FAQ - About Franchising
Everything you need to know about franchising is right here. Find quick answers to common questions regarding our brand, investment requirements, training, and the support you’ll receive as a partner.
What is Franchising?
Franchising is a method employed to quickly start a business. A potential franchisee applies for a license from a Franchisor to utilize it’s brand, design and system. By taking on a franchise, the franchisee becomes a partner of the Franchisor in terms of helping build the brand. “Franchising is a method of doing business wherein a franchisor licenses trademarks and tried and proven methods of doing business to a franchisee in exchange for a recurring payment, and usually a percentage piece of gross sales or gross profits as well as the annual fees. Various tangibles and intangibles such as national or international advertising, training.and other support services are commonly made available by thefranchisor, and may indeed be required by the franchisor, whichgenerally requires audited books,and may subject the franchisee or the outlet to periodic and surprisespot checks. Failure of such tests typically involve non-renewal orcancellation of franchise rights. A business operated under a franchise arrangement is often called a chain store, franchise outlet, or simply franchise.” (courtesy of Wikipedia )
What Franchising is not?
Franchising is not buying a business and leaving the franchisor to manage the business. Franchising requires the franchisee to fully manage the venture. Franchising does not guarantee success. Although, franchising gives the franchisee the advantage of having a reputable brand as a business, like any kind of business venture, it is not a guarantee of success. Success of any business venture is dependent on a lot of factors such as the environment, economy, management of the venture, etc. Franchising is not a quick-rich scheme. Franchising is a legitimate method of building a business and should not be considered as an “easy-money” venture.
Should I Franchise?
If you are not so well-versed in starting and operating a business, Franchising provides a good alternative to jump start your business. Franchisors have invested on their system, training and building the brand. Franchising also has the advantage of starting a business with a trusted and known brand.
Are all franchises in the market the same?
No, all Franchisors have different offerings and systems. The potential franchisee should do their own research and compare franchise providers before delving into franchising.
What should I look for in franchise?
The following list are some questions to ask a franchisor to evaluate a potential franchise.
Disclaimer: This list is not the only list to follow, but it may be used as a guideline.
- What is the track record of the company? A mature company would be a good indicator of stability and consistency.
- What are the products of the company? It is good to know the products of the company for familiarity in the market.
- How long is the market “shelf life” of the product? A good product should be able to withstand the test of time, and not just be the “flavor of the month” product.
- What kind of support can the company provide for the franchisee? A good Back-end support is very important as a good Front-end can be supported only by a good Back-End.
- What kind of investment am I to commit? Investment does not only entail money, but how much effort and time, are you willing to invest to the franchise.
- What kind of returns should I expect? This is very hard to quantify and is very subjective. In general, you can compare your leaving your money in the bank for the same period and computing how much interest you will earn, now compare that with placing your money in a business and projecting how much you can earn for the same period.
- Are there risks to getting a franchise? Yes, there are always risks in business, but with a franchise you improve the odds of success by investing in an established and trusted brand.
Why should I franchise Hen Lin?
Hen Lin has been in the business of providing good, quality food for more than 40 years. We have over 100 stores operating within the metropolis and nearby provinces. We have been awarded numerously including the Agora Award and the Entrepreneur of the Year award for excellence.
We have also invested heavily on our commisary and training facilities to ensure good, quality food consistency through out the whole chain. We are constantly improving ourselves, and are still employing new technologies to improve our business strategy.
- Established Brand with over 40 years experience
- Trusted by generations of Filipinos since 1983
- The first HACCP certified Siomai and Siopao in the Philippines
- Overall quality of product is a priority
- Customer satisfaction is top priority
- Products provide value of money for customers
- Reasonable capital investment
- Site Evaluation
- Strategic store planning
- Operation and support
- Human resources training and development
- Centralized purchasing and distribution
- Design, construction and technical support
- Opening and monitoring support
Do you provide prospective sites?
No, prospective franchisees should provide and negotiate for their prospective location. Our team will assist in evaluating the feasibility of the site before a franchise is awarded.
What should I look for in prospecting a new site?
Location, Location, Location! It can’t be emphasized, the importance of choosing a site. The location might make or break any kind of business. Although, a lot of factors go into choosing a location, in our experience, the following are some key points in choosing a location for Hen Lin:
- Condition of the mall and/or building
- Volume traffic area, pedestrian and/or vehicular
- Purchasing capacity of immediate area
- Proximity of parking spaces
- Number of parking spaces
- Leasing conditions in prospective sites
- Cleanliness of surroundings
- Accessibility by pedestrians
- Accessibility by vehicles
- Exact location within the building and/or mall
- Airconditioning conditions of the building
- Lighting conditions of the building
- Exhaust conditions of the building
- Pedestrian type in key area
In evaluating a location, it is incumbent upon the potential entrepreneur to do its own research and develop their own feasibility study.
How much is the investment to franchise a Hen Lin store?
Total investment differs for every store. We treat each store independently from each other, so it is difficult to give a single figure as total investment. If you want to know more, please contact us through our Franchise Inquiry Form.
What is the Return On Investment?
Return on investment differs for every store, as these are affected by many factors. If you want to know more, please contact us through our Franchise Inquiry Form.
Is success guaranteed by the company?
What is my participation as Franchisee?
I have a location and want to franchise, what do I do now?
Great! Write us a Letter of Intent and send it to: Franchise and Business Development
Office Address:
M&H Food Corporation
M&H Building, Dona Irenea Avenue
Sucat, Paranaque 1719
email: franchise@henlin.com
To hasten the evaluation of your application, please include the following information in your Letter of Intent
- Exact Location of prospective site
- Location map of prospective site
- A photograph of the prospective site (if possible)
- Brief description of surrounding area
- Brief overview of why you think this will be a good location for Hen Lin
- Tell us something about yourself
You may also use our online Franchise Inquiry Form.
