Franchising or franchise business is growing more and more in Indonesia. This scheme offered by brands from various lines of business is an attractive option for people who don’t want to be bothered with creating a new brand from scratch.
You can find these activities at the 19th Franchise License Expo Indonesia (FLEI) exhibition at Jakarta Convention Center (JCC) from 18 to 22 November 2022. About 300 franchised and licensed brands attended the event.
One of the most popular industries is food and beverage (F&B) franchising. For those of you who are interested in getting into this industry, here detik.com summarizes some interesting businesses offering franchise schemes.
1.RM Padang Payakumbuah Arief Muhammad
This business, which originated from PT Rasa Muda Makmur (Akang Group), has only existed since June 2022. Payakumbuah business analyst Della explained that people interested in opening Payakumbuah need to prepare investment costs as low as 1.45 billion of IDR.
“For the Payakumbuah franchise, it starts at IDR 1.45 billion. This includes a 5-year brand tie-in, training and mentoring services from us, training raw materials, starter raw materials (1 week), activation of the marketing, layout design, store configuration, and uniform costing,” he explained when met by detik.com at JCC, Jakarta.
These costs do not include retail outlet renovations, furniture, kitchens, eating and cooking utensils, operating costs, space rental, and advertising permits. When added up, the estimated cost could reach 4 billion rupees. Usually, investment costs outside the fixed package of Rp. 1.45 billion will be repurposed at the location of RM Padang Payakumbuah outlet.
Della also said that currently estimated sales of Payakumbuah are in the order of 1.5 billion rupees per month. Meanwhile, for day-to-day operations, the range is 20 to 25 million rupees per day. “And for the turnover, we can go up to 40-50 million rupees per day,” she continued.
Meanwhile, regarding the estimated return on investment, or break event point (BEP), Della said it could be achieved in less than a year. Partners will also be subject to profit sharing taken out of profit or net income.
“Per month there is a profit sharing with us, but it is taken from the net profit, not from the revenue. It is 70:30 for the first 2 years, then from the 3rd to the 5th year it is 50:50,” he said.
This partnership will last 5 years. Della said that if the partners wanted to extend the business contract for the Padang Payakumbuah restaurant business, they would be charged around Rp. 700 million.
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