THINK AGAIN BEFORE GOING INTO FRANCHISE
just thinking out loud.
the shop in s.perai not doing that well. not sure how the Aeon people do the feasibility study of setting up shop there.
the opening day was great (august 2007). turnover was encouraging. but after the opening week, the crowd just start dwindling. save for the weekend, public holidays and school holidays turnover not enough to sustain the business.
we only found out later about the additional monthly cost (fees and charges) that ballooned up the rental from an acceptable amount to additional $1500 monthly, which no longer suit to our business model if we’re unable secure credible sales monthly.
hence the current dilemma. We’re opting out to cut our ties with the franchise thingy. They bleeding us dry. As of now owing sizeable amount on monthly fee alone. Their attitude are not encouraging either.
now the only way out is to get out, close shop. we hope to find a way out of this and not incur so huge of a loss. i pray and hope it will work out to something. let there be light.
To all people I just like to advise you:
“STAY AWAY FROM FRANCHISE BUSINESS IN MALAYSIA, UNLESS YOU’RE THE FRANCHISER. DON’T EVEN SNIFF AT IT. SO FATAL YOU’LL DIE STANDING (OR EVEN BEFORE OPENING BUSINESS).”
so many clauses in the agreement are to their advantage that you’ll just cry tears of blood! we’ve made our mistake but just have to go through with it and minimise the loss. we just paid a very high price for an education in doing buisness.
what we learned?
gross profit margin has to be minimum 60%. THIS is most important. if any lesser just leave.
start up cost as low as possible. renovation cost: try to minimise as much as you can. you have to have control and say on this. check if the franchiser mark up on the equipment, fittings and renovation cost.
this is the first two major thing you should look first. the rest you have to scrutinise and get advise from somebody that know the business before you commit. Talk to other franchisee (get them to tell the real story about the franchise). Read between the lines, and get the real picture from them, honestly.
Will save you from headache and heartbreak later.
