after just about three months in operation, we decided to finally close our food cart franchise business :'( we lost money, and staff but i am sure we did learn. we felt bad of course. the staff that we had to let go were really trustworthy and hardworking people. they did not want to go back to our laundry business. and we can't hold them right? they too need a job. and so they did look for other employers.
we also tried to look for a different location where we can place our food cart. the thing is, we can't afford yet the 3 months advance and 2 months deposit. also, we still have issues with our franchisor and the product itself that we want to put it to rest first.
so what did we learn from this food cart business?
1) it doesn't mean that if you like the product -- like in our case, corn -- a lot of people will like it too.
2) don't be in a hurry.
3) take seriously the things such as: market research, product study, background check, company profiling, etc.
4) don't believe everything you see online or what you read. like in our case, MFB claims that they were awarder as the 2009 Best Filipino Foodcart Franchise Provider. base from our experience we now question their credibility. awards like this could be bought. i don't want to be mean, but our experience with them was really really that bad! we have a contract with them for 3 years. if that matters to them, or if WE the franchisor meant anything to them, they will wonder why we stopped operating right? we havent heard from them since the beginning. we do the follow ups even the repair of the cart (which was reported first day upon delivery), the signed and notarized contract, the orders, the defective items that they delivered, the poor quality of corn cobs, etc. if they are the BEST PROVIDER, how come we experience these? anyway, ill write a blog about them one of these days. one last thing, if they are the BEST, then where are the other franchisors? there is no COMMENT or TESTIMONIALS in their webpage.
5) consider all other costs such as taxes, permits, franchise fee (if any), profit share (if any), sanitation training (required for food business), other items not included in the package like the 12% VAT (MFB did not mention in their training that all items we get from them are not yet VAT inclusive), provision of fire extinguisher, garbage bags, tupperware, water, ice, and so on. little things but when summed up, will cost a lot.
6) if possible, get in touch with those people who have the same franchise and get feedback.
we also tried to look for a different location where we can place our food cart. the thing is, we can't afford yet the 3 months advance and 2 months deposit. also, we still have issues with our franchisor and the product itself that we want to put it to rest first.
so what did we learn from this food cart business?
1) it doesn't mean that if you like the product -- like in our case, corn -- a lot of people will like it too.
2) don't be in a hurry.
3) take seriously the things such as: market research, product study, background check, company profiling, etc.
4) don't believe everything you see online or what you read. like in our case, MFB claims that they were awarder as the 2009 Best Filipino Foodcart Franchise Provider. base from our experience we now question their credibility. awards like this could be bought. i don't want to be mean, but our experience with them was really really that bad! we have a contract with them for 3 years. if that matters to them, or if WE the franchisor meant anything to them, they will wonder why we stopped operating right? we havent heard from them since the beginning. we do the follow ups even the repair of the cart (which was reported first day upon delivery), the signed and notarized contract, the orders, the defective items that they delivered, the poor quality of corn cobs, etc. if they are the BEST PROVIDER, how come we experience these? anyway, ill write a blog about them one of these days. one last thing, if they are the BEST, then where are the other franchisors? there is no COMMENT or TESTIMONIALS in their webpage.
5) consider all other costs such as taxes, permits, franchise fee (if any), profit share (if any), sanitation training (required for food business), other items not included in the package like the 12% VAT (MFB did not mention in their training that all items we get from them are not yet VAT inclusive), provision of fire extinguisher, garbage bags, tupperware, water, ice, and so on. little things but when summed up, will cost a lot.
6) if possible, get in touch with those people who have the same franchise and get feedback.
7) when getting a franchise, get the one with a name. it may not be as big as McDonald's or Jollibee, but there are other companies who could really give quality products AND service; who will be true to their word when they say that they will give support.
8) it pays to pay extra.
9) to open a franchise, one should have enough money for unforseen circumstances.
10) pray. expect the worst and hope for the best.
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