The Franchiser and The Franchise

Q1: Is the potential market for the product or service adequate to support your franchise? Will the prices you charge be in line with the market?
Yes. Everyone can get the reasonable price of meal in here. And for the prices are the similar with other competitor restaurant.

Q2: Is the market's population growing, remaining static, or shrinking? Is the demand for your product or service growing, remaining static, or shrinking?
As time goes by, our restaurant's population keep growing. For our service and food rate, we also will keep remain the best for our customers.

Q3: Is the product or service safe and reputable?
Yes of course, our staff are regard about safety of customer, we all do always wash our hand to remain cleanness. In years, we had get cleanest restaurant award as a prove.

Q4: Is the product or service a passing "fad", or is it a durable business idea?
Definitely is running a durable business.

Q5: What will the competition, direct or indirect, be in your sales territory? Do any other franchisees operate in this general area?

My branch and other branch distance is quite far, so it's wont effect us.

Q6: Is the franchise international, national, regional, or local in scope? Does it involve full or part-time involvement?
So far is only in Malaysia, but we will move to International sooner or later.

Q7: How many years has the franchiser been in operation? Does it have a sound reputation for honest dealings with franchisees?
Since 2005. Our reputation is keep growing.

Q8: How many franchise outlets now exist? How many will there be a year from now? How many outlet are company owned?
3 outlets under Steven's Corner, and another 6 outlets under name Steven's Tea Garden. The company is plan to have 100 outlets in next 3 years times.

Q9: How many franchises have failed? Why?
So far no.

Q10: How many franchisees have left the system within the past year? What were their reasons for leaving?

No.

Q11: 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?
Before you open your franchise, the franchisees will take part in a two-week training program, they provide floor plans for the location of the franchise with restaurant design.

Q12: Will the franchise perform a location analysis to help you find a suitable site? If so, is there an extra charge for doing so?
Yes, the franchisee want to open their outlet on the location they preferred.

Q13: Will the franchiser offer you exclusive distribution rights for the length of the agreement, or may it sell to other franchises in this area?
No.

Q14: What facilities and equipment are required for the franchise? Who pays for construction? Is there a lease agreement?
The franchisees will carry all the cost of the building fee. There is a lease agreement.

Q15: How much is the franchise fee? Exactly what does it cover? Are there any confining fee? What additional fees are there?
The franchise fee is RM 45,000. It cover maintenance fee and renewal fee.

Q16: What is the length of the 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?
The length of the franchise agreement is 20 years. If any cases that lower the reputation of the company, the agreement will be terminated.

Q17: Are you allowed to sell your franchise to a third party? Does the franchiser reserve the right to approve the buyer?
Yes, franchisees are allowed to sell their franchise to a third party, but the buyer has to be approved by the company.