Share Tea Jayaone
In
this assignment, students are required to select and research a
franchise of his/her interest. Using the franchise evaluation
checklist (Scarborough (2011) pp.205-206) as a guide, the students
will contact the franchisor and write a report on the terms and
conditions of the franchise contract. The students will also
interview an existing local franchisee of the franchise and report on
the performance and challenges faced by the franchisee. For me, I
have chosen ShareTea located at Jayaone as my research franchise.
The
business of Pearl Tea is blooming recently, like ShareTea. Share Tea
is a renowned Pearl Milk Tea brand from Taiwan which has just been
brought to Kuala Lumpur, Malaysia recently. The first ever outlet is
located in Berjaya Times Square and now it have more than 20 outlets
all over Malaysia. The outlet seems to be eye catching which is
designed in red.
Share
Tea is tea lovers and they aim to share their passion in making great
tea. Share Tea originates from Taiwan and they strongly believe in
using their heart and soul in serving only the finest quality of the
tea for customers. They monitor the production of their tea leaves
every season to ensure that the best quality and standard are met.
In
2009, Taipei was proud to have hosted its first Deaflympics Games and
indefinitely they were eager to play a good host. Being a tourism
spot with an interesting food culture, the organizing committee was
determined to embed an unforgettable experience for their guests.
Renowned Bubble Tea was among the top o the list. 666 beverage brands
vied for a spot to make its presence to the event. Share Tea
participated in its selection and was the only bubble tea brand which
surfaced to pass committee’s stringent requirement, to be named the
official bubble tea representative of Taipei, giving its title Taipei
No.1.
When
the franchisee bought this franchise, the cost is around 400,000.
However, the cost has been raised to around 500,000 now.
How
much does your franchise gross per year? How much does it net? Are
the procedures followed to make royalty payment to the franchise
burdensome?
The
franchisee refuses to answer this question.
Are
the financial projection of revenue, expenses, and profits that the
franchisor provided me accurate in your judgement?
There
are still some different but mostly it is accurate.
Does
the franchisor give you enough assistance in operating your business?
Yes,
the franchisor will provide support and assistance, like applying the
license, finding the suitable location, rental of shop, renovation of
shop and many of others.
How
many hours, an average, do you work a week?
9
hours every day including break. The working hours are divided to two
shift which is morning shift and noon shift. Morning shift is start
from 9.30 a.m. to 6.30p.m while noon shift is start from 1.30 p.m. to
10.30 p.m.
How
often do you get vacation?
There
are no vacation unless public holiday. Sometimes still need to work
on public holiday.
Have
you been caught off-guard by any unexpected costs or expectations?
No.
Does
your franchisor provide ongoing training and support to you?
Yes,
the franchisees are required to take a few month training in HQ to
learn about this franchise. Then, franchisees need to go to one of
the outlets to learn the operation of franchise.
If
you had to do it all over again, would you purchase a franchise in
this system? Why or why not?
Yes,
the franchisee will purchase franchise in this system. Franchise is a
good business that you can get guided by franchisor to run your
business.
Are
you pleased with your investment in this franchise?
Yes.
Has
the franchiser lived up to its promise?
Yes,
everything is work as what the franchiser promise and the franchise
running smooth.
What
was your greatest disappointment after getting into this business?
The
cost is too high even though it was still lower than other franchise
brand like Chattime. Also, there are some limitation in their
contract (franchisee doesn’t mentioned what is it).
How
effective was the training you received in helping you run the
franchise?
The
training are effective as the franchisor provided the solutions for
different problem the franchisee could face when running the
franchise. It also allowed the franchisee to know the operation of
the franchise so that the franchisees are more professional when
running his/her own franchise.
What
are your biggest challenges and problem?
Sometimes
the franchisee encounter problem in running this franchise. Since the
materials are imported from Taiwan, they have some problem with stock
delivery when Taiwan was in stormy weather.
What
is you franchise cash flow like?
The
franchisee refuses to answer this question.
How
much money are you making on your investment?
The
franchisee refuses to answer this question.
What
do you like most being a franchisee? Least?
Everything
are guided by franchisor including support and assistant.
Is
there a franchisee advisory council that represent franchisees?
No.
Knowing
what you know would you buy this franchise again?
Yes.