Franchising in Taiwan

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Franchising in Taiwan

Postby Just Jennifer » Wed Feb 14, 2018 11:22

I'm exploring a few opportunities and wonder if anyone here has experience with franchising in Taiwan. Is it as simple as starting my own Taiwan company and signing agreements with the US franchisor? I would like to be the master franchisee in Taiwan, making the opportunity available to others major cities in Taiwan, providing the training and other support.

I have read Elias Ek's book about starting a business in Taiwan. I have read as much as I can on the JusRegal site and plan to make an appointment after CNY. I've also been checking out the Invest Taiwan and FTC websites this morning.

Would appreciate any info/experiences you can share, thank you!
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Re: Franchising in Taiwan

Postby Toad » Wed Feb 14, 2018 11:55

No personal experiences, but I know a couple of people who have done it (not in Taiwan). It can be profitable, but the main issue is that franchises tend to be inherently low-margin businesses, and the fees are high relative to the typical margin. So how well you do depends almost entirely on your customer throughput, and it's not particularly rewarding; you're almost an employee paying for the privilege of being employed.

OTOH a good company will give you a lot of support in return for the fees, so it can be a good way to get business experience and learn from a mentor (albeit a rather impersonal one). The franchisor has a vested interest in ensuring you succeed, especially in a new market. On balance, though, I'd say the risks of success vs. failure aren't markedly different to striking out on your own with your own ideas.

Just one thing to bear in mind: from previous posts you seem to be a very successful person in your own right, but a franchisor may want someone with specific prior experience.
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Re: Franchising in Taiwan

Postby Just Jennifer » Thu Feb 15, 2018 10:41

Toad, thanks for sharing your thoughts. I typed a reply yesterday but must have walked away from my desk.

Good things for me to keep in mind. I've worked with this company and their leadership in the past, and we have a good rapport. What I lack most is business expertise. What little I learned twenty-five years ago is either irrelevant or forgotten.

This franchising business is a little overwhelming right now so I'm still exploring different options.
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