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Thursday, July 25, 2013

The Franchisees

1. Are you pleased with your investment in this franchise?
No.

2. Has the franchiser lived up to its promises?
No.

3. What was your greatest disappointment after getting into the business?
(Refused to answer)

4. How effective was the training you received in helping you run the franchise?
(Refused to answer)

5. What are your biggest challenges and problem?
Market, competitor.

6.What is your franchise’s cash flow like?
  (Refused to answer)

7.How much money are you making on your investment?
20% of the sales.

8. What do you like most about being a franchisee? Least?
(Refused to answer)

9. Is there a franchise advisory council that represents franchises?
(Refused to answer)

10. Knowing what you know now, would you buy this franchise again?
(Refused to answer)

The Franchiser and the Franchise

1. Is the potential market for the product or services adequate to support your franchise? Will the prices you charge be in line with the market?
Yes.Yes.

2. Is the market’s population growing, remaining static or shrinking? Is the demand of your product or service growing, remaining static or shrinking?
No. Yes.

3. Is the product or service safe and reputable?
Yes of course. 

4. Is the product of service a passing “fad”, or is it a durable business idea.
Business Idea.

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

6. Is the franchise international, national, regional, or local in scope? Does it involve full- or part-time involvement?
No. Yes.

7.How many years have the franchiser been in operation? Does it have a sound reputation for honest dealings with franchisees?
(No answer was given)

8. How many franchise outlets now exist? How many will there be a year from now? How many outlets are company owned?
Around 20. Around 16.

9. How many franchises have failed? Why?
Around 4. Maybe demand drop or economic going down.

10.How many franchise have left the system within the past year? What were the reasons for leaving?
Not sure. Maybe their their system is not satisfy with the franchisor.

11.What service and assistance will the franchiser provide? What kind of training program does the franchise offer? How long does It last? What topic does It cover? Does the franchiser offer ongoing assistance and training?
Mostly on their equipment and employee training program train the workers about product knowledge.

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?
Yes, there are not extra charges cause it already included in the franchise fee.

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

14. What facilities and equipments are required for the franchise? Who pays for construction? Is there a lease agreement?
Mostly is machinery, furniture and fittings. The construction fee mostly included in the franchise fee. Probaly there is a lease agreement.

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 fulfil all its promises?
No. Yes. Yes.

16. How much is the franchise fee? Exactly what does it cover? Are there any confining fees? What additional fees are there?
Depends on the reputation of the franchisor, its cover all the fix assert and decoration.  

17. Does the franchiser provide an estimate of expenses and income? Are they reasonable for your particular area? Are they sufficiently documented?
(No answer was given)

18. How risky is the franchise opportunity? Is the return of the investment consistent with the risk?
The increasing of the franchise fee.

19. Does the franchiser offer a written contract that covers all the details of the agreement? Have your attorney and your accountant studied its term and approved it? Do you understand the implications of the contact?
Yes of course. 

20. What is the length of the franchise agreement? Under what circumstances can it be terminated? If you terminate the contact, what are the costs to you? What are the costs and terms of renewal?  
Mostly 10years. If anything effect the reputation of the franchisor.

21.Are you allowed to sell your franchise to a third party? Does the franchiser reserve the right to approve the buyer?
No. Yes.

22. Is there a national advertising program? How is it financed? What media are used? What help is provided for local advertising?
(Refused to answer)

23.Once you open for business, exactly what support will the franchiser offer you?
Advertisement.

24.How does the franchise handle complaints from and disputes with franchisees? How well has the system worked?
(No answer was given)

A Franchise Evaluation Checklist- Myself

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? No, I still a freshman starting the business and it was the first brand that I bring into Malaysia. Yes, I would not be in this franchise business if I didn’t have all the qualities that you mentioned just now.

2. Are you willing to sacrifice some autonomy in operating a business to own a franchise?
 Yes, they wouldnt grow so fast if they didn’t know what they are doing. 

3. Can you tolerate the financial risk? Would business failure wipe you out financially?
Yes. No.

4. Can you juggle multiple tasks simultaneously and prioritize various projects so that you can accomplish those that are more important.
(Were not able to get the answer)

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?
I am a businessman first so I do enjoy working in this business but I playing badminton. That’s why I started this at the first place.

6. Do you enjoy working with and managing people? Are you a “team player”?
I like working with people, everything run smoother and I’m not afraid to make tough decisions. And it is important to work together to ensure good business will continue and maintain a good relationship between me and my partner.

7. Will the business generate enough profit to suit you?
Yes, it might not be very smooth and profitable for first few months but in the long run I think it will bring more profit if I run it well.

8. Has the franchiser investigated your background thorough enough to decide if you are qualified the operate the franchise?
Yes.

9. What can this franchiser do for you that you cannot do for yourself?
(Were not able to get the answer)

Question To Ask a Franchisor

FZ-Forza Background
FZ FORZA is a 100% Danish owned company with headquarters  in Brønderslev in North Jutland   • All FZ FORZA products are developed and designed in Denmark  and tested by Danish elite players 
• FFZ FORZA was founded by former All England-finalist and World  Championship bronze winner, Mark Christiansen
• FZ FORZA’s Brand manager is All England champion 2004 and  2006 Martin Lundgaard Hansen.

FZ-Forza Financial Status
(Were not able to get the answer)

FZ-Forza contact details of franchisees in my trade area.
GF - 12, Jalan Burung Puchung, Taman Bukit Maluri,, 52100 Kepong, Kuala Lumpur, Malaysia
Tel. : 03-6262 0835
Website : www.fz-forza.com

How you train and mentor your franchisees?
(Were not able to get the answer)

How does the exit process work?
Franchisees can sell their shop as long as the company approves of that buyer or just exit when the contract is outdated or no longer renewed.

In what ways do you work with a franchisee who is struggling?
(Were not able to get the answer)

FZ-Forza Website

You can visit the website : Click Here


FZ-Forza catalogue

This is the catalogue for year 2012-2013
Front cover of the catalogue

Product inside the catalogue


Product inside the catalogue

FZ-Forza product poster

This are the poster product that the franchise company launch.
This is racquet poster
This is shoes poster

This is shoes poster