Questions to Ask a Franchisor

Questions to Ask a Franchisor

What is the background of the company and its performance record? 

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.