Question about franchiser and franchise

Seven Seas Delight + Soup



Sandy Beach Bars Rice + Soup, Asam Laksa, Loving Hut Ice-cream

1) Is the product or service safe and reputable?  

All Loving Huts are 100% vegan, natural, healthy, kind and green. The cuisines of the Loving Huts are made with fresh and wholesome vegan ingredients which are low in calories and free of monosodium glutamate. The company uses premium ingredients such as blown sugar, olive oil, sea salt, blown sugar, herbal spices, and a good quality of soy sauce. For example, Loving Hut purchases the soy sauce in term of a jar but not in a barrel. Thus, all the material of the foods is in high quality at the Loving Hut. Besides, most of the foods are organic even an ice-cream is also organic. An ice-cream of the Loving Hut is made by themselves using an organic soybean. The cuisine of the company is very healthy as the vegetarian meat is seldom sold in Loving Hut and they make it using source like bean instead. In addition, the soup of the shop also does not contain any monosodium glutamate but using Madou instead. 

2) Is the franchise international, national, regional, or local in scope? Does it involve full- or part-time involvement? How many franchise outlets now exist? How many will there be a year from now?

Loving Hut franchise is international in scope. Loving Hut involves full-time involvement as it needs to pass full responsibility to the franchiser. The first Living Hut is established in Taipei on 28 April 2008 by Supreme Master Ching Hai as she is being inspired by the urgency of global warming issues. Nowadays, there are more than 241 Loving Hut restaurants in 32 countries around the world such as China, USA, Taiwan, Japan, Vietnam, Hong Kong, Korea, Singapore and others, there still have other branches will be opening in many locations globally. Loving Hut opened on 12 December 2012 and has operated almost 4 years in Puchong.  

3) 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 franchiser offer ongoing assistance and training?

Franchisor will provide the concept of setting up the shop and how to set up the cuisine with healthy, organic and good quality. For example, the soup can use Madou instead of monosodium glutamate. The concept of setting up the shop is about go greening concept to avoid global warming issue, this is the main reason of the Loving Hut become one of the fastest growing international vegan fast food chains in the world. Besides, all decoration of the restaurant must fit their image standards with paintings, lanterns and crap which is similar with the franchisor. Franchisor provide Supreme Master Television channel and distribute DVDs about global warming, flyers, and to share different kinds of vegan food to the franchise to help advertisement. Franchisor will train the franchisee use heart and love the serve the customer and instill that do not waste food. Franchisor will encourage franchisee to eat vegan, use enzymes, and do not waste food. Franchisor will offer ongoing assistance and training through the Malaysian Vegetarian Society. 

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

Franchisee sets up the franchise by joining the Malaysian Vegetarian Society and gets approval from the franchisor. Each franchise is operating independently across the world. So, there are no franchisee fees, loyalty fees, and revenue sharing arrangements between the franchisee and franchiser. However, all decoration of the restaurant must fit their image standards with paintings, lanterns and crap which are similar with the decoration of the franchiser and it is a revenue generator for the owner. Each of the restaurants has its own unique menu, but it is recommended to purchase franchiser owner’s food products that are made in Taiwan. This is a large source of revenue and the main source as restaurants burn though processed food supplies. Thus, there are no confining fees and other fees require setting up a franchise.

5) Is there a national advertising program? How is it financed? What media are used? What help is provided for local advertising?
Loving Hut has its own television channel which is Supreme Master Television. It is own by the owner of the Loving Hut whom is Supreme Master Ching Hai. Supreme Master Television is international and non-profit channels that encourage and promote green living, healthy and peaceful. Supreme Master Television is broadcasting on 14 satellite platforms and over 90 cable and IPTV networks that in more than 60 languages. Franchisor and Malaysian Vegetarian Society will also distribute DVDs about global warming, flyers, and to share different kinds of vegan food to help advertisement. 

6) 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?

The potential market for the cuisines of the Loving Hut is adequate to support the Loving Hut franchise. Nowadays, people would like to go trend of healthy and organic foods in order to keep fit, away from the disease and stand healthy. Some of the people may pursue green issue and willing to solve and reduce global warming.  Besides, an increase of number of vegetarians also increases the vegan market. The prices charge does not line with the market but lower than the market price. Most of the people thought that the price charge of Loving Hut is expensive as their standard, high quality and organic. However, the prices charge of the Loving Hut is set below the market price of others. This is because vegan cuisine is one of the fastest ways to solving global warming and can show compassion for all lives, in order to lest everyone can enjoy it, it must be affordable to easily available to everyone in different parts of the world. The prices charge of the Loving Hut is not only affordable but the price also cheaper than animal-derived products. 

Kitchen of Loving Hut at Puchong 

7) 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?

The cost of purchase of the raw material is about 30% of the sales revenue per month. The company has 10 employees includes waitress, dishwasher, chef and assistant chef. The cost of salaries is quick highly than other restaurant because Loving Hut only just hire local employee and does not hire labor from foreign countries in order to avoiding communication problems with the customers and embodied the vegan culture. It also provides EPF and SOCSO for the benefit of the employees. The fee of water and electricity is about few thousand per month. The kitchen of the Loving Hut even has 2 sets of air-conditioner in order to keep the temperature of the kitchen. Because of manager would like to reserve the secret business of the company, so the total cost and initial capital of the franchise cannot get the appropriate answer. Franchisor does not provide financial assistance because it would let franchisee to operate independently.  

8) 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?

The length of the franchise agreement is not limited because each franchisee is operating independently. It can be terminated at any time and bear the costs itself.  

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

It is allowed to sell franchise to a third party but need to seek approval from the franchisor. Besides, the third party must join the member of the Malaysia Vegetarian Society in order to get the right of operating the franchise.