The Franchiser and the Franchise.

Is the market's population growing, remaining static, or shrinking? Is the demand for your product or service growing, remaining static, or shrinking?

Yes. Nowadays many people like to enjoy and we also provide a good Wi-Fi services to customers.

Is the product or service safe and reputable?

Yes. OLDTOWN's food is definitely safe and reputable. It is a historical cafe that famous with "OLDTOWN White Coffee". I never heard have one customer complaint anything to us.

Is the franchise international, national, regional, or local in scope? Does it involve full-or part-time involvement?

OLDTOWN White Coffee is local, and some of the prosperous places, they will be open 24 hours. We are not 24 hours because less people will come here after 11pm.

How many years has the franchiser been in operation? Does it have a sound reputation for honest dealings with franchisees?

I think is around 10 years. Yes. They have a sound reputation for honest dealings with franchisees.

How many franchise outlets now exist? How many will there be a year from now? How many outlets are company-owned?

I'm not sure on this.

How many franchises have failed? Why?

I'm not sure on this.

How many franchisees have left the system within the past year? What were their reasons for leaving?

[No answer]

What service and assistance will that franchiser provide? What kind of training program does the franchiser offer? How long does it last? What topics does it cover? Does the franchiser offer ongoing assistance and training?
The Initial training fee includes 6 weeks training & accommodation for a maximum of 15 staff. Additional Management staff is chargeable at RM2000 per person and Service staff at RM1500 per person.

Will the franchise perform a location analysis to help you find a suitable site? If so, is there an extra charge for doing so?

The franchisee to identity suitable locations and initial rent negotiations. After that, the franchisor will approve location. On site visit by franchisor is optional.

Will the franchiser offer you exclusive distribution rights for the length of the agreement, or may it sell to other franchises in this area?

Yes. If the franchise wants to open their outlet location they preferred, we will investigate your location and provide you with analysis of its viability for development.

What facilities and equipment are required for the franchise? Who pays for construction? Is there a lease agreement?

The equipments are table, chair and machine, food and so on. We pays for the the construction. Yes, there is a lease agreement.

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 fulfill all its promises?
Term is 5 years + 5 years (option). Upfront franchise fee of RM80,000 (one-off) and an additional RM10,000 if franchisee exercises option to extend tenure and then 5% royalty fee on the gross revenue derived from monthly sales, and 3% advertising and promotion fees of the gross revenue derived from monthly sales. A typical store will cost around RM700, 000 to fit out, although this may vary according to size of the outlet.

How much is the franchise fee? Exactly what does it cover? Are there any confining fees? What additional fees are there?
Franchise Fees is RM80,000

Initial Training Fees – RM10,000 Renewal Franchise Fees – RM10,000 Relocation Fees – RM10,000

DEPOSIT Security Deposit – RM30,000 Initial Inventory Stock Deposit – RM100,000
ONGOING Royalty Fees – 5% Advertising & Promotion Fees – 3%

Does the franchiser provide an estimate of expenses and income? are they reasonable for your particular area? Are they sufficiently documented?
Yes.

Does the franchiser offer a written contract that covers all the details of the agreement? Have your attorney and your accountant studied its terms and approved it? Do you understand the implications of the contract?
This process should be like that. This is because we need very clearly to know the agreement and so law in this agreement.

What is the length of the franchise agreement? Under what circumstances can it be terminated? If you terminate the contract, what are the costs to you? What are the terms and costs of renewal?
I not clear on it.

Are you allowed to sell your franchise to a third party? Does the franchiser reserve the right to approve the buyer?
Yes, franchisees are allowed to sell their franchise but the buyers has to be approved by the company.

Is there a national advertising program? How is it financed? What media are used? What help is provided for local advertising?
I'm not sure, but I have watch it on TV. I don't know it can provided anything to us or maybe can increase our sales.

Once you open for business, exactly what support will the franchiser offer you?
Use of trade name, use of trade mark, use of Old Town’s franchise business operating system and sales of Old Town’s products and services.

How does the franchise handle complaints from and disputes with franchisees? How well has the system worked?

I didn't received any complaint before.