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How much does it cost to set-up a GTC franchise outlet?

It costs approximately RM250,000-RM300,000 including stock, renovation, franchise fee, equipment and some up-front payment.

What will be the size of the franchise outlet with the above amount of investment?

Approximately 1000 sq. ft. The cost of investment will vary subject to the size of the shop lot. Generally, 1000-2000 sq. ft. is the average size of a GTC retail outlet.

How much is the Franchise Fee charge by GTC? How long is it for and when do we have to pay the Franchise Fee?

GTC’s Franchise Fee is RM50,000 for 5 years. The Franchisee will have to pay the RM50,000 Franchise Fee upon signing the Franchise Offer Letter.

Are there any other fees other than the Franchise Fee? How much is GTC’s Royalty Fee? Is there any advertisement cost involve?

In general, Franchisors will charge a Royalty Fee and Advertising Fee for the on-going services provided by the Franchisor. The Franchise Royalty Fee is 4% of monthly sales turnover and Advertising Fee is 1% of monthly fee gross sales turnover. Payment is to be made by the 7th of each month.

What type of services are included in the 4% Royalty Fee?

The Royalty Fee includes services below:-
–    Long-term management and information services
–    Regular visits and supervision by the management team
–    Regular research and development
–    Provision of new products and market information
–    Product and operations training
–    Improvement in management system and operation handbook

What type of help will the Franchisee be getting during the preparation period?

The franchisee will be able to enjoy benefits / assistance as below :-
–    Market study and site selection assistance
–    Corporate image package
–    Initial training (2 days + 12 days)
–    Shop design and layout
–    Setting-up support
–    Loan of operation manual
–    Financial projection assistance
–    Assistance in opening ceremony
–    Management and operation advisory advice

Must the franchisee take 100% stock supply from GTC? What if there are unsold stocks? Are they allowed to be returned?

In order to maintain GTC’s standard image, all Franchisee are only allowed to sell products supplied by the Franchisor.

Must the Franchisee follow fixed quantity for ordering by the Franchisor?

Whenever there is new arrival of products, the Franchisor will distribute the goods to all outlets according to the market demand and sales volume of the individual outlet. Quantity allocated will be kept minimum. For repeat orders, there are certain quantity and volume standards to be followed to minimize the transportation cost.

What is the stock level for each Franchise outlet?

It will be sufficient for about 1-2 months’ turnover.

What will be the payment term for ordering of goods from GTC?

We practice Cash on Delivery (COD).

Other than products, what other aspects on management does Franchisee need to follow?

Basically, the Franchisee will have to operate in accordance to the Franchise Agreement including the sale of product, computer systems and operation guidelines. The staffs are also required to wear the same uniforms and deliver same services to the customers.

Does the Franchisee need to register a new company to operate a Franchise outlet? What type of company will be suitable?

Yes, Franchisee will have to register a new company to enter into agreement with the Franchisor and run the Franchise outlet. It can either be a Sdn Bhd or Sole Proprietorship.

Is the Franchisee allowed to sell or transfer the franchise outlet to a third party before the contract ends?

Under special circumstances, the Franchisee is allowed to transfer / sell the franchise outlet to others with the approval of the Franchisor. However, the buyer will have to be interviewed and approved by GTC. GTC will have the first option to take over the franchise outlet.

Will the Franchisee be assisted in terms of financial support?

No, Franchisor will not provide financial assistance. However, GTC will assist the Franchisee in terms of application of loans if, the application of the GTC Franchisee is approved.

Does the Franchisee need to register a new company to operate a Franchise outlet? What type of company will be suitable?

Franchise outlet’s location could either be proposed by the Franchisee or Franchisor but the location has to be mutually agreed by both parties. The Franchisee will be assisted in terms of market study and site selection.

Who pays for my initial training? Are there additional charges for trainings?

The Franchisor will be providing 2 days + 12 days initial training to the Franchisee prior to the opening of their new outlet in Malaysia. The initial training will be free of charge and each Franchisee is allowed to send up to 3 persons to attend the training, i.e.; Franchisee, designated manager and 2 assistants for the outlet. After opening of the outlet, the Franchisor will also be providing refresher training courses for the Franchisee to understand and gain new ofproducts and operation systems. Every year, 2 refresher training courses will be provided by the Franchisor without any charges. Transportation, accommodation and meals will be borne by the Franchisee. Should the Franchisee request to replicate the same lesson or training.