comers...
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Yup. This is more to realistic. 50plot and dividend for that 50plot strictly.
keith_hjinhoh
post May 4 2008, 10:19 PM

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QUOTE(siliconwiper.com @ May 4 2008, 10:13 PM)
cappu,
6pm in Pandan Indah is Great! i'll be there with my partner. list goes on:-
1) siliconwiper.com
2)
3)
4)
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Silicon, prepare a series of question you have in your mind, write them down and do consider our statement...

Else you'll just wasting your time hearing what he/she present rather than asking what you have in your mind....

Good luck.
keith_hjinhoh
post May 4 2008, 10:33 PM

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Anyway, personally, I still have a few questions. Maybe you can ask on-behalf of me...

1. What would happened if i would like to cash out my RM6000 after 5 years or any point of time between 5 years or after 5 years?

2. We as the shareholder of the company, do we carries voting rights? Are we the shareholder of the company or the outlet?

3. The company is limited liabilities? (Sdn Bhd?) How far is we (shareholder) liabilities? Company filed annual report? Who's the auditor or solicitor of the company?

PS: Boys, you guyz are so lucky nowaday with the available of information to make proper decision. I still remembered my father lost 100-200k hard earned money conned by those liers. Remember my word: In this real world, when you have financial relations, no one is friends.

This post has been edited by keith_hjinhoh: May 4 2008, 10:35 PM
keith_hjinhoh
post May 5 2008, 10:20 PM

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QUOTE(siliconwiper.com @ May 5 2008, 10:13 PM)
Keith,
so sorry that the time i saw this replies i'd meet up 2 IRC ppl.  cappucino and his sponsor person, anyway not much of  question could be raise as discussion time are short...regarding ur Q. better ask cappucino lo
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So how's ur evaluation towards this investment scheme?
keith_hjinhoh
post May 8 2008, 01:28 AM

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QUOTE(cappuccino @ May 7 2008, 09:07 PM)
1. u can transfer to someone that interested to buy over ur share. but the lawyer fees hv to be bear by u & ur buyers

2. yup, we do carries the voting rights. anything u not satisfy u may complain to company management so that they can improve from it.
    we are consider the shareholder of the outlets, but not the specific outlet, instead we are invested in all the IRC outlets in Malaysia.

3. yes, the company is limited liabilities. but we won't liability to anything, company will bear if there is any loses.
    for the company filed annual report & the auditor or solicitor, i think hv to ask the boss, =)
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If no one interested? Company guarantee to buyback my share?

No lead time? Anyone can buy over my share?

So once we're the shareholder, we're the shareholder of the company?

How long has the company established? I mean the company not how long IRC establish...
keith_hjinhoh
post May 8 2008, 06:53 PM

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QUOTE(cappuccino @ May 8 2008, 08:25 AM)
nope, u need to find the buyer to buy over ur share.
yes, anyone can buy over ur share anytime.

u may refer to www.2islandredcafe.com for the company background.
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Since we're the shareholder, we can kick out the management if they dont perform? That's how we do in listed companies...

We've voting rights nod.gif

This post has been edited by keith_hjinhoh: May 8 2008, 06:54 PM
keith_hjinhoh
post May 8 2008, 09:30 PM

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QUOTE(cappuccino @ May 7 2008, 09:07 PM)
we are consider the shareholder of the outlets, but not the specific outlet, instead we are invested in all the IRC outlets in Malaysia.

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QUOTE(Playbook @ May 8 2008, 08:04 PM)

No  Co. Ref No  Company Name   
1  779570-K  ISLAND RED CAFE FRANCHISE SDN. BHD.     
2  815141-T  ISLAND RED CAFE (CENTRAL) SDN. BHD.     
3  815143-W  ISLAND RED CAFE (NORTHERN) SDN. BHD.     
4  815920-X  ISLAND RED CAFE (SOUTHERN) SDN. BHD. 

No  Bus Ref No  Business Name City State 
1  001713877-D  ISLAND RED CAFE KUALA LUMPUR
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This is what i meant. The management can create thousands of dormant company, invite thousand of "plot" holders to subscribe their shares and claim that this is their only company. However, once they get the monehy, it will either transfer back to owner account or main company account. Leaving their dormant company nothing left but a shell.

Unless cappuccino can prove that all that is the subsidiaries company, however, it's unlikely to be so, because they require 50 plot holder to setup a new outlet. Therefore, it's very unlikely parent company will cash out capital to inject into subsidiaries... hmm.gif hmm.gif whistling.gif
keith_hjinhoh
post May 10 2008, 11:18 AM

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No more updates?
keith_hjinhoh
post May 15 2008, 04:34 PM

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QUOTE(siliconwiper.com @ May 15 2008, 01:55 AM)
Capuccino,
The agreement seems ok and are in normal mutual understandable relation between you and the company, it just that i goes back to the same question as below:-
my 2nd question are still concern on how on earth they're goin to pay you since the outlet doesn't hv good turn over/mth? not much of customer base before and after few months...
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Mind to post up more information? We'll happily evaluate the proposal for you... Since if it's good, it will benefits all of us tongue.gif
keith_hjinhoh
post Dec 10 2008, 09:40 AM

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QUOTE(whoknowz @ Dec 10 2008, 08:59 AM)
nor....... im not talking about anything or wht just my point of view cause people inside here just keep scolding on it or wht maybe .

they putting thier statement more then opinion , just like putting a death penalty to a person while there still room for investigating .

no offense no offense ya hehehe , tht wht i see le .

who also know . what mean high risk = high return = high loss
if tht person only think high risk = to high return then i nothing say .

and sure when you ever made your investment alsways think bout whether you afford to loss it anot wht .
if you not able to afford it , but you still wanna go for a investment that way beyond your current financial thn is = you know ......

no offense just a word not to who or wht just word to go through .

anyway thk for going through my word . remember no offense
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There's some differences between high risk, high return vs high loss. It's up to market speculations, where as, the other one, if one already smells something fishy, and still invest, you're not taking high risk, you are taking unnecessary risk!

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