Franchising

Hartz Chicken Malaysia Sdn Bhd owns the Area Development Rights for Malaysia and Brunei respectively in 1994. The company started off with the first restaurant opened in 1995 at Kuching, Sarawak, the east part of Malaysia. The overwhelming of the responds leads to the opening of the second restaurant in 1996 in West Malaysia.

Hartz currently owns six restaurants, 2 in East Malaysia and 4 in West Malaysia. Due to the successful buffet concept for the past few years and even during the economy crisis from 1997 till now, Hartz buffet concept is still proven profitable and proven success in this moment of time which leads to the decision of launching the sub- franchising program for the future expansion plan for Hartz Malaysia.

The company expansion plan for Hartz Chicken Buffet is to secure more franchisee throughout Sabah, West Malaysia and Brunei.

The relationship between the franchisor and the franchisee is absolutely crucial to the success or failure of any franchised business. A similar comparison is like being married, working together towards the same goals, communicating well, learning from each other, having mutual respect, belief in the product and looking forward to the success of the future.

Franchise means owns and run your own business. The franchisee owns the hard assets, equipment, fit-out, furniture, decoration and etc. Once the franchisee is accepted, he is granted the right to use the franchisor's name, methods, recipes, training programmes, designs and the systems. On his part, he is expected to conform to certain standards, protecting the franchisor's reputation and to pay to the franchisor a percentage of sales which is called royalty.

The selection process is no doubt the most important stage in opening a successful franchise business, that is, the selection of the franchisor by the franchisee and the selection of the franchisee by the franchisor. There are some basic rules that should be followed by both the franchisor and the franchisee.

The rules for the franchisor to pick a franchisee, is to check the reference of the franchisee and whether his financial is sound. Find out about the previous business or employment record of the franchisee. Lastly to find out how the franchisee intends to manage the business e.g. himself, family members or a professional manager.

Another major benefit of opening a franchise in Malaysia is the very strong government support for both franchisors and franchisees.

Franchising is certainly a good way of getting into business and if the guidelines are followed and good legal advice is sought, then the chance of success is greatly increased.

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