Franchisee Experience

Below is the interview with manager Damien Chen and assistant manager of Paparich franchises. Unfortunately there are no photo of them because they said it is confidential.

What is the background of the company and its performance record?

Papparich was founded by Rich Tan (that is why the company name Rich) in 2005 with its 1^st outlet in Selayang Mall. The 1^st outlet was called Pappa Kopitiam. It is known for its table touch public relation services. For example the workers need to be politely greet the customers “Hello Welcome!”, “Anything else sir/madam?”, “Thank you! Please come again!” etc.

One of the customers were Monorail ex-owner David Cheng. He saw opportunity at the franchise and decided to partner with Rich Tan. Thus the company rename from Pappa Kopitiam to PappaRich. Now the shared changed to Rich Tan and Roti-Roti Company. The PappaRich currently have total 68 outlets and the 1^st international outlet is in Melbourne Australia.

Does the franchisor give you enough assistance in operating your business?

The PappaRich franchises been provided with kitchen, furniture, tables and chair. The design and layout arrangement being manage by the development group of PappaRich. 

How many hours, on average, do you work a week?

For Malaysian workers it is 8 hours a day and 1 hour break. For foreigner it is 11 hours of works and 1hour break. 

How often do you get a vacation?

Holidays, mostly one day once per month. Normally we will not get a vacation out of nothing. Mostly when we hit some target in profit or sales then only we have a vacation.

Does your franchisor provide ongoing training and support to you?

Yes. Before the franchisor actually did help providing training for the new workers at headquarter to make sure that all the workers are up to the standard for the franchises and be able to carry out the tasks.

If you had to do it all over again, would you purchase a franchise in this system? Why or why not?

Yes. Because I have experienced the great achievement and willing to carry on the tasks. I enjoyed working there even thought maybe transferred to other outlet.

Do you enjoy working with and managing people? Are you a “team player”?

Yes. I do enjoy working with and managing people. Because we hold on to this concept: if workers happy, staffs happy. If staffs happy, customers happy. If customers happy, boss happy.

Is the potential market for the product or service adequate to support you franchise? Will the prices you charge be in line with the market?

Because the franchise was associated with TAR College, the prices of the products would be different as well as in term of affordability. This franchise is called charity franchise because the rental lot is cheaper than the outside. Also the prices are more affordable compare to other outlets as it means to serve the college students. And there are some foods and beverages that especially available only for this franchise to suite the college student tastes. The prices are charge without the government and service taxes. That, however, we need to ask the customers to give places for others whenever there is no place in the restaurant.

Is the product or service safe and reputable?

I will say yes. Our product and services are at top notch. As we will not simply order any ingredients from any supplier for our product. We have our own specific qualified supplier and we only order from that. Also we are very concern and heavily emphasizes and the products quality and services. We do provide training first for those who wish to work with us to ensure that once they started to work, they know what they doing and will not embarrassed and spoiled the company image. 

How many years has the franchise been in operation?

For this franchise, it just open so around 1 year.

How many franchise outlets now exist? How many will there be a year from now? How many outlets are company-owned?

There are 68 outlets now exist throughout Malaysia, 1 in Melbourne Australia and going to open another in China.

How many franchises have failed? Why?

No franchises have failed. There is no valid reason for that. We just do our business at our best by serving customers and providing the best foods and beverages we can do.

What facilities and equipment are required for the franchise? Who pays for construction? If there a lease agreement?

The furniture, mainly the concept should maintain the same in every outlet to be professional. If different concept for each outlets, customers will confused and think that our franchises are not stable and not connected to each other. Normally the Development team handles this job. We will inform them what we need and they will inform the selected contractors by our company.

What is the total cost of the franchise? What are the initial capital requirements? Will the franchise provide financial assistance? Of what nature? What is the interest rate? Is the franchiser financially sound enough to fulfill all it promises?

I cannot reveal much of this but the total costs of this franchise is RM1-1.2 million. Right now it should have risen to RM1.3-1.5 million and will still rising.

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

We are not allowed to sell our franchise to third party just like that. Even if it is allow, would you sells your hard earn shares and franchise to other people? Yes we can transfer our name to third party by following the laws. Like through lawyer agreements, black and white paper etc.

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

There are radio advertising for sometimes ago about PappaRich but not this franchise. Normally it will be through Marketing team. The finances, media etc are under Marketing team to decide.

What was your greatest disappointment after getting into this business?

Greatest disappointment? No, not really. I am happy able to work in this company.

What are your biggest challenges and problem?

My biggest challenge is I need to convince my boss that I be able to double the profits this franchise can earn. The problem that I facing, this franchise facing are the colleges timetable. There will soon be study week, exam then semester break. This is quite a huge problems because we will suffer the profit loses.