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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Chosen Daily Fresh Outlet : Tropicana City Mall Daily Fresh

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 

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.

10. Is there a franchisee advisory council that represents franchisees?
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.

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.