Starting a business? Try a franchise

[makapaaa]

<TABLE border=0 cellSpacing=0 cellPadding=0 width="100%"><TBODY><TR>Starting a business? Try a franchise
</TR><!-- headline one : end --><TR>It helps to reduce risk and setting-up cost, though success is not guaranteed </TR><!-- Author --><TR><TD class="padlrt8 georgia11 darkgrey bold" colSpan=2>By Debbie Yong
</TD></TR><!-- show image if available --></TBODY></TABLE>




<!-- START OF : div id="storytext"--><!-- more than 4 paragraphs -->Retrenched with a decent sum of money and not sure what to do next?
Or have you always yearned to be your own boss but do not know where or how to learn the ropes?
For some individuals, the answer could lie in franchising. In this arrangement, one party (franchisor) develops a business model and licenses the rights to operate it, under its trademark or name, to another (franchisee).
Both enter into a legal contract, ensuring that the franchisee gets support to run the business for a fixed time. An initial fee is paid and annual or monthly royalty charges are imposed. These range from 3 per cent to 20 per cent of the franchisee's revenue.
Retail franchisees typically pay lower royalty fees while those providing services pay more. According to the Franchising and Licensing Association of Singapore (FLA), there are about 250 companies here with more than 3,000 franchisees under them. Half are homegrown concepts. These figures are based on a 2006 study by the FLA.
The annual turnover of Singapore-based franchises, both local and foreign, is estimated at $5.48 billion.
But though the franchise path may seem well-trodden, franchising consultants advise that you have to do background checks before signing on the dotted line.
Factors to assess include the franchisor's financial position, the demand for the product and whether existing franchisees are pleased with their business.
It helps to engage a lawyer to look through the terms of the franchise agreement, such as the rights and obligations of each party, said Ms Jasmine Tham who runs business consultancy Bean Counters.
Exit clauses, such as early-termination penalty fees and restriction of businesses entered into after termination of a franchise, should also be scrutinised.
While the franchisee can tap on benefits such as economies of scale in purchasing, joint advertising and promotions and an established customer base, it has its downsides too. 'If you have a franchisor indiscriminate in choosing franchisees, then the black sheep within the chain can be a big minus for all,' said Mr Albert Kong, chief executive officer of Asiawide Franchise Consultants.
Franchisors may also grant rights to separate operators located in close proximity, which results in rivalry for the same customers.
Hence, it is important for potential franchisees to discuss their plan in detail with their franchisor and set realistic expectations.
'Franchising does help reduce the risk and cost of setting up the business but like any business, there's no guarantee of success,' said Ms Terry Wong, general manager of FLA.
And not everyone is suited to be a franchisee. Entrepreneurial people, for example, may feel reined in.
'He may want to invent new things and run ahead of others but he may not get to do so because the franchisor has other considerations,' said Mr Kong. [email protected]

 

[makapaaa]

<TABLE border=0 cellSpacing=0 cellPadding=0 width="100%"><TBODY><TR>She helps to set up 'third generation'
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Ms Susan Loke with five-year-olds from Cherie Hearts. 'My biggest concern was the learning curve,' she recalled of her early days.
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<!-- START OF : div id="storytext"--><!-- more than 4 paragraphs -->From running a franchise six years ago, Ms Susan Loke now manages franchisees and shares her experiences with potential ones.
In her late 30s, she was the first franchisee of childcare centre chain Cherie Hearts when she opened a branch in Kembangan in September 2003. The chain has 50 outlets today.
It was the first foray into running her own business for Ms Loke, then a senior business development manager in the construction industry. Cherie Hearts founder Sam Yap, a former colleague, had shared his expansion plans with her over lunch.
'I knew him well and was used to his working style. I knew that he was a man with foresight and I was confident that he would do well,' said Ms Loke, who roped in childhood friend Jesselin Foo to handle the day-to-day operations of the centre.
'My biggest concern was the learning curve. We were both unfamiliar with the field and there were many rules and regulations,' she said. 'What if the licences weren't approved but we still had to continue paying our staff and rent?'
Various licences had to be obtained from the Ministry of Community Development, Youth and Sports (MCYS) before a childcare centre could be set up.
But a visit to Mr Yap's first centre in Limau Garden eased her concerns.
She said of Cherie Hearts co-founder Gurchan Singh: 'Dr Singh was very approachable and we saw how good a rapport they had with the children's parents.'
Both Mr Yap and Dr Singh helped Ms Loke and her partner with setting up the centre and making sure their centre met MCYS' hygiene and safety licensing criteria.
She paid $65,000 in franchise fees and 8 per cent of monthly revenue as royalties. Curriculum, IT support and marketing and branding efforts are centrally coordinated.
In 2007, while she was expecting her first child, she left her job and joined the Cherie Hearts headquarters as a senior vice-president of business development. She is now the president of local operations for the chain.
Her 6,000 sq ft centre, which started with 20 children and four staff, now has 122 kids under the care of 12 staff.
She plans to open a second centre by the end of the year.
These days, she shares her experiences of running a childcare centre with potential and current franchisees, whom she meets at monthly meetings and job fairs.
Her proudest achievement: To see what she calls 'third generation' franchisees.
She said, with a laugh: 'We had a parent of one of the children start a franchise, and then a parent from that centre opened one too.' <!-- end of for each --><!-- Current Ratings : start --><!-- Current Ratings : end --><!-- vbbintegration : start --><!-- vbbintegration : end --><!-- dennis change request 20070424 : start --><!---Google ad - Start : Sun, 31 May 2009 00:38:01:580---><!-- AdSpace STI Google ad tag --><SCRIPT language=JavaScript1.1 src="http://ads.asia1.com.sg/js.ng/site=tsti&pagepos=20&size=10X10"> </SCRIPT>

 

[makapaaa]

<TABLE border=0 cellSpacing=0 cellPadding=0 width="100%"><TBODY><TR>He has to learn faster to help others grow
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<!-- START OF : div id="storytext"--><!-- more than 4 paragraphs -->If you run a small or medium-sized enterprise, Mr Damian Boon wants to help your business grow.
The 46-year-old is a franchisee of Sales Partners, a business coaching and consultancy service founded by American Blair Singer.
The latter is an associate of Mr Robert Kiyosaki who wrote Rich Dad Poor Dad, a book dispensing investment and wealth management advice.
Said Mr Boon, who met Mr Singer at a seminar the latter conducted here in September 2007: 'His teaching methodologies resonated with me. I felt that I could combine my talent, skills and experience with Blair's proven systems to help other people.'
Mr Boon was then a service quality manager at an insurance firm. He had spent 20 years as a corporate employee in marketing, sales and customer service.
These days, he helps owners assess the financial health of their companies and conducts sales training and other courses for their staff. He has worked with more than 30 clients so far, from five-man teams to a firm with 150 staff.
Watching the businesses increase their sales revenue by up to 20 per cent and seeing people become more confident are some of the rewards, he said.
The best part of his business, however, is that he gets to upgrade himself as well.
The $44,000 franchise fee he paid includes a nine-month induction programme with a United States-based trainer conducted via teleconference calls.
He also received textbooks and CD kits, which he listens to 'everywhere, from the car to the dinner table'.
'For me to help others grow, I have to learn and grow at a faster rate.'
The monthly royalty fee is 21 per cent of sales. It helps motivate him to work harder to source for business.
His business requires a lower start-up cost compared to food or retail franchises which have high equipment, rental and staffing costs, he said.
'On top of that, these business owners have to manage other issues like shop theft and stand in at odd hours for absent staff, whereas the only cost to me is my time in travelling to meet clients.'
His wife left her job as a customer service manager to join his business last November and he hopes to eventually enlist trainers to help grow his business. Mr Boon said: 'I give myself three to five years to get all the engines going.'

 

[SamuelStalin]

True. Franchising is the way to go in this competitive economy, though I think they should put this news up much earlier.

<TABLE border=0 cellSpacing=0 cellPadding=0 width="100%"><TBODY><TR>Starting a business? Try a franchise
</TR><!-- headline one : end --><TR>It helps to reduce risk and setting-up cost, though success is not guaranteed </TR><!-- Author --><TR><TD class="padlrt8 georgia11 darkgrey bold" colSpan=2>By Debbie Yong
</TD></TR><!-- show image if available --></TBODY></TABLE>




<!-- START OF : div id="storytext"--><!-- more than 4 paragraphs -->Retrenched with a decent sum of money and not sure what to do next?
Or have you always yearned to be your own boss but do not know where or how to learn the ropes?
For some individuals, the answer could lie in franchising. In this arrangement, one party (franchisor) develops a business model and licenses the rights to operate it, under its trademark or name, to another (franchisee).
Both enter into a legal contract, ensuring that the franchisee gets support to run the business for a fixed time. An initial fee is paid and annual or monthly royalty charges are imposed. These range from 3 per cent to 20 per cent of the franchisee's revenue.
Retail franchisees typically pay lower royalty fees while those providing services pay more. According to the Franchising and Licensing Association of Singapore (FLA), there are about 250 companies here with more than 3,000 franchisees under them. Half are homegrown concepts. These figures are based on a 2006 study by the FLA.
The annual turnover of Singapore-based franchises, both local and foreign, is estimated at $5.48 billion.
But though the franchise path may seem well-trodden, franchising consultants advise that you have to do background checks before signing on the dotted line.
Factors to assess include the franchisor's financial position, the demand for the product and whether existing franchisees are pleased with their business.
It helps to engage a lawyer to look through the terms of the franchise agreement, such as the rights and obligations of each party, said Ms Jasmine Tham who runs business consultancy Bean Counters.
Exit clauses, such as early-termination penalty fees and restriction of businesses entered into after termination of a franchise, should also be scrutinised.
While the franchisee can tap on benefits such as economies of scale in purchasing, joint advertising and promotions and an established customer base, it has its downsides too. 'If you have a franchisor indiscriminate in choosing franchisees, then the black sheep within the chain can be a big minus for all,' said Mr Albert Kong, chief executive officer of Asiawide Franchise Consultants.
Franchisors may also grant rights to separate operators located in close proximity, which results in rivalry for the same customers.
Hence, it is important for potential franchisees to discuss their plan in detail with their franchisor and set realistic expectations.
'Franchising does help reduce the risk and cost of setting up the business but like any business, there's no guarantee of success,' said Ms Terry Wong, general manager of FLA.
And not everyone is suited to be a franchisee. Entrepreneurial people, for example, may feel reined in.
'He may want to invent new things and run ahead of others but he may not get to do so because the franchisor has other considerations,' said Mr Kong. [email protected]

 

[Jabba]

and end up like poor stella...

 

[drifter]

why not the make your own branding and let people to franchise yours ?

 

[shelltox]

Macdonalds and KFC are successful franchise brands.

 

[pivilion]

Victoria's Secrets is one such franchise to consider with all the materialistic sinkgal around

 

[popdod]

and end up like poor stella...

Stella Ng??
The local singer with the awfully chocolate?

heard she went into bankruptcy.

:( :o :(

 

[tonychat]

Macdonalds and KFC are successful franchise brands.

They are evil animal killing machine.

 

[SIFU]

They are evil animal killing machine.

CB Kia tonychat,

how many times must i tell u : your ladyboy prostitute business is NOT a franchise. U r NOT a businessman. U r a FUCKING pimp, aka eat-soft-rice:oIo::oIo: