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FAQs

1. What is franchising?
Franchising is the practice of using another firm's successful business model. The word 'franchise' is of Anglo-French derivation - from franc - meaning free. For the franchisor, the franchise is an alternative to building 'chain stores' to distribute goods that avoids the investments and liability of a chain. The franchisor's success depends on the success of the franchisees. The franchisee is said to have a greater incentive than a direct employee because he or she has a direct stake in the business.

 

2. How much interest I shall get per annum if I invest in Franchising?
We believe you better make a deposit in the bank, because banks can offer you fixed interest rate per annum. If you want to invest in Franchising we would not accept a ‘sleeping’ investor. Tealand Franchise is a tool! You must learn how to use it and utilize it on regular basis.  For instance – if you purchase construction equipment, but you have no idea what to do with it and keep it in a hangar, you can hardly expect that it will pay you back.

 

3. But shouldn’t I count on something?
Sure! Before we take a decision to sell the Franchise we thoroughly study Franchisee’s working environment and conditions. We accumulated vast experience and we implement it in practice. If we see that chosen location is not suitable for Franchise we inform a potential partner accordingly

 

4. Do you guarantee a result?
The result in each particular project is an outcome of mutual efforts. If Franchisee and Franchisor become close partners, you can safely declare that the goal is achieved. If parties position themselves as Client-Provider no matter how good is a Franchise, you will not get expected results.

 

5. Are there other payments besides Franchise fees?
Yes, in case of serving tea kiosk there are Royalties to be paid on regular basis as long as Franchise exists. As a rule Royalties are paid in a form of certain percentage from gross sales or agreed fixed amount.

 

6.Franchise or your own business path?  
Going into business for you is a major life decision. One path is to start your own business or buy an existing one. Another is to choose the franchising model and buy into a proven system with a known brand name. Each path has its own promise, as well as perils. Once the choice is made, the question becomes what type of business to choose.
The Franchisee gets an opportunity to do business under Franchisor’s trade mark, using its reputation, products and services, marketing tools and support.
Franchisee in turn shall follow rules and regulations of business conduct set by the Franchisor. Following the rules does not necessarily mean disadvantage; on the contrary, Franchisee has an excellent opportunity to earn profit and realize advantages of his investment. Franchise offers approved, tried “business recipes” that can be implemented over and over again. Franchisor shares its experience with Franchisee thus giving him a business model and operation technique, supporting him during operations.
For these very reasons Franchise is more preferable: franchisee has an opportunity to start new business avoiding otherwise inevitable mistakes, while Franchisor does not interfere with legal and commercial independence of the entrepreneur (Franchisee).

 

7. Do I need to be currently from Retail background to be accepted as a Franchisee?
Prior experience in the retail sector is desirable but not mandatory. Our franchise program is designed in such a manner that it assists a new franchisee in all the areas of operation.  

 

8. What is the term of the franchise agreement?
The initial agreement is for 5 years, with an option of  further renewal. Renewal of the agreement is subject to mutual agreement of both parties.

 

9. How long does it take to open Tealand Franchise?
After signing the formal agreement it normally takes 1- 2 months to start the entire operations.

 

10. Do I need a license to open Tealand Franchise?
No. However, you need to sign the formal legal agreement.

 

11. Do you provide any business aids?
We provide business aids, in fact we start helping you from the set up phase; we will help you from designing of the outlet and cafes, fixtures, staff recruitment and software training to help with day- to-day operations.

 

12. When can I break even?
The break-even point varies between outlets. It depends on variety of factors such as overheads and operating cost. However, the USP of this business is the faster pay-back period and the quick break- even point.

 

13. How will advertising be handled?
Local Advertisement will be done by the franchisee and International level advertisement/promotions shall be carried out by Tealand.