A franchise assignment research study for Entrepreneurship course and ONLY for Assignment purpose
Tuesday, 17 July 2012
News : 35 Daily Fresh new kiosks will be open by end of 2013
KUALA LUMPUR: Daily Fresh, a franchisor of casual kiosks selling snack food, desserts and beverages, aims to open 35 new kiosks by the end of 2013 through its franchise system.
Daily Fresh franchise development manager Mohd Ashraf Yong said of the 35 kiosks, five of which are targeted to be opened in Sarawak next year.
"This is due to the favourable market demand from East Malaysia," Ashraf said.
To date, the company has opened about 105 kiosks across Malaysia, of which 39 are owned by Daily Fresh and the rest are franchised kiosks.
Speaking to Business Times in an interview recently, he said Daily Fresh's strength lies in the low investment that is required to open a kiosk and its easy-to-manage business module.
Ashraf said the start-up investment is about RM100,000, while the franchise fee is RM25,000.
For this year, the company plans to open 10 new kiosks, while 25 more will be open next year.
Ashraf said the new kiosks will include Fresh Daily kiosks at Petronas' Kedai Mesra. He believes this will able to strengthen and improve customer access to its business operations.
"We will work with Petronas on the plan to open kiosks at Kedai Mesra. It offers big potential because Petronas owns about 490 petrol stations nationwide," he said.
"We are looking at the potential location of petrol stations before it is offered to prospective franchisees," Ashraf said.
Established in 1986, Daily Fresh sells snack food like Cup Corn, Wafito (waffle), IceKimo (fresh fruits, natural flavoured ice and fruit toppings) and Gelato (ice cream). The best-selling item is Cup Corn.
News from Business Times
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This news are expose right after FIM 2012, at 16th July. The franchise exhibition had successfully help the public get to know more about franchising system and allows the public to approach to their interested franchisor for further understanding of applying franchising license. Daily Fresh, targeted that 35 new kiosks are going to open by the end of 2013 and 5 of it are targeted to be open in Sarawak. Daily Fresh are familiar with snack food selling in the shopping malls, and you can find Daily Fresh in almost every shopping malls around the country.
Daily Fresh are famous by selling snack food, desserts and beverages like cup corn, gelato, wafito and icekimo. There now total of 105 outlets of Daily Fresh all over the Malaysia, and 39 of them are own by franchisor. This meaning that the rest of 66 outlets are all franchisees and manage under franchise system. Franchise system of Daily Fresh had now grown wider as the start-up investment are quite low, which is about RM100,000, franchise fees of RM25,000. Low investment of opening a kiosk and easy-to-manage business module had built Daily Fresh a bridge to wider franchising outlets to more locations. It is a low-cost but high profit investment, which are usually located in high traffic areas like shopping malls. This is also one of the reason why i choose Daily Fresh as my assignment topic. Meanwhile, my main reason is Daily Fresh wafito is my favourite snack that interest me to work out more about this franchisor company.
Thursday, 12 July 2012
Daily Fresh Franchise Brochures & Application Form
Daily Fresh FIM 2012 Promo Flyer
Daily Fresh Franchise Brochure
Daily Fresh Franchise Application Form
Monday, 9 July 2012
Interview session with the Daily Fresh's Franchisor & Franchisee
Enquiries to the Franchisor
1. Total of how many outlets that Daily Fresh owned in Malaysia either in franchises or branches based?
A: We already have total 105 outlet in whole Malaysia.
2. What are the background of the company and the performance record?
A: Daily Fresh Foods Group have started at 1986, and we have award Brand Excellence in
Industrial Excellence Award 2006 & 2010, Most Promising Franchisor Award 2007, Best
Outlet Growth Award 2007 & 2008, Franchise Innovation Award 2010 and Franchise of
The Year Award 2011 in Malaysian Franchise Association(MFA).
3. The company’s current financial status?
A : We are doing well and getting wider our business area day by day.
4. What are the franchise locations that already taken and new potential locations?
A: You can provide us your chosen location and we will have a check for you from our list.
5. How are the processes for purchase franchise?
A: We have few type of franchise concept and there are different cost for those franchise.
We have no requirement for the franchisee and view our brochure for more information.
6. Did you provide your franchise information to franchisee?
A : Yes, of course.
7. Is there any restriction to franchisee?
A : There are no any restrictions for the franchisee.
8. How do you settle for the customers’ complaint from franchisee or other branches?
A: All the customer complaint just only inform our company and it will settle by our HR
Department.
9. What are the processes if I am going to quit your franchise in future?
A: If you want to quit, you must notify our company and we will consider to get back the
operating rights or sell it.
10. In what ways do you work with a franchisee that is struggling in low income and bad performance?
A: For those low income outlet, our company will think of ways to help them, like have a
contest, promotion to help them up.
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Enquiries to the Franchisee
Dear
Shinyee,
I am glad that you are interested in the
franchises business. For the few years involved in both management and
operational in my family owned franchise business, I hope my experience could
help in your researches and studies.
1. Are you pleased with your investment in this franchise?
A: For the past few years and we have already
set up five outlets, the performance of each outlet is vary and some appear to
be disappointing. But overall the investment in the franchise is satisfactory.
2. Has the franchisor lived up to his promises? How the franchisor prepare you before you run the franchise?
A:
The franchisor did a good job in assisting, so far, the promises and fulfilled.
Before we set up a shop, a blue print of our outlet design has to be examined
by the franchisor, and franchisor will advise and give opinion in how to
improvise. Besides they do provide staff training and send staff as support
during the opening.
3. What was your greatest disappointment after getting into this business?
A:
There is not much of disappointment in the sense of the franchising
system. Just a minor issue such as could not modify product and have to follow
the guideline which sometimes create wastage of ingredient.
4. How effective was the training you received in helping you run the franchise? What kind of training or assistance provided by the franchisor to you?
A:
In my opinion, training is always better with on-hand practical training.
Franchisors allow us to send our staffs to an operating outlet, and the
experienced workers or trainers will provide sufficient in preparing the
product as well as doing the sales report.
5. What are your biggest challenges and problems while running your franchise business?
A:
Challenges in running a business always exist, from quality control to staff
management. Yet, to be particular in franchise business, the issue that might
bring a concern is we cannot change or modify the product. For example, they
are high demand of using honey as the filling of waffles or lemon as the
topping of corns, yet we could not just add-on the product because they have to
be served in a manner as the franchisor does.
6. What is your franchises cash flow like? Average profit per day?
A:
The cash flow can be vary from different outlet location and season. On
average, revenue per day can be RM 300-500 to RM1000-RM2000.
7. How much cost pay for loyalty to the franchisor & advertising fees?
A: The loyalty is 5% of the total revenue, whereas advertising fee is vary each year, but usually is within ten thousand
A: The loyalty is 5% of the total revenue, whereas advertising fee is vary each year, but usually is within ten thousand
8. How much money are you making in your investment?
A: In our case, our cash are all immediate invest in another shops, we are creating liabilities before we get profit. Hence there is no making money yet, we are barely breaking even
9. What do you like most about being a franchisee? And the least?
A: One of the favorable franchise traits is sharing the brand name. It is difficult to build a position in consumer mind from an unknown brand. With the strong brand name, it helps a lot in positioning. Besides, we could rely on the specialize R&D of franchisor, which we do not have to worry what new product should be introduced. The least favorable thing would be the lack of flexibility. We have to serve or prepare product in a guided manner. There is a lot of customers who reflect some idea for us, yet we could not just modify products or preparation for the product.
A: In our case, our cash are all immediate invest in another shops, we are creating liabilities before we get profit. Hence there is no making money yet, we are barely breaking even
9. What do you like most about being a franchisee? And the least?
A: One of the favorable franchise traits is sharing the brand name. It is difficult to build a position in consumer mind from an unknown brand. With the strong brand name, it helps a lot in positioning. Besides, we could rely on the specialize R&D of franchisor, which we do not have to worry what new product should be introduced. The least favorable thing would be the lack of flexibility. We have to serve or prepare product in a guided manner. There is a lot of customers who reflect some idea for us, yet we could not just modify products or preparation for the product.
10. Is there a franchisee advisory council that represents franchisees?
A: Yes, they do constant inspection and quality check.
A: Yes, they do constant inspection and quality check.
11. Knowing what you know now, would you buy this franchise again?
A: In my opinion, franchise is one of the best options where investor has limited knowledge about the market and with limited resources. For current circumstances, with the limited resources we holding, we would still go for franchise if we plan for further investment.
12. The franchise kiosk currently owning is under what concept and amount?
A: There are two concepts of outlet we currently owning, which is the kiosk concept and the café concept.
13. Any terms and conditions to run this franchise business?
A: There are two concepts of outlet we currently owning, which is the kiosk concept and the café concept.
A: In my opinion, franchise is one of the best options where investor has limited knowledge about the market and with limited resources. For current circumstances, with the limited resources we holding, we would still go for franchise if we plan for further investment.
12. The franchise kiosk currently owning is under what concept and amount?
A: There are two concepts of outlet we currently owning, which is the kiosk concept and the café concept.
13. Any terms and conditions to run this franchise business?
A: There are two concepts of outlet we currently owning, which is the kiosk concept and the café concept.
I would also like to take an opportunity to thank you for Daily Fresh's Franchisor and also the Franchisee owner of Tropicana City Mall, who provided me useful information and your co-operate during the interview session.
Friday, 6 July 2012
Franchise International Malaysia 2012 (FIM 2012) part 3
My classmates and I went for a visit for FIM 2012 at PWTC on July 6th, Friday. We are introduced to this exhibition by our lecturer, Mr. Stephen Ong who teach us Entrepreneurship this semester. We are require to attend the exhibition in PWTC to have a visit and interview franchisors for our franchise assignment during the lecture time of Entrepreneurship that suppose to be on morning 10am-12pm. My classmates and I meet up in the morning can car pool to the exhibition venue together at 9am in the Friday morning. We are all dressed up smartly although not full formal dress code, but pleasant. We are arrive to the venue at about 9.45am which took us about 15minutes to reach from our college, Tunku Abdul Rahman College. We then quickly fill in the registration forms and queue up for ID making.
The exhibition are held at 2nd floor, Tun Hussein Onn Hall. We are there a little early so we have to wait until 10am sharp only allow to enter the exhibition which the time for public visitors. There are a lot of exhibitors from local and foreign country and some even have demo up their products for visitors to have a try on it.
Then, i come to my choice of Franchise - Daily Fresh. The booth for Daily Fresh are exactly like kiosk that we seen from shopping malls. They are doing demo on their products that allows the public to have a taste on their products. My friend, Windy and I doing on the same Franchisor but different locations so we decided to interview the people in-charge of Daily Fresh Marketing together to request for information that we needed to be place in our assignments.
Here are some pictures that i captured on the day and around the Daily Fresh booth.
There are some marketing staffs around the booth to assist you if you are interested to know more about their franchise operating system and license applications. There are also some brochures available for the visitors to have a look on their company informations and the franchising cost also franchise shops concept available. Almost all the information that I need is inside the brochure and I only enquire some question that are not stated in the brochure. There are quite many people who interested to get franchising of Daily Fresh as you can see on this picture above. As a prove, Daily Fresh had grown wider in Malaysia and they have 105 outlets all around the country.
After i completed my interview, i continue my visit to other booths to know more about other company's franchise information. My classmates and I are about to leave the exhibition at 11.30am as we having another class in college at 12pm. Then we quickly meet up with our lecturer to inform him about our class and took a picture at the entrance of the exhibition as a prove of attendance.
Here are the brochures i collected and the ID of mine during the exhibition of FIM 2012. It is a good opportunity for us as a Entrepreneurship student to know more about franchise opportunities and get to interview face to face with the franchisors that we chosen for our franchise assignment. It is a good experience for me and if i would about to start up my business in future i would also choose franchising. It is the easiest and with guidance also assistance from the franchisor to build up the business.
Thursday, 5 July 2012
Franchise International Malaysia 2012 (FIM 2012) part 2
FIM2012 is the largest annual franchising exhibition and conference in Southeast Asia and the only franchise event officially sanctioned by the Ministry of Domestic Trade, Co-Operatives & Consumerism (MDTCC) and Malaysian Franchise Association (MFA).
Attaining its 19th year pinnacle with proven organizing track records, the FIM is a melting pot of local and international franchise players into a world full of opportunities. It will assemble main players in the franchise sector from all around the world to discuss current franchise issues and focusing franchise as a key strategy in developing entrepreneurship in Malaysia especially in retail and service sectors. This is the perfect venue to launch new franchise system, appoint master franchisees, and identify potential local franchisees, matchmaking and networking functions.
Malaysia is one of the regional fastest growing franchise markets. With invaluable support from Malaysian government, top franchisors and key financial institution, FIM2012 promises to be the premiere event for continuing successful development of the franchise industry in Malaysia as well as Southeast Asia region. Therefore, take this advantage to expand your business opportunities at FIM2012.
The exhibitors are total more than 20 categories that covers up of
· Accounting/ Tax Services
|
· Childcare/ Child Development
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· Adult Education/ Enrichment & Training Centers
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· Computers/ Electronic Products
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· Apparels/ Shoes & Bags
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· Consultancy Services
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· Associations
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· Convenience Stores
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· Automotive Products & Services
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· Gifts/ Stationery/ Florists/ Arts & Crafts
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· Bakery/ Confectioneries/ Snacks/ Specialty Food
|
· Franchise Suppliers/ Retail Equipment & Technology
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· Beauty/ Spa
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· Home Furnishings/ Furniture
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· Books & Educational Products
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· Fast Food/ Restaurants
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· Printing & Photocopying Services
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· Food and Beverages
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· Health & Fitness
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· Others
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Meanwhile, the visitors are from all walks of life that include of
· Business Owners / Entrepreneurs
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· Government Executives
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· Potential Franchise Buyers/ Potential Franchisees
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· Lawyers & Accountants
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· Franchisors and Franchisees
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· Media Representatives
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· Franchise Consultants / Intellectual Property Consultants
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· Researchers / Academicians
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· Business Consultants
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· Students (Universities, College etc)
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· Franchise Company Executives
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· Others
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· Investors
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more info please visit : Franchise International Malaysia 2012
Wednesday, 4 July 2012
Franchise International Malaysia 2012 (FIM 2012) part 1
Date: July 6th - 8th 2012
Venue: Tun Hussein Onn Hall, Putra World Trade Centre (PWTC), Kuala Lumpur
Organiser: Ministry of Domestic Trades, Cooperative and Consumerism (MDTCC) and
Malaysia Franchise Association (MFA)
The 19th Franchise International Malaysia 2012 (FIM2012) are once again bring out by The Malaysian Franchise Association (MFA) in collaboration with the Ministry of Domestic Trade, Co-operatives & Consumerism (MDTCC) . MFA was formed in 1994 to support the implementation of the Government program to promote entrepreneurship through franchising. The formation of MFA was to promote the development of franchising in Malaysia.
Same as the previous years, FIM2012 will feature the local and international franchise companies as well as gathering the franchise fraternity to exhibit and further promote the franchise industry in Malaysia. It is a showcase of an extensive line up of exhibitors representing a broad cross-section of the franchising industry. This event will be expose to the media and the public. Participants are require to register themselves before enter to the exhibition.
A sharing session fom YABhg. Tun Dr. Mahathir Mohamad will be going on July 7th, Saturday which is the second day of the exhibition which named 'The Silver Lining Withtin'.
- The Silver Lining Within - Tun Dr Mahathir Mohamad, Patron, MFA
- The Franchising Way - Dato Sri Ismail Sabri Yaakob, Minister, MDTCC
- 2013 Economic Outlook - Dato' Hafsah Hashim, CEO, SME Corp
- Taiwan, China and India's Market Updates - Albert Kong, MD, Asiawide
- The Role of IP in Franchising - Neil Wilson, Director, WIPO
- Building a Super National Brand - Tan Sri Tony Fernandes, CEO, AirAsia
- Globalising the Rights - Rodney Wakefield, CEO, Gloria Jeans, Australia
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