Vol: 15/2014
FRANCHISING • LICENSING • PATENT • INDUSTRIAL DESIGN • COPYRIGHT • TRADEMARK • BRANDING
Bad Times Turned Good For Gold ChoiceFranChisinG – A Great Method for Business Expansion. But Do It Wisely.
2 IPeople News • Vol: 15
At Intellect Group, we are always trying to be better, be it in the services that we offer or the additional value-added items that we could deliver. With this viewpoint, we have decided to give our newsletter a new facelift.
Thematic, compact and informative - these were in our minds when we thought about the changes that we want to implement in this and we hope that we have delivered them in this issue and will continue to do so in all the upcoming issues.
We hope that you will enjoy reading this Franchising & Licensing-focused issue. Our next issue will be on Patent & Industrial Design so look out for that!
Warm wishes from the Editorial Team.
Center Stage
Editor’s Note
2 IPeople News • Vol: 15
During the 1997 Asian financial crisis, many businesses either struggled to stay above deep water or went up in smoke. But then there were some that came out from it triumphantly and Gold
Choice Food Industries Sdn Bhd was one of the fortunate ones.
Brother-in-laws, Dr Wincent Cheah and Walter Lim started this food and beverage manufacturing business in 1994 in Bukit Tengah, Penang. They have since relocated their operation base twice and have since settled in Bukit Minyak.
Things were not always rosy for instant beverage manufacturer Gold Choice. Dr Wincent shared that when they started the business, there were
Bad Times Turned Good ForGold Choice
“To improve is to change; to be perfect is to change often.” - Wise words from Sir Winston Churchill.
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competitions, although not as many as now. They did struggle to make their mark but they kept their levels of persistence and determination high. “We saw the potential in this business. We understood that there would be more people who would want convenience in their life…and our products cater to that need,” said Dr Wincent.
The year 1997 was a turning point for Gold Choice. At that time when many companies were shutting down or keeping their expenses at a minimum, Dr Wincent and Walter decided that they were going to try to come up with a new product that could change their business and change they certainly did. That was when they created their signature Instant Chlorella Cereal.
“It was in line with the idea in our heads, that people would want something that is quick and easy to prepare. Plus, this cereal was going to be nutritious so it should definitely be an added selling point!” enthused Dr Wincent.
Having created a new product which they thought could be a hit amongst their target market, they knew they still needed to promote it actively. So they wasted no time in devising their advertising and promotional activities and launched them as soon as they were ready. Dr Wincent added, “We knew that we had a good product and we wanted to make sure our customers know it too, so we didn’t mind setting up more promotional counters or hiring more part-time promoters to be at the supermarkets to generate more
awareness and to really push our Instant Chlorella Cereal.”
Dr Wincent also shared that at that time, they only had a total of three machines and very few workers. But when the demands poured in, they sought for additional help, even from their own family members and they worked until the wee hours in the morning in order to fulfill their orders. Dr Wincent attributed the success of the new product launch to “good timing” and he also admitted that he believes that no company or person can truly grow without going through any hardships.
Today, besides the popular Instant Chlorella Cereal, they have nearly 20 products under the Gold Choice brand such as Nutra 8 Instant Cereal with Apple, Instant Coarse Rice with Lecithin, 3 in 1 Instant Coffee Mix, Instant Ginseng Coffee, Instant While Coffee Cappuccino and Instant Honey Ginger Tea, among others. These products are sold both locally and internationally. Gold Choice is an ISO, HACCP and Halal-certified company and it has also been accredited with numerous industry-relevant awards.
The team at Gold Choice is continuously involved in research and development activities as it is committed in delivering satisfaction to its clients. Dr Wincent shared that the relevant team members and himself are constantly travelling as these trips enable them to understand the cultures, laws and regulations of the countries where Gold Choice exports or are planning to export to.
“Sometimes, we also make trips just to visit our distributors or associates because we find that maintaining a good relationship with these external stakeholders are also instrumental to the growth and success of our company,” added Dr Wincent.
Having risen from a humble beginning, Gold Choice is now one of the leading brands in the instant beverage and cereal industry in the country and surely shows no signs of slowing down in its quest to providing “wholesome and flavourful beverages” to its customers and expanding its international markets.
One of the company’s expansion plans has always been to start a café chain. As it has been manufacturing the products and then retailing them, starting a café chain was an obvious choice. Not only will the Gold
4 IPeople News • Vol: 15
Choice products be tried and tested by a larger target audience, the Gold Choice brand name will reach a wider network, creating more brand awareness.
However, Gold Choice did not want to set up just another regular café chain. It wanted to operate a chain that serves premium gourmet coffee and a chain which intends to educate the coffee drinkers – both at the same time. With the passion that Dr Wincent and his team share for coffee, the Gold Choice Barista Café came to fruition in 2013. He hopes that his first Café that is
LICENSEES WANTEDGold Choice Barista Café is looking for more partners who are interested to be part of its expansion programme. For more information, please contact their business development team at [email protected].
located in Penang Times Square will be the first that can satisfy the coffee aficionados’ coffee craving of the gourmet coffee and at the same time, serve as an academy that offers professional barista training courses to those who are interested to learn about the art of preparing coffee – either as a personal interest or with a business objective in mind.
At Gold Choice Barista Café, customers will be able to have a wide range of gourmet coffee beverages to choose from – from espresso to cappuccino, latte
to ice blended drinks and milk shakes to smoothies. Those who are interested in the training courses will be pleased to know that they will be taught by baristas who are certified by TAFE NSW (Australia’s largest vocational education and training provider).
The courses that are currently available at Gold Choice Barista Café are:• BasicBaristaCourse• ProfessionalBaristaCourse• BasicLatteArtCourse• AdvancedLatteArtCourse• CaféManagement• CoffeeRoastingCourse
If you are in Penang then do drop by at the Gold Choice Barista Café for a cup of joe during your next social gathering with your friends. Or if you are more in favour of taking a course then drop by at the Café as well for more information. Nevertheless, if coffee is not your kind of drink then you will also be able to purchase other Gold Choice-manufactured instant beverages at major supermarkets around Malaysia. Do try them out!
5IPeople News • Vol: 15
Most of us would agree that
among all the business
strategies for expansion, franchising
is one of the most effective and
popular choices, especially in the
food and beverage (F&B) industry.
Such a business expansion method
has been proven successful by
both local and international brands
alike, namely McDonald’s, Subway,
OldTown White Coffee and Bangi
Kopitiam. The F&B industry and
franchising have always had a close
connection because this particular
industry has the most number of
franchises across the globe.
Entrepreneurs who wish to step into
franchising must understand and be
willing to adopt a new mindset or
approach – that it will never be the
as how they used to operate their
business. Entering into the world of
franchising is a double-edged sword,
full of great opportunities yet threats
lie ahead. In order to be successful
and to be able to have the staying
power in your franchise business, we
would advise you to keep these 10
franchising pillars in mind.
Pillar 3: Business Concept If the business concept is to be an outlet where patrons could chill and chat then its interior design and menu mix should be done right, to truly create that environment. F&B entrepreneurs need to always be able to deliver their concept rightly and have the ability to adapt to the ever-changing market demand.
Pillar 4: Franchise SystemFranchising is basically leveraging on the power of duplication hence in order for the business expansion to grow successfully, it must possess a solid franchise system. Without a strong foundation, it will be near impossible to grow. A franchise system may be complex but it should not be too complex to the extent that it makes it difficult for all its franchisees to run their outlets smoothly.
FranChisinG – A Great Method for Business Expansion. But Do It Wisely.
Tips & Guidance
Pillar 1: LegalitiesA great franchise system needs to be able to be executed within the confinement of the law. In Malaysia it will be very relevant as we are among the only three countries in the world with a Franchise Act. Hence proper franchise agreements which consist of all the terms related to the collaboration between the franchisor and franchisee and all the other relevant legalities issues should be documented.
Pillar 2: Unique Selling PropositionAn F&B entrepreneur needs to ask himself this question – What is SO special about his product or service? It could be his secret recipe, system, advertising efforts, etc. There must be a strong and distinctive USP in order for your business to truly stand out from the rest.
6 IPeople News • Vol: 15
Highlights
Pillar 5: Accounts & FinanceMany F&B-related businesses failed due to accounting issues and franchising is no different in this manner. Entrepreneurs will need to do costing and projection of sales revenue versus overheads, while considering their own margin as franchisor and the margin of its franchisee in order for the whole franchise chain to operate with profits. In any F&B franchise business, food wastages, pilfering and poor managing of stocks could be some of the major factors contributing to their downfall if they are not managed effectively.
Pillar 6: Management TeamNo matter how great the franchise system is, it still needs to be operated and executed by people. Even if the franchise system may not be very good at the beginning, as long as the right people are there in the system, eventually the system will be improved and successful. Many successful F&B franchises are being lead by competent leaders and followed by people with a passion towards their jobs.
Pillar 7: InnovationDid you ever notice that successful F&B franchises always bring a wave of fresh
new dining experiences in their outlets? This is because the franchise business owner understands the importance of staying relevant in the market. Research and development of the product mix, technologies, know-hows, ambience of the outlet and marketing campaign need to be done periodically. Without innovations, these businesses are at risk of being eliminated by the competition eventually.
Pillar 8: Support InfrastructureMany franchise businesses failed because the franchisees had very little support from their franchisors. With the intention of branching out, the entire programme needs to be planned properly – considerations about franchisees must not be compromised. No matter where the franchisees are at – locally or internationally, no matter what problems they have – from machine breakdowns to insufficient raw supplies, a franchisor must be able to provide continuous support and assistance. Pillar 9: MarketingThe difference between an F&B franchise business and a conventional business in the eyes of the consumers lies in their
marketing efforts. A franchise business needs to leverage on its strength in number of outlets. So a good investment for a franchise business would be on branding and marketing efforts. Failure to incorporate these activities will affect the business negatively.
Pillar 10: Relationship ManagementThis is one pillar with the utmost importance, in order for the rest of the pillars to be executed effectively and smoothly. Managing relationships has three phases – (i) manage the franchisor’s own internal
management team; (ii) manage the relationship between
the franchisor and its franchisees; and
(iii) manage the relationship with the customers.
Therefore, whether you are thinking about expanding your business through a franchise method or you already have a franchise business that is in operation, do remember to take the aforementioned 10 pillars into consideration and/or put them into practice to ensure your business is a smooth-flowing one. Good luck!
Pns appoints intellect for another Franchising Project
Intellect Franchising is a panel consultant of Perbadanan Nasional Berhad (PNS) which is an agency owned by the Ministry of Finance Incorporated (MOF Inc.) with the mandate to lead the development of Malaysia’s franchise industry.
One of its many initiatives includes the Franchisor Financing Scheme, whereby PNS will identify local Bumiputera entrepreneurs who have a business which can be developed through the franchise system. PNS will then appoint the most suitable
exports them to our neighbouring countries. It also offers an extensive range of healthy natural products from the Middle Eastern, Western European and Asian countries.
Determined to replicate its business concept globally by establishing its outlets in strategic locations, SAG intends to do so by way of franchising. Therefore, Intellect Franchising will ensure that the franchise system of SAG will be designed to the best it can possibly be.
panel consultant to assist the selected entrepreneur in the process of becoming a Franchisor – right from registration to become a Franchisor up until the development of a holistic franchise ecosystem.
For this year, Intellect Franchising was given the honour to assist Syarikat Abdul Gaffar (SAG) under this particular scheme. SAG was founded by M. Abdul Ghaffar in 1940. The company today distributes imported dates, nuts, dried fruits, spices and herbs to local retailers as well as
7IPeople News • Vol: 15
Do you feel choked, suffocated and restless?
Do you feel that your business establishment can do better?
Do you feel that your competitors are catching up fast but you are unsure about how you could push your business further?
If one or all of the above resonate with you then it is a sure sign that you need to take a moment and reassess the direction of your business.
After all the time and effort that you have put into your business, would you not want to know where your business is actually heading towards or should be heading towards? Well, fret not as we at Intellect Franchising is here to help. We are able to provide a detailed evaluation of your esteemed organisation and recommend you with the most suitable business expansion programme.
Allow us to lighten the load on your shoulder. Call us for more information.
are You a registered Franchisor? In accordance with Section 54(1) of the Franchise Act (Amendment) 2012 of Malaysia, it is stated that ‘A foreign person who intends to sell a franchise in Malaysia or to any Malaysian citizen shall submit an application to the Registrar.’ This franchise registration must be made with the Ministry of Domestic Trade, Co-Operatives and Consumerism (MDTCC). Without the Ministry’s approval, the offender will be fined up to a maximum of RM500,000 and/or jailed up to a maximum of three years.
So, if you are operating a foreign franchise that has not been registered or if you know of a foreigner who is considering selling his franchise business in Malaysia, please take heed of the aforementioned and do the necessary. Please do not hesitate to contact us should you need any further clarification.
Pre-screening service
More Expansion Plans for Our Others Clients!Intellect Franchising is currently spearheading the expansion programme for both Sushi King and Fuel Shack. Sushi King, the pioneer of Japanese casual dining restaurant in Malaysia will make a major shift with its already successful expansion in order to bring its business to greater heights. Meanwhile, Fuel Shack will be leveraging on the growth in the food and beverage industry in order to fill the gap in the high-end fast food category that is fast making a comeback.
Sushi King was established in 1995 and this brand was the first to introduce the ‘Kaiten Sushi’- style dining in Malaysia. Nearly two decades later, there are now more than 80 outlets throughout the whole of Malaysia. This Japanese chain outlet has successfully revolutionized the typical Japanese dining experience to become a more casual and family-friendly concept restaurant that offers delectable Japanese cuisine at affordable prices.
Fuel Shack has a mission to blend both ‘fast’ and ‘good’ food under one roof as it would like to change the perception that many food lovers have – that fast food simply cannot be good food. In actuality, Fuel Shack uses only 100% grass-fed Australian beef and lamb in every of their burgers and they are complemented with the freshest ingredients. It currently has six outlets across Kuala Lumpur, Putrajaya and Johor and more are being set up.
Franchise/license for sale Calling all franchisors and licensors, are you looking for more franchisees and licensees? If yes, let us know as we can help you to look for them.
Please call or email us. Let’s talk!
Meanwhile, we also have an overseas brokerage programme and we currently have two Singaporean fashion companies that are looking for potential partners in Malaysia to set up their franchises here. Experienced or aspiring entrepreneurs who want to run a business in the exciting fashion industry may want to continue reading the two profiles below and if you are interested then please do not hesitate to contact us for more details.
Blum & Co started its business in 1992 with the objective
of satisfying the fashion needs of successful and professional women who are in the corporate world. This company strives to produce clothing that are of quality, comfortable and easy-to-care. The team at Blum & Co is always keeping up with the trends and producing garments that are made with imported fabric from Korea, Japan and Europe.
Perllini was founded in 1994 and the brand could be found in
major departmental stores in Singapore. Six years later, Perllini joined forces with Mel and that was how the brand Perllini & Mel came about. With talents from both sides, the team has been able to create and design a wide variety of apparels, bags and fashion accessories that are highly coveted. The brand can also be found in Thailand and Fiji, among others.
8 IPeople News • Vol: 15
arEa OF PraCtiCEstrade Mark (Domestic & International)• Search• Application• Registration• Objection&Opposition• Infringement&LitigationSupport• Negotiation&Cancellation• Assignment• Audit
Copyright (Domestic & International)• Documentation• VoluntaryNotificationofCopyright• Infringement&LitigationSupport
Patent (Domestic & International)• NoveltySearch,TechnicalReview,
Specification Drafting, Application & Grant of Patent
• InfringementEvaluation,Proposal&Litigation Support
• Assignment• PatentCommercialization&
Monetization• InnovationTraining
industrial Design (Domestic & International)• NoveltySearch,Application,
Registration & Maintenance of Industrial Design
• InfringementEvaluation,Proposal&Litigation Support
• RecordofTransfers• IndustrialDesignCommercialization&
Monetization• InnovationTraining
Franchising • Local/InternationalFranchise
Registration• FranchiseDevelopment• Local/InternationalFranchise
Expansion• FranchiseDocumentation• FranchiseCoachingandSupport• FranchiseSystemStrategicPlanning• FranchiseManagementTraining&
Assistance• FranchiseReadinessAudit• FranchiseBrokerage• FranchiseAgreement
licensing• Upgrading/RestructuringtoFranchising• LicenseCoaching&Training• MaintenanceandDocumentReview
Support for Continuous Improvement of License System
• LicensingAgreement
Business & Management• IPAudit• IPManagement• IPValuation• BusinessMigration• AwardApplication• MediaBuying
© 2014 Intellect Group of IP CompaniesNote: This newsletter is for internal circulation only. All graphics or photos used are for illustration purposes.
Disclaimer The information provided in this newsletter is to be used only to educate consumers on Intellectual Property and its related areas that may be useful in your daily business operations. Nothing contained in this newsletter is or should be used as a substitute for any professional advice related to this field. We disclaim any and all responsibility for decisions made or actions taken based on the information contained in this newsletter. The information contained in this newsletter is provided by the authors of the information and constitutes their opinions and ideas. Intellect does not guarantee any information, products, services or knowledge discussed in this newsletter. All photos, graphics, icons and pictures contained in the newsletter are for illustration purposes and belong rightfully to its owner.
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