Thinking of going into franchise business
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Hi guys , i have been thinking about going into the franchise business in singapore , is it a good idea? like franchising a 7-11 , ya kun , mcdonald etc? do give me some advise. Thanks.
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Singapore is very saturated already. Not a good idea to start a popular franchise.
I'd rather you venture into franchising brands which are not very commonly in Singapore but very popular in China/ America, they you will have room for expansion in future. It's not seeing which company have good track records. It's more important if you can tell whether if a company is profitable and it's ability to expand in future.
It's 2 cent worth of salt~! Dun eat it!
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Originally posted by Darkness_hacker99:
Singapore is very saturated already. Not a good idea to start a popular franchise.
I'd rather you venture into franchising brands which are not very commonly in Singapore but very popular in China/ America, they you will have room for expansion in future. It's not seeing which company have good track records. It's more important if you can tell whether if a company is profitable and it's ability to expand in future.
It's 2 cent worth of salt~! Dun eat it!
hmm how about brand like adidas or nike?
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IMHO
1) freedom to run your own buz with a proven concept.
2) if food better than many others - recession proof.
3) not true pop brand is saturated. All depends. If the concept is a localised one, can still survive or make some $.
4) even if you are the first franchisee in a virgin market but not the master franchisee and someone comes along to grab the market, your expansion ability is also limited.
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I think childcare & family lifestyle hub business would be more stable and an necessary business since nowadays busy parents in Singapore would definitely send their kids to child care centre and it is not an trend business like bubble tea neither will it be outdated.
In fact there is an local childcare franchise called Cherie Hearts Group International where the company invited people to join them as franchiee or joint venture partner.Basically Cherie Hearts or any interested franchiee would get finanical and other support from their partner corporate financing company Ethoz Group (formerly known as Orix Capital Limited) Link : http://www.ethozgroup.com , they work on the model of hire purchase and leasing :
1) Hire Purchase
In general terms, a Hire Purchase agreement can be regarded as a financing arrangement whose principal purpose is to finance the use of an equipment for the major part of its useful life. Under a Hire Purchase agreement, the Hirer chooses the type of equipment, the supplier, the make, model and any special features required. The Hirer then negotiates with the supplier the term of warranties, maintenance arrangements, delivery, installation and , most importantly, the purchase price of the equipment. Ethoz Group provides the finance to meet the purchase price,either by way of direct acquisition from the supplier or via the Hirer, following delivery by way of a sale and hire-back before use of the equipment.
2) Leasing
It is the basic concept of leasing that profits are generated through the use and not ownership of an equipment. An equipment lease is a non-cancellable contract between a Lessor and a Lessee for the lease of a specific equipment selected from a manufacturer or vendor of such equipment by the Lessess. The Lessor retains ownership of the equipment while the Lessee gets to use the equipment to generate as much profits as possible, but pay only a small portion of the profits as lease rentals. Upon the approval of a lease, Ethoz Group purchases the equipment to the Lessee 's specification and pays the supplier in full when the equipment has been delivered to and accepted by the Lessee.
Benefits of Financing :1) 100% financing - the use of the equipment is obtained without any capital outlay.
2) Tax Saving - Lease rentals are tax deductible
3) Hedge against inflation - Customer pays installments & rentals based on today 's equipment price out of tomorrow 's profits.
4) Conserves Working capital and does not tie up bank credit lines.
5) Total payback is less than on a revolving line of credit on the same terms.
6) Flexible programs and financing options. You can design a program that fits your needs with terms and end of the lease options.
7) Easy to add-on equipment and upgrade lease. Since technology is always changing, a lease can help you get the equipment quickly and keep the cash.It is smart to lease equipment that tends to depreciate quickly. Leasing protects you from obsolete equipment.
8) Flexible end-of-term lease options. Return, renew or purchase.
However to apply for corporate finance company assistance there are requirements :
A.Basic Requirement
1) Private Limited, Public Listed, Sole-Proprietorship, Partnerships, Overseas Branch Office registered in Singapore Under Registry Of Company And Business
2) Representative Office, Non-Profit Organization, Professional Establishment
3) Office Address and Contact Number (Company Website Address if any)
B. Documents Required
1) 3 months bank statements - Apply to all types of business
2) Latest Audited Accounts - Apply to all types of business
3) Audited accounts of parent company - Overseas Branch / Representative Office
4) NRIC and Income Proof - Sole-Proprietor / Partnerships / Guarantor / Professional (Doctor,Lawyers,Accountant)
5) Company Profile, Product Catalogue, Brochure - If Any
6) Practicing Certificate - Professional Bodies
7) Suppiler Quotation/Sales Order - Apply to all types of business.
C. Financing Terms
Loan Quantum - Up to 100%
Repayment Term Up to 5 years.
If you want to find more of Cherie Hearts Childcare & Family Lifestyle Hub Business Franchise methodology, you can visit their website : http://www.cheriehearts.com.sg and click under their Franchise section. All thes best !
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Sell green bean soup.
No franchise needed.
