Appendix A.A Franchise Evaluation Checklist

Myself

1. Are you qualified to operate a franchise successfully? Do you have adequate drive, skill, experience, education, patience, and financial capacity? Are you prepared to work hard?

 Erm, I think I not qualified to operate a franchise successfully because I didn't have knowledge and experience about operating franchise.

2. Are you willing to sacrifice some autonomy in operating a business to own a franchise?

No.

3. Can you tolerate the financial risk? Would business failure wipe you out financially?

Yes, because if financially failure fast sell to other people didn't let own loss many money.

4.Can you juggle multiple tasks simultaneously and prioritize various projects so that you can accomplish those that are most important?

I think I can juggle multiple tasks simultaneously. I will do the important first after finish I just do other thing. But the time arrangement need good.

5.Are you genuinely interested in the product or service you will be selling? Do you enjoy this kind of business? Do you like to sell?

If have chance I want to try this business. Because now a lot of people like drink coffee at cafe. Yes, i will sell it.

6. Do you enjoy working with and managing people? Are you a "team player"?

I think I am not "team player". Because I not confidence myself.Sometime I also silliness. So I not suit to be leader managing people.

7. Will the business generate enough profit to suit you?
 Yes, the business will generate enough profit to. Because a lot of opportunity to gain a lot of income.

8. Has the franchiser investigated enough your background thoroughly enough to decide if you are qualified to operate the franchise?

Yes, this is the basic procedure and is the safe protect.

9. What can this franchiser do for you that you cannot do for yourself?

The "shop name" , training of customer service for staff,recipe of coffee and coffee bean manufacturer. This all thing is fixed by franchiser. So we cannot do ownself.

Frequently Ask Questions

1. What is the first step to obtain an OLD TOWN White Coffee License?

Each party involved is to submit an application form. Upon receipt of the application, parties will be given a Business Plan template to fill out. Qualified parties will be notified and invited to an OLD TOWN White Coffee Business Meeting at our Office located in Subang Jaya, Selangor, Malaysia to begin the process

2. What is the initial Master License Fee and what does it include?

Upon confirmation, the Master Licensee is to make an upfront payment -the initial Master License Fee of between USD 100,000 _ USD 250,000. This includes the rights to use the Trade Name, Trade Mark and systems of OLDTOWN WHITE COFFEE in the pre-agreed territory. Initial training is also provided (excluding any out -of -pocket expenses incrurred).

3.What is the term for the Master License Agreement and what is the procedure for renewal?

The term is for a period of 5 years with a conditional option to renew for another 5 years . Renewal License Fee is payable at 20% of the initial Master License Fee.

4. What are the continuing Fees?

The Master Licensee will need to allocate 5% of their Total Gross Monthly Sales Towards a Royalty Payment and 1% of their. Total Gross Monthly Sales Turnover to be put towards Market Development License, a one off License Fee of USD 20,000 will charged per shop.

5. What are the other Fees involved?

The quantum for the Security Deposit Fee is based on territory and expected opening.

6. What is the estimated fit out costs for an OLD TOWN White Coffee outlet?

The set up cost varies and it depends on location and other factors. The estimated set up cost depends on store size and local conditions but can be between USD250,000 to USD 400,000.The total cost will include: all equipment , entire store fit out, and security deposit.

7.DO I need to choose a location before submitting my application?

Yes, you will need to propose the location of where you intend to operate the OLD TOWN White Coffee Licensed Outlet.The Management will evaluate the location based on:

a)Address b) Size c) Rental per Month d)Date of Availability .

8. What considerations and size specifications are required for an OLD TOWN

White Coffee Location?

For shop lots, the considerations will be "Corner Lots"; with a minimum build up of 2,500 square feet. For commercial buildings the minimum build up will be 1,000 square feet.

9. What kind of training does OLD TOWN White Coffee provide?

Master License and their team must attend and successfully complete the OLD TOWN

White Coffee unique Business Operations Management Training Program.

10. What kind of continuing operation support will the License receive?

Master the Operation Manuals and other materials, our OLD TOWN White Coffee Operation Executives will visit each licensed outlet regularly to render on site assitance besides helping you to set up your first outlet. In addition we will provide you with on-going training, guidance and support to ensure your business remains competitive.

11. Do I need to be involved in day-to- outlet operations?

One of the partners/shareholders has to appointed as the Managing Principle of the licensed business. The Managing Principal is required to undergo the full initial license training and to spend a reasonable amount if the time to oversee the overall aspects of the OLD TOWN White Coffee licensed business. However, competent outlet managers and staff can he hires to manage the daily operations of the licensed business.

How to own an Old Town White Coffee

Form our very first outlet in 2005 to over 200 today, we remain the earliest to bring that legendary cup of Ipoh White Coffee from 1958 to people all over Malaysian and the world.


Franchise Models
Old Town White Coffee Signature & Generic Outlet

Franchise Fees =RM 80,000
Security Deposit = RM 30,000
Training Fees = RM 10,000
Royalty Fees = 5% (Gross Sales)
A&P Fees = 3% (Gross Sales)
( The term is for a period of 5 years with an option to renew for another 5 years. Renewal fees of RM 10,000)

Old Town White Coffee Basic (Kiosk)

License Fees = RM 30,000
Security Deposit = RM 30,000
Training Fees = RM 5000
Royalty Fees = 3% ( Gross Sales)
A&P Fees = 2% (Gross Sales)
( The term is for a period of 3 years with an option to renew for another 3 years. Renewal fees of RM 10,000)

Company Profile

This information I found at internet.

Our Group’s history can be traced back to the incorporation of White Cafe in 1999, with the intention to provide quality white coffee to Malaysian households and the food services industry, the co-founders and Executive Directors, Mr Goh Ching Mun and Mr Tan Say Yap formulated their own blend of 3-in-1 instant white coffee and commenced manufacturing in 1999.

With more than 10 years of experience in the coffee beverage industry, both our co-founders were instrumental in the growth of the Oldtown Group of companies. They are supported by Mr Lee Siew Heng, our Group Managing Director who played a significant role in implementing the overall vision, strategy and development of the Oldtown Group.

In 1999, we successfully commercialised our instant 3-in-1 coffee mix under the ‘OLDTOWN’ brand name for the retail sector. As at 31 October 2009, our ‘OLDTOWN’ 3-in-1 instant coffee mix was sold in approximately 1,348 retail outlets nationwide in Malaysia, approximately 550 retail outlets in Singapore and approximately 2,100 retail outlets in Hong Kong.

In 2000, we commenced our first export of the ‘OLDTOWN’ brand of 3-in-1 instant coffee mix to Singapore.

In 2001, our subsidiary, White Cafe Marketing commenced operations as the marketing arm for our Group’s beverage products. During the same year, we also expanded our product line to include different variations of our instant coffee mix and have also expanded our export markets to Hong Kong for our instant coffee mix.

In year 2002, White Cafe obtained a HALAL certification from the Islamic Religious Department of Perak for the Group’s beverages. This is part of our Group’s intentions, which is to produce our beverages in accordance with the Islamic law. In the same year, we successfully expanded our nationwide retail distribution of our 3-in-1 instant coffee mix to cover East and West Malaysia through major hypermarkets and supermarkets.

In 2003, we also successfully commercialised our own formulated blend of 3-in-1 instant milk tea for the retail market under the ‘OLDTOWN’ brand name.

In view of expanding our manufacturing activities, we incorporated Gongga Food in 2003 and commenced operations in 2004 manufacturing roasted coffee powder for the food services sector using the Group’s proprietary bean roasting process. We distributed our roasted coffee powder to traditional coffee shops in Ipoh and other states in Malaysia. In addition to the food services sector, our roasted coffee powder is also marketed to the retail sector under the ‘NANYANG’ brand. In 2004, we further penetrated the export markets for our 3-in-1 instant coffee to cover the United States, Canada and United Kingdom and subsequently in 2005, Taiwan and Indonesia.

In 2005, we expanded vertically into the food services sector by opening a chain of cafe outlets based on the traditional Ipoh coffee shop setting and ambience under the ‘OLDTOWN WHITE COFFEE’ brand name. This is part of the Group’s strategy of capitalising and reinforcing on the ‘OLDTOWN WHITE COFFEE’ brand in the food services industry. In the same year, Kopitiam Asia Pacific commenced operations in the licensing, supply of food, beverages and other items, and provision of management services to ‘OLDTOWN WHITE COFFEE’ cafe outlets.

Since the opening of our first ‘OLDTOWN WHITE COFFEE’ cafe outlet in Ipoh in 2005, our chain of cafe outlets have expanded to reach 137 cafe outlets in Malaysia and Singapore as at 31 October 2009. This includes fully and partially owned, and franchised cafe outlets. In 2005 and 2006, we established our subsidiaries namely Old Town Kopitiam, Old Town Kopitiam Butterworth, Old Town Kopitiam Kuala Lumpur, Old Town Kopitiam Cheras, Conneczone to focus on operating cafe outlets in different areas and states within Malaysia.

To support our cafe outlet business operations, we established the following subsidiaries as central food processing centres between 2005 and 2007: -Emperor’s Kitchen commenced operations in 2005; -Esquire Chef commenced operations in 2007; -Dynasty Confectionery commenced operations in 2007.

In 2005, Gongga Food’s business activities also expanded to cater to the procurement of food items for ‘OLDTOWN WHITE COFFEE’ cafe outlets. In the same year, Gongga Food also obtained a HALAL certification from the Islamic Religious Department of Perak for the production of its roasted coffee powder. In the same year, our subsidiary, White Cafe obtained a HACCP certification from BM TRADA Certification Ltd for the processing and manufacturing of beverage products.

In 2006, we expanded our export markets to Japan and China. In the same year, we incorporated Dynasty Kitchen as a distribution centre, which commenced operations in 2007. During this year, we also incorporated Oldtown Berhad, which will focus on investment holding and provision of management services pursuant to its listing on the Main Market of Bursa Securities. Subsequently we also started exporting to Thailand and the Philippines.

In view of our plans to expand our cafe outlet business operations to Singapore, we incorporated Oldtown Singapore in 2007 to provide management services, supply of food and beverage items to cafe outlets in Singapore. OTK Singapore commenced operations in 2008 with the launch of our first ‘OLDTOWN WHITE COFFEE’ cafe outlet in Singapore.

In 2008, our subsidiaries, Dynasty Confectionery and Esquire Chef obtained HALAL certifications from the Islamic Religious Department of Perak for the processing of various food. Our other food processing subsidiary, Emperor’s Kitchen obtained HALAL certification from the IFRC ASIA. To further affirm our adherence to international food safety standards, our subsidiary, White Cafe achieved ISO 22000:2005 certification and ISO 9001:2000 from BM TRADA Certification in 2008 in addition to GMP certification by the Department of Public Health, Ministry of Health Malaysia in the same year. Within 2008, we also expanded our product line to include 3-in-1 instant coffee mix with cane sugar.

In 2009, Gongga Food obtained a HACCP certification from BM TRADA Certification Ltd for the production of roasted coffee powder.

Location of Old Town White Coffee at Jusco

This is location of Old Town White Coffee at Jusco Wangsa Maju.

Old Town White Coffee Jusco

Franchising I do for my assignment is Old Town White Coffee Jusco. The information of Old Town White Coffee I found at internet.

The Old Town White Coffee,OTWC (Chinese: 旧街场白咖啡) is the largest kopitiam restaurant chain in Malaysia. Its main headquarters is in Ipoh, Perak Malaysia.
Established in 1990, Old Town Berhad ("OldTOwn") manufactures instant beverage mixes and products, in addition to operating over 180 cafe outlets throughout Malaysia and the region.
Old Town is the proprietary owner of the special formulation of 3-in-1 white coffee blend, which has been permeating Malaysian households and food service industry since 1999.
In 2005, Old Town expanded into the food service sector with the opening of a chain of cafe outlets based on the traditional Ipoh coffee shop setting and ambience under the brand name "Old Town White Coffee".
Old Town now exports its beverage mixes to more than 10 countries worldwide and plans to expand its cafe network in the region.

Today I go Old Town White Coffee Jusco at Wangsa Maju to do observed. I go there maybe around 7 pm.
The shop have many customer at  that time. I find place to sit, and order food to eat. When I sit have worker come to service us. After that, I look around the cafe how the environment.

The environment of Old Town White Coffee is really nice place. That place suit officer student or family having breakfast, lunch, teatime dinner at there.The shop have full people, most is Malay customer  having their meals during Ramadan, India and Chinese. Some the customer is student and couple, most is the family.

Old Town White Coffee they arrange their facility the very neat. And they equipment look like model. They environment very clear and tidy. It was grade A restaurant by Ministry of Health Malaysia.

There also soon serving when I order, over soon serving already. Old Town also have many different dishes and set.They have breakfast, lunch set and dinner set. In addition, They menu design also nice.

The shop interior design look like nice and they have put some picture talking their history.

Their staff of Old Town White Coffee very politeness. The beside counter has a certificate, it is recognizes OLDTOWN KOPITIAN SDN. BHD. as a franchise and operator OLD TOWN White Coffee Jusco Wangsa Maju outlet by KOPITIAM ASIA PACIFIC SDN BHD.

Old Town White Coffee

When take the interview form, I try go Old Town White Coffee the find the manager and make appointment. When I go there the manager not be in so I take the contact number. When I back home I  call the manager ask can interview or not. The manager reject me, cannot interview with me because they can't represent the main shop talk anything about the company thing. So I do the observed the franchise.

Approve

Today sir approve our franchise title already.when sir go in the class,sir take out the the interview form for us. We need take the form go to interview.

After take the form I have discuss with friends about this assignment.

Think about the title...

I still think about the title. I at school have discuss with friends what franchise can do. One day, I go jusco with friends when we go through Old Town White Coffee suddenly I have the idea for assignment 3. The title of franchise I want to do is Old Town White Coffee.

So I write my title give my class rap and waiting sir approve.

Today during entrepreneurship sir call we all go back open one blog for assignment 3. Assignment 3 is individual and we need to interview franchise. So, sir call us find one franchise to do. At night, I open the blog already. So I thinking what franchise I want to do.

My Profile

ABDM4223 Entrepreneurship
Individual assignment - Franchising

Name : Tan Hui Ling

Gender : Female

Age : 21

Student ID : 12WHA10764

Tutorial Group : S1AML3

Tutor : Stephen Ong

Programme : Advanced Diploma in Multimedia Design

Institute : Tunku Abdul Rahman University College

The subject for ABDM 4223 Entrepreneurship, we need choose a franchise and outlet for our individual assignment. So, I choose Old Town White Coffee for my assignment. The located for Old Town at Wangsa Maju Jusco Setapak (F26A, Jusco Alpha Angle Shopping Center,Jalan R1, Section 1, Bandar Baru Wangsa Maju 53300 Kuala Lumpur.)