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.
Franchise are very well-known presently and more people are selecting to buy one in contrast to beginning out by make up their own business. I liked all these informations about franchise which you shared over here.
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Did they provide what their royalties % and what the marketing % would be? And how often (weekly vs. monthly)?
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