The Franchiser and the Franchisee.

Prior to this, I had called the Berjaya Group for a short interview with the people there.
Surprisingly, He was able to answered most of my questions. While some of them, he told me to refer to their official website.

Some of the answers below are from the person from the HQ, while some are from the outlet manager herself.

Is the potential market for the product or service adequate to support your franchise? Will the prices you charge be in line with the market?Yes. Starbucks coffee is a worldwide company, so our market in Malaysia won’t be bad. I am quite satisfying the potential of market for our stores, due to the package and discount of Starbucks. The price that we charge with the product is exactly same as the market price.

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

Yes, the population of Starbucks is growing gradually, more and more people are consuming our product.Especially, the teenagers start to love our coffee. We are glad to open more outlets to different places to full-fill the demand of our coffee.

Is the product or service  safe and reputable?

Our products is safe and well-known for having good coffee taste. We purchase high quality coffee bean and sell them along with fresh, rich-brewed beverages. We do also sell food besides coffee. We also have a great environment, services provided just to let our customer feel comfortable while having their time be it studying or meet-up. Free Wi-Fi also provided to the customers at every outlets. Customers can enjoy  our nicely brewed coffee while surfing the internet. 

Is the product or service a passing "fad", or is it a durable business idea?'

In my opinion, Starbucks is a worldwide company that sell finest coffee for over 40 years already. You can now see almost everyday there will be people holding a cup of Starbucks coffee in their hand. Our coffee still popular among people. It is hard for us to say it is not a durable business idea as it can still durable for many years. I dare to say, It is definitively a durable business idea. It will never go down as a fad.

What will be competition, direct or indirect, be in your sales territory? Do any other franchisees operate in this general idea?

We sell our product which is our coffee and also some dessert. Our competitor will be The Coffee Beans, San Francisco Coffee, Old Town White Coffee, Gloria Jeans and Secret Recipe. However, we always bring a unique feature in our products and service so that customers will be more attached to us.

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

Starbucks is an international, worldwide company. It has more than 19000 stores in 59 countries.

How many years has the franchiser been in operation? Does it have a sound reputation for honest dealings with franchisees?Around 14 years since 1998. We deal with them with our full responsibility and earn the trust and respect of our customers and partners. We are also committed to doing business responsibly and conducting ourselves in ways that earn the trust and respect of our customers, partners and neighbours.How many franchise outlets now exist? How many will there be a year from now? How many outlets are company-owned?There were 19,763 stores exists in 59 countries while in Malysia Berjaya group owned 115 stores.How many franchises have failed? Why?

So far none of our franchises had ever failed before.

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

No, Starbucks does not allow us to exit the franchise relationship.

What service and assistance will the franchiser provide? What kind of training program does the franchiser offer? How long does it last? What topics does it cover? Does the franchise offer ongoing assistance and training?

We make the finest coffee, dessert, a comfortable environment with free Wi-Fi internet for our customer. As for the training program, the new employer need to attend a training course.This training course last for one month before officially start to work. 

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

We are not in charge in finding a site, thus we have no knowledge about it.
Our headquarter is the one in charge of making this decision.

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

Since the company had already be in the Malaysia Head Quarter for around 14 years. I think it won’t change.

What facilities and equipment are required for the franchise? Who pays for construction? 

Facilities and equipment that required for the outlet is table, chair, machine, supplier, food and so on. Our company will pay all the expanses.

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?

(Refused to answer) 

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

(Refer to the official website) 

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

(Refused to answer)

How risky is the franchise opportunity? Is the return on the investment consistent with the risk?

It is hard to say, it depends on the situation.

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?

We hire a lawyer to help us in this contract. Having them to explain the details and 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?

(Refused to answer) 

Are you allowed to sell your franchise to a third party? Does the franchiser reserve the right to approve the buyer?

No. Definitely not. 

Is there a national advertising program? How is it financed? What media are used? What help is provided for local advertising?

Almost all the advertisements are done locally. Newspaper, banner and flyer are most commonly been used as a media. 

Once you open for business, exactly what support will the franchiser offer you?

They will provide training course for the new employers, buy all the necessary equipment, supply the coffee beans and other necessary ingredients.

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

(Refused to answer)