I conducted an interview session with Mr Azrul who is the franchisee of Snowflake, TAR UC. I would like to express my deepest gratitude for his time.
Interview Session with Mr Azrul (FRANCHISEE)
Me : How much does your franchise gross per year? How much does it net?
Mr Azrul : It would be RM100,000 to 120,000 of net gross per year
Me : What will be the competition, direct or indirect, be in your sales territory? Do any other franchisees operate this general area?
Mr Azrul : There is less competition in this area as it opens in a college and there are no similar food sold in this area. However, we do sell bubble milk tea drink which is indirectly affect the stall opposite ours which is “Each a Cup”. Generally, they are selling fruit teas and bubble milk teas too.
Me : How many years has the franchise been in operation? Does it have a sound reputation for honest dealings with franchisees?
Mr Azrul: This franchise has been operated for more than 7 months. As this company “Snowflake” has good reputation in business, I am confident with the company about the agreement dealings between franchisors and franchisees.
Me : Will the franchisor offer you exclusive distribution rights for the length of agreement, or may it sell to other franchisees in this area?
Mr Azrul : There must be at least 10 kilometers away from one franchise to another.
Me : What is the total cost of this franchise? What are the initial capital requirements?
Mr Azrul : This franchise cost RM300,000. One of the basic requirements are the franchisee must have at least RM300,000 in his or her bank account. Franchisees must also undergo a training programme before it is approved to be sold to them.
Me : Does franchisor provides an estimate of expenses and income? Are they reasonable for your particular area?
Mr Azrul : There will be around RM20,000 for stock buying monthly and one month, there will be an estimated income of RM55,000 per month, approximately RM1,200 per day.
Me : Are you allowed to sell your franchise to a third party? Does the franchisor reserve the rights to approve the buyer?
Mr Azrul : The franchisor has the right to approve the buyer and they will have to make a new agreement between the new franchisee and franchisor.
Me : Is there a national advertising program? How is it financed? What media are used? Mr Azrul : Usually the Headquarters (HQ) will do the advertising in Youtube, TV Commercial or Facebook. They have their own marketing and advertising department.
Me : Do you enjoy working with and managing people? Are you a “team player”?
Mr Azrul : Ya, I enjoy working with people. I do not sit and act like a huge boss. In fact, you can see me become the cashier at times, and sometimes at the back of the kitchen, making snowflake for my customers.
Me : How does the franchise handle complaints from and disputes with franchisees? How well has the system worked?
Mr Azrul : There are some direct complaints to the Headquarters (HQ) and if they receive often complaints from customers, the franchisee will be given a penalty and the franchise might be taken back.
Me : Are you pleased with your investment in this franchise?
Mr Azrul : Yes, definitely. At first there might be a huge amount that is needed to buy a franchise. However, it is worth it that the business is now running very smoothly.
Me : How effective was the training you received in helping you run a franchise?
Mr Azrul : I learnt how to manage and operate this business well and with a team of workers here I have made Snowflake a very successful franchise.
Me : How many franchise have you failed?
Mr Azrul : This is my first franchise
Me : What was your greatest disappointment after getting into this business
Mr Azrul: So far, I do not find any disappointments yet. My employees are good and helpful, and the business could run very smoothly.
Me : Does your franchisor provide ongoing training and support to you?
Mr Azrul : There will always be training to update and once in a few months there will be meeting as well.
Me : Is the market’s population growing, remaining static, or shrinking?
Mr Azrul : Based on the company annual statistics, surprisingly the market’s population for Snowflake is increasing gradually. Maybe because of the originality and taste of the dessert that is famous among Malaysians
Me : What are your biggest challenges and problems?
Mr Azrul : The biggest challenge is about the Halal certificate. Snowflake is 100% halal. However, there are some Malays that are confused because they did not get to see the halal logo and certificate at our franchise. It is hard for Snowflake companies to apply for a halal license although it is a Malaysian brand, it was originated from a Taiwanese businessman.
Me : What do you like most about being a franchisee?
Mr Azrul : I found that being a franchisee of Snowflake is a good way to invest and it is easy to manage.
Me : Knowing what you know now, would you buy this franchisee again?
Mr Azrul : Definitely. If there is a strategic location with a lot of Chinese people, I will definitely go for it. This is because I found that most of the people buying Snowflake are Chinese.
Me : Can you tolerate the financial risk? Would business failure wipe you out financially?
Mr Azrul : There is definitely risks in business, whether high or low. But I do not give up easily. Although this is my first franchise, I am always ready to accept failure.
Interview Session with Mr Azrul (FRANCHISEE)
Me : How much does your franchise gross per year? How much does it net?
Mr Azrul : It would be RM100,000 to 120,000 of net gross per year
Me : What will be the competition, direct or indirect, be in your sales territory? Do any other franchisees operate this general area?
Mr Azrul : There is less competition in this area as it opens in a college and there are no similar food sold in this area. However, we do sell bubble milk tea drink which is indirectly affect the stall opposite ours which is “Each a Cup”. Generally, they are selling fruit teas and bubble milk teas too.
Me : How many years has the franchise been in operation? Does it have a sound reputation for honest dealings with franchisees?
Mr Azrul: This franchise has been operated for more than 7 months. As this company “Snowflake” has good reputation in business, I am confident with the company about the agreement dealings between franchisors and franchisees.
Me : Will the franchisor offer you exclusive distribution rights for the length of agreement, or may it sell to other franchisees in this area?
Mr Azrul : There must be at least 10 kilometers away from one franchise to another.
Me : What is the total cost of this franchise? What are the initial capital requirements?
Mr Azrul : This franchise cost RM300,000. One of the basic requirements are the franchisee must have at least RM300,000 in his or her bank account. Franchisees must also undergo a training programme before it is approved to be sold to them.
Me : Does franchisor provides an estimate of expenses and income? Are they reasonable for your particular area?
Mr Azrul : There will be around RM20,000 for stock buying monthly and one month, there will be an estimated income of RM55,000 per month, approximately RM1,200 per day.
Me : Are you allowed to sell your franchise to a third party? Does the franchisor reserve the rights to approve the buyer?
Mr Azrul : The franchisor has the right to approve the buyer and they will have to make a new agreement between the new franchisee and franchisor.
Me : Is there a national advertising program? How is it financed? What media are used? Mr Azrul : Usually the Headquarters (HQ) will do the advertising in Youtube, TV Commercial or Facebook. They have their own marketing and advertising department.
Me : Do you enjoy working with and managing people? Are you a “team player”?
Mr Azrul : Ya, I enjoy working with people. I do not sit and act like a huge boss. In fact, you can see me become the cashier at times, and sometimes at the back of the kitchen, making snowflake for my customers.
Me : How does the franchise handle complaints from and disputes with franchisees? How well has the system worked?
Mr Azrul : There are some direct complaints to the Headquarters (HQ) and if they receive often complaints from customers, the franchisee will be given a penalty and the franchise might be taken back.
Me : Are you pleased with your investment in this franchise?
Mr Azrul : Yes, definitely. At first there might be a huge amount that is needed to buy a franchise. However, it is worth it that the business is now running very smoothly.
Me : How effective was the training you received in helping you run a franchise?
Mr Azrul : I learnt how to manage and operate this business well and with a team of workers here I have made Snowflake a very successful franchise.
Me : How many franchise have you failed?
Mr Azrul : This is my first franchise
Me : What was your greatest disappointment after getting into this business
Mr Azrul: So far, I do not find any disappointments yet. My employees are good and helpful, and the business could run very smoothly.
Me : Does your franchisor provide ongoing training and support to you?
Mr Azrul : There will always be training to update and once in a few months there will be meeting as well.
Me : Is the market’s population growing, remaining static, or shrinking?
Mr Azrul : Based on the company annual statistics, surprisingly the market’s population for Snowflake is increasing gradually. Maybe because of the originality and taste of the dessert that is famous among Malaysians
Me : What are your biggest challenges and problems?
Mr Azrul : The biggest challenge is about the Halal certificate. Snowflake is 100% halal. However, there are some Malays that are confused because they did not get to see the halal logo and certificate at our franchise. It is hard for Snowflake companies to apply for a halal license although it is a Malaysian brand, it was originated from a Taiwanese businessman.
Me : What do you like most about being a franchisee?
Mr Azrul : I found that being a franchisee of Snowflake is a good way to invest and it is easy to manage.
Me : Knowing what you know now, would you buy this franchisee again?
Mr Azrul : Definitely. If there is a strategic location with a lot of Chinese people, I will definitely go for it. This is because I found that most of the people buying Snowflake are Chinese.
Me : Can you tolerate the financial risk? Would business failure wipe you out financially?
Mr Azrul : There is definitely risks in business, whether high or low. But I do not give up easily. Although this is my first franchise, I am always ready to accept failure.
