This article seeks to cover the topic, franchise opportunities in China. It will be dwelling on some of the most profitable franchise opportunities and how you can own such opportunities.
Having the one of the largest consumer markets in the world, China has become the destination of choice for companies and industries interested in exploiting these benefits. Experts have said that China will eventually overtake the US economy within a decade.
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In view of these, it is only logical to ask questions on how one would be able to take advantage of business opportunities in China. Questions that might arise would be “can individuals benefit from this economic boom? Yes, you can benefit from this growth through investment opportunities. Where? You might ask. Investing in franchise opportunities in China!
1. Pizza Hut
Incorporated in 1958, it went into franchising the following year. Pizza hut is owned by the Tricon group with its parent company as the Yum! Brands Inc. and has over 120 outlets spread across China.
Among its services is the availability of family dine-ins, home or office delivery services and also the availability of take-away or carry-out as the case may be.
Pizza Hut Franchise Opportunities
Pizza Hut offers 3 variants of its franchise for investment. They include the Red Roof restaurants, Delivery Restaurants and the Delivery or Carry-out restaurants. Franchise candidates are left with the choice of choosing all the combinations or selecting a particular type or types to invest in.
Pizza Hut Franchise Financial Requirements
The financial requirement needed to buy into a Pizza Hut franchise includes an initial investment of $297,000 to $2,114,000, a Net-worth requirement of $700,000 and a Liquid Cash requirement of $350,000.
Pizza Hut Franchise Ongoing Fees
The ongoing fees required from owners of Pizza Hut include an Initial Franchise fee of $25,000, an Ongoing Royalty Fee charge of 6% and an Ad Royalty fee of 4.25%
Pizza Hut Franchise Training and Support
Pizza Hut provides on-the-job training and support for its franchisees, using state-of-the-art tools in the learning environment to provide premium services to its franchisees. Hence, after the training process, Pizza Hut franchises are fully equipped with the technical know-how on running a successful Pizza Hut restaurant.
Pizza Hut Franchise Financial Assistance
This is provided through third-party sources and also through financial institutions affiliated to Pizza Hut.
Pizza Hut Franchise Restrictions and Obligations
Although it is recommended that franchisees oversee the day to day running of their franchise, yet, this is not required. Hence, it is advised that anyone placed by the franchise owner to oversee this franchise must abide by the franchise’s terms and conditions of operations.
Trade secrets should be jealously guarded. Such an individual must have gone through the trainings on offer in order to efficiently run this franchise.
How to Join Pizza Hut Franchise?
Simply visit Pizza Hut’s franchise online portal and fill in the application form. A background check is carried out on eligibility based on the information provided. If found eligible, the franchise candidate is contacted for further discussions eventually leading to the signing of documents, with payments made. Training immediately follows after and lastly, equipments and tools are provided for commencement of business.
As the Globes most successful franchise, 70% of its outlets were opened through franchising. In China however, its operations are through a joint venture partnership with a Chinese company.
Today, McDonald’s has over 600 outlets in China. Dealing mainly in fast foods such as burgers, chickens, salads and beverages, McDonald’s provides high quality restaurant services with a well recognized global brand to its credit.
McDonald’s Franchise Financial Requirements and Start-up Costs
The financial requirements needed to own a McDonald’s franchise include the following; an Initial Investment is needed within the range of $1,003,000 to $2,228,000, and a Liquid Cash requirement of $500,000.
McDonald’s Franchise Ongoing Fees
The Ongoing Fees requirement for a McDonald’s franchise includes an Initial Franchise Fee of $45,000, an Ongoing Royalty fee of 4% and an Ad Royalty fee of 4%+
McDonald’s Franchise Financing Options
The financing options available to McDonald’s franchisees include a third-party relationship with financing sources that offer financing to cover the provision of equipments.
How to Join McDonald’s Franchise?
McDonald’s has an easy to follow procedure in joining or owning a McDonald’s franchise. Just simply visit the company’s website and go to the franchise section. There is an online form available for franchise candidates. This form is to be filled and submitted.
An eligibility test is carried out based on the information provided by the franchise candidate. Once found eligible, the franchise candidate is contacted by the company representative, and further discussions are made leading to the eventual ownership of the franchise.
Having the same parent company as Pizza Hut (Yum Brands), KFC was incorporated in 1939. It offers services in the fast food industry by preparing and selling chicken, drinks, snacks and other menu compositions preparing these with its own trade secrets owned by it.
KFC Franchise Training and Support
KFC offers its franchisees training and exceptional support. This training covers every area of operation within its franchise business. By the end of the training program, its franchisees are armed with the knowledge of successfully running their own franchises. All job roles are included in this training to give a head-start to franchise owners and to enhance the operational success.
KFC Franchise Renewal and Terms of Agreement
The terms set forth in the franchise agreement lasts a period of 20 years after which it remains inoperative. However, the renewal of this franchise agreement depends on the initial agreement signed. Once the franchise owner qualifies for a renewal, such renewal is immediately effected.
KFC Franchise Financial Requirements
KFC has a Liquid Capital requirement of $750,000, a Net-worth requirement of $1,500,000 and an investment within the range of $1,262,800 to $2,543,000. A franchise fee of $45,000 is also required.
How to Join KFC Franchise?
Simply visit the company’s web address and visit the franchise section where an online form is already available for franchise candidates. Simply fill in the form and submit. A company representative makes contact with you after having certified your eligibility. Further discussions are made to pave way for the smooth ownership of this franchise.
4. Starbucks Coffee
Commencing operations in China in 1995, Starbucks Coffee has grown to over a thousand outlets all across China, overtaking Canada as its second largest market outside the US. Although not fully in control of all its outlets in China due to joint partnership agreements with Chinese companies, it intends to gain full ownership in the near future.
Starbucks Coffee Franchise Training and Support
Starbucks provides training and ongoing support to all its franchisees. For the training, it is usually rigorous and thorough to acquaint franchisees with operational knowledge on sustainable service delivery and making profits. To achieve this, hands-on training is provided using high-tech equipment and tools to the benefit of its franchisees.
In the area of support, Starbucks Coffee makes sure that its franchisees are guided on every aspect of the business so as to enable them to perform optimally. It is usually a win-win situation for both parties.
Starbucks Coffee Financial Requirements
The financial requirements for buying a Starbucks Coffee franchise are not openly available to all, but only available on request to interested franchise candidates where details of such requirements are divulged.
How to Join Starbucks Coffee Franchise?
To own a Starbucks Coffee Franchise, visit the Starbucks online address and fill in the online form made available to franchise candidates. A Starbucks Coffee online representative contacts you after having passed the eligibility test set forth by the company using the information provided by you while filling the online form. Further discussions are made from here on.
5. Century 21
Century 21 is the franchisor of the sales organization that deals in residential real estates in the world. Being one of the largest in the world, it offers its franchisees the opportunity of owning a part of a global brand that has successfully developed into a very functional and effective network, serving its clients satisfactorily.
Century 21 Franchise Financial Requirements
The financial requirements for owning a Century 21 franchise includes an Initial Franchise fee of $12,500 to $25,000 giving its franchisees the license to use the Century 21 name in their franchises. Also, there is an Initial Investment of $22,343 to $528,285 to be met by its franchisees. It has a Royalty fee of 6% and an advertising fee of 2%.
Century 21 Franchise Agreements and Renewal Terms
Century 21 has an operational length agreement of 10 years maximum. However, franchisees can extend this only through the signing of a Term Extension Addendum.
Century 21 Franchise Training and Support
Century 21 provides trainings and supports to its franchisees the franchisees or their managers or both should attend these trainings. This of course is after the franchisee must have signed the franchise agreements form. However, these trainings are not on-the-job trainings but through various platforms such as online and periodic sales trainings.
How to Join Century 21 Franchise?
Joining Century 21 is through an online process that includes visiting the company’s website and filling the online form made available to franchise candidates. You are to fill and submit the form.
You are contacted by a Century 21 representative if you are eligible. Further discussions on other requirements are carried out and financial payments made by the new franchisee, leading to the eventual ownership of the franchise.
Above are franchise opportunities available in China and the procedures for joining them. It also makes available vital information on how they operate, thereby fore-arming the investor with the basic knowledge to help in his/her decision making.