Thursday, 2 August 2012
My Photography - Interior Photography
After finish the interview, I ordered some beverage as appreciation. While waiting the beverage to prepare, I take out my camera and take photo around the interior of the shop.
A Franchise Evaluation Checklist - The Franchisees
The Franchisees
1. Are you pleased with your investment in this franchise?
Actually, the one invested in this franchise in my friend. I am helping him.
2. Has the franchiser lived up to its promises?
Yes.
3. What was your greatest disappointment after getting into this business?
This brand, Ding Tea is still new and not commonly accepts by people. We got confident in this brand but nowadays consumers follow the trend. We need work harder. If everybody make a comparison of quality of milk tea/tea products, this brand definite is on top. For now, we must work harder.
4. How effective was the training you received in helping you run the franchise?
It is very effective. We know how to operate the franchise.
5. What are your biggest challenges and problems?
As mentioned, we hope more and more people will accept this brand and try it out.
6. What is your franchise’s cash flow like?
It is hard to say as we just opened for 5 months.
7. How much money are you making on your investment?
As mentioned before.
8. What do you like most about being a franchisee? Least?
It is quite okay. It is a must to self thinking for the promotion. I like challenge so it is okay for me.
9. Is there a franchisee advisory council that represents franchisees?
Yes. We call them du dao (督导).
10. Knowing what you know now, would you buy this franchise again?
Yes.
1. Are you pleased with your investment in this franchise?
Actually, the one invested in this franchise in my friend. I am helping him.
2. Has the franchiser lived up to its promises?
Yes.
3. What was your greatest disappointment after getting into this business?
This brand, Ding Tea is still new and not commonly accepts by people. We got confident in this brand but nowadays consumers follow the trend. We need work harder. If everybody make a comparison of quality of milk tea/tea products, this brand definite is on top. For now, we must work harder.
4. How effective was the training you received in helping you run the franchise?
It is very effective. We know how to operate the franchise.
5. What are your biggest challenges and problems?
As mentioned, we hope more and more people will accept this brand and try it out.
6. What is your franchise’s cash flow like?
It is hard to say as we just opened for 5 months.
7. How much money are you making on your investment?
As mentioned before.
8. What do you like most about being a franchisee? Least?
It is quite okay. It is a must to self thinking for the promotion. I like challenge so it is okay for me.
9. Is there a franchisee advisory council that represents franchisees?
Yes. We call them du dao (督导).
10. Knowing what you know now, would you buy this franchise again?
Yes.
A Franchise Evaluation Checklist - The Franchiser and the Franchise
The Franchiser and the Franchise
1. 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?
1. 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, it has potential market. The taste and the quality are best. There are many Ding Tea franchise opened in China and Taiwan. This franchise is number 597. What make different and unique for Ding Tea is others use powder, but Ding Tea use pure tea leaf. Ding Tea, currently is the largest Taiwanese beverage brand in China, is also the only take-away style tea beverage that authorized to brought into or operate in the 2010 Shanghai World Expo. Let say about our country neighbor, Singapore’s health awareness and safely level for the food and beverage. The safely level is very high, but Ding Tea still can be the official drinks in many big event shows that it is top brand. In Asian region, Ding Tea has more than 350 chain stores spreading from Tianjin, in the northern China to Foshan, the southern China, so you can taste the finest Taiwanese tea provided by Ding Tea easily.
The price is fixed. If the headquarter don’t make any changer on the price, we won’t change it.
2. Is the market’s population growing, remaining static, or shrinking? Is the demand for your product or service growing, remaining static, or shrinking?
The answer obviously is growing. Not just the market’s population is growing, the demand for our product and service also are increasing.
3. Is the product or service safe and reputable?
Meticulously selected high quality materials are strictly monitored at the production region and during the manufacturing process all the way to storage. Ding Tea's delicious taste, excellent quality and respectful services, has already formed a fantastic reputation among consumers and also caused a magnificent sensation through major reviews in the internet today, with the strong and rich aroma in our beverages, Ding Tea has already crowned itself over other competitors in the industry. As mentioned previously, Ding Tea currently is the largest Taiwanese beverage brand in China is also the only take-away style tea beverage that authorized to bring into or operates in the 2010 Shanghai World Expo.
4. Is the product or service a passing “fad,” or is it a durable business idea?
Everybody think it is still okay. There is a quote say that we are slow in everything 10 years back compare to Taiwan. Now most or nearly all the businesses are in franchise system for example, chicken chop. It looks like a trend and it is running currently. It is a durable business idea so it is no problem. If you starting with a new brand take beverage as example, it has no reputation or famous, then it is no special and no people know it. But if the brand has good reputation, people will believe. Every consumer looks at the market trend. Something like this, once people like it, people surround them will follow. It is like a trend.
5. What will the competition, direct or indirect, be in your sales territory? Do any other franchisees operate in this general area?
Yes, we have competition. In this special case, we have 4 beverage shops in a row. If other brand shops do promotion, our business sure affected. By looking at the location, if others promotion running, we will have no business.
6. Is the franchise international, national, regional, or local in scope? Does it involve full or part-time involvement?
Ding Tea is international brand. You have a choice to choose, you want kiosk, something like stall or a store. You need full time involvement. It is not similar with the “lok-lok” car that can operate for 3 hours per day. Even though you open up the kiosk, you also cannot open it for 3 hours then you close the stall. You open up a business, the answer obviously that you need to do it full time.
7. How many years has the franchiser been in operation? Does it have a sound reputation for honest dealings with franchisees?
The answer is mentioned previously.
8. How many franchise outlets now exist? How many will there be a year from now? How many outlets are company-owned?
Our store located in nine regions separately. We still are updating our store in Japan and Indonesia. So, we can’ tell you the exact number now.
9. How many franchises have failed? Why?
We won’t let this happen as we will try to help.
10. How many franchisees have left the system within the past year? What were their reasons for leaving?
As mentioned previously, we won’t let this happen as we will try to help.
11. 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?
The answer is replied previously.
12. Will the franchise perform a location analysis to help you find a suitable site? If so, is there an extra charge for doing so?
The location can be selected by you but it has to be approved by the headquarters, then only eligible to participate
13. 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. Everything must go through the headquarter. You must sign contract with them.
14. What facilities and equipment are required for the franchise? Who pays for construction? Is there a lease agreement?
Most of the equipment you need to buy from franchiser but if the equipment can be found in local, you are free to get it in local. The construction fee is pay by franchisee. The franchiser provided a design plan for you to renovate the store.
15. What is the total cost of the franchise? What are the initial capital requirements? Will the franchiser provide financial assistance? Of what nature? What is the interest rate? Is the franchiser financially sound enough to full its promises?
Total cost is RM400k. The business franchise deposit is Twenty Thousand Dollars. The franchiser won’t provide any financial assistance.
The conditions and eligibility to join are:
As mentioned previously, it is RM400k but there is of cause the additional fee.
17. Does the franchiser provide an estimate of expenses and income? Are they reasonable for your particular area? Are they sufficiently documented?
They make no promise. Even the other brand “Chatime” won’t make this promise. You need to see your location and the services. If your food or beverage very nice but the service is very poor, then result will be bad.
18. How risky is the franchise opportunity? Is the return on the investment consistent with the risks?
The risk is big if open the store in Malaysia. It is because there are many competitor already set their foot here and some are already a big name in beverage industry.
19. Does the franchiser offer a written contract that covers all the details of the agreement? Have your attorney and your accountant studied its terms and approved it? Do you understand the implications of the contract?
It is very clear on the agreement. Every term and condition is written down.
20. 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 agreement is very long. The Taiwanese know how to do good business. They know for best self-defense in business. If you terminate the contract, you cannot sell or open the same type of products.
21. Are you allowed to sell your franchise to a third party? Does the franchiser reserve the right to approve the buyer?
The similar question answered previously.
22. Is there a national advertising program? How is it financed? What media are used? What help is provided for local advertising?
The Malaysia Ding Tea franchisees have the freedom to do promotion themselves. It is because we don’t have headquarter branch open in Malaysia. The advantage is we have the freedom to do whatever we want but the disadvantage is no one is guiding us. Consumer will confuse with the promotion. Different place come with their own different promotion. Take this as example, the Genting Klang branch has promotion “buy 1 free 1” but when the consumers go to Fahrenheit branch, they don’t have this promotion.
23. Once you open for business, exactly what support will the franchiser offer you?
All support except financial.
24. How does the franchise handle complaints from and disputes with franchisees? How well has the system worked?
No complaints so far from Main headquarters.
The price is fixed. If the headquarter don’t make any changer on the price, we won’t change it.
2. Is the market’s population growing, remaining static, or shrinking? Is the demand for your product or service growing, remaining static, or shrinking?
The answer obviously is growing. Not just the market’s population is growing, the demand for our product and service also are increasing.
3. Is the product or service safe and reputable?
Meticulously selected high quality materials are strictly monitored at the production region and during the manufacturing process all the way to storage. Ding Tea's delicious taste, excellent quality and respectful services, has already formed a fantastic reputation among consumers and also caused a magnificent sensation through major reviews in the internet today, with the strong and rich aroma in our beverages, Ding Tea has already crowned itself over other competitors in the industry. As mentioned previously, Ding Tea currently is the largest Taiwanese beverage brand in China is also the only take-away style tea beverage that authorized to bring into or operates in the 2010 Shanghai World Expo.
4. Is the product or service a passing “fad,” or is it a durable business idea?
Everybody think it is still okay. There is a quote say that we are slow in everything 10 years back compare to Taiwan. Now most or nearly all the businesses are in franchise system for example, chicken chop. It looks like a trend and it is running currently. It is a durable business idea so it is no problem. If you starting with a new brand take beverage as example, it has no reputation or famous, then it is no special and no people know it. But if the brand has good reputation, people will believe. Every consumer looks at the market trend. Something like this, once people like it, people surround them will follow. It is like a trend.
5. What will the competition, direct or indirect, be in your sales territory? Do any other franchisees operate in this general area?
Yes, we have competition. In this special case, we have 4 beverage shops in a row. If other brand shops do promotion, our business sure affected. By looking at the location, if others promotion running, we will have no business.
6. Is the franchise international, national, regional, or local in scope? Does it involve full or part-time involvement?
Ding Tea is international brand. You have a choice to choose, you want kiosk, something like stall or a store. You need full time involvement. It is not similar with the “lok-lok” car that can operate for 3 hours per day. Even though you open up the kiosk, you also cannot open it for 3 hours then you close the stall. You open up a business, the answer obviously that you need to do it full time.
7. How many years has the franchiser been in operation? Does it have a sound reputation for honest dealings with franchisees?
The answer is mentioned previously.
8. How many franchise outlets now exist? How many will there be a year from now? How many outlets are company-owned?
Our store located in nine regions separately. We still are updating our store in Japan and Indonesia. So, we can’ tell you the exact number now.
9. How many franchises have failed? Why?
We won’t let this happen as we will try to help.
10. How many franchisees have left the system within the past year? What were their reasons for leaving?
As mentioned previously, we won’t let this happen as we will try to help.
11. 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?
The answer is replied previously.
12. Will the franchise perform a location analysis to help you find a suitable site? If so, is there an extra charge for doing so?
The location can be selected by you but it has to be approved by the headquarters, then only eligible to participate
13. 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. Everything must go through the headquarter. You must sign contract with them.
14. What facilities and equipment are required for the franchise? Who pays for construction? Is there a lease agreement?
Most of the equipment you need to buy from franchiser but if the equipment can be found in local, you are free to get it in local. The construction fee is pay by franchisee. The franchiser provided a design plan for you to renovate the store.
15. What is the total cost of the franchise? What are the initial capital requirements? Will the franchiser provide financial assistance? Of what nature? What is the interest rate? Is the franchiser financially sound enough to full its promises?
Total cost is RM400k. The business franchise deposit is Twenty Thousand Dollars. The franchiser won’t provide any financial assistance.
The conditions and eligibility to join are:
- 20 years old and above, having good credit records.
- Have the same vision with us, to enter the market with premium quality of tea beverages, bringing the business to another phase
- Enthusiasm and dedication to run a beverage business
- Owners must participate the education and training of the technical guidance program personally
- All franchisees have to purchase all raw materials from the head office to maintain and unify the brand's consistency and quality.
- Own a shop or leased a store
- The location of the store has to be approved by the headquarters, then only eligible to participate
As mentioned previously, it is RM400k but there is of cause the additional fee.
17. Does the franchiser provide an estimate of expenses and income? Are they reasonable for your particular area? Are they sufficiently documented?
They make no promise. Even the other brand “Chatime” won’t make this promise. You need to see your location and the services. If your food or beverage very nice but the service is very poor, then result will be bad.
18. How risky is the franchise opportunity? Is the return on the investment consistent with the risks?
The risk is big if open the store in Malaysia. It is because there are many competitor already set their foot here and some are already a big name in beverage industry.
19. Does the franchiser offer a written contract that covers all the details of the agreement? Have your attorney and your accountant studied its terms and approved it? Do you understand the implications of the contract?
It is very clear on the agreement. Every term and condition is written down.
20. 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 agreement is very long. The Taiwanese know how to do good business. They know for best self-defense in business. If you terminate the contract, you cannot sell or open the same type of products.
21. Are you allowed to sell your franchise to a third party? Does the franchiser reserve the right to approve the buyer?
The similar question answered previously.
22. Is there a national advertising program? How is it financed? What media are used? What help is provided for local advertising?
The Malaysia Ding Tea franchisees have the freedom to do promotion themselves. It is because we don’t have headquarter branch open in Malaysia. The advantage is we have the freedom to do whatever we want but the disadvantage is no one is guiding us. Consumer will confuse with the promotion. Different place come with their own different promotion. Take this as example, the Genting Klang branch has promotion “buy 1 free 1” but when the consumers go to Fahrenheit branch, they don’t have this promotion.
23. Once you open for business, exactly what support will the franchiser offer you?
All support except financial.
24. How does the franchise handle complaints from and disputes with franchisees? How well has the system worked?
No complaints so far from Main headquarters.
A Franchise Evaluation Checklist - Yourself
Yourself
1. Are you qualified to operate a franchise successfully? Do you have adequate drive, skills, experience, education, patience, and financial capacity? Are you prepared to work hard?
I positive think that I am qualified to operate a franchise successfully.
Adequate drive – checked,
Experience – checked (I’m good in follow rules),
Education – checked (I’m in tertiary education now. It should be enough to handle),
Patience – checked,
Financial capacity – checked but low, unable to open.
When I put my money into it, I will work hard.
2. Are you willing to sacrifice some autonomy in operating a business to own a franchise?
Yes.
3. Can you tolerate the financial risk? Would business failure wipe you out financially?
Everything has risk, so I can tolerate the financial risk. I think business failure will wipe me out financially but I still have time to start over.
4. Can you juggle multiple tasks simultaneously and prioritize various projects so that you can accomplish those that are most important?
Yes, I can but not in long term.
5. Are you genuinely interested in the product or service you will be selling? Do you enjoy this kind of business? Do you like to sell?
The answer obviously will be yes. I think you have to enjoy in when you already get into it. Yes, I like to sell.
6. Do you enjoy working with and managing people? Are you a “team player”?
In school, of cause not, but outside people it is yes. Yes, I am team player but more to leader type that lead other player, if others is better or their idea is better than me, then I will give them the chance to grow.
8. Will the business generate enough profit to suit you?
Profits will never enough.
9. Has the franchiser investigated your background thoroughly enough to decide if you are qualified to operate the franchise?
Yes.
10. What can this franchiser do for you that you cannot do for yourself?
I think it is the repair for machine.
Questions to Ask a Franchisor
Questions
to Ask a Franchisor
In 2004, the founder of the Ding Tea beverage franchise, Mr. Xu Wei-xiang felt that despite the large number of franchises on the beverage market, their quality was nevertheless inconsistent. Persisting in the belief of offering consumers newer, better beverage quality and to establish an ideal beverage franchise brand, he decided to create the Ding Tea beverage franchise. The goal was to promote a new philosophy for tea drinking, introduce a new trend for beverages and a new energy to the franchising system. Through price advantages, high quality, small profit and quick return concepts, he intends to change the conventional perception that quality tea comes at a price, so that more people will be able to become familiar with Taiwan's tea beverage culture through the franchise.
Ding Tea maintains a certain quality standard and has received the Outstanding Entrepreneur Award, Premium Product Golden Diamond Award, National Ten Quality Enterprise Boutique Award, Consumer Golden Award, Customer Satisfaction Golden Award. In addition, it has appeared in media reports such as Apple Daily News, Next Magazine, Excellence Magazine, Global Views Magazine, a special report by Maniu on CTV, TTV's Money program, and a special report by Matilda Tao on cable TV, thereby receiving wide recognition.
What
is the company’s current financial status?
It is private
confidential.
What
are the names, addresses, and phone numbers of existing franchisees in my trade
area?
The names of the store,
of cause it is named Ding Tea, but we call them Malaysia No7 Shop. The address
is G-20, PV 128, Jalan Genting Kelang, Setapak 53300 Kuala Lumpur. The phone
number is +60146355536.
Describe
how you train and mentor your franchisees.
Training
courses
Ding
Tea’s management philosophy
|
Bar
and kitchen operations procedure
|
Customer
relationship management
|
Machine
and equipment maintenance
|
Storefront
marketing and management
|
Merchandize
ordering procedure and logistics/delivery concept
|
Employee
education and training
|
Cost
and income calculation education
|
Internal
employee management
|
Employee
allocation recommendation
|
Material
control
|
Crisis
response and handling
|
Inventory
processing
|
Enter
the market directly with high quality and reasonably priced tea beverages
|
Inventory
processing
|
Professional
operations control for steady profit earning
|
Operation support
system
1. Operation support is
well provided to all franchisee by the headquarter.
2. Headquarter will
take note of all franchisee’s operation conditions and help to solve any
problems encountered.
3. All franchisee’s
stocks, equipments and marketing promotions will be provided and advised by the
headquarter.
If
at some point I decide to exit the franchise relationship, how does the exit
process work?
Why would you decide to
exit the franchise relationship when you work with the brand with best reputation
and benefits?
In
what ways do you work with a franchisee who is struggling?
With our headquarters
management, our brand responsibility and sustainable management; each
franchised store is equipped with a supervisor to provide follow-up management
and support.
As mentioned
previously, we have the Operation support system.
Questions
to Ask Current Franchisees
How
much does your franchise gross per year? How much does it net? Are the procedures
followed to make royalty payments to the franchisee burdensome?
We just opened for 5
months; it is hard for us to tell you the exactly number.
Are
the financial projections of revenues, expenses, and profits that the franchisor
provided me accurate in your judgment?
First time, after you
pay for 3 years contact, you won’t need to pay any fee. You only pay for the
maintenance fee every half year.
Does
the franchisor give you enough assistance in operating you business?
Yes. If you have any
problem, you can call them. Besides that, if any new products come out, they
will inform you. One of the Taiwan drama name = 绝对达令,
is sponsored by Ding Tea. Headquarter will help us with the poster and send the
poster to us.
How
many hours, on average, do you work a week?
I work for 7 days a
week. Normal worker/staff has one day off every week.
How
often do you get a vacation?
3 days continually each
month.
Have
you been caught off-guard by any unexpected costs or expectations?
Yes, when the machine
broken, the repair fee. Besides that, some people outside will come to the shop
and ask if want to buy the magazine and others staff to put in the shop.
Does
your franchisor provide ongoing training and support to you?
Yes. All franchisee need
to go Taiwan for the 2 weeks training.
If
you had to do it all over again, would you purchase a franchise in this system?
Why or why not?
Yes. There are many
franchises in Malaysia but they never try the powder less but pure tea leaf,
tea. If you going through the survey, you will found that Ding Tea quality is
the best.
31/7 Tuesday - Walk in - Interview
31/7/2012, Tuesday
I went to the store to interview the Manager. After some communication, the manager say he may don't know much but he accept the interview.
Here is the format and layout for this blog.
I went to the store to interview the Manager. After some communication, the manager say he may don't know much but he accept the interview.
Waiting the manager finish serving others customer and his stuffs.
Here is the format and layout for this blog.
I will divide the interview and answers in different section. Total up, 4 sections. Start with Questions to ask before buying a franchise. Follow by a franchise evaluation checklist:
1. yourself
2. the franchiser and the franchise
3. the franchisees
Franchise research on Ding Tea
The franchise of my choice is Ding Tea.
The brand introduction:
In 2004, the founder of the Ding Tea beverage franchise, Mr. Xu Wei-xiang felt that despite the large number of franchises on the beverage market, their quality was nevertheless inconsistent. Persisting in the belief of offering consumers newer, better beverage quality and to establish an ideal beverage franchise brand, he decided to create the Ding Tea beverage franchise. The goal was to promote a new philosophy for tea drinking, introduce a new trend for beverages and a new energy to the franchising system. Through price advantages, high quality, small profit and quick return concepts, he intends to change the conventional perception that quality tea comes at a price, so that more people will be able to become familiar with Taiwan's tea beverage culture through the franchise.
In 2004, the founder of the Ding Tea beverage franchise, Mr. Xu Wei-xiang felt that despite the large number of franchises on the beverage market, their quality was nevertheless inconsistent. Persisting in the belief of offering consumers newer, better beverage quality and to establish an ideal beverage franchise brand, he decided to create the Ding Tea beverage franchise. The goal was to promote a new philosophy for tea drinking, introduce a new trend for beverages and a new energy to the franchising system. Through price advantages, high quality, small profit and quick return concepts, he intends to change the conventional perception that quality tea comes at a price, so that more people will be able to become familiar with Taiwan's tea beverage culture through the franchise.
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