How to Franchise My Business in Singapore
- Make Up Your Mind Do you want to franchise or not? ...
- Adhere to All Local Regulatory Law Associated with Running a Franchise System Make sure that your franchising agreement adheres to all relevant local regulatory law to ensure its validity. ...
- Similar Articles The Importance of Franchise Marketing ...
- Protection Against Legal Responsibility for Errors or Actions of Franchisees ...
- Protect Your Intellectual Property ...
Full Answer
Is franchising a business profitable in Singapore?
If you are looking to start a business in Singapore, then franchising is a highly viable way to go. Franchises offer huge benefits that can boost your chances of success, such as brand name recognition and support from an established parent company.
How does franchise work in Singapore?
A franchising agreement enables the franchisee to use an existing business' brand, trademarks, and other tricks of the trade in order to market their products and services. In exchange, the franchisee has to pay a franchise fee, as well as a cut of sales to the original franchiser in royalties.
Can you start a franchise with 20k?
Franchises that can be started for $20,000 or less can be found in a wide array of industries, including: Administrative support. Children's. Cleaning.
How much money do you need to franchise a business?
Franchise startup costs can be as low as $10,000 or as high as $5 million, with the majority falling somewhere between $100,000 and $300,000. The price all depends on the industry, location and type of franchise.
Is owning a 7 11 profitable?
Is owning a 7-Eleven profitable? In terms of profit, 7-Eleven franchise owners can average $50,000 – $75,000 for their salary. There are some reasons why some 7-Eleven franchises perform better than others that I'll explain below.
How do I become a franchisor in Singapore?
Franchises and franchise agreements There are no requirements in Singapore for franchises or franchise agreements to be registered. However, companies may choose to become registered members of the FLA, in which case they will be required to abide by the FLA's Code of Ethics.
What Businesses Can I start with 50k?
You need to have the right amount of money, equipment, and know-how to make your business succeed.What Business can i start with 50k. ... Small scale farming. ... Car washing. ... Pet sitting. ... Food business. ... Real Estate. ... Mobile Phone Shop. ... Laundry Business.More items...•
What is the best business to start in 2022?
Top 10 Startup and Small Business Ideas to Try in 2022Cleaning service. Consider starting a cleaning business if you don't mind doing the dirty work others cannot do for themselves. ... Freelance Writing Business. ... Amazon Kindle Publishing. ... Daycare. ... Pet Grooming. ... Aerial Photography. ... Build and Sell Themes Online. ... Blogging.More items...•
What franchise makes the most money?
What is the most profitable franchise to own? According to the Franchise 500 list of 2021, Taco Bell is the most profitable franchise to own. The food chain has been franchising for nearly 6 decades and is still seeking franchises worldwide. As of 2021, they have 7,567 open units.
How do franchise owners get paid?
How do franchise owners get paid? Franchise owners can pay themselves a salary or depending on their business entity, they may be able to take a draw from their accumulated equity.
What is McDonald's franchise fee?
McDonald's franchisee applicants must have a minimum of $500,000 available in liquid assets and pay a $45,000 franchise fee. Those looking to launch a new McDonald's franchise can expect to shell out between $1,314,500 and $2,306,500. Existing franchise prices can cost upwards of $1 million or more.
What does a KFC franchise cost?
For non-traditional KFC outlets, KFC charges an initial license fee of $22,500. For traditional KFC franchise agreements, the franchise (or initial license) fee is $45,000 split into the deposit fee and the option fee.
How do you get into a franchise?
How to open a franchiseDo your research. Before anything else, you must first do some research to fully understand the nature of franchising. ... Choose a franchise. ... Attend discovery day. ... Review the franchise agreement. ... Get the funding you need. ... Choose a location. ... Take the provided training. ... Prepare for opening day.
What is involved in a franchise agreement?
A franchise agreement is a contract under which the franchisor grants the franchisee the right to operate a business, or offer, sell, or distribute goods or services identified or associated with the franchisor's trademark.
What should I look for in a franchise agreement?
Important Elements of a Franchise AgreementGrant of rights. ... Relationship. ... Schedule. ... Fees. ... Personal guarantee. ... Franchise territory. ... Length of the agreement. ... Ending the agreement.More items...•
How much does it cost to open a Ya Kun franchise?
The overall cost of starting a Ya Kun franchise is approximately S$250,000.
What is franchising in Singapore?
Even if most of them set up new companies because of the financial assistance granted by the state, there are also other forms of doing business in Singapore, such as taking over an existing idea and building around it. This is called franchising and is widely spread all over the world. Singapore does not have a specific legislation governing ...
What are the elements of a franchise in Singapore?
There are 3 main elements which determine the structure of a franchise in Singapore: - the company selling the rights for the franchise, also known as the franchisor; - the entrepreneurs buying the rights for the franchise, also known as the franchisee;
What is franchise compensation?
The compensation can take the form of royalties or a compensation paid upon certain terms. The franchisee, in return, has the following obligations: - to use the technology put at his or her disposal just as required by the franchisor; - to pay the royalties or other compensations as prescribed in the agreement.
What is the role of a franchise agreement in Singapore?
The role of the franchise agreement is to establish the rights and obligations of the parties involved in the Singapore franchise company. The franchisor has the following obligations and rights: - the obligation to provide the franchisee all the know-how related to the business;
Does Singapore have a franchise law?
This is called franchising and is widely spread all over the world. Singapore does not have a specific legislation governing franchises, however, the Contract Law provides for the main elements when establishing this type of venture in the city-state and what the franchising contract must contain.
Is a franchise a company in Singapore?
It should be noted that starting a franchise business implies company registration in Singapore. The most employed structure is the limited liability company, however for smaller businesses, the sole proprietorship is also an option.
Why should I franchise my business?
For example, if you need to raise capital, franchising may be a more cost-effective method compared to selling equity or raising a loan . Franchising is also an efficient way to grow your business.
Why is franchising important?
Since your franchisee would be incentivised to properly manage and grow his franchise unit due to the significant investment of capital he has made in it, in turn, your business performance would improve.
How to protect yourself from franchisee liability?
One possible way to protect yourself from such liability is to provide in the contract that the franchisee is to indemnify you for any third-party claims made against you because of the franchisee’s acts or omissions. However, this method would be ineffective in the event that the franchisee goes bankrupt.
What happens when you register a trade mark?
When you have registered your trade mark, you will have the exclusive rights to use the trade mark and to authorise other people to use the trade mark, in relation to the goods or services for which the trade mark is registered.
Can you be held liable for franchisees?
Depending on the legal nature of your relationship with the franchisee, it is possible that you may be held vicariously liable for the acts or omissions of the franchisee, for example if the franchisee is considered to be your agent, in law.
Make Up Your Mind
Do you want to franchise or not? Franchising helps avoid employee-related concerns. Since the franchisee is employed by the franchisee, this relieves you of labor related issues such as company payroll and workers compensation insurance.
Adhere to All Local Regulatory Law Associated with Running a Franchise System
Make sure that your franchising agreement adheres to all relevant local regulatory law to ensure its validity. For instance, your franchise agreement shouldn’t encourage anti-competitive practices or the Competition Act may deem the offending provisions void.
Protection Against Legal Responsibility for Errors or Actions of Franchisees
If you are not careful, you may be held legally responsible for the acts or errors of your franchisee. One way of protecting yourself from such liabilities is stipulating in the contract that you are to be indemnified for any claims made by third-parties against you due to the franchisee’s errors or acts.
Protect Your Intellectual Property
Your intellectual property is important that’s why you should protect it through legal means. Register your trademark so that you can maximize its benefits. You can do this by licensing your trademark for use by franchisees.
Recommended Articles
How to Get into the Food Stall Business in Singapore How to start a food stall business in Singapore is just an easy task. With these tips, you are already aware on how to do business in this country.
Why invest in a franchise?
However, investing in a franchise will give you guaranteed support and guidance to overcome the hurdles facing new businesses. Take for example, Cheers, a retail franchise, they will run the business for at least one year to see the profitability of the location as well as help you in running the business.
How can entrepreneurs in Singapore increase their chances of success?
By banking on an established brand, entrepreneurs in Singapore can increase their chances of success. For example, local entrepreneurs have been the main gateway for big food industry players such as Wing Tai, Subway, among others to enter into the Singaporean market through franchising.
Why do people in Singapore like entrepreneurship?
Many Singaporeans prefer getting into entrepreneurship, for a variety of reasons such as boring office work routines, need for more time to run their life among others. With that said, there are two ways that you can get into entrepreneurship, starting a business from scratch, or choosing one of the many franchise opportunities in Singapore.
Is there a franchise in Singapore?
There is a diverse range of franchise opportunities available in Singapore, with the most popular being food chains, retail chains, education chains, consulting chains to name a few. With that said, there are many Singapore based franchises and an even higher number of foreign-based franchise opportunities. Before you settle on a franchise, you ...
Is franchising better than starting a business from scratch?
The process of choosing a franchising opportunity can be daunting and with the many requirements as described in the FDD might dampen your spirits. However, it is much better than starting a business from scratch and here are five reasons why you ought to choose a franchising opportunity in Singapore.
Why do you want to franchise a business?
Perhaps the biggest advantage of choosing a franchise is that you’ll be launching a business under an established brand, with a proven business model. This can save you the hard work of having to build up a brand from scratch. More importantly, it can help you bypass the perilous initial stage where new businesses are most likely to fail.
What does a franchisee do?
The franchisee agrees to stick to the business model, formula and rules of the franchisor, in return for the right to display and use assets such as logo, brand name and aesthetics, while marketing and selling the brand’s products and services.
How much does a franchisor charge for advertising?
This could range from several hundreds to thousands of dollars, and may be a regular or one-time fee.
How much capital do I need to start a MMI business?
If you’re interested in helping more children benefit from the MMI method, know that you’ll need nearly a million dollars in start-up capital, with initial start-up investment pegged at US$600,000, plus another US$100,000 in franchise fees.
How much does it cost to franchise Kiasu?
You’ll need about US$100,000 to begin.
What is revenue share?
Revenue share paid to the franchisor. May be a fixed amount or a portion of revenue earned.
Why is it important to order and use parent company supplies?
You will also order and use the parent company’s supplies, saving you the need to track down suppliers on your own, and dealing with storage, delivery and other logistical issues. This also helps ensure a certain quality standard in the products you sell, which is important in sectors such as F&B.
What is FLA in franchise?
Franchising and Licensing Association (FLA) Singapore - this is the official association for Singaporean franchises to register. You can get most of the information you need about Singaporean franchises here.
How many types of ramen are there in Singapore?
Ramen Ten offers new age Japanese cuisine with a twist. There are 25 different types of ramen available. It is also the first to offer 'dry ramen' in Singapore. Since its inception in 2002, Ramen Ten now has outlets all over Singapore, Malaysia, Qatar,UAE, Saudi Arabia, Kuwait, Bahrain and Oman.
How many outlets does Nanyang Old Coffee have?
Nanyang old coffee serves Singapore's traditional coffee in coffee houses that resemble the decor of old Singapore. Nanyang Old Coffee has 8 outlets all over Singapore.
Franchising Tips and Guides
A franchise is a sort of business agreement in which a firm (franchisor) hires an independent operator (franchisee) to run a stall or outlet on their behalf.
Pros of a franchise
The fact that you’ll be beginning a business under an existing brand with a proven business strategy is perhaps the largest advantage of picking a franchise. This can save you the time and effort of having to create a brand from the ground up. More importantly, it can assist you in avoiding the risky first stage, when most new enterprises fail.
Cons of a franchise
Franchisors, on the other hand, are typically adamant about their brand and image, and franchisees are required to follow a stringent set of rules and standards.
FAQs
A franchise involves a franchisor and a franchisee forming a partnership. The franchisor is the company that started it all. It offers to sell the right to utilize its name and concept. This right to sell the franchisor’s goods or services under an existing business model and brand is purchased by the franchisee.
Make Up Your Mind
Adhere to All Local Regulatory Law Associated with Running A Franchise System
- Make sure that your franchising agreement adheres to all relevant local regulatory law to ensure its validity. For instance, your franchise agreement shouldn’t encourage anti-competitive practices or the Competition Act may deem the offending provisions void. Clauses that limit trade like those that prevent the franchisee from doing a competitive b...
Similar Articles
Protection Against Legal Responsibility For Errors Or Actions of Franchisees
- If you are not careful, you may be held legally responsible for the acts or errors of your franchisee. One way of protecting yourself from such liabilities is stipulating in the contract that you are to be indemnified for any claims made by third-parties against you due to the franchisee’s errors or acts. This method, however, would not be effective in case the franchisee goes bankrupt. So, yo…
Protect Your Intellectual Property
- Your intellectual property is important that’s why you should protect it through legal means. Register your trademark so that you can maximize its benefits. You can do this by licensing your trademark for use by franchisees. When your trademark is registered, you’ll have the exclusive rights to use it and authorize other people to utilize your trademark for the services or products …
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- How to Get into the Food Stall Business in Singapore How to start a food stall business in Singapore is just an easy task. With these tips, you are already aware on how to do business in this country.
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2 Comments
- Nasir said on April 3, 2016Hi, I would like to franchise my restaurant business in Singapore but quite not sure how to proceed from here.
- Lim said on June 26, 2016@Nasir, what type of food business you're into? Do email me @ [email protected] for more discussions.