Sisi Gelap FRANCHISE Gerobakan! Bikin FOMO, Tapi Realitanya..

Summary

In this video, the speaker shares personal experiences with franchise businesses, particularly food carts, discussing the challenges and pitfalls of this business model. Despite the initial promise of quick profits, the speaker highlights issues such as overpromises, lack of support, poor location choices, and weak branding. Through trial and error, the speaker emphasizes the importance of thorough research, realistic expectations, operational understanding, and innovation. The video encourages viewers to critically assess franchises before committing, offering insights into the reality of running a food cart franchise and alternative strategies for success.

Takeaways

• 😀 Franchise businesses can seem like an easy way to make quick profits, but many fail within the first 1-2 years.
• 😀 A franchisee must research thoroughly before investing, particularly understanding the business model, location, and competition.
• 😀 Franchise providers often overpromise the potential earnings, which can mislead new franchisees into expecting unrealistic results.
• 😀 Insufficient support and poor follow-up from the franchisor can lead to struggles for franchisees, even if initial training is provided.
• 😀 Location selection is critical—poorly chosen sites can lead to low sales, even in supposedly strategic areas.
• 😀 Many franchisees choose businesses outside their area of expertise, which can be a recipe for failure if they don't fully understand the industry.
• 😀 A weak or unknown brand can make it hard to compete with established local businesses, leading to lower customer acquisition.
• 😀 Supply chain issues, like inconsistent product quality or lack of reliable delivery, can significantly impact franchise success.
• 😀 High employee turnover and insufficient operational support can make managing a franchise difficult, especially for beginners.
• 😀 Franchising isn't a passive income source—franchisees must continue to innovate, actively manage the business, and adapt to the market.

Q & A

What are the main challenges faced by franchise owners in the food cart business, as discussed in the script?

The main challenges include overpromises made by franchisors, insufficient support and training, poor location choices, lack of alignment with the franchisee's skills, weak brand recognition, supply chain issues, high employee turnover, and operational difficulties.

Why did the speaker choose to invest in food cart franchises despite the risks?

The speaker was influenced by the success stories of others, including a former migrant worker who achieved substantial profits. They were also motivated by the desire to create opportunities for their close family members, including their wife, younger sibling, and niece/nephew.

What was the reality of the franchising experience for the speaker and their family?

The reality was much harder than expected, with low sales and unsatisfactory profits. The speaker faced difficulties with inadequate support, poor product consistency, and high operational costs, leading to a less successful outcome than initially promised.

How did the franchisor's promises about support and training fall short?

The franchisor promised ongoing support, detailed SOPs (Standard Operating Procedures), and training, but in reality, the support was minimal. The training was limited to just one day, and there were no detailed SOPs or further assistance provided.

What role did location play in the success or failure of the food cart franchises?

Location was crucial for success, but even with what seemed like a good location (in front of a hospital undergoing expansion), the sales were still low. The speaker’s family members faced even more challenges with poorly chosen locations, impacting their ability to meet sales targets.

What are the typical risks associated with choosing the wrong franchise brand, according to the script?

Choosing a weak or unknown franchise brand can result in poor customer recognition and a lack of competitive advantage. The speaker found that the brand they chose was not well-known in their area, making it hard to compete with other well-established businesses.

What operational challenges did the speaker face when managing the food cart franchises?

Operational challenges included hiring issues, managing high employee turnover, and the difficulty of running a business with minimal help. The speaker had to subsidize initial losses to keep the business running, and the staff was often inadequate, leading to inefficient operations.

What advice does the speaker offer to anyone considering investing in a food cart franchise?

The speaker advises conducting thorough research, including checking the location and competitors, verifying the franchise’s claims, and ensuring there is genuine support and a reliable supply system. They also emphasize the need for realistic expectations and operational knowledge.

What strategies does the speaker suggest to ensure a food cart franchise is successful?

The speaker suggests doing in-depth research on the location and market, not solely relying on testimonials, and validating the franchise’s claims through real-world checks. They also recommend ensuring the franchise has robust training, clear SOPs, and operational support.

How did the speaker’s food cart franchise venture end, and what lesson can be drawn from it?

The venture ended with a buyback offer from the franchisor, where the speaker was reimbursed 70% of their investment. The lesson drawn is to be cautious when investing in low-cost franchises and to be well-prepared for the operational demands. Additionally, innovation is essential for any business to succeed.